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2018_06_12_studyTuesday, June 12, 2018 Board of Directors Study Session 290 Paularino Avenue, Costa Mesa at 9:30AM 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 Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type Procedural A. OPENING ITEMS Subject 2. 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 Jun 12, 2018 - Board of Directors Study Session 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 Jun 12, 2018 - Board of Directors Study Session Access Public Type Procedural C. ITEMS OF STUDY Summary Attached is the monthly report from Officer Roberts describing his enforcement activities for the months of April and May regarding scavenging of recyclable materials, trash carts stored in public view and graffiti on trash carts. Recommendation That the Board of Directors receive and file this report. Analysis In the month of May, Officer Roberts approached eight (8) individuals he observed scavenging from CMSD trash carts. In the same month he issued 99 warning notices to residents storing their trash carts in public view. Officer Roberts found no graffiti on trash carts in the month of May. Officer Roberts enforcement activities are described in more detail in the attached report. Legal Review Not applicable. Environmental Review Code enforcement activities and reporting are not a disturbance of the environment similar to grading or construction and do not constitute a project under CEQA or the District’s CEQA Guidelines. Financial Review Officer Roberts' activities are funded 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 June 12, 2018 Board of Directors Study Session meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Direct staff to report back with more information. File Attachments May CEO Report.doc (1,937 KB) AApril 2018 CEO report.doc (1,680 KB) Subject 1. April / May 2018 Code Enforcement Officer report Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type C. ITEMS OF STUDY To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 12, 2018 Subject: Organics Tonnage Report Summary A total of 687.77 tons of organic waste were collected and recycled in April 2018 and 708.22 tons were collected and recycled in May 2018. Staff Recommendation That the Board of Directors receive and file this report. Analysis Below is a graph depicting the total tonnage of organic waste collected during each month of FY 2015-16, FY 2016-17 and FY 2017-18. Subject 2. Organics Tonnage Report Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file this report. File Attachments Organics.png (19 KB) Tonnage Summary.png (24 KB) Legal Review Not applicable. Environmental Review Consideration of the Organics Tonnage Report is an administrative matter and not a disturbance of the environment similar to grading or construction and not a project under CEQA or the District’s CEQA Guidelines. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 12, 2018 Board of Directors Study Session meeting at District Headquarters and posted on the District’s website. C. ITEMS OF STUDY To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 12, 2018 Subject: Solid Waste Diversion Report Summary A total of 1,992.17 tons of solid waste were collected and recycled in April 2018 and 2,060.48 tons were recycled in May 2018. Staff Recommendation That the Board of Directors receive and file this report. Analysis Using data from CR&R's Recycling Report and OCC's Recycling Center Recycling Report, staff has calculated the diversion rate for the last eleven months at 60.44%. A total of 39,839.45 tons of solid waste materials have been collected, of which 24,078.69 tons have been diverted away from landfills. In addition to curbside collection from CR&R, CMSD offers a variety of other waste diversion programs including large item pickup, where white goods are collected. Attachment A is the fiscal year 2017-18 diversion rate support. Legal Review Not applicable. Environmental Review Consideration of the Solid Waste Diversion Report is an administrative matter and not a disturbance of the environment similar to grading or construction and not a project under CEQA or the District’s CEQA Guidelines. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 12, 2018 Board of Directors Study Session meeting at District Headquarters and posted on the District’s website. File Attachments CRR-OCC Diversion.pdf (75 KB) Subject 3. Solid Waste Diversion Report Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file this report. C. ITEMS OF STUDY To: Board of Directors From: Scott Carroll, General Manager Date: June 12, 2018 Subject: Discussion with Consultant Regarding Business Community Survey Results on Homelessness in Costa Mesa Summary On May 24, 2018, staff presented the results of the business community survey on homelessness in Costa Mesa to the Board of Directors. The consultant who performed the survey, Deb Johnson, was unavailable on May 24 to discuss the survey and answer questions from the Board. Today, Ms. Johnson will be available to discuss the survey and answer questions from the Board. Recommendation That the Board of Directors receives and files this report. Analysis To recap, 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 Based on the results of the survey the Board of Directors directed staff not further pursue the pilot mobile restroom program and directed staff to continue working with City officials and the City's Network for Homeless Solution Committee. 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 CMSD 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 transfered $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 June 12, 2018 Board of Directors study session meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. Subject 4. Discussion with Consultant Regarding Business Community Survey Results on Homelessness in Costa Mesa Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type Discussion File Attachments Business Survey Results.pdf (2,577 KB) Business Survey Comments.pdf (1,079 KB) C. ITEMS OF STUDY To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: June 12, 2018 Subject: #318 President Pump Station; Discussion on Sole Source Findings for Purchase of Pumps and Accessories Summary In the past, when a pump station was reconstructed or when a new pump station was proposed, the District made sole source findings for use of Flygt pumps due to the superior operating characteristics of the pumps and for uniformity of new equipment with existing equipment. The result is the use of Flygt pumps in almost all of the District’s 20 pumping stations. Having one type of pump allows the District’s field crews to become familiar with its operation and maintenance resulting in most of the pump work being completed by District personnel, including the once per year comprehensive maintenance. During a heavy rainstorm or during a sewer spill where the pumps are non-operational, it is extremely important that District forces understand how to manually operate the pumps and return them back into automatic service. Due to high pumping rates, every minute lost in an emergency represents a large increase in the volume of the sewer spill. To this end, the District has standardized pump station design and the mechanical and electrical components in the pump stations. Recommendation That the Board of Directors direct staff to bring this item back for the June 28, 2018 regular Board of Directors meeting to consider approving the following: 1. That the purchase of Flygt pumps is necessary for compatibility of training so that our service personnel can respond to emergencies and be thoroughly knowledgeable on a limited number of standardized pumps. 2. That having a limited number of pump standardizes replacement and repair parts, making the District better equipped to handle emergencies. 3. That having standardized pumps provides for efficiencies of scale for repairs and maintenance. 4. That Flygt pumps are only available from Xylem Water Solutions USA, Inc. Analysis Public Contract Code §3400 provides that a district may not specify a public purchase that calls for a trade name unless it is followed by the words “or equal” and the bidder is allowed to qualify a product as an equal. This prohibition does not apply if the awarding authority makes a determination (in pertinent part) that a trade name product is necessary to match other products in use on a public improvement or that the item is only available form a single source. Subject 5. #318 President Pump Station; Discussion on Sole Source Findings for Purchase of Pumps and Accessories Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type Action Recommended Action That the Board of Directors direct staff to bring this item back for the June 28, 2018 regular Board of Directors meeting to consider approving the following: 1. That the purchase of Flygt pumps is necessary for compatibility of training so that our service personnel can respond to emergencies and be thoroughly knowledgeable on a limited number of standardized pumps. 2. That having a limited number of pump standardizes replacement and repair parts, making the District better equipped to handle emergencies. 3. That having standardized pumps provides for efficiencies of scale for repairs and maintenance. 4. That Flygt pumps are only available from Xylem Water Solutions USA, Inc. Goals 1.0 Sewer Infrastructure 1.7 Pump Station Maintenance & Standardization Program In addition, our informal bidding procedures allow purchasing when the product or service is proprietary in nature and can only be obtained from a certain contractor. This requires the General Manager to make a certification to you of those facts. (Dist Opns Code 4.04.100 (d)(2) and see (e)(1). The Flygt pumps have the following qualities for your consideration: 1. Flygt pumps have an N impeller, which is a patented self-cleaning design due to the configuration of the impeller vanes and other internal parts. 2. Use of hard iron material for extended life expectancy. Hard iron is a cast iron that includes 25% chrome. The impeller and wear ring life is greatly extended vs cast iron. 3. Flygt pumps have Class H trickle impregnated motors that delivers greater than 97% fillrate and results in a cooler running motor. Motor stator life is significantly extended by the cooler operating motor. 4. Pumps can run dry for periods of time. The pumps can be run until the water level is as low as possible and they begin pulling in air (snoring). The snoring strategy is employed to reduce the accumulation of ragging material in the wet well by periodically running the wet well past the low level shutoff point until the pump “snores” then clears out as much of the wet well bottom and debris as possible. 5. The pumps can be run in a reverse direction in order to unclog the impeller when rags have bound the impeller to an unmoveable position. 6. CMSD has this identical pump in three pump stations thereby reducing the need for backup pumps. 7. The pump stations all use the Flygt double guide rail design to install and remove the pumps from the wet well. This allows interchangeability. 8. District field crews have been trained to understand Flygt pump operation and maintenance. 9. Factory direct service. Flygt maintains a service shop in Mira Loma (45 miles from Costa Mesa) with full time Flygt employed service technicians. Flygt has service trucks based in both Mira Loma and Compton. All critical spare parts are inventoried in a central US warehouse for quick delivery. In the past, Flygt has provided temporary spare pumps when needed by the District. 10. 10.Flygt will send trained technicians to a District pump station if needed. Based on the above, and based on the fact that the Flygt pumps can only be purchased from Xylem Water Solutions USA, Inc. (see attached proposal), it is recommended that the following findings be made: 1. That the purchase of Flygt pumps is necessary for compatibility of training so that our service personnel can respond to emergencies and be thoroughly knowledgeable on a limited number of standardized pumps. 2. 1. Refer the matter back to staff for additional information. Attachment - Flygt proposal File Attachments 2018-LAB-0109 CMSD President Pumps and Accessories.pdf (137 KB) C. ITEMS OF STUDY To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: June 12, 2018 Subject: #319 Canyon Force Main Replacement, #320 Canyon Pump Station Rehabilitation, Discussion on Request to Combine Projects Summary When the west side pump station abandonment program was canceled, a list of projects was developed to rehabilitate the pump stations and force mains that would henceforth remain in service. The top two projects were #317 President Force Main and #318 President Pump Station, and the next two most important projects are #319 Canyon Force Main Replacement and #320 Canyon Pump Station Rehabilitation, which are the subject of this staff report. Because the proposed improvements for the pump station and for the force main each include work in the middle of Wilson Street in the same location, traffic will have to be diverted and parking will be restricted on two separate occasions. Both projects include a sewer bypass system, which also takes up additional area in the street. However, if the projects are combined, work can occur on the force main concurrently with work on the pump station. This will minimize impacts to the local residents and shorten the overall construction time frame. Under normal circumstances, having a separate force main project and a separate pump station project is preferred because pipeline construction is one speciality and pump station work is a different specialty. There is, however, a local firm that can perform both of these types of construction without hiring additional subcontractors. Recommendation That the Board of Directors direct staff to bring this item back to the June 28, 2018 regular Board of Directors meeting to consider approving the following: 1. Combining the projects and budgets and have engineering staff prepare one set of construction plans and specifications. 2. Directing the General Manager to insure impacts to traffic and parking are minimized and provide advance notification to the city and the residents in the area. Analysis The District will be installing the new force main using horizontal directional drilling (HDD). Horizontal directional drilling minimizes noise, dust, and other impacts to residents and has been successfully used by the District on three previous force main projects. The pump station equipment that will be replaced with new equipment is as follows: 1. Check valves and plug valves 2. One pump 3. Pump discharge bases and guide bars Subject 6. #319 Canyon Force Main Replacement, #320 Canyon Pump Station Rehabilitation, Discussion on Request to Combine Projects Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type Action Recommended Action That the Board of Directors direct staff to bring this item back to the June 28, 2018 regular Board of Directors meeting to consider approving the following: 1. Combining the projects and budgets and have engineering staff prepare one set of construction plans and specifications. 2. Directing the General Manager to insure impacts to traffic and parking are minimized and provide advance notification to the city and the residents in the area. Goals 1.0 Sewer Infrastructure 1.7 Pump Station Maintenance & Standardization Program 4. Piping inside the pump station and valve vault 5. Wet well protective lining 6. Electrical enclosure 7. Motor saver, breakers, starters, elapsed time meter, transducer, electronic level controller The estimated cost of the improvements inside the pump station as listed above is approximately $193,000. The preliminary estimate of the new force main work is $450,000. The original capital improvement plan allocation for the projects is as follows: #319 Canyon Force Main Replacement $620,000 #320 Canyon Pump Station Rehabilitation $225,000 Total $845,000 Legal Review Not required at this time. Environmental Review The replacement of a force main with a new force main of the same size and the replacement of equipment inside the pump station with identical equipment are categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c) “Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity“. Financial Review Combining both projects will increase engineering cost by $7,350, but this change will not cause an increase in project's total budget. The amended engineering cost was approved by the General Manager because more than likely, combining the projects will result in greater efficiencies which ultimately should lower the combined cost for construction. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 12, 2018 Board of Directors study session at District Headquarters and on District’s website. Alternative Actions 1. Do not combine the projects 2. Refer the matter back to staff for additional information C. ITEMS OF STUDY THE CAMP FSE NAME GRE SIZE GRE STATUS Notes/Comments Mesa 1500 Noncompliant Insufficient Record Keeping, Employee Training Umami Burger 750 Noncompliant Employee training Milk & Honey NA Compliant NA East Borough NA Compliant Not LFP, now a BMP Taco Asylum 100 Noncompliant Insufficient Record Keeping, Employee Training Vitaly 1500 Noncompliant FOG above 25, Insufficient Record Keeping ECCO Pizzeria & Bar 1500 Noncompliant Insufficient Record Keeping, Employee Training Old Vine Café 1500 Noncompliant FOG above 25, Insufficient Record Keeping, employee training West Coast Fish 50 Compliant NA Black Market Bakery NA Compliant NA To: The Board of Directors From: Scott Carroll, General Manager Date: June 12, 2018 Subject: Fats Oil Grease (FOG) Inspection Program at the Camp - A Retail and Food Service Campus Located on Bristol Street Summary CMSD has a Hot Spot Committee that consist of the general manager, district engineer, wastewater maintenance superintendent, inspector, wastewater maintenance worker III, wastewater maintenance worker II and a consultant, EEC Environmental. The Committee meets every three months to discuss and evaluate hot spots with the intent of reducing the number of hot spot locations. A hot spot is a location in the wastewater line segment that requires high frequency cleaning (e.g. two, three or four times a year) due to heavy FOG or structural defects. CMSD's Strategic Goal No. 1.3 is to reduce hot spot locations to less than 30 and even though this goal is being achieved (CMSD has 20 hot spot locations), the Committee continues to meet quarterly to evaluate hot spot conditions. At the Committee's last meeting on May 23, 2018, the cleaning crew mentioned they are finding an unusual amount of heavy grease at Hot Spot No. 44, which is located at Bristol Street and Randolph Avenue. The Committee believes the restaurants at The Camp are contributing to the heavy FOG found in the wastewater system. The Committee directed EEC Environmental to perform focus inspections at the Camp to determine if the restaurants are implementing their Best Management Practices for reducing FOG from entering the system. Recommendation That the Board of Directors provide direction to staff. Analysis Soon after the Committee meeting EEC performed their inspections at the Camp. The inspector found seven out of the twelve restaurants to be in noncompliance with their Best Management Practices, as shown below. Subject 7. Fats Oil Grease (FOG) Inspection Program at the Camp - A Retail and Food Service Campus Located on Bristol Street Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type Action Recommended Action That the Board of Directors provide direction to staff Goals 1.0 Sewer Infrastructure 1.3 Reduce Hot Spot Locations to less than 30 1.8 Fats, Oil & Grease (FOG) Program Black Market Bakery NA Compliant NA Native Foods LLC 20 Noncompliant Employee training Ojuko Life NA Compliant Confirmed LFP FSE stands for Food Service Establishment and GRE is the size of the grease interceptor or grease trap located at the restaurant. After sharing this inspection report to the Board of Directors, some Board members expressed concerns that so many restaurants are out of compliance and wanted answers from EEC Joe Jenkins, of EEC Environmental, we be attending today's meeting to describe their inspection program and answer questions from the Board. Legal Review Not applicable Environmental Review The work by EEC on behalf of the District is inspecting food service establishments to determine compliance, and inspections are categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15309 Inspectionsas a “Class 9” activity described as: Class 9 consists of activities limited entirely to inspections, to check for performance of an operation, or quality, health, or safety of a project, including related activities such as inspection for possible mislabeling, misrepresentation, or adulteration of products. Financial Review CMSD pays EEC Environmental $110,475 annually for implementing and enforcing CMSD's FOG Program Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 12, 2018 Board of Directors study session meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information C. ITEMS OF STUDY To: Board of Directors From: Steve Hodges, Finance Manager Date: June 12, 2018 Subject: Update Plan Check and Inspection Fees effective July 1, 2018 Summary The District's existing user fees have not been updated since 2010. Since that time, the District has undergone a variety of position reclassifications and implemented several efficiencies which have led to a change in our cost of service. A new study has been performed to account for these changes including all overhead line items. Recommendation That the Board of Directors direct staff to bring this item back to the June 28th Board of Directors Meeting to consider updating Plan Check and Inspections fees to be effective July 1, 2018. Analysis User fees are provided for in District Operations Code §6.04.020. Those charges are meant to reasonably approximate the cost to the District to provide a service. These would include plan check and sewer inspection fees. Sometimes a deposit is made and charges for the District Engineer, etc., are billed against the deposit. In other situations when tasks are more routine in nature, the amount is estimated by conducting a time and motion study to estimate the average cost. Staff has conducted a study of the District charges set forth below and found that the charges no longer reasonably approximate the cost of the services. District staff in combination with the District Engineer reviewed each fee and determined the average amount of staff hours it typically takes to complete each service. Based on these revised calculations, in combination with updated benefit and overhead amounts, it was determined that all twelve fees need revision. In addition, in order to establish equity between fees and recoup the cost of outsourced environmental inspections, it is recommended one (1) new fee be added. The proposed changes to be effective July, 1 2018 are summarized below: Fee Description Current Fee Amount FY19 Proposed Amount % Change Sewer Lateral Assistance 250.00 70.00 -72% Tie-in to Existing Lateral 570.00 250.00 -56% Construction of New Lateral 640.00 420.00 -34% Small New Development 545.00 420.00 -23% Construction of New Manhole 1,415.00 1,155.00 -18% Swimming Pool Connection 190.00 160.00 -16% Large New Development 1,160.00 1,260.00 9% Construction of New Facilities*10.00 11.00 10% Annexation 2,500.00 2,800.00 12% Sewer Permit 120.00 140.00 17% Cap Lateral and Demolition 90.00 110.00 22% Minor On-Site Plumbing Work 120.00 150.00 25% Subject 8. Update Plan Check and Inspection Fees effective July 1, 2018 Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type Action Recommended Action That the Board of Directors direct staff to bring this item back to the June 28th Board of Directors Meeting to consider updating Plan Check and Inspections fees to be effective July 1, 2018 Goals 7.0 Finance Grease Interceptor N/A 350.00 New * Per linear foot Based on the above, staff will ask the Board to adopt new user fees and will bring back an appropriate resolution at the next regular Board meeting. Legal Review District Counsel has reviewed and approved this report and will prepare the necessary resolution for adoption at a future Board meeting. Environmental Review Updating user fees is an administrative matter that will not result in direct or indirect physical changes to the environment and is not considered a "project". Financial Review Of the twelve (12) existing fees, it is recommended that six (6) fees be increased and six (6) fees be decreased. The primary driver behind all increases is directly related to salary and benefit changes since 2010. Fortunately, numerous efficiencies have been implemented since 2010 which has offset cost increases in many instances. The changes in fees, including the addition of a new fee, are not anticipated to increase or decrease the District's net revenue. Rather, the changes are solely intended to reflect equity between fees. Going forward, it is the intention of staff to reevaluate user fees each budget cycle and recommend any changes at that time. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 12, 2018 Board of Directors study session meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information 2. Leave fees unchanged for the upcoming fiscal year and reevaluate next budget cycle File Attachments User Fee Study 2018.pdf (74 KB) C. ITEMS OF STUDY To: Board of Directors From: Steve Hodges, Finance Manager Date: June 12, 2018 Subject: Evaluate CCTV Program and discuss potential public outreach enhancements or alternatives Summary Beginning on July 1, 2017, the Costa Mesa Sanitary District (CMSD) began partnering with local plumbers to provide eligible residents with a free closed circuit television (CCTV) video of their sewer lateral. CCTV video inspections allow plumbing professionals to place a camera inside the sewer lateral to proactively determine the quality of the sewer lateral. A budget of $50,000 was established for this program for each of the next two fiscal years. In addition, the District solicited eighty-two (82) contractors to participate in the program, of which nineteen (19) were trained on the program and are currently listed as approved vendors. As part of the 3rd quarter budget analysis during the April 26th Board meeting, the CCTV program was discussed. Specifically, it was brought to the attention of the Board that the program was only seeing about half the participation than what was originally projected. In response, the Board requested staff bring the item back to the Board to discuss alternatives or additional public outreach opportunities. Recommendation The Board of Directors: 1. Consider modifying the program to gain more interest 2. Consider the possibility of re-purposing a portion or all of remaining funds for use towards another program Analysis Upon adoption of the program, the District advertised the program in our Fall and Winter 2017 newsletters. As depicted in the below monthly activity of the program, the timeframes of the advertisements generated the most interest in the program. However, even with the additional generated applicants from the newsletters, the volume of interest in the program is significantly less than first anticipated. If the Board wishes to continue the program as first designed, staff recommends increasing our advertising in the newsletter to all four quarters of the year. In addition, it is suggested staff develop an eye catching visual to attract readers who are not familiar with the terms "lateral" or "CCTV" for example. This visual would also be added to the slideshow on the District's website to garner more attention. Furthermore, staff suggests reaching out to all vendors again reminding them of the program and soliciting for more participants to add to the District's approved vendor list. Subject 9. Evaluate CCTV Program and discuss potential public outreach enhancements or alternatives Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type Action, Discussion Recommended Action The Board of Directors: 1. Consider modifying the program to gain more interest 2. Consider the possibility of re-purposing a portion or all of remaining funds for use towards another program Goals 1.0 Sewer Infrastructure 1.5 Sewer Line Cleaning & CCTV Program Legal Review Not applicable Environmental Review Potentially modifying or eliminating the CCTV program will not result in direct or indirect physical changes to the environment and is not considered a "project". Financial Review It is projected that the total cost for the CCTV program for FY18 will be less than $25k. This would leave approximately $75k available to either continue the program or re-purpose for another District need. Not spending the full budgeted amount will not directly impact the District in a negative way and could be looked at as a positive from a rate payer perspective. However, it is important to remember the intention of the program was to encourage proactive maintenance of private laterals to prevent potential spills down the road. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 12, 2018 Board of Directors study session meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to continue program as currently designed D. CLOSING ITEMS Subject 1. Oral Communications and Director Comments Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type D. CLOSING ITEMS THE NEXT STUDY SESSION OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON TUESDAY, JULY 10, 2018 AT 9:30 A.M. IN THE DISTRICTS BOARD ROOM, LOCATED AT 290 PAULARINO AVENUE, COSTA MESA. Subject 2. Adjournment Meeting Jun 12, 2018 - Board of Directors Study Session Access Public Type Procedural