2017_05_09_studyTuesday, May 9, 2017
Board of Directors Study Session
290 Paularino Avenue, Costa Mesa
9:30AM
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 1. Roll Call
Meeting May 9, 2017 Board of Directors Study Session
Type Procedural
A. OPENING ITEMS
This time has been set aside for persons in the audience to make comments on items within the subject matter
jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the
opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered.
Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may
refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been
received. Please state your name. Each speaker will be limited to four (4) continuous minutes.
Subject 2. Public Comments
Meeting May 9, 2017 Board of Directors Study Session
Type Procedural
B. ITEMS OF STUDY
Summary
A total of 780.85 tons of organic waste were collected and recycled in April 2017.
Staff Recommendation
That the Board of Directors receive and file the report.
Analysis
Below is a graph depicting the total tonnage of organic waste collected during each month of FY 201516 and FY 2016
17.
Legal Review
Not applicable.
Environmental Review
Consideration of the Organics Tonnage Report is an administrative matter and not a disturbance of the environment
similar to grading or construction and not a project under CEQA or the District’s CEQA Guidelines.
Financial Review
Not applicable.
Public Notice Process
Subject 1. Organics Tonnage Report
Meeting May 9, 2017 Board of Directors Study Session
Type Receive and File
Copies of this report are on file and will be included with the complete agenda packet for the May 9, 2017 Board of
Directors Study Session meeting at District Headquarters and posted on the District’s website.
B. ITEMS OF STUDY
File Attachments
April 2017 CEO report.pdf (966 KB)
Subject 2. Code Enforcement Officer Report April
Meeting May 9, 2017 Board of Directors Study Session
Type
B. ITEMS OF STUDY
Summary
On July 16, 2013, the Board of Directors directed staff to implement an Alkaline Battery Recycling Pilot Program that focused on
collecting used alkaline batteries from local schools. During the first year of the program (Fiscal Year 20132014), five schools
participated and collected 4,453.9 pounds of alkaline batteries. In FY 1415, eight schools participated and 5,345 pounds of batteries
were collected. In FY 1516, nine schools participated and collected a total of 4,525 pounds of batteries. This year, a total of thirteen
schools participated and collected a total of 6,973 pounds of batteries. Staff is providing the Board of Directors with a final report of this
year's program, which took place from October of 2016 to April of 2017.
Staff Recommendation
That the Board of Directors receive and file the report.
Analysis
A total of thirteen schools within the District's service area participated in this year's program and collected a total of 6,973 pounds of
alkaline batteries. Below is a chart illustrating the participating schools ranked by the total weight (in pounds) collected per school:
Ranking School Battery Totals (in pounds)Reward
1st Place Davis Magnet School 2,749 $1,000
2nd Place Christ Lutheran 822 $600
3rd Place California Elementary 767 $400
4th Place Kaiser Elementary 453 $300
5th Place College Park Elementary 373 $300
6th Place Sonora Elementary 367 $300
7th Place St. John the Baptist 338 $300
8th Place Waldorf School 272 $300
9th Place Killybrooke Elementary 265 $300
10th Place Victoria Elementary 221 $300
11th Place (tie)Harper STEP Program 140 $300
11th Place (tie)Newport Heights Elementary 140 $300
12th Place TeWinkle School 66 $300
Total 6,973 $5,000
The program works as follows:
1. Mercury Disposal Systems, Inc. (MDS) sends two 5gallon battery recycling containers to each participating school.
Additional containers are available upon request.
2. In order to remain time and costefficient, MDS staff collects the batteries upon request from each school.
3. MDS then tags the buckets with each school’s name, weighs them, and sends District staff the total tonnage collected per
school.
4. MDS bills CR&R and CR&R bills the District for this service. This allows us to take advantage of CR&R’s low battery disposal
cost of $0.76 per pound.
5. At the conclusion of the program, a CMSD Director presents the checks to the participating schools.
*A minimum of 50 lbs. is required to receive the minimum award of $300.00. (On average, a 5gallon container of alkaline
batteries weighs about 5060 pounds.)
This year, there was a significant increase in the number of participating schools and batteries collected. Staff believes that this is due
to increased advertisement of the program through the District newsletter and increased coordination efforts with each school. The
graphs below demonstrate these increases over the past 4 years:
Subject 3. Alkaline Battery Recycling Program Final Report
Meeting May 9, 2017 Board of Directors Study Session
Type Receive and File
Goals 3.2 Strengthen our ties with local governments, Special districts and educational institutions
2.3 Comprehensive Education Program
The Alkaline Battery Recycling Program promotes recycling and environmental stewardship among local schools. It is CMSD's
hope that students will apply these principals at home, educate their families, and become good stewards of the environment.
Additionally, the program benefits the District through increased visibility within the community, the development of partnerships with
local schools, and credit towards the District's diversion rate.
Legal Review
Not applicable.
Environmental Review
The program establishes a convenient method for school children and their families dispose of batteries, ultimately preventing the
batteries from being illegally placed in the trash and making their way to landfills. As presented, the District’s Alkaline Battery Recycling
Program is not a disturbance to the environment directly or indirectly.
Financial Review
For Fiscal Year 20162017, the Battery Recycling program budget was $20,000 therefore, there are sufficient funds available to cover
the costs shown below:
Fundraiser Rewards $5,000.00
Disposal Costs ($0.76 x 6,973 lbs. of batteries)$5,299.48
Total Program Cost $10,299.48
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 9, 2017 Board of Directors Study
Session meeting at District Headquarters and posted on the District’s website.
File Attachments
Attachment A Invoice.pdf (53 KB)
B. ITEMS OF STUDY
Summary
The following represents staff’s proposed preliminary Biennial Budget for the Fiscal Years 201718 and 201819. Staff is
requesting direction from the Board on the attached preliminary budget. The twoyear budget will be brought back with
the Board's recommendations incorporated to the May 25, 2017 Board meeting. An additional Study Session has been
scheduled for May 31, 2017 if needed.
Analysis
Preliminary Budget FY 20172018:
The total preliminary budget for FY 201718 is $12,046,290. The Solid Waste Fund preliminary budget of
$6,116,690 assumes that expenses will exceed revenues by $926,690 creating a deficit which will require the use of
reserves to balance the budget. This deficit was planned to reduce reserves in the Solid Waste Fund when the Board
lowered the annual rate from $239.41 in fiscal year 20132014 to the current rate of $216. In addition to lowering the
annual rate, the Board of Directors voted to implement the Organics Program effective July 1, 2015 without increasing
rates to further reduce reserves. The Wastewater Fund reflects a balanced budget of $5,885,600 which includes the final
2% rate increase from the 2012 Sewer Rate Study adopted by the Board.
This preliminary budget does not include any new positions or changes in personnel that were not approved in the prior
fiscal year. There is a Cost of Living Adjustment (COLA) to salaries equal to the February to February Consumer Price
Index (CPI) for the OrangeLos AngelesRiverside Counties of 2.7% included, as outlined in the Employee Handbook.
Staff is requesting Capital Outlay funds for replacement and upgrades to District's servers and software of approximately
$120,000 spread over the next two years. Also, Staff has requested that monies be included in the Capital Outlay budget
for roof repairs, solar panels, ADA automatic door opener, HVAC repairs and replacements for a total $381,000.
Preliminary Budget FY 20182019:
The total preliminary budget for FY 201819 is $12,029,090. The Solid Waste Fund preliminary budget of
$6,158,090 assumes that expenses will exceed revenues by $973,090 thus creating a deficit which will require the use
of reserves to balance the budget. As mentioned above, this was a planned reduction of reserves approved by the Board
of Directors in fiscal year 20132014. The Wastewater Fund reflects a balanced budget of $5,871,000 with no rate
increase.
The 20182019 preliminary budget does not include any new positions or changes in personnel. Staff included an
estimate for the Cost of Living Adjustment (COLA) to salaries of 2.5% for budgeting proposes.
Included in the Capital Outlay budget is the second portion funds to replace and upgrade the District's servers and
software as described above, and $10,000 for a main entrance sign.
Capital Improvement Projects:
Staff is requesting $1,845,000 and $1,787,000 for Capital Improvement Projects for fiscal years 20172018 and 2018
2019, respectively. As shown on the attached Capital Improvement Project Summary, there are four projects which will
not be complete by June 30, 2017, therefore staff will request that they be carried forward. The CIP summary also
includes staff's projected CIP budget for the 20192020 fiscal year.
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.”
Subject 4. Preliminary Budget Review For FY 201718 and FY 201819
Meeting May 9, 2017 Board of Directors Study Session
Type Discussion
Goals 7.0 Finance
7.1 Perform long term solid and liquid waste rate projections
7.2 Develop a long term CIP
Financial Review
Please see the attached reports for a more detailed information.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the May 9, 2017 Board of Directors
study session meeting at District Headquarters and on District website at www.cmsdca.gov.
Alternative Actions
1. Refer the matter back to staff for additional information.
File Attachments
Preliminary Budget FY 201718 Attachment A.pdf (406 KB)
Preliminary Budget FY 201819 Attachment B.pdf (400 KB)
Preliminary CIP Attachment C.pdf (10 KB)
C. ADJOURN TO CLOSED SESSION
Conference with Real Property Negotiators (Gov Code §54956.8)
Property: 2252 Fairview Road, Costa Mesa
Agency Negotiator: Scott Carroll
Negotiating Party: Mike Johnson
Under Negotiation: Price and terms of payment
Subject 1. Conference with Real Property Negotiators (Gov Code §54956.8) Property: 2252
Fairview Road, Costa Mesa Agency Negotiator: Scott Carroll Negotiating Party: Mike
Johnson Under Negotiation: Price and terms of payment
Meeting May 9, 2017 Board of Directors Study Session
Type
D. CLOSING ITEMS
Subject 1. Reconvene to Open Session
Meeting May 9, 2017 Board of Directors Study Session
Type Procedural
D. CLOSING ITEMS
Subject 2. Oral Communications & Director Comments
Meeting May 9, 2017 Board of Directors Study Session
Type Procedural
D. CLOSING ITEMS
THE NEXT STUDY SESSION OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON
TUESDAY, JUNE 13, 2017 AT 9:30 A.M. IN THE DISTRICTS BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA.
Subject 3. Adjournment
Meeting May 9, 2017 Board of Directors Study Session
Type Procedural