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2017_07_27_boardThursday, July 27, 2017 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa 5:30PM A. OPENING ITEMS Subject 1. Call to Order Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Receive and File A. OPENING ITEMS Subject 2. Pledge of Allegiance Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS (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.) Subject 4. Roll Call Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 5. Ceremonial Matters and Presentations Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Subject 6. Announcement of Late Communications Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS This time has been set aside for persons in the audience to make the Board of 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 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. Subject 7. Public Comments Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Procedural B. CONSENT CALENDAR Subject 1. Approve Consent Calendar Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Consent Calendar as presented. B. CONSENT CALENDAR Costa Mesa Sanitary District Minutes of Board of Directors Study Session June 13, 2017 Members Present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members Absent None Staff Present Scott Carroll (General Manager), Noelani Middenway (District Clerk), Wendy Davis (Finance Manager), Kaitlin Tran (Senior Accountant), Rob Hamers (District Engineer), Ed Roberts (Code Enforcement Officer), Gina Terraneo (Management Analyst I) Others Present Dean Ruffridge (CR&R), Shelley Heller (CR&R) Meeting called to order at 9:33 A.M. A. OPENING ITEMS Procedural: 1. Call to Order President Scheafer called the meeting to order at 9:33 A.M. Procedural: 2. Roll Call District Clerk, Noelani Middenway, conducted roll call. All Board Members were present. Procedural: 3. Public Comments President Scheafer opened public comments. He noted that e-mail correspondence was received from Judith Marquez of Innovare Environmental regarding a request for a Supplemental Environmental Project (SEP). Seeing nobody from the public wishing to speak, President Scheafer closed public comments. B. ITEMS OF STUDY Receive and File: 1. Organics Tonnage Report Recommendation: That the Board of Directors receive and file the report. General Manager, Scott Carroll, presented the report and offered to answer any questions. He noted that the May 2017 organics tonnage surpassed the May 2016 organics tonnage. There were no questions or comments and the report was received. Subject 2. Approve the Board of Directors Study Session Meeting Minutes of June 13, 2017 Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the meeting minutes as presented. Receive and File: 2. May 2017 Code Enforcement Officer report Recommendation: That the Board of Directors receive and file the report. Code Enforcement Officer, Ed Roberts, provided report details. He noted that there were 7 scavenging investigations conducted in May. President Scheafer commented that there seems to be an increase in the transient population located near the Santa Ana River. Discussion followed regarding the transient population in Costa Mesa and areas of concentration. Mr. Roberts added that there has been a significant increase in resident concerns in regards to trash carts in public view. He noted that there were 114 cases of trash carts in public view reported in May. Discussion followed regarding the transient population located at the end of 19th Street and a prior case of trash carts in public view reported on Alabama Circle in Costa Mesa. There were no further questions or comments and the report was received. Discussion: 3. Pump Station Seismic Study Recommendation: That the Board of Directors receive and file the report. General Manager, Scott Carroll, presented report details. He noted that the District hired a consultant to conduct a Seismic Study in 2011 and that the study resulted in 5 recommended priorities for the District's pump stations. Mr. Carroll added that Priorities 1 and 2 are complete, while Priorities 3, 4, and 5 have not been fully completed due to their significant cost. Assistant Secretary Ooten noted that the Orange County Sanitation District's Operations Committee created a report detailing their plans to reduce pump station vulnerability and that District staff may want to review the report. Additionally, he suggested pursuing completion of Priority 5. Discussion followed regarding the plausibility of Priority 4. President Scheafer commented that the issue of corrosion was a common theme within the study. Mr. Carroll noted that the installation of stainless steel enclosures has been implemented to prevent corrosion. Director Perry suggested the staff consider completing Priority 3. District Engineer, Rob Hamers, noted that completing Priority 3 would be labor intensive and expensive. There were no further questions or comments and the report was received. Action (Consent): 4. Eco Challenge Program Update Recommendation: That the Board of Directors authorize the General Manager to enter into a new agreement with the Discovery Science Center for one (1) year with an option to extend for an additional year. General Manager, Scott Carroll, shared that the report was prepared by Management Analyst I, Nabila Guzman. He noted that the District has an agreement with the Discovery Science Center to provide an interactive educational program about recycling to students within the District's service area. Mr. Carroll added that staff recommends continuing the program. Secretary Schafer asked which grades the program serves. Mr. Carroll responded that the program serves 6th grade students. Director Perry suggested that the District bring up this program during the upcoming Liaison Meeting. President Scheafer asked why Davis Magnet School is not included in the list of participating schools. Discussion followed regarding the participating schools and asking Discovery Science Center to invite more schools to participate in the program. The Board of Directors directed the General Manager to enter into a new agreement with the Discovery Science Center for one year with an option to extend for an additional year. There were no further questions or discussion. Discussion: 5. Unfunded Pension Liability Payment Recommendation: The Board of Directors request staff to bring back this item to the June 22, 2017 Board Meeting for approval and appropriation of $335,647 using available funds in the Asset Replacement Fund. Finance Manager, Wendy Davis, provided report details. She explained that the District has 3 tiers of unfunded pension liabilities and noted that tier 1 has about $320,000, tier 2 has about $12,000, and tier 3 has about $3200 in unfunded liabilities. Ms. Davis added that staff is recommending paying off all three of the tiers of unfunded pension liabilities. She presented the 2016-2017 Asset Replacement Fund and suggested that the available balance of the Fund be used to pay off the unfunded pension liabilities. Ms. Davis noted that staff would like to bring the item back to the next Board Meeting to request that the Board of Directors approve a transfer of $300,000 from the Asset Replacement Fund to the Solid Waste Fund for the purpose of paying off the unfunded pension liabilities. Discussion followed regarding the equitable payment of the liability through the Solid Waste and Wastewater Funds and the impact of the recommendation on the District's California Public Employees Retirement System (PERS) costs. Ms. Davis noted that the recommendation does not guarantee that the District would not have unfunded or overfunded pension liabilities in the future. Director Perry, President Scheafer, and Assistant Secretary Ooten indicated agreement with the recommendation to pay off the District's unfunded pension liabilities. Discussion followed regarding the retirement tiers of current District staff and equipment included in the Asset Replacement Fund. The Board of Directors directed staff to bring the item back to the June 22, 2017 Board Meeting for approval and appropriation of $335,647 using available funds in the Asset Replacement Fund. There were no further questions or discussion. Discussion: 6. Earthquake and Asset Management Reserves Recommendation: The Board of Director ask staff to bring back a written policy on reserves for Board approval based on the discussion at the study session. Finance Manager, Wendy Davis, presented report details and noted that staff is requesting that the Board of Directors direct staff to bring back a written policy for the Earthquake and Asset Management Reserves. She added that staff recommends eliminating the Earthquake Reserve or moving its $1 million contents into the Asset Management Reserve. Ms. Davis explained that the contents of the Earthquake Reserve are included as unrestricted net position on the District's financial statements due to Government Accounting Standards Board (GASB) requirements, and that the District would use Asset Management Reserves in the event of an earthquake. Assistant Secretary Ooten requested that a one-page explanation be included in the budget document and Comprehensive Annual Financial Report (CAFR) explaining the District's reserves for the public's information. Ms. Davis noted that an explanation of the reserves cannot be added into the CAFR because staff applies for the Government Finance Officers Association (GFOA) award which has strict format requirements, but that staff will include it in the budget document. Secretary Schafer indicated agreement with Assistant Secretary Ooten. Director Perry suggested that the Earthquake Reserve be used to address the Priorities of the Seismic Study. Ms. Davis responded that the Earthquake Reserve can be appropriated to the Seismic Study Priorities, the Asset Management Reserve, or the purchase of the property at 2252 Fairview Road, Costa Mesa. Discussion followed regarding the appropriation of the Earthquake Reserve. President Scheafer requested that staff provide the cost estimates for completing the remaining Priorities from the Seismic Study. Ms. Davis noted that staff recommends using the Earthquake Reserve toward the purchase of the property at 2252 Fairview Road, Costa Mesa. Assistant Secretary Ooten indicated agreement and noted that the goal was to have $5 million in the Asset Management Reserve. He added that if the Earthquake Reserve was added to the Asset Management Reserve, there would be over $6 million in the Reserve. Vice President Ferryman suggested purchasing earthquake insurance with a high deductible. Discussion followed regarding earthquake insurance and the role of the Federal Emergency Management Agency (FEMA) in the event of an earthquake. The Board of Directors directed staff to eliminate the Earthquake Reserve and use its contents toward the purchase of the property at 2252 Fairview Road, Costa Mesa. Ms. Davis added that the Asset Management policy, based on the Board of Directors' direction, would maintain a $5 million balance. There were no further questions or discussion. C. CLOSING ITEMS Procedural: 1. Oral Communications & Director Comments President Scheafer asked if the Board of Directors are individually enrolled as Solid Waste Association of North America (SWANA) members. District Clerk, Noelani Middenway, responded that the Board of Directors are individual members. President Scheafer asked if any action is necessary in response to the the correspondence from Judith Marquez. Discussion followed regarding the correspondence and the Regional Water Quality Control Board. Secretary Schafer shared that the Little Hoover Commission will hold a public hearing on June 22 and the California Special Districts Association (CSDA) will attend the hearing. She added that there is an Orange County Council of Governments (OCCOG) luncheon on June 14, that CSDA is currently accepting nominations for awards, and that there is a Chamber Breakfast on June 15. President Scheafer commented that he attended the Mayor's Gala and that the Board of Directors should further analyze the benefits of contributing to the event if the District is asked for a contribution next year. He commented that there were not many opportunities to promote the District at the event. Director Perry asked when Senator Moorlach would be visiting the District and whether the District needs to post this meeting. Ms. Middenway responded that the meeting will take place on June 23 and that the meeting will be posted. Discussion followed regarding the upcoming Liaison Meeting. There were no further questions, comments, or discussion. Procedural: 2. Adjournment President Scheafer adjourned the meeting at 10:42 A.M. File Attachments minutes_2017_6_13_ss.pdf (50 KB) B. CONSENT CALENDAR Costa Mesa Sanitary District Minutes of Board of Directors Special Meeting June 22, 2017 Members present Arlene Schafer, Art Perry, Bob Ooten, James Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk), Wendy Davis (Finance Manager), Alan Burns (District Counsel), Marc Davis (District Treasurer), Robin Hamers (District Engineer) Others present None Meeting called to order at 5:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order President Scheafer called the meeting to order at 5:30 P.M. Procedural: 2. Public Comments President Scheafer opened public comments. Seeing no one wishing to speak, President Scheafer closed public comments. B. ENGINEER'S REPORTS Action: 1. Project #313 Victoria Pump Station Sewer Force Main Replacement: Accept Improvements, File Notice of Completion, Exonerate Bonds Recommendation: 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. District Engineer, Robin Hamers, provided report details and noted that Project #313 is complete. He added that horizontal directional drilling was used to complete the project. Resolution: To accept improvements as completed and file a Notice of Completion, authorize a payment of 5% retention 35 days after the Notice of Completion is recorded, exonerate a Labor and Material Bond 35 days after Subject 3. Approve the Board of Directors Special Meeting Minutes of June 22, 2017 Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the meeting minutes as presented. the Notice of Completion is recorded, and exonerate a Faithful Performance Bond one year after the Notice of Completion is recorded. Motion by Bob Ooten, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no questions or discussion. C. CLOSING ITEMS Procedural: 1. Adjourn President Scheafer adjourned the meeting at 5:31 P.M. File Attachments minutes_2017_6_22_special.pdf (32 KB) B. CONSENT CALENDAR Costa Mesa Sanitary District Minutes of Board of Directors Regular Meeting June 22, 2017 Members present Arlene Schafer, Art Perry, Bob Ooten, James Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Noelani Middenway (District Clerk), Wendy Davis (Finance Manager), Alan Burns (District Counsel), Marc Davis (District Treasurer), Robin Hamers (District Engineer) Others present None Meeting called to order at 5:31 P.M. A. OPENING ITEMS Procedural: 1. Call to Order President Scheafer called the meeting to order at 5:31 P.M. Procedural: 2. Pledge of Allegiance President Scheafer led the pledge of allegiance. Procedural: 3. Invocation Vice President Ferryman led the invocation. Procedural: 4. Roll Call District Clerk, Noelani Middenway, conducted the roll call and all Board Members were present. Procedural: 5. Ceremonial Matters and Presentations None at this time. Procedural: 6. Announcement of Late Communications None at this time. Procedural: 7. Public Comments Subject 4. Approve the Board of Directors Regular Meeting Minutes of June 22, 2017 Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the meeting minutes as presented. President Scheafer opened public comments. Seeing no one from the public wishing to speak, he closed public comments. B. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. Action (Consent): 2. Approve Board of Directors Study Session Meeting Minutes of April 11, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 3. Approve Board of Directors Special Meeting Minutes of April 14, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Approve Board of Directors Regular Meeting Minutes of April 27, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 5. Approve Board of Directors Study Session Meeting Minutes of May 9, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 6. Approve Board of Directors Special Meeting Minutes of May 12, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 7. Approve Board of Directors Regular Meeting Minutes of May 25, 2017 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 8. Approve Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. Action (Consent): 9. Approve Payroll Transparency Disclosure for May 2017 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 10. Receive and File Sewer Lateral Assistance Program (SLAP) Update for May 2017 Recommendation: That the Board of Directors receive and file this report. Action (Consent): 11. Adopt Warrant Resolution No. CMSD 2017-12 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2017-12 approving District warrants for the month of May 2017 in the amount of $1,012,315.96. Action (Consent): 12. Approve the preparation of a warrant to CR Transfer in the amount of $204,744.64 for May 2017 recycling and disposal services in the June 2017 warrant register Recommendation: Approve the preparation of a warrant to CR Transfer in the amount of $204,744.64 for May 2017 recycling and disposal services to be ratified in the June 2017 warrant register. Action (Consent): 13. Accept the occupancy count as presented as 22,518 and direct staff to prepare a warrant to CR&R Environmental Services for $220,572.82 for May 2017 collection. Recommendation: Accept the occupancy count as presented using 22,518 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2017 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,572.82 to be ratified in the June 2017 warrant list. Action (Consent): 14. Approve Investment Report for the Month of May 2017 Recommendation: That the Board of Directors approve the Investment Report for the month of May 2017. Resolution: That the Board of Directors approve the Consent Calendar as presented. Motion by Jim Ferryman, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no questions or discussion. C. PUBLIC HEARINGS - Consideration of Solid Waste Annual Charges for FY 2017-18 to be Collected with the General Taxes Presentation: 1. Presentation of Report: Consideration of Solid Waste Annual Charges for FY 2017-18 to be Collected with the General Taxes General Manager, Scott Carroll, presented the proposed solid waste assessment of $216 per year ($18 per month). He noted that the District has not increased its solid waste rate since 2006, but rather has had two decreases within that time period. Discussion followed regarding the Organics Recycling Program, the District's landfill diversion rate, and the possibility of future increases in the solid waste rate. Procedural: 2. Open Public Hearing President Scheafer opened the public hearing at 5:37 P.M. Presentation: 3. Close Public Hearing Seeing no one from the public wishing to speak, President Scheafer closed the public hearing at 5:37 P.M. Action: 4. Adopt Resolution No. 2017-897 Imposing Charges on Assessment Roll for Trash Collection Recommendation: That the Board of Directors adopt Resolution No. 2017-897 Imposing Charges on Assessment Roll for Trash Collection. Mr. Carroll noted that District residents were sent a postcard notice of the proposed rate and that the District did not receive any comments, written protests, or complaints on the matter. Resolution: To adopt Resolution No. 2017-897 Imposing Charges on Assessment Roll for Trash Collection. Motion by Art Perry, second by Jim Ferryman. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. D. PUBLIC HEARINGS - Consideration of Wastewater Annual Charges for FY 2017-18 to be Collected with the General Taxes Presentation, Procedural: 1. Presentation of Report: Consideration of Wastewater Waste Annual Charges for FY 2017-18 to be Collected with the General Taxes General Manager, Scott Carroll, presented the proposed wastewater rates. He noted that the Board of Directors approved a 5-year rate structure to increase the wastewater rates by 2% each year, and he noted that this is the final year of that rate structure. Additionally, Mr. Carroll noted that District residents were sent a postcard notice of the proposed rates and that the District did not receive any comments, written protests, or complaints on the matter. Discussion followed regarding the proposed wastewater rates in comparison with those of neighboring cities. Procedural: 2. Open Public Hearing President Scheafer opened the public hearing at 5:43 P.M. Procedural: 3. Close Public Hearing Seeing no one from the public wishing to speak, President Scheafer closed the public hearing at 5:43 P.M. Action: 4. Adopt Resolution No. 2017-898 Imposing Charges on Assessment Roll for Wastewater Collection Resolution: To adopt Resolution No. 2017-898 Imposing Charges on Assessment Roll for Wastewater Collection. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. E. GENERAL MANAGER'S REPORTS Action, Procedural: 1. Adopt Ordinance No. 118 Confirming Annual Charges for Solid Waste and Wastewater for 2017-18 Recommendation: That the Board of Directors adopt Ordinance No. 118 confirming annual charges for the Solid Waste and Wastewater for fiscal year 2017-2018. General Manager, Scott Carroll, presented Ordinance No. 118. Resolution: To adopt Ordinance No. 118 confirming annual charges for the Solid Waste and Wastewater for fiscal year 2017-2018. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no questions or discussion. Action, Procedural: 2. Adopting Ordinance No. 119 Revising the District's Capital Improvements Funding Requirements Recommendation: The Board of Directors adopt Ordinance No. 119 Revising the District's Capital Improvements Funding Requirements General Manager, Scott Carroll, presented Ordinance No. 119. Resolution: To adopt Ordinance No. 119 Revising the District's Capital Improvements Funding Requirements Motion by Arlene Schafer, second by Jim Ferryman. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no questions or discussion. Action: 3. Approve out-of-state travel for Kaitlin Tran and Lieu Tran, to attend the 2017 Accela Finance and Administration National Training in Portland, Oregon. Recommendation: That the Board of Directors approves out-of-state travel for Kaitlin Tran and Lieu Tran, to attend the 2017 Accela Finance and Administration National Training in Portland, Oregon. General Manager, Scott Carroll, presented the proposed out-of-state travel opportunity for Kaitlin Tran and Lieu Tran to attend the Accela Finance and Administration National Training in Portland, Oregon. Resolution: To approve out-of-state travel for Kaitlin Tran and Lieu Tran, to attend the 2017 Accela Finance and Administration National Training in Portland, Oregon. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no questions or discussion. Action (Consent): 4. Approve Auditor Communication Letter for Fiscal Year 2016-17 Audit Recommendation: That the Board of Directors approve and file this report. Finance Manager, Wendy Davis, presented letters from the auditors at Rogers, Anderson, Malody & Scott, LLP to the Board of Directors. Discussion followed regarding the timing of the audit and the auditing services contract. Resolution: To approve and file this report. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. Action: 5. Consider Contribution Program Application for Estancia & TeWinkle Schools Foundation 10th Annual Gala Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a sponsor to the Estancia & TeWinkle Schools Foundation 10th Annual "Moonshine & Fireflies" Gala; and 2. Describe how the expenditure will advance CMSD's purpose; and 3. Consider being a Bronze Sponsor and contribute $500 to the Estancia & TeWinkle Schools Foundation for the 10th Annual "Moonshine & Fireflies" Gala. General Manager, Scott Carroll, presented the Contribution Program Application submitted by the Estancia & TeWinkle Schools Foundation requesting a contribution of $500 for the 10th Annual Gala. He noted that the sponsorship would include a half page ad and a link to the District's website. Director Perry asked how the half page ad would be distributed. President Scheafer suggested that the District promote the Battery Recycling Program with the half page ad. Discussion followed concerning the Gala tickets and how future Contribution Program Applications should be considered in order to meet the District's contribution criteria. The Board of Directors concurred that sponsoring the Estancia & TeWinkle Schools Foundation 10th Annual Gala will advance the Districts' purpose by using the half page ad in the program to advertise the Battery Recycling program, having a link to the Districts' website on the Foundation's website to promote the Districts' function and programs, and recognition of the District in the local newspaper. Resolution: To be a Bronze Sponsor and contribute $500 to the Estancia & TeWinkle Schools Foundation 10th Annual Gala. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. Action: 6. Approve out-of-state travel for Nabila Guzman, to attend SWANA's 2017 Wastecon conference in Baltimore, Maryland. Recommendation: That the Board of Directors approves out-of-state travel for Nabila Guzman, to attend SWANA's 2017 Wastecon conference in Baltimore, Maryland. General Manager, Scott Carroll, presented the proposed out-of-state travel opportunity for Nabila Guzman to attend the Solid Waste Association of North America's 2017 Wastecon Conference in Baltimore, Maryland. Assistant Secretary Ooten inquired about the conference program. Resolution: To approve out-of-state travel for Nabila Guzman, to attend SWANA's 2017 Wastecon conference in Baltimore, Maryland. Motion by Bob Ooten, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. Action: 7. Adopt Resolution No. 2017-899 Adopting the Biennial Budget for Fiscal Years 2017-18 and 2018- 19 Recommendation: That the Board of Directors Adopt Resolution No. 2017-899 Adopting the Biennial Budget for Fiscal Years 2017-18 and 2018-19. Finance Manager, Wendy Davis, presented the Biennial Budget for Fiscal Years 2017-18 and 2018-19. She noted the proposed adoption of a deficit solid waste budget and a balanced wastewater budget. Assistant Secretary Ooten indicated concern with the adoption of a deficit budget. Discussion followed regarding the future of the District's wastewater rates. President Scheafer suggested that an Ad Hoc committee be established to discuss the District's wastewater rates (if necessary) in the future. Resolution: To adopt Resolution No. 2017-899 Adopting the Biennial Budget for Fiscal Years 2017-18 and 2018- 19. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. Action: 8. Consideration of Rescheduling or Cancelling the July 11, 2017 Study Session - Oral Report Recommendation: That the Board of Directors direct staff to reschedule the July 11, 2017 Study Session to July 18, 2017 at 9:30 A.M. General Manager, Scott Carroll, proposed that the the July 11, 2017 Study Session be rescheduled to July 18, 2017 due to several Board and staff members being out of town on July 11. President Scheafer indicated support for rescheduling the meeting to July 18, 2017. Resolution: To reschedule the July 11, 2017 Study Session to July 18, 2017 at 9:30 A.M. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. Action: 9. Approve the Transfer and Appropriation to Pay Off the District's Unfunded Pension Liability Recommendation: That the Board of Directors approve: 1. The transfer of $300,000 from the Asset Replacement Fund to the Solid Waste and Wastewater Funds, and 2. The appropriation of $100,647 in the Solid Waste Fund from Net Position to Payoff the District's Unfunded Pension Liability, and 3. The appropriation of $235,000 in the Wastewater Fund from Net Position to Payoff the District's Unfunded Pension Liability. Finance Manager, Wendy Davis, proposed that the recommended action be taken in order to pay off the District's current Unfunded Pension Liability. Secretary Schafer commented that the District will save money in the long run by taking the recommended action now. President Scheafer indicated support for the recommended action and noted that the District does not need to borrow funds in order to pay off the Unfunded Pension Liability. Resolution: To transfer $300,000 from the Asset Replacement Fund to the Solid Waste and Wastewater Funds, appropriate $100,647 in the Solid Waste Fund from Net Position to Payoff the District's Unfunded Pension Liability, and appropriate $235,000 in the Wastewater Fund from Net Position to Payoff the District's Unfunded Pension Liability. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. Action: 10. Adopt Resolution No. 2017-902 for the Election of Directors to the Special District Risk Management Authority Board of Directors Recommendation: That the Board of Directors adopt Resolution No. 2017-902 for the Election of Directors to the Special District Risk Management Authority Board of Directors. General Manager, Scott Carroll, presented the candidates for the Special District Risk Management Authority (SDRMA) Board of Directors election. President Scheafer recommended that the District cast votes for the following candidates: Mike Scheafer, Timothy Unruh, David Aranda, and Jean Bracy. Discussion followed regarding the candidates' qualifications. Resolution: To adopt Resolution No. 2017-902 for the Election of Directors to the SDRMA Board of Directors, voting for Mike Scheafer, Timothy Unruh, David Aranda, and Jean Bracy. Motion by Bob Ooten, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no further questions or discussion. Action: 11. Vote for one Candidate to represent Seat C of the California Special Districts Association and authorize President Scheafer to submit the Ballot on behalf of the District. Recommendation: That the Board of Directors vote for one candidate to represent Seat C of the California Special Districts Association Board of Directors and authorize President Scheafer to submit the ballot on behalf of the District. General Manager, Scott Carroll, presented the candidates for the California Special Districts Association (CSDA) Board of Directors election. He noted that the District's own Secretary Schafer is one of the candidates for the election. Resolution: To authorize President Scheafer to submit a vote for Arlene Schafer to represent Seat C of the CSDA Board of Directors. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no questions or discussion. F. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File Capital Improvement Projects Status Report Recommendation: That the Board of Directors receive and file this report. District Engineer, Robin Hamers, presented the Capital Improvement Project report and provided a brief overview of the projects that are near completion, including Project #316 Adams Pump Station Electrical Improvements. Director Perry asked when Project #316 would be complete. Mr. Hamers noted that Project #316 would be complete in 2-3 weeks. There were no further questions or discussion and the report was received. Action, Receive and File: 2. Receive and File District Engineer's Conflict of Interest for 335-337 16th Place, Costa Mesa, and for 2050 Charle Street, Costa Mesa Recommendation: That the Board of Directors receive and file the District Engineer's Conflict of Interest for 335-337 16th Place, Costa Mesa, and for 2050 Charle Street, Costa Mesa. District Engineer, Robin Hamers, notified the Board of Directors that he is performing private engineering work for the properties at 335-337 16th Place, Costa Mesa, and for 2050 Charle Street, Costa Mesa. There were no questions or discussion and the report was received. G. TREASURER'S REPORTS Action: 1. Adopt Resolution 2017-900 Approving the Statement of Investment Policy and Delegating the Investment Function to the Treasurer for Fiscal Year 2017-18 Recommendation: That the Board of Directors adopt Resolution 2017-900 approving the Statement of Investment Policy and delegating the investment function to the Treasurer for Fiscal Year 2017-18. District Treasurer, Marc Davis, presented Resolution 2017-900 to delegate the responsibility of investing to the District Treasurer for a one-year period. Resolution: To adopt Resolution 2017-900. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Resolution: To approve the Statement of Investment Policy and the delegation of the investment function to the Treasurer for Fiscal Year 2017-18. Motion by Art Perry, second by Jim Ferryman. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no questions or discussion. H. ATTORNEY'S REPORTS Action: 1. Adopt Resolution No. 2017-901 Making Findings Regarding the Purchase of Property at 2252 Fairview as Necessary and Property and Provide Authority to Execute Further Documents Recommendation: That the Board of Directors adopt Resolution No. 2017-901 making findings regarding the purchase of property at 2252 Fairview as necessary and proper, and pertaining to CEQA and General Plan conformance, and providing authority to execute further documents. District Counsel, Alan Burns, presented the recommendation to adopt Resolution No. 2017-901 to make findings regarding the purchase of the property at 2252 Fairview Road, provide authority for the purchase of the property, and to establish that the Board President, Board Secretary, and General Manager are authorized to sign agreements that are required to consummate the real estate transaction (subject to the Board of Directors' approval). Resolution: To adopt Resolution No. 2017-901 making findings regarding the purchase of property at 2252 Fairview as necessary and proper, and pertaining to CEQA and General Plan conformance, and providing authority to execute further documents. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There were no questions or discussion. I. 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. Information: 1. Orange County Sanitation District (OCSD) - (Vice President Ferryman) Vice President Ferryman provided an update regarding the process of redesigning OCSD's entrance. Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry noted that he and Vice President Ferryman attended the SARFPA meeting prior to today's Board Meeting. He provided an update regarding the SARFPA budget, the executive committee, and SARFPA projects. Information: 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) President Scheafer noted that he was not able to attend the last ISDOC meeting. Secretary Schafer commented regarding ISDOC's new Executive Secretary and the Executive Committee's support of her CSDA candidacy. Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer provided comments regarding Pedro Nava, the Chair of the Little Hoover Commission, who spoke at CSDA's Legislative Days conference. Information: 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) President Scheafer noted that SDRMA's Board Meeting will take place next week and that he attended the Public Agency Risk Management Association (PARMA) Conference in Phoenix, Arizona. Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Scheafer noted that he and Assistant Secretary Ooten attended the Orange County Water Summit. Assistant Secretary Ooten provided comments about the Orange County Water Summit. Director Perry noted that he, Secretary Schafer, and Assistant Secretary Ooten attended the Costa Mesa Chamber of Commerce Breakfast. J. OLD BUSINESS None at this time. K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments President Scheafer asked if CR&R has a dedicated phone line for missed trash pickups. General Manager, Scott Carroll, noted that CR&R receives calls regarding missed trash pickups through their main phone line. He added that residents can also call the District's main phone line to report missed trash pickups. Secretary Schafer shared that a transient was seen using a District trash cart in Costa Mesa. She also noted that she will be out of town from July 4 through 12. M. ADJOURN TO CLOSED SESSION Procedural: 1. Conference with Legal Counsel- Pending Litigation (Gov Code §54956.9(d)(1) President Scheafer noted that there would not be a closed session. N. CLOSING ITEMS Procedural: 1. Reconvene to Open Session and Report Procedural: 2. Adjourn President Scheafer adjourned the meeting at 6:57 P.M. File Attachments minutes_2017_6_22_rm.pdf (81 KB) B. CONSENT CALENDAR Summary This payment to CR Transfer is for the sorting of recyclables from the mixed waste and disposal of the remaining waste at the landfill. With the implementation the Organics Recycling Program adopted by the Board, this payment also includes the diverting of the organics waste to the Anaerobic Digestion facility to be recycled into fertilizer or renewable natural gas to fuel the refuse trucks. Recommendation That the Board of Directors approve the preparation of a warrant to CR Transfer in the amount of $220,455.22 for June 2017 recycling and disposal services to be ratified in the July 2017 warrant register. Analysis Below is a chart depicting the total tonnage and payments due for residential and organic waste collected in Costa Mesa and Newport Beach. Please note there was a discrepancy with billing this month, CR&R's billing system inaccurately calculated invoice totals and under billed us $46.68 but CMSD will be paying what is reflected in the invoice. Costa Mesa Newport Beach Total Residential Waste $148,387.82 $4,742.78 $153,130.60 Organics $64,160.36 $3,164.26 $67,324.62 Total Payment $220,455.22 Tonnage Residential Waste 2855.88 91.28 2947.16 Organics 897.53 44.26 941.79 Total Tonnage 3888.95 Legal Review Not Applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 27, 2017 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. Subject 5. Approve the preparation of a warrant to CR Transfer in the amount of $220,455.22 for June 2017 recycling and disposal services in the July 2017 warrant register Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Preferred Date Jul 27, 2017 Absolute Date Jul 27, 2017 Recommended Action Approve the preparation of a warrant to CR Transfer in the amount of $220,455.22 for June 2017 recycling and disposal services to be ratified in the July 2017 warrant register. B. CONSENT CALENDAR a. Directors' compensation for the month of June 2017 b. Directors' reimbursement of expenses for the month of June 2017 File Attachments a_directors_compensation.pdf (1,412 KB) b_directors_expense.pdf (853 KB) Subject 6. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as presented. B. CONSENT CALENDAR Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Legal Review Not Applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 27, 2017 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions Refer item back to staff with further instructions. File Attachments Payroll Transparency Disclosure June 2017.pdf (1,240 KB) Subject 7. Approve Payroll Transparency Disclosure for June 2017 Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve and file the report. Goals 7.0 Finance B. CONSENT CALENDAR Summary The following is a summary of the Sewer Lateral Assistance Program (SLAP) activity for the 2016-2017 fiscal year as of July 20, 2017: Adopted SLAP Budget (181 Applications) $200,000 FY 15-16 Carryover Budget (48 Applications) 54,616 Total Budget* $254,616 FY 16-17 New Applications Received = 271 Applications Processed for Payment* = 209 $198,477 Applications In Process* = 45 49,500 Available SLAP Spots Based on Funding = 0** 0 Total Projected Cost $247,977 * Funds remaining at the end of the fiscal year will be carried forward until the SLAP application is closed out or expired. ** As of June 30, 2017 no more SLAP were accepted due to the discontinuation of the program. Subject 8. Approve Sewer Lateral Assistance Program (SLAP) Update Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve and file the report. Goals 1.9 Sewer Lateral Assistance Program (SLAP) B. CONSENT CALENDAR File Attachments WARRANT RESO 2018.pdf (433 KB) Subject 9. Adopt Warrant Resolution No. CMSD 2018-1 Approving District Warrant Registers Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2018-1 approving District warrants for the month of June 2017 in the amount of $1,394,072.82. Goals 7.0 Finance B. CONSENT CALENDAR Summary The occupancy count is the number of residential customers that the District pays CR&R for the trash truck to stop at and pick-up trash carts. The District pays CR&R $9.7954 per occupant per month. Each month new residential customers in brand new developments contact the District to establish new trash service. District staff contact's CR&R to approve the drop-off of carts at the residence which results in an increase in the occupancy count as shown on the attached list. Over the years, some discrepancies have occurred in the number of total occupancies. District staff has been working with CR&R to reconcile the entire list of service addresses for the past few months. While this process in underway, the District and CR&R have agreed to freeze the occupancy count at the March 2017 level. District staff will continue to track the number of new service addresses, but the District will only pay for the total occupancy count of 22,518 until the total address list is verified. Eighteen (18) accounts have been added since the last billing period. The payment calculation is based on the following: District's Current Rate for June of 2017: 22,518 x $9.7954 = $220,572.82 Recommendation That the Board of Directors accept the occupancy count as presented using 22,518 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for June 2017 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,572.82 to be ratified in the July 2017 warrant list. Analysis Accept the occupancy count as presented using 22,518 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for June 2017 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,572.82 to be ratified in the July 2017 warrant list. Legal Review Not Applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 27, 2017 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. Alternative Actions Subject 10. Accept the occupancy count as presented as 22,518 and direct staff to prepare a warrant to CR&R Environmental Services for $220,572.82 for June 2017 collection. Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Preferred Date Jul 27, 2017 Absolute Date Jul 27, 2017 Recommended Action Accept the occupancy count as presented using 22,518 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for June 2017 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,572.82 to be ratified in the July 2017 warrant list. Goals 2.2 Annual Contract Audits 2.4 Develop Strategies for 75% Waste Diversion Refer item back to staff with further instructions. File Attachments CMSD Occupancy Report June 2017.pdf (104 KB) B. CONSENT CALENDAR Summary At the June 23, 2016 regular meeting, the Board of Directors approved vacating a portion of a CMSD sewer main, sewer manholes and sewer laterals, plus vacating the accompanying CMSD easement on assessor’s parcel number APN 415- 102-17, north of Scenic Avenue in the Harbor Gateway development. Since then, the buyer for the parcel has withdrawn from the transaction. Nevertheless, as shown in the attached email, the property owner, CJ Segerstrom and Sons, desires that CMSD continue the process of vacating the sewer main, manholes, laterals, and easement so a future buyer will have a clear area for a new building. Analysis At the July 27, 2017 regular meeting, staff will recommend that the Board of Directors: 1. Re-approve vacating the sewer facilities and easement as shown in the attached quitclaim deed. 2. Approve and record the attached quitclaim deed with the legal description and map as attachments. 3. Require the property owner to construct a new end of line sewer manhole at the northerly terminus of the remaining sewer and easement. 4. Require the property owner to enter into a Hold Harmless Agreement, attached hereto, as prepared by attorneys for both parties. 5. At the meeting, the Board advised CJ Segerstrom that they will be charged the engineering and legal fees borne by the District for this action. At the June 23, 2016 meeting, the Board determined not to charge CJ Segerstrom and Sons for the valuation of the assets due to CJ Segerstrom & Sons having constructed the sewer main, manholes, and laterals in addition to granting CMSD the easement (See attached agenda report and minutes from June 23, 2016 Board meeting). Legal Review District Counsel has approved as to form the quitclaim deed and the hold harmless agreement. Environmental Review Vacating a portion of a sewer main, manholes, and easement is categorically exempt from the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” “minor alteration of existing public or private structures”, as further described in Section (b) as “Existing facilities of both investor and publicly-owned utilities used to provide .... sewerage ...”. Financial Review The Board determined that this is not a gift of public funds since the assets were originally donated and there is value in not having to clean, maintain or replace these sewer line and manholes in the future. Therefore, these assets were written off last year per the Board's action at the June 23, 2016 Board meeting (see attached minutes). Staff will invoice CJ Segerstrom for the time spent by the District Engineer, District Counsel and staff to complete this project. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 27, 2017 Board meeting at District Headquarters and posted on the District’s website. Subject 11. Approve Vacating CMSD Sewer and Easement North of 1580-1590 Scenic Avenue Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors: 1. Re-approve vacating the sewer facilities and easement as shown in the attached quitclaim deed. 2. Approve and record the attached quitclaim deed with the legal description and map as attachments. 3. Require the property owner to construct a new end of line sewer manhole at the northerly terminus of the remaining sewer and easement. 4. Require the property owner to enter into a Hold Harmless Agreement, attached hereto, as prepared by attorneys for both parties. 5. At the meeting, the Board advised CJ Segerstrom that they will be charged the engineering and legal fees borne by the District for this action. Goals 1.0 Sewer Infrastructure Alternative Actions Refer the matter back to staff for additional information. File Attachments A - Quitclaim Deed.pdf (5,008 KB) B - Correspondance - Harbor Gateway Land Parcel.msg (32 KB) C - Draft Hold Harmless Agreement.docx (68 KB) D - Vacate 1580-90 Scenic Ave Swr Lateral 062316 BOD.pdf (1,144 KB) E- Minutes - Board Meeting 2016-06-23.pdf (23 KB) B. CONSENT CALENDAR Summary Attached is the Investment Report for the month of June 2017. As required by the District’s Statement of Investment Policy, the Investment Report delineates all investment activity during the month. 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, 2017. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 23, 2016 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, 2017, was 1.387%. The yield to maturity of the portfolio was 1.391%. The District’s weighted average interest rate was 41 basis points (0.409%) above the LAIF average monthly rate for June 2017 of 0.978%. The weighted average number of days to maturity for the District’s total portfolio was 857 days (2.35 years). The average duration of the underlying securities in LAIF as of June 30, 2017 was 194 days. 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, 2017 was 30.64%. The District has adequate cash reserves necessary to meet its obligations for the next six months. A majority of the District’s cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District’s cash and investments are as follows: Classification Description Solid Waste Fund: Operating reserve Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Designated for revenue dry period Equal to 5 months of budgeted expenditures for the fiscal year to cover the cash deficit during the period in which the District does not receive any revenue. Undesignated Currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating reserve Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for emergency preparedness Set aside for infrastructure improvements in the event of a catastrophic disaster. Reserved for capital outlay Set aside for capital improvement projects Subject 12. Approve Investment Report for the Month of June 2017 Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Investment Report for the month of June 2017. Goals 7.0 Finance approved and budgeted by the Board, but which have not yet been completed. Designated for revenue dry period Equal to 5 months of budgeted expenditures for the fiscal year to cover the cash deficit during the period in which the District does not receive any revenue. Undesignated Wasterwater funds available to be appropriated by the Board. Facilities Revolving Fund Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund Accumulation of funds in accordance with asset management model for long-term replacement of sewer pipes and related infrastructure. 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, 2017. For the year ended June 30, 2017, the portfolio earned a weighted average interest rate of 1.290%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 27, 2017 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and on the District’s website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff. File Attachments Investment Report - June 2017.pdf (332 KB) D. GENERAL MANAGER'S REPORTS Summary On May 28, 2015, the Board of Directors adopted the 2015-2020 Strategic Plan, which is a plan that establishes goals, objectives, strategies and work plans for the next five years and will help move the organization in a direction toward achieving its mission and vision. Attached is the quarterly update that demonstrates the progress staff is making toward achieving the strategic goals. Recommendation That the Board of Directors receive and file this report. Analysis 17 out of the 48 strategic goals (Strategic Goal 1.10 was cancelled) are complete. Several goals are on-going, but staff is making good progress on fulfillment (e.g. 1.4, 1.5, 1.7, 1.8, 1.9, 2.3, 2.7, 3.2, 3.4, 6.1, 6.3, 6.7 and 7.6). The next quarterly update will be presented to the Board on October 26, 2017. Legal Review Not applicable. Environmental Review The District’s Strategic Plan is a planning document and preparation and adoption of the plan itself 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. The environmental review of each of the efforts or projects outlined in the Strategic Plan will occur when the Board of Directors specifically considers each of the items since that is when the full scope of work of each effort or project will be described. Financial Review Activities described in the strategic goals are funded in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 27, 2017 Board of Directors regular meeting at CMSD headquarters (290 Paularino Avenue) and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments Qtly Progress Rpt 2016-17 - 4th Qtr.pdf (289 KB) Subject 1. Receive and File FY 2015-20 Strategic Plan Quarterly Update - 4th Quarter Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Discussion Goals 1.0 Sewer Infrastructure 2.00 Solid Waste 3.00 Partnerships 4.0 Community Outreach & Communications 5.0 Administrative Management 6.0 Personnel/Organizational Management 7.0 Finance D. GENERAL MANAGER'S REPORTS Summary On June 8, 2017, the District received a Contribution Program Eligibility Application from the Newport-Mesa Schools Foundation. The Foundation is seeking a monetary contribution of $1,000 from the District to support its State of the Schools Breakfast, which is scheduled for September 27, 2017 at Costa Mesa High School. Staff Recommendation That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Newport-Mesa Schools Foundation; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $1,000 for the State of the Schools Breakfast. Analysis According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes include properly treating sewage, preventing SSOs, and recycling. Describe how the contribution will advance the District's purpose. As stated on the Contribution Program Eligibility Application (Attachment A), the Newport-Mesa Schools Foundation is requesting a monetary contribution of $1,000 for the annual State of the Schools Breakfast. Organized by the Newport-Mesa Schools Foundation and the Newport-Mesa Unified School District, the State of the Schools Breakfast brings community members and schools together to share the accomplishments of local students and educators. According to its website, the Newport-Mesa Schools Foundation is a non-profit organization that was established 20 years ago to raise funds to augment necessary instructional programs for schools within the Newport-Mesa Unified School District. Additionally, the Foundation provides grants to teachers in order to purchase supplies and materials for innovative new programs. The District has not contributed to the Newport-Mesa Schools Foundation for the State of the Schools Breakfast in the past. However, members of the District's Board of Directors have attended the event in the past. For the requested contribution amount of $1,000, the District would receive the following: CMSD name and logo in the event program (distributed on the day of the event) CMSD name and logo on the "Thank You" section of the Newport-Mesa Schools Foundation's website CMSD name and logo on the welcome sign on the day of the event Mention of CMSD as a sponsor in the Opening Remarks during the event Subject 2. Consider Contribution Program Application for Newport-Mesa Schools Foundation's State of the Schools Breakfast Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action Preferred Date Jul 27, 2017 Absolute Date Jul 27, 2017 Fiscal Impact Yes Dollar Amount $1,000.00 Budgeted Yes Budget Source 10-100100-4420 & 20-100100-4420 (Public Information/Education/Community Promotions Sponsorships) Recommended Action That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Newport-Mesa Schools Foundation; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $1,000 for the State of the Schools Breakfast. Goals 3.2 Strengthen our ties with local governments, Special districts and educational institutions 4.0 Community Outreach & Communications 6 tickets to attend the event A "goodie bag" item from CMSD can be distributed to all event attendees Additionally, the Newport-Mesa Schools Foundation has requested CR&R's event recycling cans to recycle any water bottles used at the State of the Schools event. Legal Review Not applicable. Environmental Review The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting the District 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 Currently, there are sufficient funds available in the FY 2017-18 Public Information/Education/Community Promotions Sponsorships account for this $1,000 contribution. A total of $8,000 is budgeted for sponsorships during FY 2017-2018. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 27, 2017 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the contribution of $1,000. 2. Approve an alternative contribution amount. 3. Refer the matter back to staff. File Attachments A - Contribution Program Eligibility Application.pdf (724 KB) B - Letter from Newport Mesa Schools Foundation.pdf (412 KB) D. GENERAL MANAGER'S REPORTS Summary On June 13, 2017, the District received a Contribution Program Eligibility Application from the Harbor-Mesa Lions Club. The Club is seeking a monetary contribution of $500 from the District to support its 3rd Annual Murder Mystery Dinner, which is scheduled for Saturday, October 28, 2017. Staff Recommendation That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Harbor-Mesa Lions Club; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $500 for the 3rd Annual Murder Mystery Dinner. Analysis According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes include properly treating sewage, preventing SSOs, and recycling. Describe how the contribution will advance the District's purpose. As stated on the Contribution Program Eligibility Application (Attachment A), the Harbor-Mesa Lions Club is a non-profit organization that raises funds for the community and promotes community service. The Club contributes to local charities such as the Boys & Girls Club, Someone Cares Soup Kitchen, SOS Free Medical and Dental Clinic, Youth Employment Services, Orange Coast Interfaith Shelter, Lions Sight and Hearing Foundation, Ronald McDonald House, and more. The Murder Mystery Dinner is an all-volunteer fundraiser that benefits community organizations like these, as well as Lions Club International projects. The District did not receive a Contribution Program Application for the Murder Mystery Dinner in previous years, and thus has never contributed to this event. In regards to how the event would advance the District's purpose, Attachment A states that the Harbor-Mesa Lions Club collects recyclables at its events in order to raise money for the purpose of giving back to the community. Legal Review Not applicable. Environmental Review Subject 3. Consider Contribution Program Application for the Harbor-Mesa Lions Club Murder 3rd Annual Mystery Dinner Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action Preferred Date Jul 27, 2017 Absolute Date Jul 27, 2017 Fiscal Impact Yes Dollar Amount $500.00 Budgeted Yes Budget Source 10-100100-4420 & 20-100100-4420 (Public Information/Education/Community Promotions Sponsorships) Recommended Action That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Harbor-Mesa Lions Club; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $500 for the 3rd Annual Murder Mystery Dinner. Goals 4.0 Community Outreach & Communications The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting the District 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 Currently, there are sufficient funds available in the FY 2017-18 Public Information/Education/Community Promotions Sponsorships account for this $500 contribution. A total of $8,000 is budgeted for sponsorships during FY 2017-2018. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 27, 2017 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the contribution of $500. 2. Approve an alternative contribution amount. 3. Provide a Silent Auction item for the event in addition to or in place of a monetary contribution. 4. Refer the matter back to staff. File Attachments A - Contribution Application.pdf (250 KB) B - Letter from Harbor-Mesa Lions Club.pdf (354 KB) D. GENERAL MANAGER'S REPORTS Summary On July 19, 2017, the District received a Contribution Program Eligibility Application from Vanguard University. The University is seeking a monetary contribution of $2,500 from the District to support its 21st Annual Christmas Fantasia Concerts scheduled for December 1, 2017 at St. Andrew's Presbyterian Church in Newport Beach and December 5, 2017 at Segerstrom Center for the Arts in Costa Mesa. Staff Recommendation That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to Vanguard University; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $2,500 for the 21st Annual Christmas Fantasia Concerts. Analysis According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes include properly treating sewage, preventing SSOs, and recycling. Describe how the contribution will advance the District's purpose. As stated on the Contribution Program Eligibility Application (Attachment A), the Christmas Fantasia concert features a "renowned music and performing arts program." The University anticipates attendance of over 4,000 Orange County residents, some of which will be from the District's service area. The application proposes the following reasons that the District may benefit from sponsoring the concert event: The sponsorship may increase visibility in the community and bring brand alignment between the District and Vanguard University. Other local utilities such as Mesa Water District and AT&T are also sponsoring the concert event. Vanguard University is among the top 10 "large sewer customers" of the District. The District has a Strategic Goal (3.2) aiming to strengthen ties with educational institutions. Vanguard University is offering the following in return for a $2,500 sponsorship: Subject 4. Consider Contribution Program Application for Vanguard University's 21st Annual Christmas Fantasia Concerts Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action Preferred Date Jul 27, 2017 Absolute Date Jul 27, 2017 Fiscal Impact Yes Dollar Amount $2,500.00 Budgeted Yes Budget Source 10-100100-4420 & 20-100100-4420 (Public Information/Education/Community Promotions Sponsorships) Recommended Action That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to Vanguard University; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $2,500 for the 21st Annual Christmas Fantasia Concerts. Goals 4.0 Community Outreach & Communications 3.2 Strengthen our ties with local governments, Special districts and educational institutions 1/2 page advertisement in the concert program appear as a sponsor on all digital and printed promotional materials appear as a sponsor in the Vanguard Magazine (distributed to over 12,000 households) appear as a sponsor & feature a designated District program in social media postings 6 premium seats at the Segerstrom Center for the Arts concert on December 5, 2017 & admission to the pre- concert VIP reception at the Center Club a spotlight acknowledgement during concert events As an alternative, a sponsorship of $1,500 would provide the following: 1/4 page advertisement in the concert program appear as a sponsor on all digital and printed promotional materials appear as a sponsor in the Vanguard Magazine (distributed to over 12,000 households) appear as a sponsor & feature a designated District program in social media postings 4 premium seats at the Segerstrom Center for the Arts concert on December 5, 2017 & admission to the pre- concert VIP reception at the Center Club Last year (2016), the District provided a sponsorship of $2,500 for the Christmas Fantasia Concert and used the 1/2 page ad to promote its Christmas Tree Recycling Program. This was the first and only time the District has made a contribution to Vanguard University for this concert event. Legal Review Not Applicable. Environmental Review The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting the District 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 Currently, there are sufficient funds available in the FY 2017-18 Public Information/Education/Community Promotions Sponsorships account for this $2,500 contribution. A total of $8,000 is budgeted for sponsorships during FY 2017-2018. Last year's $2,500 Christmas Fantasia sponsorship was charged to the Organics Public Info/Ed/Community Promotions account, which had a total of $10,750 available. This account no longer exists in the FY 2017-18 budget, so this contribution would come out of the Public Information/Education/Community Promotions Sponsorships account. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 27, 2017 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the contribution of $2,500. 2. Approve an alternative contribution amount. 3. Refer the matter back to staff. File Attachments A - Contribution Program App.pdf (1,606 KB) B - Sponsor Packet 2017.pdf (5,515 KB) D. GENERAL MANAGER'S REPORTS Summary On July 18, 2017 the Board of Directors discussed this item and directed staff to bring it back to tonight's meeting for approval consideration. The District's current public service hours are Monday through Thursday from 7:30 a.m. to 4:30 p.m. and Friday from 7:30 a.m. to 3:30 p.m. Staff is recommending changing operational hours to Monday through Thursday from 7:30 a.m. to 5:00 p.m. and Friday from 7:30 a.m. to 4:00 p.m. with the District headquarters (HQ) closed every other Friday. Recommendation That the Board of Directors changing operational hours at Headquarters to Monday through Thursday from 7:30 a.m. to 5:00 p.m. and Friday from 7:30 a.m. to 4:00 p.m. with every other Friday being closed to the public. Analysis In 2004, the District moved to its own headquarters (HQ) building at 628 W 19th Street with five employees. The District was open to the public Monday through Thursday from 8:00 a.m. to 5:00 p.m. and Friday from 8 a.m. to 4:00 p.m.. The District was closed every other Friday to accommodate the small staff by providing a 9/80 schedule the employees had with the City of Costa Mesa. The 9/80 work schedule allows employees to work their 80 hours per pay period in 9 days instead of the normal 10 days, with alternating Fridays off. Originally, the 9/80 schedule was encouraged by the AQMD so that local governments would help in reducing traffic during peak periods. In 2010, the District discontinued the Friday closures and increased the customer service hours to Monday through Thursday from 7:30 a.m. to 4:30 p.m. and Fridays 7:30 a.m. to 3:30 p.m. The employees remained on the 9/80 schedule with half of the employees working one Friday and the remaining staff working the other Friday. The problem with being open every Friday is that there are only 10 full-time employees at HQ. Some of the staff, such as the General Manager and the Maintenance Assistant are not able to help customers, which may leave only one or two employees able to assist customers on a Friday and sometimes less due to various leaves (sick, vacation, bereavement, etc.). Having adequate coverage for the front office can be challenging and expensive. Even though there may not be any walk-in customers on Fridays and very few phones calls, hourly staff is required to be given two breaks as well as a lunch break, which means that someone must cover for them, such as the Finance Manager, Senior Accountant or the District Clerk. Additionally, employee's leave requests may not be approved or additional staff will have to be brought in on overtime for adequate coverage. Staff is recommending that the District close HQ every other Friday to allow for adequate coverage to serve the public and increased productivity for all employees by not having to cover for other staff. Staff has surveyed all local governments in Orange County and learned there are twenty-two agencies that close on alternate Fridays as well as some agencies that close every Friday of the month (See attached survey). In addition, with advances in technology, the District is looking into implementing online permitting or payment software, perhaps with our current software provider, to submit plans, pay fees and receive permits online without visiting HQ. The City of Newport Beach is currently in the selection process for a new Land Management (permitting) system with the system capabilities to add outside agencies for plan review. The City is open to the idea of streamlining the customer process by allowing vested agencies' to be included in the plan review workflow process. There may be some additional cost that would be attributed to CMSD, which is unknown at this time. The City of Costa Mesa is planning to update it's Land Management System to streamline its permitting process, but when that will be accomplished is unknown. In the meantime, CMSD staff is working with our IT consultant to ensure security measures are in place before the new system is implemented. Subject 5. Consider Changing CMSD Operational Hours at Headquarters Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Recommended Action That the Board of Directors approve changing the operational hours at Headquarters to Monday through Thursday from 7:30 a.m. to 5:00 p.m. and Friday from 7:30 a.m. to 4:00 p.m. with every other Friday being closed to the public Goals 6.0 Personnel/Organizational Management 6.7 Promote high employee satisfaction If a resident needs trash collection services because his/her trash cart was not picked up, the District's phone system allows them to be transferred directly to CR&R customer service. Customers can log onto the CMSD website to send an email or use the CMSD app. Staff will receive the email and then contact CR&R to schedule next day collection. Emails and the phone system are currently set up the same way for after hours wastewater related emergencies such as sanitary sewer overflows. Options: Service Hours Days Employee Hours Days 9/80 - current 7:30-4:30, 7:30-3:30 M-Th, F 7:00-4:30, 7:00-3:30 M-F off alternating Fridays 9/80 - closed alternate Friday 7:30-4:30, 7:30-3:30 M-Th, F 7:00-4:30, 7:00-3:30 M-F closed alternating Fridays 9/80 - open Fridays 7:00-5:00, 7:00-4:00 M-Th, F 7:00-5:00, 7:00-4:00* M-F off alternating Fridays 9/80 - closed alternate Friday 7:00-5:00, 7:00-4:00 M-Th, F 7:00-5:00, 7:00-4:00* M-F closed alternating Fridays 5/40 - open Fridays 8:00-5:00 M-F 8:00-5:00 M-F hour lunch *staggered start times Legal Review Not applicable Environmental Review Considering new operational hours of the headquarters is an administrative matter and is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review There will be costs for establishing any new system depending on the system, but the exact costs are unknown at this time. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 27, 2017 Board of Directors meeting at District Headquarters and on District website www.cmsdca.gov Alternative Actions 1. Keep District hours of operation the same has currently, 7:30 a.m.-4:30 p.m. M-Th and 7:30 a.m.-3:30 p.m. Friday, then close every other Friday. 2. Refer matter back to staff. File Attachments Alt Friday Off Survey.xlsx (11 KB) E. ENGINEER'S REPORTS Summary Attached is a summary of the Capital Improvement Project activities during the month. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 27, 2017 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions Refer item back to staff with further instructions. File Attachments CIP Updates July 2017 mtg.pdf (29 KB) Subject 1. Receive and File Capital Improvement Projects Status Report Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Recommended Action The Board of Directors receive and file this report. Goals 1.4 System Wide Sewer Replacement and Repair Program 1.1 Manhole Cover Maintenance Program 1.0 Sewer Infrastructure H. 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. Subject 1. Orange County Sanitation District (OCSD) - (Vice President Ferryman) Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Information H. 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. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Information H. 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. Subject 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Information H. 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. Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer) Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Information H. 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. Subject 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Information H. 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. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Information K. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Procedural L. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON AUGUST 24, 2017 IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVE, COSTA MESA, CA 92626. Subject 1. Adjourn Meeting Jul 27, 2017 - Board of Directors Regular Meeting Access Public Type Procedural