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2018_04_26_board Protecting our community’s health and the environment by providing solid waste and wastewater collection services. www.cmsdca.gov Costa Mesa Sanitary District …an Independent Special District AGENDA Michael Scheafer President James Ferryman Arlene Schafer Vice President Secretary Robert Ooten Arthur Perry Assistant Secretary Director Public Comments. Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to three minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. The Deputy Clerk of the District may be contacted at (949) 645-8400. In Compliance with ADA: Contact Noelani Middenway, (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). BOARD OF DIRECTORS MEETING Thursday, April 26, 2018 5:30 P.M. 290 PAULARINO AVENUE, COSTA MESA, CA 92626 A. OPENING ITEMS 1. Call to Order – President Scheafer 2. Pledge of Allegiance – President Scheafer 3. Invocation – Vice President Ferryman 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. 6. Ceremonial Matters and Presentations Costa Mesa Sanitary District April 26, 2018 AGENDA Page 2 B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. 1. Public Comments C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. 2. Approve the Board of Directors Study Session Minutes of March 13, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. 3. Approve the Board of Directors Special Meeting Minutes of March 13, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. 4. Approve the City/Districts Liaison Committee Meeting Minutes of March 16, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. 5. Approve the Board of Directors Regular Meeting Minutes of March 22, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. 6. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. 7. Adopt Warrant Resolution No. CMSD 2018-10 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2018-10 approving District warrants for the month of March 2018 in the amount of $1,109,726.38. 8. Approve Payroll Transparency Disclosure for March 2018 Recommendation: That the Board of Directors approve and file the report. 9. Receive and File Closed Circuit TV (CCTV) Program Report Recommendation: That the Board of Directors receive and file the report. Costa Mesa Sanitary District April 26, 2018 AGENDA Page 3 10. Accept the occupancy count as presented as 22,559 and direct staff to prepare a warrant to CR&R Environmental Services for $220,974.43 for March 2018 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,559 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for March 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,974.43 to be ratified in the April 2018 warrant list. 11. Approve the preparation of a warrant to CR Transfer in the amount of $182,569.07 for March 2018 recycling and disposal services in the April 2018 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $182,569.07 for March 2018 recycling and disposal services to be ratified in the April 2018 warrant register. 12. Approve the Investment Report for the Month of March 2018 Recommendation: That the Board of Directors approve the Investment Report for the month of March 2018. 13. Receive and File 2017 Annual Health Benefits Broker Fees Report Recommendation: That the Board of Directors receive and file this report. D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Receive and File 2015-20 Strategic Plan Quarterly Update – 3rd Quarter Recommendation: That the Board of Directors receive and files this report. 2. Receive and File 3rd Quarter Budget Review for FY2017-18 Recommendation: That the Board of Directors receive and file this report. 3. Consider Approving Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach- Anaheim area of 3.6% as outlined in the Employee Handbook Recommendation: That the Board of Directors approve a Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index for the Los Angeles-Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook. 4. Consider Being a Sponsor for the City of Costa Mesa Mayor's Celebration - The Art of Leadership Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a sponsor to the Mayor’s Celebration – The Art of Leadership; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider being a Bronze Sponsor to the Mayor’s Celebration – The Art of Leadership; and Costa Mesa Sanitary District April 26, 2018 AGENDA Page 4 4. Approve budget adjustment in the amount of $2,500 to provide adequate funding for the sponsorship. 5. Consider Approving the Costa Mesa Community Run Contribution Application Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Costa Mesa Community Run; 2. Describe how the expenditure will advance CMSD’s purpose; 3. Consider contributing $500 to sponsor the Costa Mesa Community Run. 6. Consider Approving the Estancia Football Boosters Contribution Program Application Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High School Football Boosters Program; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $500 for a 3'x5' stadium banner in Jim Scott Stadium. 7. Consider Appointing Applicants for the Citizens Advisory Committee Recommendation: That the Board of Directors: 1. Each nominate up to three applicants for the Citizens Advisory Committee; 2. Consider appointing nominated applicants for the Citizens Advisory Committee; and 3. Provide District staff with direction regarding Board Member representation on the Citizens Advisory Committee. F. ENGINEER'S REPORTS 1. Receive and File Monthly Capital Improvement Projects Status Report Recommendation: That the Board of Directors receive and file the report. 2. Receive and File District Engineer's Conflict of Interest for 2183 Tustin Avenue in Costa Mesa Recommendation: That the Board of Directors receive and file the report. 3. #325 Corporate Yard Expansion - Request for Additional Funding Recommendation: The Board of Directors approves the following action: 1. Appropriate an additional $7,500 for Project #325 District Yard Expansion that will be transferred from Project#317. G. TREASURER'S REPORTS H. ATTORNEY'S REPORTS 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. 1. Orange County Sanitation District (OCSD) - (Vice President Ferryman) 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) Costa Mesa Sanitary District April 26, 2018 AGENDA Page 5 4. California Special Districts Association (CSDA) - (Secretary Schafer) 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 J. OLD BUSINESS K. NEW BUSINESS 1. Direct President Scheafer and Vice President Ferryman to vote for one of the nominees running for Orange County Local Agency Formation Commission (OC LAFCO) Regular and Alternate Special District Member Seats L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. ADJOURN TO CLOSED SESSION 1. Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager 2. Conference with Legal Counsel - Existing Litigation Government Code §54956.9(d)(1) -- 1. The Costa Mesa Sanitary District v. Mesa Water District; OCSC No. 30-2017-00923819-CU- PT-CJC N. RECONVENE TO OPEN SESSION O. CLOSING ITEMS 1. Adjourn THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON THURSDAY, MAY 24, 2018 IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Thursday, April 26, 2018 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 5:30 P.M. Public Comments: Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to four minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS Subject 1. Call to Order - President Scheafer Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Scheafer Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Ferryman Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Procedural B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject 1. Public Comments Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Procedural C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 1. Approve Consent Calendar Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Consent Calendar as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: April 26, 2018 Subject: Board of Directors Study Session Minutes of March 13, 2018 Summary The recorded minutes of the March 13, 2018 Board of Directors Study Session are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Study Session on March 13, 2018. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the April 26, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2018_3_13_ss.pdf (56 KB) Subject 2. Approve the Board of Directors Study Session Minutes of March 13, 2018 Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the meeting minutes as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: April 26, 2018 Subject: Board of Directors Special Meeting Minutes of March 13, 2018 Summary The recorded minutes of the March 13, 2018 Board of Directors Special Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Special Meeting on March 13, 2018. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the April 26, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. Subject 3. Approve the Board of Directors Special Meeting Minutes of March 13, 2018 Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the meeting minutes as presented. File Attachments minutes_2018_3_13_special.pdf (36 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: April 26, 2018 Subject: City/Districts Liaison Committee Meeting Minutes of March 16, 2018 Summary The recorded minutes of the March 16, 2018 City/Districts Liaison Committee Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the City/Districts Liaison Committee Meeting on March 16, 2018. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the April 26, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2018_3_16_liaison.pdf (44 KB) Subject 4. Approve the City/Districts Liaison Committee Meeting Minutes of March 16, 2018 Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the meeting minutes as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: April 26, 2018 Subject: Board of Directors Regular Meeting Minutes of March 22, 2018 Summary The recorded minutes of the March 22, 2018 Board of Directors Regular Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Regular Meeting on March 22, 2018. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the April 26, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2018_3_22_rm.pdf (71 KB) Subject 5. Approve the Board of Directors Regular Meeting Minutes of March 22, 2018 Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the meeting minutes as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk Date: April 26, 2018 Subject: Directors' Compensation and Reimbursement of Expenses Summary The Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses. Staff Recommendation That the Board of Directors approve the compensation and reimbursement of expenses as presented. Legal Review Not applicable. Environmental Review Consideration of the compensation and reimbursement of expenses is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the April 26, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the compensation and reimbursement of expenses as presented. 2. Direct staff to report back with more information. Subject 6. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Apr 26, 2018 - 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. File Attachments a_director_compensation.pdf (1,723 KB) b_director_expense_reimbursement.pdf (1,325 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. File Attachments WARRANT RESO 3-2018.pdf (495 KB) Subject 7. Adopt Warrant Resolution No. CMSD 2018-10 Approving District Warrant Registers Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2018-10 approving District warrants for the month of March 2018 in the amount of $1,109,726.38. Goals 7.0 Finance All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Steve Hodges, Finance Manager Date: April 26, 2018 Subject: Payroll Transparency Disclosure for March 2018 Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Staff Recommendation That the Board of Directors approve and file the report. Analysis 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 April 26, 2018 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 March 2018.pdf (1,007 KB) Subject 8. Approve Payroll Transparency Disclosure for March 2018 Meeting Apr 26, 2018 - 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 All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Steve Hodges, Finance Manager Date: April 22, 2018 Subject: Closed Circuit TV (CCTV) Program Report Summary The Closed Circuit TV (CCTV) Program Report is hereby submitted to the Board of Directors for review. Staff Recommendation That the Board of Directors receive and file the report. Analysis The following is a summary of the CCTV (Closed Circuit TV) Pilot Program activity for the 2017-2018 fiscal year as of March 31, 2018: Adopted CCTV Budget $50,000 FY 16-17 Carryover Budget 0 Total Budget $50,000 FY 17-18 New Applications Received = 140 Applications Processed for Payment = 74 $ 17,600 Applications In Process = 56 14,000 Available Spots Based on Funding = 74 18,400 Total Projected Cost $ 50,000 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 Subject 9. Receive and File Closed Circuit TV (CCTV) Program Report Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file the report. Goals 1.9 Sewer Lateral Assistance Program (SLAP) Copies of this report are on file and will be included with the complete agenda packet for the April 26, 2018 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. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: April 26, 2018 Subject: Accept the occupancy count as presented as 22,559 and direct staff to prepare a warrant to CR&R Environmental Services for $220,974.43 for March 2018 collection Summary Accept the occupancy count as presented using 22,559 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for March 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,974.43 to be ratified in the April 2018 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,559 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for March 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,974.43 to be ratified in the April 2018 warrant list. Analysis The occupancy count is the number of residential customers that the District pays CR&R for the trash truck to stop and pick-up trash. 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 contacts 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. As of March 31, 2018, total District occupancy was at 22,559, District staff will continue to track the number of new service addresses, thirty-one (31) accounts have been added since the last billing period. The payment calculation is based on the following: District's Current Rate for March of 2018: 22,559 x $9.7954 = $220,974.43 Subject 10. Accept the occupancy count as presented as 22,559 and direct staff to prepare a warrant to CR&R Environmental Services for $220,974.43 for March 2018 collection Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 22,559 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for March 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,974.43 to be ratified in the April 2018 warrant list. Goals 2.2 Annual Contract Audits 2.4 Develop Strategies for 75% Waste Diversion 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 in the complete agenda packet for the April 26, 2018 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. Alternative Actions Refer item back to staff with further instructions. File Attachments 2018-03-G CMSD Occupancy Report.pdf (20 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: April 26, 2018 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $182,569.07 for March 2018 recycling and disposal services in the April 2018 warrant register 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 approves the preparation of a warrant to CR Transfer in the amount of $182,569.07 for March 2018 recycling and disposal services to be ratified in the April 2018 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 the District by $44.30, but CMSD will be paying what is reflected on the invoice. Costa Mesa Newport Beach Total Residential Waste $131,684.67 $3,804.72 $135,489.39 Organics $44,866.04 $2,213.64 $47,079.68 Total Payment $182,569.07 Tonnage Residential Waste 2534.44 73.23 2607.67 Organics 627.68 30.96 658.64 Total Tonnage 3266.31 Legal Review Subject 11. Approve the preparation of a warrant to CR Transfer in the amount of $182,569.07 for March 2018 recycling and disposal services in the April 2018 warrant register Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $182,569.07 for March 2018 recycling and disposal services to be ratified in the April 2018 warrant register. 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 April 26, 2018 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. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Marc Davis, District Treasurer Date: April 26, 2018 Subject: Approve the Investment Report for the month of March 2018 Summary Attached is the Investment Report for the month of March 2018. As required by the District’s Statement of Investment Policy, the Investment Report delineates all investment activity during the month. Recommendation That the Board of Directors approve the Investment Report for the month of March 2018. 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 March 31, 2018. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 22, 2017 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 March 31, 2018, was 1.589%. The yield to maturity of the portfolio was 1.594%. The District’s weighted average interest rate was 7 basis points (0.065%) above the LAIF average monthly rate for March 2018 of 1.524%. The weighted average number of days to maturity for the District’s total portfolio was 760 days (2.08 years). The average duration of the underlying securities in LAIF as of March 31, 2018 was 183 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 March 31, 2018 was 33.15%. 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: 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 operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges Subject 12. Approve the Investment Report for the Month of March 2018 Meeting Apr 26, 2018 - 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 March 2018. Goals 7.0 Finance from the County of Orange. Undesignated - Remaining available cash, which is 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 Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. Undesignated - Remaining available cash, which is 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 the 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, 2018. Through March 31, 2018, the portfolio has earned a weighted average interest rate of 1.483%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 26, 2018 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 - March 2018.pdf (578 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Dyana Bojarski, Management Analyst II Date: April 26, 2018 Subject: 2017 Annual Health Benefits Broker Fees Report Summary As required by Section 1367.08 of the California Health and Safety Code and Section 10604.5 of the California Insurance Code, the Costa Mesa Sanitary District must disclose any group health insurance premiums, fees, and commissions paid to all agents, providers, and brokers. Recommendation That the Board of Directors receive and file this report. Analysis Section 1367.08 of the Health and Safety Code A health care service plan shall annually disclose to the governing board of a public agency that is the subscriber of a group contract, the name and address of, and amount paid to, any agent, broker, or individual to whom the plan paid fees or commissions related to the public agency's group contract. As part of this disclosure, the health care service plan shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. Section 10604.5 of the Insurance Code An insurer shall annually disclose to the governing board of a public agency that is the policyholder of a group health insurance policy, the name and address of, and amount paid to, any agent, broker, or individual to whom the insurer paid fees or commissions related to the public agency's group health insurance policy.As part of this disclosure, the insurer shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. Summary of Health Benefits CalPERS (California Public Employee Retirement Services) administers and negotiates rates and coverage for all District medical plans. Services provided by CalPERS includes: plan design, negotiating with medical and pharmaceutical carriers, developing and printing plan Subject 13. Receive and File 2017 Annual Health Benefits Broker Fees Report Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent), Procedural, Receive and File Recommended Action That the Board of Directors receive and file this report. Goals 5.0 Administrative Management summaries, outlines and brochures, billing, claims processing, hosting an online database for enrollments and changes, participant appeals and grievances, website design and maintenance, and free workshops/seminars for employers, employees, and retirees. All non-medical health plans which include dental, vision, life, long-term disability, voluntary AD&D, and other individual plans such as accident, and short-term disability are administered and/or brokered by SDRMA (Special District Risk Management Authority) and Aflac (American Family Life Assurance Company). Services provided by SDRMA and Aflac include: plan design options, negotiating rates and benefits with carriers, legal and compliance updates and advice, open enrollment support, assistance with claims processing and resolution, free workshops and seminars to staff. Although the District obtains non-medical health plans through SDRMA, the disclosure codes do not apply because the agency administers the non-medical programs through the California State Associations of Counties Excess Insurance Authority (CSAC-EIA Health); it does not contract directly with brokers or insurance carriers of the Health Benefit Programs. Agent, Broker or Individuals Paid in 2017 Medical Broker/Administrator Non-Medical Broker/Administrator CalPERS 400 Q Street Sacramento, CA 95811 AFLAC 1932 Wynnton Road Columbus, GA 31999 Plan Year Broker/AdministratorCoverage Premiums Total Fees/Commissions % of Premiums 2017 CalPERS Medical $134,077.81$513.23 .38% 2017 Aflac Non- medical $9,830.65 $624.26 6.4% The 2017 CalPERS Total Fees/Commissions amount was $513.23 and the percentage of premiums was .38%. The 2017 Aflac Total Fees/Commissions amount was $624.26 and the percentage of premiums was 6.4%. Legal Review Not applicable. Environmental Review Disclosure and discussion of group health insurance premiums, fees, and commissions paid to agents or providers are administrative matters and not a disturbance of the environment similar to grading or construction and the discussion is not a project under CEQA or the District’s CEQA Guidelines. Financial Review The District paid a total of $143,908.46 in premiums for medical and non-medical expenses and $1,137.49 for fees and commissions in 2017. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 26, 2018 Board of Directors regular meeting at District headquarters and on the District's website. Alternative Actions Direct staff to report back with more information. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: April 26, 2018 Subject: Receive and File 2015-20 Strategic Plan Quarterly Update - 3rd Quarter 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 21 out of the 48 strategic goals (Strategic Goal 1.10 was canceled) are complete. Several goals are on-going, but staff is making good progress on fulfillment. The next quarterly update will be presented to the Board on July 26, 2018. 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 April 26, 2018 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 Subject 1. Receive and File 2015-20 Strategic Plan Quarterly Update - 3rd Quarter Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Board of Directors receive and files this report. 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 Qtly Progress Rpt 2017-18 - 3rd Qtr.pdf (310 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Steve Hodges, Finance Manager Date: April 26, 2018 Subject: Receive and File the 3rd Quarter Budget Review for FY2017-18 Summary This report serves as a summary of the District’s spending through March 31, 2018 as well as staff’s best estimate of projected balances for the year-ending June 30, 2018. Staff Recommendation That the Board of Directors receive and file this report. Analysis Based on the spending trends through March 31, 2018, staff is projecting a savings in both the Solid Waste and Wastewater Funds. As of March 31, 2018 a total of 65% of the Solid Waste budget for the 2017-18 fiscal year has been expended. Staff estimates the Solid Waste Fund will be under budget by approximately 4%. Over the last four years, the Solid Waste Fund has been operating with a unbalanced budget. In order to cover expenses, reserves have been utilized. The Districts current policy is to keep reserve levels at or above 30% of its operating budget. It was originally forecasted that the District would need to increase rates starting in FY 2020 in order to keep reserves at the 30% level. However, based on the savings achieved in FY 2017 and the projected savings in FY 2018, projections are indicating that a rate increase won't be necessary until FY 2022. A total of 62% of the Wastewater Fund’s operating budget has been expended as of March 31, 2018. At this time, staff anticipates a budgetary savings of approximately 10% at fiscal year-end. Overall, Wastewater Fund spending (excluding CIP) is projected to be approximately 7% higher than it was in FY 2017. This is primarily due to the purchase of property needed to expand the district yard. Please see the attached report for a more detailed analysis. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 26, 2018 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Subject 2. Receive and File the 3rd Quarter Budget Review for FY2017-18 Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report. Goals 7.6 Monitor the asset management program 7.0 Finance Alternative Actions 1. Refer the matter back to staff for additional information. Attachments A: FY 2017-18 3rd Quarter Budget Analysis B: Expenditure Analysis through 3/31/2018 C: Solid Waste Fund Projections through FY 2021 File Attachments FY2017-18 3rd Quarter Budget Analysis.docx (40 KB) Expenditure Analysis Through 3.31.18.pdf (78 KB) Solid Waste Fund Projections.pdf (1,238 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Steve Hodges, Finance Manager Date: April 26, 2018 Subject: Approve Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook Summary In June 2017, the Board adopted Resolution No. 2017-899 which approved the biennial budget for Fiscal Years 2017-18 and 2018-19. As part of the FY 2018-19 adopted budget, staff estimated and included a 2.5% Cost of Living Adjustment (COLA). Per Policy 2.2 in the Employee Handbook, all district employees receive a salary adjustment equal to the February to February Consumer Price Index (CPI) with the approval of the Board effective July 1 of each year.. The February Los Angeles-Long Beach-Anaheim CPI came in at 3.6%. Recommendation That the Board of Directors approve a Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index for the Los Angeles-Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook. Analysis The February Los Angeles-Long Beach-Anaheim CPI of 3.6% came in 1.1% higher than what the board approved for the FY 2018-19 budget. The 1.1% increase would result in an approximate $20,000 increase to the FY 2018-19 budget. As with all salary expenses, this expense will compound and carry into future budget years. Legal Review Not applicable Environmental Review Subject activity is exempt from 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 It is anticipated that the District will have sufficient Salary and Benefit savings from FY 2017-18 to carryover and cover the additional estimated $20,000 in expenses to the FY 2018-19 budget. Therefore, no additional appropriations will be needed to cover this expense. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 26, 2018 Board of Directors regular meeting at District Headquarters and on the District's website at www.cmsdca.gov. Alternative Actions 1. Approve Cost of Living Adjustment (COLA) to salaries in FY 2018-19 of 2.5%, equal to what was adopted with the biennial budget. Subject 3. Consider Approving Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve a Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index for the Los Angeles- Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook. Goals 7.0 Finance 6.7 Promote high employee satisfaction 2. Do not approve a Cost of Living Adjustment (COLA) to salaries in FY 2018-19. File Attachments CPI February 2018.pdf (75 KB) Employee Handbook - page 45.pdf (109 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: April 26, 2018 Subject: Consider Being a Sponsor for the City of Costa Mesa Mayor's Celebration - The Art of Leadership Summary On May 17, 2018, the fifth annual Costa Mesa Mayor’s Celebration - The Art of Leadership will be at the Segerstrom Center for the Arts to communicate the necessity of arts education as a critical component of a complete and successful education. The Art of Leadership is seeking sponsorships to raise funds for the arts program at Costa Mesa High School and Estancia High School Arts. Recommendation That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a sponsor to the Mayor’s Celebration – The Art of Leadership; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider being a Bronze Sponsor to the Mayor’s Celebration – The Art of Leadership; and 4. Approve budget adjustment in the amount of $2,500 to provide adequate funding for the sponsorship. Analysis For the sixth consecutive year, the Costa Mesa Chamber of Commerce, Segerstrom Center of the Arts and South Coast Metro is sponsoring the Mayor's Celebration - The Art of Leadership. The goal is to raise money to support and provide visual and performing arts education programs to Costa Mesa high schools. The group is seeking different levels of sponsorships that range from Platinum Sponsor ($20,000) to Bronze Sponsor ($2,500). CMSD has sponsored this event three times (2013, 2014 and 2017) as a Bronze Sponsor. In 2018, Bronze Sponsors will receive the following for their contribution: Preferred Seating: Six Tickets Company Name on: Invitation Event Program Post Event Thank You Card Listed in Media Releases Introduction at May 17 event Subject 4. Consider Being a Sponsor for the City of Costa Mesa Mayor's Celebration - The Art of Leadership Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $2,500.00 Budgeted No Recommended Action That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a sponsor to the Mayor’s Celebration – The Art of Leadership; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider being a Bronze Sponsor to the Mayor’s Celebration – The Art of Leadership; and 4. Approve budget adjustment in the amount of $2,500 to provide adequate funding for the sponsorship. Goals 3.00 Partnerships 3.2 Strengthen our ties with local governments, Special districts and educational institutions Name on Event-Sponsor Event Video Recognized on City of Costa Mesa, Costa Mesa Chamber of Commerce & South Coast Metro website with links to Sponsor Websites. Attachment “B” is a memo from District Counsel about the gift of public funds and expenditures for a proper public purpose. On July 31, 2013, The Board approved new procedures to determine if the District can officially sponsor events and/or non-profit organizations. Before the District can be a sponsor, the Board must follow the following procedures. Establish the purpose CMSD is trying to serve by being a sponsor. This must be a purpose established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes are to properly treat sewage, to prevent SSOs, to reduce landfill dumping, and to recycle. Attachment C is a prepared chart to assist the Board in making the determination to sponsor this event. Then, describe how the expenditures will advance CMSD’s purpose. Legal Review Attachment "B" is District Counsel legal review for making contributions to special events. Environmental Review Participation in the City of Costa Mesa Mayor's celebration is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or CMSD's CEQA Guidelines. Financial Review To be a Bronze Sponsor will cost $2,500. This cost is not currently budgeted. In order to provide adequate funding, the following budget adjustment is required. Solid Waste Fund Account Account Number Increase Decrease Public Info/Ed/Community Promo-Board 10-100100-4420 $1,250 Public Info/Ed/Community Promo-Trash 10-100800-4420 $1,250 Wastewater Fund Staff believes there are sufficient funds available to cover the additional $1,250 in the Wastewater Fund Public Info/Ed/Community Promo-Board account (20-100100-4420) if the sponsorship is approved. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 26, 2018 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and on District’s website (www.cmsdca.gov). Alternative Actions 1. Consider being a Silver Sponsor at $5,000. 2. Do not approve being a sponsor at the Mayor's Celebration - The Art of Leadership. 3. Refer the matter back to staff. File Attachments 2018 The Art of Leadership.pdf (2,147 KB) Attachment B - District Counsel Memo.pdf (85 KB) Attachment C - Gift of Public Funds Determination Chart.pdf (83 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: April 26, 2018 Subject: Consider Approving the Costa Mesa Community Run Contribution Program Application Summary On July 31, 2013, the Board of Directors approved implementing new procedures for sponsoring organizations and/or events. Staff is presenting the Board of Directors with a CMSD Contribution Program Eligibility Application to sponsor the Costa Mesa Community Run (CMCR) on September 23, 2018. Recommendation That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Costa Mesa Community Run; 2. Describe how the expenditure will advance CMSD’s purpose; 3. Consider contributing $500 to sponsor the Costa Mesa Community Run. Analysis On July 31, 2013, the Board of Directors approved procedures to determine whether the District can officially sponsor events and/or non- profit organizations. Before the District can be a sponsor, the Board of Directors must follow these procedures: Establish the purpose the District is trying to serve by being a sponsor. 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 are to properly treat sewage, to prevent SSOs, to reduce landfill dumping, and to recycle. Describe how the expenditures will advance CMSD’s purpose. The District made the following contributions to the CMCR in previous years: 2013 - $250 2014 - $1000 2015 - $500 2016 - $500 2017 - $500 Subject 5. Consider Approving the Costa Mesa Community Run Contribution Program Application Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action Dollar Amount $500.00 Budget Source 10-100100-4420 & 20-100100-4420 (Public Information/Education/Community Promotions Sponsorship) Recommended Action That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Costa Mesa Community Run; 2. Describe how the expenditure will advance CMSD’s purpose; 3. Consider contributing $500 to sponsor the Costa Mesa Community Run. Goals 3.5 Participate in community groups and civic organization activities 3.00 Partnerships CMCR's proceeds benefit schools in Costa Mesa that support enrichment programs and provide funding for supplemental books and science equipment. Over the years, CMCR contributions have raised over $165,000 for Costa Mesa schools. The event organizers expect a large turnout on Sunday, September 23, 2018 and have indicated that a majority of the attendees are from Costa Mesa. In the past, the District has established the purpose of sponsoring this event as an effort to increase community outreach and to promote District programs. Specifically, the District can promote recycling by hosting its annual "Count the Cans" contest. Each year, CR&R brings a truck carrying a large bale of aluminum cans and event attendees attempt to guess how many cans are in the bale. This activity attracts residents to the District's booth and allows staff to engage with residents about the District's solid waste programs. As a sponsor at the $500 level, the District will have its logo placed on the back of the race t-shirt, a link to the District website from the CMCR website, media recognition, display of a banner, a complimentary booth, and 2 complimentary run entries. Sponsorship Levels: $10,000 Title Sponsor $5,000 Run Sponsor $2,500 Gold Sponsor $1,000 Silver Sponsor $500 Bronze Sponsor - STAFF RECOMMENDATION $250 Team Sponsor -Pre event visibility -Assist with race start -Name/logo on front of race tee -Webpage link -Media recognition -Name on race bibs -Company provided banner displayed -Comp EXPO booth -10 comp race entries -Advertised as "RUN" sponsor -Assist with race start -Name/logo on arm of race tee -Webpage link -Media recognition -Company provided banner displayed -Comp EXPO booth -8 comp race entries -Name/logo on back of race tee -Webpage link -Media recognition -Company provided banner displayed -Comp EXPO booth -6 comp race entries -Name/logo on back of race tee -Webpage link -Media recognition -Company provided banner displayed -Comp EXPO booth -4 comp race entries -Name/logo on back of race tee -Webpage link -Media recognition -Company provided banner displayed -Comp EXPO booth -2 comp race entries -Up to 10 race entries to be used to create a "team" 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 a District recycling program is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review There are sufficient funds budgeted in the Public Information/Education/Community Promotions Sponsorship account to cover the cost of sponsoring the Costa Mesa Community Run. Staff recommends a $500 sponsorship in order to remain consistent with prior years and to allow for other anticipated sponsorship requests prior to the end of the fiscal year (Concerts in the Park, high school football banners, etc.). The sponsorship would be split equally between the Solid and Wastewater Funds (10-100100-4420 and 20-100100-4420). There is a total of $3472.22 remaining in the sponsorship budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the April 26, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Determine that no purpose exists for sponsoring the Costa Mesa Community Run. 2. Approve an alternative sponsorship amount. 3. Refer the matter back to staff. File Attachments Community Run Contribution Application.pdf (2,279 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: April 26, 2018 Subject: Consider Approving the Estancia Football Boosters Contribution Program Application Summary On April 3, 2018, the District received a Contribution Program Eligibility Application from the Estancia High School Football Boosters Program. The program is seeking a monetary contribution of $500 from the District to continue hanging a 3' by 5' CMSD banner at Jim Scott Stadium. Staff Recommendation That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High School Football Boosters Program; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $500 for a 3'x5' stadium banner in Jim Scott Stadium. 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. Jim Scott Stadium at Estancia High School is a widely used facility for high school athletics such as football (varsity and freshman games), soccer, and track and field. Amateur Athletic Union (AAU) football, formerly known as Pop Warner Football, also plays in Jim Scott Stadium every Saturday during football season and the field is used for the annual senior class graduation ceremony. Due to the significant number of activities that occur at Jim Scott Stadium, staff believes that the 3’ x 5’ banner promoting organics recycling will continue to be beneficial to the District. The banner is already made and is currently displayed in the stadium in a highly visible location, Subject 6. Consider Approving the Estancia Football Boosters Contribution Program Application Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action Dollar Amount $500.00 Budgeted Yes Budget Source 10-100100-4420 (Public Information/Education/Community Promotions Sponsorship) Recommended Action That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High School Football Boosters Program; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $500 for a 3'x5' stadium banner in Jim Scott Stadium. Goals 4.0 Community Outreach & Communications 3.2 Strengthen our ties with local governments, Special districts and educational institutions as pictured in the attachment. If the Board of Directors wishes to change the banner, staff can develop a new design to promote a different District program, such as the CCTV program or the Large Item Pickup program. 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 a District recycling program is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review There are sufficient funds budgeted in the Public Information/Education/Community Promotions Sponsorship account to cover the cost of sponsoring the stadium banner. Staff recommends a $500 sponsorship in order to remain consistent with prior years and to allow for other anticipated sponsorship requests prior to the end of the fiscal year (Concerts in the Park, Costa Mesa High School football banner, etc.). If it is determined that the banner will promote a solid waste program, such as the Organics Recycling Program, the sponsorship will be charged to the Solid Waste Fund (10-100100-4420), which currently has a remaining $1,497.22. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the April 26, 2018 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 to continue hanging a CMSD banner at Jim Scott Stadium. 2. Approve an alternative sponsorship amount of $100, $150, $250, or $500 for an advertisement in the Estancia Football Program. 2. Refer the matter back to staff. File Attachments Contribution Application.pdf (395 KB) 2018 Estancia Football Advertising Program Form.pdf (434 KB) Estancia Organics Banner Photo.jpg (5,733 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: April 26, 2018 Subject: Consider Appointing Applicants for the Citizens Advisory Committee Summary On October 26, 2017, the Board of Directors approved the formation of a Citizens Advisory Committee (CAC) to give residents within the District's service area an opportunity to become more involved in the community by advising the Board of Directors on key issues, programs, and policies. As of April 16, 2018, the District has received eleven (11) applications for the CAC and the Board of Directions is being asked to nominate and consider appointing applicants to the CAC. Additionally, the Board of Directors can discuss and provide direction regarding Board Member representation on the CAC. Recommendation That the Board of Directors: 1. Each nominate up to two (2) applicants for the Citizens Advisory Committee; 2. Consider appointing nominated applicants for the Citizens Advisory Committee; and 3. Provide District staff with direction regarding Board Member representation on the Citizens Advisory Committee. Analysis The Citizens Advisory Committee (CAC) will provide recommendations to the Board of Directors on key issues, evaluate the effectiveness of current programs and policies, and assist in formulating new programs and policies. It will consist of up to eleven (11) District residents and a total of six (6) members will constitute a quorum. CAC meetings will be considered public meetings. They will be video-recorded and placed on the District's website and Board Docs for public viewing. Additionally, the CAC will conduct its meetings in accordance with Robert's Rules of Order and the Ralph M. Brown Act. CAC members have been invited to attend the District's upcoming Citizens Environmental Protection Academy (CEPA) in order to become more acquainted with the District's functions and its partner organizations. Currently, eight (8) out of the eleven (11) applicants have indicated that they will be attending at least one tour within the series. As CEPA attendees, they have the opportunity to embark on tours of the District's headquarters, the District's LEED Certified Yard Facility, CR&R's Materials Recovery Facility, Orange Coast College Recycling Center, Orange County Sanitation District's (OCSD) treatment facilities, and Orange County Water District's (OCWD) Groundwater Replenishment System (GWRS). Upon the committee's commencement, the CAC will elect members to serve as Chair and Vice Chair, each for a two-year term. Once the CAC's Chair and Vice Chair are elected, the CAC Chair will meet and consult with the Board President and General Manager to Subject 7. Consider Appointing Applicants for the Citizens Advisory Committee Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action, Discussion Preferred Date Apr 26, 2018 Absolute Date Apr 26, 2018 Recommended Action That the Board of Directors: 1. Each nominate up to two (2) applicants for the Citizens Advisory Committee; 2. Consider appointing nominated applicants for the Citizens Advisory Committee; and 3. Provide District staff with direction regarding Board Member representation on the Citizens Advisory Committee. Goals 4.0 Community Outreach & Communications 3.00 Partnerships determine the District's goals and objectives for the following year and convey those needs to the CAC. The CAC will then develop the goals for the coming year and then forward their recommendations to the Board for final approval. These goals may be modified at any time by the Board. Additionally, the Board may at any time ask the CAC to undertake specific assignments, appoint Special Committees, or comment on particular issues. CAC recommendations will be submitted to the Board no later than 30 days after approval, except when the item under consideration is delayed due to unforeseen circumstances. The CAC Chair, or designee, will submit all recommendations to the Board, and will include the number of CAC members present and the number of votes for or against a recommendation. The CAC will meet on an as-needed basis and the CAC Chair, or designee, shall report information regarding the CAC and its activities to the Board on an as-needed basis. CAC discussion topics may include, but are not limited to, the following: Voting districts (at large or by-district) New and/or existing solid waste diversion programs Wastewater operations, including pipeline cleaning and pump station maintenance Strategic Plan goals Policies and procedures Finance Community outreach Solid waste and wastewater rates At this time, the District has received eleven (11) applications for the CAC. These applications are attached to the staff report for the Board of Directors to review and consider for appointment. Per Administrative Policy No. 60.00, "Appointments will be announced publicly at a regular Board of Directors meeting where each Board member will recommend at least one applicant for appointment." Each Board Member must nominate at least one applicant for appointment, but each Board Member can nominate up to two applicants. Additionally, staff is seeking direction regarding Board Member representation on the CAC. The CAC Handbook states the following: "The President shall designate one member of the Board of Directors to serve one year as a non-voting liaison to the CAC." Legal Review District Counsel has reviewed this agenda item. Environmental Review Establishing a citizens advisory committee is not a disturbance of the environment similar to grading or construction and does not constitute a project under CEQA or the District’s CEQA Guidelines. Financial Review There will be minor expenses for CAC members to attend tours of facilities, such as the District Yard, OCC Recycling Center, Orange County Sanitation District, Orange County Water District, and CR&R's Materials Recovery Facility. There are sufficient funds budgeted for these activities under the Public Info/Education/Promotion account in both the Solid Waste and Wastewater funds. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 26, 2018 Board of Directors Regular Meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments Admin Policy No. 60.00 - Citizens Advisory Committee.pdf (106 KB) Applications as of 4-16-2018.pdf (8,301 KB) F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: April 26, 2018 Subject: Capital Improvement Projects Status Report Summary Attached is a summary of the Capital Improvement Project activities during the month. Staff Recommendation That the Board of Directors receive and file the report. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review 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 April 26, 2018 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 Apr 2018.pdf (180 KB) Subject 1. Receive and File Monthly Capital Improvement Projects Status Report Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 1.0 Sewer Infrastructure 1.1 Manhole Cover Maintenance Program 1.4 System Wide Sewer Replacement and Repair Program 1.6 Evaluate Force Main Conditions on a Regular Basis 4.7 Demonstrate outstanding efforts in transparency 7.2 Develop a long term CIP F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Robin Hamers, District Engineer Date: April 26, 2018 Subject: Receive and File District Engineer's Conflict of Interest for 2183 Tustin Avenue in Costa Mesa Summary Please be advised that I have been retained to do private engineering work for the property at 2183 Tustin Avenue in Costa Mesa. I have reason to believe that this project or the persons involved in this project may have the need for District engineering approvals in the future. I have been retained by Michael Mossman Ave and will be reporting this relationship as a source of income on my FPPC Statement of Economic Interests Form 700 next year. Recommendation That the Board of Directors receive and file the report. Analysis Pursuant to state law, District Operations Code Section 3.01.045, and my contract with the District: 1. I hereby notify you of this source of income or other relationship that causes me a conflict in approving any matters in my official capacity pertaining to this property and these persons. 2. I request that the General Manager alert the Alternate District Engineer that he is to provide all engineering approvals on behalf of the District with respect to these persons or that property. 3. That the Alternate District Engineer shall report directly to the General Manager and submit his bills for services directly to the General Manager. 4. That if any plans are required to be approved, that those shall show my seal and signature as private engineer of record, and the Alternate District Engineer shall provide his approval by signing as Alternate District Engineer. That these separate approvals shall be given on the same page and in a manner that clearly shows the separate capacities of each engineer in providing their respective approvals. 5. I request that the District Clerk maintain a copy of this Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer as a permanent record of the District or for as long as required under the District’s record retention schedule. I understand that this procedure does not allow me to enter into or influence the awarding of contracts in my official capacity in which I have a financial interest, which is a separate prohibition. (Gov. Code § 1090.) If I can provide further information about the identity of my source of income or about the scope of my assignment, please advise, and I will elaborate as necessary. Legal Review The attorney for the District prepared the conflict of interest form and created the procedure to avoid conflict. 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 Subject 2. Receive and File District Engineer's Conflict of Interest for 2183 Tustin Avenue in Costa Mesa Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file the report. Staff will route the appropriate plans to the Alternate Engineer and Inspector for approval. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 26, 2018 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff for additional information. File Attachments 2183 Tustin Ave - Declaration of Conflict of Interest 021918.pdf (24 KB) F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: April 26, 2018 Subject: #325 Corporate Yard Expansion - Request for Additional Funding Summary Construction of the improvements is nearly complete and the budget and the 10% contingency of $23,415 have been completely expended. The only remaining item to be funded is the lettering for the westerly site wall that fronts Fairview Road. When the rolling gate on Wilson Street and lettering are installed, the project will be complete. Staff anticipates the lettering will cost between $5,000-$7,500 and recommends $7,500 be allocated for this expense. Attached is an early example of the lettering along with a proposal from a potential vendor. Analysis After construction began, the field crew realized and made it known the large sewer cleaning trucks were bottoming-out when exiting the existing Fairview Road driveway. The options of re-grading the Fairview driveway area to prevent bottoming-out or moving the rolling gate from Fairview Road to Wilson Street were both investigated. The Wilson Street exit presented no driving problems and the field crew preferred this new location. Additionally, the contractor would charge less for moving the rolling gate to Wilson Street than adding to the scope of work re-grading the Fairview asphalt paving, so the decision was made to relocate the driveway and rolling gate. Along with relocating the driveway, the scope of work under the contract included quite a few tasks to be completed. In a few instances, existing utilities were found that were previously unknown and in a few others, the city inspector requested changes that slightly increased costs, such as choosing a new location for a relocated parking lot light. When added up, all these revisions and incidentals added up to the 10% contingency. Recommendation The Board of Directors approves the following action: 1. Appropriate an additional $7,500 for Project #325 District Yard Expansion that will be transferred from Project#317. Legal Review District Counsel prepared and signed the construction contract for the project. Environmental Review The Board has previously determined that the purchase and use of the site as additional yard area will be similar to its existing use as a vehicle modification and repair site and is therefore exempt from CEQA as a minor alteration of an existing structure or facility (15 Cal Code Regs Sec 1530), as a conversion of an existing structure from one use to another with only minor exterior modifications (15 Cal Code Regs 15303) and as an infill development project (15 Cal Code Regs 153040). Financial Review After reviewing the budget and approved contracts for Project #317 President Force Main, staff feels there are sufficient funds available for the Board to approve the transfer of $160,000 from Project #317 to Project #325. Public Notice Process Subject 3. #325 Corporate Yard Expansion - Request for Additional Funding Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action The Board of Directors approves the following action: 1. Appropriate an additional $7,500 for Project #325 District Yard Expansion that will be transferred from Project#317. Copies of this report are on file and will be included with the entire agenda packet for the April 26, 2018 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions Refer the matter back to staff for additional information. Attachment: Lettering Proposal Sample lettering File Attachments Lettering Proposal.doc (663 KB) Sample Lettering.jpg (126 KB) 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. Subject 1. Orange County Sanitation District (OCSD) - (Vice President Ferryman) Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Information 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. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Information 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. Subject 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Information 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. Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer) Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Information 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. Subject 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Information 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. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Information K. NEW BUSINESS Subject 1. Direct President Scheafer and Vice President Ferryman to vote for one of the nominees running for Orange County Local Agency Formation Commission (OC LAFCO) Regular and Alternate Special District Member Seats Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Action Preferred Date Apr 26, 2018 Absolute Date Apr 26, 2018 Recommended Action Direct President Scheafer and Vice President Ferryman to vote for one of the nominees running for Orange County Local Agency Formation Commission (OC LAFCO) Regular and Alternate Special District Member Seats L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Discussion M. ADJOURN TO CLOSED SESSION Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager Subject 1. Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Discussion M. ADJOURN TO CLOSED SESSION Conference with Legal Counsel - Existing Litigation Government Code §54956.9(d)(1) -- 1. The Costa Mesa Sanitary District v. Mesa Water District; OCSC No. 30-2017-00923819-CU-PT-CJC Subject 2. Conference with Legal Counsel - Existing Litigation Government Code §54956.9(d)(1) -- 1. The Costa Mesa Sanitary District v. Mesa Water District; OCSC No. 30-2017-00923819-CU-PT-CJC Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Discussion O. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON MAY 24, 2018 IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Apr 26, 2018 - Board of Directors Regular Meeting Access Public Type Procedural