2018_05_24_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, May 24, 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
• Citizens Environmental Protection Academy
Costa Mesa Sanitary District May 24, 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 April 10, 2018
Recommendation: That the Board of Directors approve the meeting minutes as presented.
3. Approve the Board of Directors Regular Meeting Minutes of April 26, 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 2018-11 Approving District Warrant Registers
Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2018-11
approving District warrants for the month of April 2018 in the amount of $810,289.70.
8. Approve Payroll Transparency Disclosure for April 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.
10. Accept the occupancy count as presented as 22,578 and direct staff to prepare a warrant
to CR&R Environmental Services for $221,160.54 for April 2018 collection
Recommendation: That the Board of Directors accept the occupancy count as presented using
22,578 as the correct number of active units and direct staff to prepare a warrant to CR&R
Environmental Services for April 2018 collection based on this occupancy report so long as the
contractor fulfills the obligations of the agreement in the amount of $221,160.54 to be ratified
in the May 2018 warrant list.
Costa Mesa Sanitary District May 24, 2018
AGENDA Page 3
11. Approve the preparation of a warrant to CR Transfer in the amount of $189,589.56
for April 2018 recycling and disposal services in the May 2018 warrant register
Recommendation: That the Board of Directors approves the preparation of a warrant to CR
Transfer in the amount of $189,589.56 for April 2018 recycling and disposal services to be
ratified in the May 2018 warrant register.
12. Consider Approving Fourth Amendment to Agreement with Roger Faubel Public Affairs, Inc.
Recommendation: That the Board of Directors considers approving a fourth amendment to
agreement with Roger Faubel Public Affairs, Inc. and direct the General Manager to sign the
agreement.
D. PUBLIC HEARINGS
E. GENERAL MANAGER'S REPORTS
1. Approve Rewarding Ideas Submission by Steve Cano, Wastewater Maintenance
Superintendent, in the amount of $100
Recommendation: Consider Rewarding Steve Cano, Wastewater Maintenance
Superintendent, $100 for transferring pump station data and schematics into asset
management system.
2. Businesses Homeless Survey Results
Recommendation: That the Board of Directors receive and file this report.
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. 1585 MacArthur Blvd; Request for Additional Quitclaim of CMSD Sewer and Easement;
Consideration of Approval
Recommendation: That the Board of Directors:
1. Approve, execute, and record the newly proposed quitclaim deed and indemnification
agreement.
2. Direct the General Manager to seek reimbursement of attorney and engineering costs
from the property owner for both the first and second set of documents.
G. TREASURER'S REPORTS
1. Approve the Investment Report for the Month of April 2018
Recommendation: That the Board of Directors approve the Investment Report for the
month of April 2018.
H. ATTORNEY'S REPORTS
Costa Mesa Sanitary District May 24, 2018
AGENDA Page 4
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)
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
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) –
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, JUNE 28, 2018 IN THE DISTRICT'S BOARD ROOM, 290
PAULARINO AVENUE, COSTA MESA.
Thursday, May 24, 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 May 24, 2018 - Board of Directors Regular Meeting
Category A. OPENING ITEMS
Access Public
Type Procedural
Subject 2. Pledge of Allegiance - President Scheafer
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category A. OPENING ITEMS
Access Public
Type Procedural
Subject 3. Invocation - Vice President Ferryman
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category A. OPENING ITEMS
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 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 May 24, 2018 - Board of Directors Regular Meeting
Category A. OPENING ITEMS
Access Public
Type Procedural
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 May 24, 2018 - Board of Directors Regular Meeting
Category A. OPENING ITEMS
Access Public
Type Procedural
Subject 6. Ceremonial Matters and Presentations -- Presentation of Certificates of
Completion to Citizen Environmental Protection Academy Participants
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category A. OPENING ITEMS
Access Public
Type Presentation, Procedural
Subject 1. Public Comments
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
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: May 24, 2018
Subject: Board of Directors Special Meeting Minutes of April 4, 2018
Access Public
Type Procedural
Subject 1. Approve Consent Calendar
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
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.
Subject 2. Approve the Board of Directors Special Meeting Minutes of April 4, 2018
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Action (Consent)
Recommended Action That the Board of Directors approve the meeting minutes as presented.
Summary
The recorded minutes of the April 4, 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 April 4, 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 May 24, 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_4_4_special.pdf (40 KB)
To: Board of Directors
Via: Scott Carroll, General Manager
From: Gina Terraneo, Management Analyst II
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 3. Approve the Board of Directors Study Session Minutes of April 10, 2018
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Action (Consent)
Recommended Action That the Board of Directors approve the meeting minutes as presented.
Date: May 24, 2018
Subject: Board of Directors Study Session Minutes of April 10, 2018
Summary
The recorded minutes of the April 10, 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 April 10, 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 May 24, 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_4_10_ss.pdf (47 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.
Subject 4. Approve the Board of Directors Regular Meeting Minutes of April 26, 2018
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Action (Consent)
Recommended Action That the Board of Directors approve the meeting minutes as presented.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Gina Terraneo, Management Analyst II
Date: May 24, 2018
Subject: Board of Directors Regular Meeting Minutes of April 26, 2018
Summary
The recorded minutes of the April 26, 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 April 26, 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 May 24, 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_4_26_rm.pdf (85 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.
Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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
a_director_compensation.pdf (1,388 KB)
b_director_expense_reimbursement.pdf (2,030 KB)
File Attachments
WARRANT RESO May242018 Mtg.pdf (402 KB)
Access Public
Type Action (Consent)
Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses 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.
Subject 6. Adopt Warrant Resolution No. CMSD 2018-11 Approving District Warrant
Registers
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Action (Consent)
Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2018-11 approving District
warrants for the month of April 2018 in the amount of $810,289.70.
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 7. Approve Payroll Transparency Disclosure for April 2018
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Action (Consent)
To: Board of Directors
Via: Scott Carroll, General Manager
From: Steve Hodges, Finance Manager
Date: May 24, 2018
Subject: Payroll Transparency Disclosure for April 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 May 24, 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 April 2018.pdf (974 KB)
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.
Subject 8. Receive and File Closed Circuit TV (CCTV) Program Report
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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: May 24, 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 April 30, 2018:
Adopted CCTV Budget $50,000
FY 16-17 Carryover Budget 0
Total Budget $50,000
FY 17-18 New Applications Received = 146
Applications Processed for Payment = 92 $ 19,250
Applications In Process = 54 13,500
Available Spots Based on Funding = 69 17,250
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
Copies of this report are on file and will be included with the complete agenda packet for the May 24, 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.
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)
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
To: Board of Directors
Via: Scott Carroll, General Manager
From: Nabila Guzman, Management Analyst I
Date: May 24, 2018
Subject: Accept the occupancy count as presented as 22,578 and direct staff to prepare a warrant to CR&R
Environmental Services for $221,160.54 for April 2018 collection
Summary
Accept the occupancy count as presented using 22,578 as the correct number of active units and direct staff to prepare
a warrant to CR&R Environmental Services for April 2018 collection based on this occupancy report so long as the
contractor fulfills the obligations of the agreement in the amount of $221,160.54 to be ratified in the May 2018 warrant
list.
Recommendation
That the Board of Directors accept the occupancy count as presented using 22,578 as the correct number of active units
and direct staff to prepare a warrant to CR&R Environmental Services for April 2018 collection based on this occupancy
report so long as the contractor fulfills the obligations of the agreement in the amount of $221,160.54 to be ratified in
the May 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 April 30, 2018, total District
occupancy was at 22,578, District staff will continue to track the number of new service addresses, nineteen (19)
accounts have been added since the last billing period.
The payment calculation is based on the following:
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 9. Accept the occupancy count as presented as 22,578 and direct staff to prepare a
warrant to CR&R Environmental Services for $221,160.54 for April 2018 collection
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Action (Consent)
Recommended Action That the Board of Directors accept the occupancy count as presented using 22,578 as the
correct number of active units and direct staff to prepare a warrant to CR&R Environmental
Services for April 2018 collection based on this occupancy report so long as the contractor
fulfills the obligations of the agreement in the amount of $221,160.54 to be ratified in the
May 2018 warrant list.
Goals 2.2 Annual Contract Audits
2.4 Develop Strategies for 75% Waste Diversion
District's Current Rate for April of 2018:
22,578 x $9.7954 = $221,160.54
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 May 24, 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
2018-04-G CMSD Occupancy Report.pdf (105 KB)
To: Board of Directors
Via: Scott Carroll, General Manager
From: Nabila Guzman, Management Analyst I
Date: May 24, 2018
Subject: Approve the preparation of a warrant to CR Transfer in the amount of $189,589.56 for April 2018
recycling and disposal services in the May 2018 warrant register
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 10. Approve the preparation of a warrant to CR Transfer in the amount of
$189,589.56 for April 2018 recycling and disposal services in the May 2018 warrant
register
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
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 $189,589.56 for April 2018 recycling and disposal services to be ratified in the
May 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 $189,589.56 for April
2018 recycling and disposal services to be ratified in the May 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 $46.87, but CMSD will be paying what is reflected on the invoice.
Costa Mesa Newport Beach Total
Residential Waste $136,526.27 $3,901.93 $140,428.20
Organics $46,849.76 $2,311.60 $49,161.36
Total Payment $189,589.56
Tonnage
Residential Waste 2627.33 75.10 2702.73
Organics 655.44 32.33 687.77
Total Tonnage 3390.50
Legal Review
Not Applicable
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources
Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list
those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines
and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or
maintenance activities.”
Financial Review
Sufficient funds are available in the adopted budget to pay for the services provided.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 24, 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.
Subject 11. Consider Approving Fourth Amendment to Agreement with Roger Faubel Public
Affairs, Inc.
To: Board of Directors
From: Scott Carroll, General Manager
Date: May 24, 2018
Subject: Roger Faubel Public Affairs, Inc. - Consider Approving Fourth Amendment to Agreement
Summary
The agreement term with Roger Faubel Public Affairs, Inc. is set to expire on June 1, 2018. The District's Ad Hoc Committee believes it is
in the best interest of CMSD and the community to extend the term of Faubel's agreement for six months.
Recommendation
That the Board of Directors considers approving a fourth amendment to agreement with Roger Faubel Public Affairs, Inc. and direct the
General Manager to sign the agreement.
Analysis
Roger Faubel Public Affairs has provided consulting services to CMSD for community outreach and public relations. The term of the
agreement expires on June 1, 2018, but CMSD's Ad Hoc Committee believes it is in the best interest of CMSD and the community to
extend the term of Faubel's agreement for six months. The scope of work will not change and the cost will remain at $10,000 a month.
Whittingham Public Affairs Advisors, which also provides services to CMSD, serves as a sub-consultant to Roger Faubel Public Affairs.
Legal Review
District Counsel has reviewed and approved the fourth amendment attached hereto.
Environmental Review
The consideration of services by a consulting firm is an administrative matter and 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
The cost for extending the agreement six months is $60,000. This item was included in the adopted therefore there are sufficient funds 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 May 24, 2018 Board of Directors meeting at
District headquarters and on District’s website at www.cmsdca.gov.
Alternative Actions
1. Do not approve the fourth amendment
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Action
Fiscal Impact Yes
Dollar Amount $60,000.00
Recommended Action That the Board of Directors considers approving a fourth amendment to agreement with
Roger Faubel Public Affairs, Inc. and direct the General Manager to sign the agreement.
Goals 4.0 Community Outreach & Communications
File Attachments
Faubel Fourth Amendment.pdf (64 KB)
D. PUBLIC HEARINGS
E. GENERAL MANAGER'S REPORTS
To: Board of Directors
From: Scott Carroll, General Manager
Date: May 24, 2018
Subject: Award Steve Cano, Wastewater Maintenance Superintendent, $100 for his Rewarding Ideas Program submission to
improving pump station maintenance efficiencies
Summary
The Rewarding Ideas Program is designed to encourage employees to generate ideas for organizational improvements and provide a
system for answering and recognizing adopted ideas. Steve Cano, Wastewater Maintenance Superintendent, submitted an idea that will
improve efficiencies for maintaining the twenty pump stations CMSD owns and operates.
Recommendation
That the Board of Directors approves rewarding Steve Cano Wastewater Maintenance Superintendent, $100 for his idea to improving
pump station maintenance efficiencies
Analysis
Currently, all pump station maintenance data (e.g. inventory, schematics, repairs, upgrades, miscellaneous, etc.) are stored on
spreadsheets, which is then saved on CMSD's server. Before heading out in the field, staff will print out the spreadsheets in order to
have the data available to them when they arrive to inspect pump stations. After inspections, staff returns to the Yard to update the
spreadsheets on the computer. The current method is inefficient and time consuming, so Steve Cano suggested pump station
maintenance data be uploaded into the District's Computerized Maintenance Management System (CMMS). This will enable staff
having access to the data while they are in the field using CMSD's wireless tablet. Staff will have all the data at the click of a button and
they can update the data while in the field, thus eliminating staff going back and forth to the Yard and pump stations to retrieve data.
Steve Cano's idea will greatly improve pump station maintenance efficiencies. EEC Environmental, the consultant responsible for
maintaining the District's CMMS, can upload the data at no additional costs because they can perform this task under their existing
contract with CMSD for CMMS support services.
Legal Review
Not applicable
Environmental Review
Subject 1. Award Steve Cano, Wastewater Maintenance Superintendent, $100 for his
Rewarding Ideas Program submission to improving pump station maintenance
efficiencies
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category E. GENERAL MANAGER'S REPORTS
Access Public
Type Action
Fiscal Impact Yes
Dollar Amount $100.00
Recommended Action That the Board of Directors approves rewarding Steve Cano Wastewater Maintenance
Superintendent, $100 for his idea to improving pump station maintenance efficiencies
Goals 5.0 Administrative Management
The consideration of monetary rewards for employees for improving maintenance efficiencies is an administrative matter and is not a
disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines.
Financial Review
There is sufficient money in the budget to award for this suggestion.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 24, 2018 Board of Directors meeting at
District Headquarters (290 Paularino Avenue) and posted on the District’s website at www.cmsdca.gov.
Alternative Actions
1. Do not approve this suggestion made by Steve Cano.
2. Direct staff to report back with more information
File Attachments
Rewarding Ideas Program - Steve Cano.pdf (1,524 KB)
To: Board of Directors
From: Scott Carroll, General Manager
Date: May 24, 2018
Subject: Business Community Survey Regarding Homelessness in Costa Mesa
Summary
On November 30, 2017, the Board of Directors approved a pilot program to address the limited amount of public restrooms available
for the homeless population. The pilot program, which was a portable restroom that consisted of two flushing toilets, fresh water sinks,
interior lighting powered by solar, paper towel dispensers and waste paper baskets mounted on a mobile trailer, would be located in the
City where homelessness is prevalent. A paid attendant would be stationed at the restroom to ensure it is being used for its intended
purpose and to collect data on the usefulness of such a program.
The pilot program was never intended to reduce or eliminate homelessness in Costa Mesa. The primary purpose of the program was
trying to protect the public's health from an Hepatitis A outbreak similar to outbreaks that occurred in San Diego and Los Angeles. On
February 20, 2018, the Costa Mesa City Council considered partnering with CMSD on the pilot portable restroom program. The majority
of the City Council agreed in concept of the program, but wanted more information from the business community before implementation.
The Costa Mesa Sanitary District (CMSD) agreed to fund a survey and obtain feedback from the business community. The results of the
survey are provided in this report.
Recommendation
That the Board of Directors receive and files this report and provide direction to staff.
Analysis
CMSD hired Gavello and Associates (GA) to conduct the survey and analyze the results at a cost of $4,408. CMSD and GA met with
City officials to discuss the businesses to survey with the focus on businesses that are most likely being impacted by the homeless
population. The group decided to survey businesses located on 19th Street, Harbor/Victoria, Wilson Street and Newport Boulevard
Subject 2. Business Community Survey Regarding Homelessness in Costa Mesa
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category E. GENERAL MANAGER'S REPORTS
Access Public
Type Action
Recommended Action That the Board of Directors receive and files this report and provide direction to staff.
between 17th and 21st Street. From the City's business license database, a total of 600 businesses were identified with email
addresses.
On April 23, 2018 the survey was emailed to the 600 businesses and gave them until April 27 to complete and submit the survey. Of the
600 surveys disseminated, 15 were returned as undeliverable and approximately 280 businesses took part in the survey, which is a 48%
return ratio. Below are some of the results of the survey. The complete survey results are available in the attachment.
49% of respondents believe having a supervised public restroom will not alleviate the homeless population affecting their
business.
38% of respondents believe a supervised portable restroom is a horrible idea.
48% of respondents believe a supervised public restroom near their business will not have a positive impact on their business.
80% of respondents indicated the homeless population is affecting their business. Of the 80% responses, 38% said its a huge
problem.
The City made a good decision to obtain more information before implementing the program because survey results indicate the business
community does not believe a portable restroom program will help alleviate the impacts homelessness have on their business. Based on
this information, staff believes we should not continue with a pilot portable restroom program. CMSD will still be a willing partner with the
City of Costa Mesa to help address homelessness within the City.
Legal Review
Not applicable
Environmental Review
A survey of residents in the community 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
To date, CMSD has spent $4,000 on the survey. There was sufficient money in the budget to encumber this cost. On November 30,
2017, when the pilot program was approved by the Board of Directors, the Board also approved appropriating $21,500 in the Wastewater
Fund Contract Services account. After approving the appropriation, the funding was transferred from the Wastewater Contingency
account by the General Manager. Now that the pilot program will not come to fruition, the General Manager will transfer $21,500 back
into the Wastewater Contingency account.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the May 27, 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
Business Survey Results.pdf (2,577 KB)
Business Survey Comments.pdf (1,079 KB)
F. ENGINEER'S REPORTS
Subject 1. Receive and File Monthly Capital Improvement Projects Status Report
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category F. ENGINEER'S REPORTS
Access Public
To: Board of Directors
Via: Scott Carroll, General Manager
From: Rob Hamers, District Engineer
Date: May 24, 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 May 24, 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 May 2018.pdf (41 KB)
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
Subject 2. 1585 MacArthur Blvd; Request for Additional Quitclaim of CMSD Sewer and
Easement; Consideration of Approval
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category F. ENGINEER'S REPORTS
Access Public
Type Action
To: Board of Directors
From: Rob Hamers, District Engineer
Date: May 24, 2018
Subject: 1585 MacArthur Blvd, Costa Mesa; Request for Additional Quitclaim of CMSD Sewer and Easement; Consideration of
Approval
Summary
Background
In 2016, the property owner, CJ Segerstrom & Sons, Inc., requested the District vacate a portion of an easement and sewer main to
facilitate construction of a new commercial building on APN 415-102-17 located in the Harbor Gateway complex. There was no property
address at the time, but the new address is 1585 MacArthur Blvd.
At the time, there was a buyer for the vacant property and a lot line adjustment was being recorded to adjust the parcel size to the
satisfaction of the parties. After the request was reviewed and discussed, the District agreed to the plan and a quitclaim deed and
indemnification agreement were eventually recorded.
Subsequent to the recordation of the documents, the buyer fell out of the picture. The property owner, CJ Segerstrom & Sons, has
decided to construct the building for themselves and rent the offices. To achieve the desired building and site dimensions, another lot line
adjustment has to be recorded.
The newly proposed lot line adjustment will increase the quitclaim length an additional 68 feet. The simplest solution is to record an
additional quitclaim document and an additional indemnification agreement. The sum total of the two quitclaim documents will equal the
total requested area of abandonment. The first quitclaim was 294 feet in length.
Discussion at Board Study Session on May 8, 2018
The Board of Directors reviewed the background for the project and the approvals granted to date, including the recorded sewer quitclaim
deed and the recorded indemnification agreement. The Board also reviewed the proposed 100,000 square foot building and heard
testimony from the property owner’s agent, Jeff Reese of CJ Segerstrom & Sons, Inc.
At this point, the new quitclaim deed and the new indemnification agreement have been prepared and reviewed by the attorney for the
District and the District Engineer.
Recommendation
The Board of Directors:
1. Approve, execute, and record the newly proposed quitclaim deed and indemnification agreement.
2. Direct the General Manager to seek reimbursement of attorney and engineering costs from the property owner for both the first
and second set of documents.
Analysis
Harbor Gateway is generally the area west of Harbor Blvd, east of Hyland Avenue and between MacArthur Blvd and Sunflower Avenue.
The sewers were constructed in 1981 when the District’s policy was to have the sewer lateral for every property be directly connected to
a District main, thereby resulting in quite a few CMSD sewer mains being located in District easements in the Harbor Gateway area.
Today, so long as there is an HOA or Maintenance Association that can perform maintenance, on-site sewers serving multiple properties
may be private.
Recommended Action The Board of Directors:
1. Approve, execute, and record the newly proposed quitclaim deed and indemnification
agreement.
2. Direct the General Manager to seek reimbursement of attorney and engineering costs from
the property owner for both the first and second set of documents.
Goals 1.0 Sewer Infrastructure
When the Harbor Gateway area was developed in 1981, the CMSD sewers and manholes were constructed by the land owner and
donated to the District along with the sewer easements. No compensation exchanged hands at the time.The land owner in 1981 was the
same as now; CJ Segerstrom & Sons.
In the first quitclaim, the owner was required to construct a new end of line sewer manhole at the northerly terminus of the remaining
sewer and easement. This is a standard condition for an end of line situation and will apply to the new request.
During the preparation of the first set of documents and then again at the study session on May 8, 2018, the property owner was informed
that the District will be seeking reimbursement from the owner for the District’s attorney and engineering costs related to this request.
Legal Review
District counsel has reviewed and approved as to form the newly proposed quitclaim deed and indemnification agreement.
Environmental Review
Vacating a portion of a sewer main, manholes, and easement is categorically exempt from the California Environmental Quality Act
(CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” “minor alteration of existing public or private
structures”, as further described in Section (b) as “Existing facilities of both investor and publicly-owned utilities used to provide ....
sewerage ...”.
Financial Review
The 294 linear feet (LF) of 8 inch sewer line and two manholes that the District vacated in 2016 were donated in 1982 as was the
additional 68 LF being considered in this request.. These assets all have a 60 year useful life which resulted in a $23,273 loss on the
disposal of assets reflected in the district's FY 2017 financial statements. If the Board moves forward with the vacation of the additional 68
LF, the FY 2018 financial statements will also show a small loss on the disposal of assets.
Since 2016, the district has spent $5,911.35 in engineering and attorney's fees related to this project. Once final billings are received
from both the District Engineer and District Attorney, the district will seek reimbursement from CJ Segerstrom & Sons, Inc. for the total
cost.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 24, 2018 Board of Directors regular
meeting at District Headquarters and posted on the District’s website.
Alternative Actions
1. Do not approve the newly proposed quitclaim action and Direct staff to return with additional information.
Attachments: Proposed Quitclaim Deed
Proposed Indemnification Agreement
File Attachments
Quitclaim Deed (5-17-18).pdf (1,848 KB)
Agreement for Indemnification (5-17-18).pdf (3,958 KB)
G. TREASURER'S REPORTS
Subject 1. Approve the Investment Report for the Month of April 2018
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category G. TREASURER'S REPORTS
Access Public
Type Action
To: Board of Directors
From: Marc Davis, District Treasurer
Date: April 24, 2018
Subject: Approve the Investment Report for the month of April 2018
Summary
Attached is the Investment Report for the month of April 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 April 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 April 30, 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 April 30, 2018, was 1.619%. The
yield to maturity of the portfolio was 1.625%. The District’s weighted average interest rate was 4 basis points (0.042%) below the LAIF
average monthly rate for April 2018 of 1.661%. The weighted average number of days to maturity for the District’s total portfolio was 783
days (2.14 years). The average duration of the underlying securities in LAIF as of April 30, 2018 was 184 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 April 30, 2018 was 28.99%. 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
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.
Recommended Action That the Board of Directors approve the Investment Report for the month of April 2018
Goals 7.0 Finance
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 April 30, 2018, the portfolio
has earned a weighted average interest rate of 1.499%.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the May 24, 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 - April 2018.pdf (578 KB)
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.
Subject 1. Orange County Sanitation District (OCSD) - (Vice President Ferryman)
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Information
Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Information
Subject 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer)
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Information
Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer)
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
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Type Information
Subject 5. Special District Risk Management Authority (SDRMA) - (President Scheafer)
J. OLD BUSINESS
K. NEW BUSINESS
L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
M. ADJOURN TO CLOSED SESSION
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
Access Public
Type Information
Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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.
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Type Information
Subject 1. Oral Communications and Director Comments
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Access Public
Type Discussion
Subject 1. 1. Public Employee Performance Evaluation (Gov. Code §54957) - Title: General
Manager; 2. Conference with Legal Counsel - Existing Litigation Government Code
§54956.9(d)(1) -- The Costa Mesa Sanitary District v. Mesa Water District; OCSC
No. 30-2017-00923819-CU-PT-CJC
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category 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
To:
From:
Date:
Subject:
Summary
Analysis
Recommendation
Legal Review
Environmental Review
Financial Review
Public Notice Process
Alternative Actions
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Type
Subject 1. Reconvene to Open Session and Report Out of Closed Session
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category N. RECONVENE TO OPEN SESSION
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Type
O. CLOSING ITEMS
THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON JUNE
28, 2018 IN THE DISTRICT"S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA.
Subject 1. Adjourn
Meeting May 24, 2018 - Board of Directors Regular Meeting
Category O. CLOSING ITEMS
Access Public
Type Procedural