Loading...
2018_11_29_boardThursday, November 29, 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 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 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 2. Approve the Board of Directors Study Session Minutes of October 9, 2018 3. Approve the Board of Directors Regular Meeting Minutes of October 25, 2018 4. Approve the Directors' Compensation and Reimbursement of Expenses 5. Adopt Warrant Resolution No. CMSD 2019-5 Approving District Warrant Registers 6. Payroll Transparency Disclosure for October 2018 7. Accept the occupancy count as presented as 22,694 and direct staff to prepare a warrant to CR&R Environmental Services for $222,296.81 for October 2018 collection 8. Approve the preparation of a warrant to CR Transfer in the amount of $210,457.72 for October 2018 recycling and disposal services in the November 2018 warrant register 9. Approve the Investment Report for the Month of September 2018 D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Receive & File Citizens Advisory Committee Meeting Minutes of October 10, 2018 2. Receive & File Citizens Advisory Committee Draft Meeting Minutes of November 14, 2018 3. Adopt Revisions to Fats Oil Grease (FOG) Control Program Manual 4. Consider Adopting Administrative Regulations No. 70.00 - Performance Measurement Program 5. Consider adopting Ordinance No. 122 - Amending Chapters 7 and 8 of the Operations Code Pertaining to Solid Waste 6. Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2017-18 to Fiscal Year 2018-19 F. ENGINEER'S REPORTS 1. Receive and File Monthly Capital Improvement Projects Status Report 2. Declaration of Conflict of Interest - 2942 Century Place, Costa Mesa G. TREASURER'S REPORTS 1. Approve the Investment Report for the Month of October 2018 H. ATTORNEY'S REPORTS 1. Attorney's Reports I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request  of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.  For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (Vice President Ferryman) 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) 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. CLOSING ITEMS 1. Oral Communications and Director Comments 2. Adjourn Thursday, November 29, 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 Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Scheafer Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Ferryman Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Michael Scheafer, President James Ferryman, Vice President Arlene Schafer, Secretary Robert Ooten, Assistant Secretary Arthur Perry, Director 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 Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Procedural B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject 1. Public Comments Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Procedural C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 1. Approve Consent Calendar Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Consent Calendar as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: November 29, 2018 Subject: Approve the Board of Directors Study Session Minutes of October 9, 2018, 2018 Summary The recorded minutes of the October 9, 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 October 9, 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 November 29, 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 Subject 2. Approve the Board of Directors Study Session Minutes of October 9, 2018 Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. Minutes View Minutes for Oct 9, 2018 - Board of Directors Study Session minutes_2018_10_9_ss.pdf (65 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: November 29, 2018 Subject: Approve the Board of Directors Regular Meeting Minutes of October 25, 2018 Summary The recorded minutes of the October 25, 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 October 25, 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 November 29, 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 Subject 3. Approve the Board of Directors Regular Meeting Minutes of October 25, 2018 Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. Minutes View Minutes for Oct 25, 2018 - Board of Directors Regular Meeting minutes_2018_10_25_rm.pdf (76 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk Date: November 29, 2018 Subject: Directors' Compensation and Reimbursement of Expenses Summary The Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses. Staff Recommendation That the Board of Directors approve the compensation and reimbursement of expenses as presented. Legal Review Not applicable. Environmental Review Consideration of the compensation and reimbursement of expenses is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the November 29, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the compensation and reimbursement of expenses as presented. 2. Direct staff to report back with more information. File Attachments a_compensation_october.pdf (266 KB) oct-exp.pdf (181 KB) Subject 4. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. File Attachments WARRANT RESO Nov2018 Mtg.pdf (403 KB) Subject 5. Adopt Warrant Resolution No. CMSD 2019-5 Approving District Warrant Registers Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2019-5 approving District warrants for the month of October 2018 in the amount of $943,953.75. Goals 7.0 Finance All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Senior Accountant Date: November 29, 2018 Subject: Payroll Transparency Disclosure for October 2018 Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Staff Recommendation That the Board of Directors receive 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 November 29, 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 Oct 2018.pdf (181 KB) Subject 6. Payroll Transparency Disclosure for October 2018 Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file the report. Goals 7.0 Finance All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: November 29, 2018 Subject: Accept the occupancy count as presented as 22,694 and direct staff to prepare a warrant to CR&R Environmental Services for $222,296.81 for October 2018 collection Summary Accept the occupancy count as presented using 22,694 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for October 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,296.81 to be ratified in the November 2018 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,694 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for October 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,296.81 to be ratified in the November 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 October 31, 2018, total District occupancy was at 22,694, District staff will continue to track the number of new service addresses, twenty-three (23) accounts have been added since the last billing period. Two accounts have been deleted from the occupancy count due to one home being demolished and the other switching to dumpster service. The payment calculation is based on the following: District's Current Rate for October of 2018: Subject 7. Accept the occupancy count as presented as 22,694 and direct staff to prepare a warrant to CR&R Environmental Services for $222,296.81 for October 2018 collection Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 22,694 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for October 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,296.81 to be ratified in the November 2018 warrant list. Goals 2.00 Solid Waste 22,694 x $9.7954 = $222,296.81 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 November 29, 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 2018-10-G CMSD Occupancy Report.pdf (20 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: November 29, 2018 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $210,457.72 for October 2018 recycling and disposal services in the November 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 $210,457.72 for October 2018 recycling and disposal services to be ratified in the November 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 $50.44, but CMSD will be paying what is reflected on the invoice. Costa Mesa Newport Beach Total Residential Waste $141,072.60 $4,709.27 $145,781.87 Organics $61,635.67 $3,040.18 $64,675.85 Total Payment $210,457.72 Tonnage Residential Waste 2715.15 90.63 2805.78 Organics 862.26 42.52 904.78 Total Tonnage 3710.56 Subject 8. Approve the preparation of a warrant to CR Transfer in the amount of $210,457.72 for October 2018 recycling and disposal services in the November 2018 warrant register Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $210,457.72 for October 2018 recycling and disposal services to be ratified in the November 2018 warrant register. Goals 2.00 Solid Waste 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 November 29, 2018 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Marc Davis, District Treasurer Date: November 29, 2018 Subject: Approve the Investment Report for the month of September 2018 Summary Attached is the Investment Report for the month of September 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 September 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 September 30, 2018. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the July 26, 2018 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 September 30, 2018, was 1.797%. The yield to maturity of the portfolio was 1.801%. The District’s weighted average interest rate was 27 basis points (0.266%) below the LAIF average monthly rate for September 2018 of 2.063%. The weighted average number of days to maturity for the District’s total portfolio was 729 days (2.00 years). The average duration of the underlying securities in LAIF as of September 30, 2018 was 193 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 September 30, 2018 was 28.69%. 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. Subject 9. Approve the Investment Report for the Month of September 2018 Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Investment Report for the month of September 2018. Goals 7.0 Finance 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. 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, 2019. Through September 30, 2018, the portfolio has earned a weighted average interest rate of 1.727%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the November 29, 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 - September 2018.pdf (588 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. E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: November 29, 2018 Subject: Receive & File Citizens Advisory Committee Meeting Minutes of October 10, 2018 Summary The recorded minutes of the October 10, 2018 Citizens Advisory Committee Meeting are hereby submitted to the Board of Directors for review. Analysis Attached to the staff report are the minutes for the October 10, 2018 Citizens Advisory Committee Meeting. Staff Recommendation That the Board of Directors receive and file the minutes. 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 November 29, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Direct staff to report back with more information. File Attachments minutes_2018_10_10_cac.pdf (68 KB) Subject 1. Receive & File Citizens Advisory Committee Meeting Minutes of October 10, 2018 Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action, Minutes, Receive and File Recommended Action That the Board of Directors receive and file the minutes. Minutes View Minutes for Oct 10, 2018 - Citizens Advisory Committee E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: November 29, 2018 Subject: Receive & File Citizens Advisory Committee Draft Meeting Minutes of November 14, 2018 Summary The draft minutes of the November 14, 2018 Citizens Advisory Committee Meeting are hereby submitted to the Board of Directors for review. Analysis Attached to the staff report are the draft minutes for the November 14, 2018 Citizens Advisory Committee Meeting. Staff Recommendation That the Board of Directors receive and file the draft minutes. 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 November 29, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Direct staff to report back with more information. File Attachments minutes_2018_11_14_cac_draft.pdf (79 KB) Subject 2. Receive & File Citizens Advisory Committee Draft Meeting Minutes of November 14, 2018 Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file the draft minutes. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: November 29, 2018 Subject: That the Board of Directors Considers Adopting the Proposed Revisions to the District's FOG Control Program Manual Summary On September 11 and September 20, the Board of Directors received and discussed a memorandum from the District's Fats Oil Grease (FOG) control consultant, EEC Environmental, about improvements to the FOG Control Program. The Board of Directors approved the recommended revisions and directed staff to report back with amended FOG Control Program Manual, FOG Polices and FOG Control Ordinance for final approval. On October 25, 2018, the Board adopted Ordinance No. 121, amending Chapter 6.07 of the Operations Code pertaining to grease control. Tonight, the Board will consider adopting proposed revisions to the District's FOG Control Program Manual. Recommendation That the Board of Directors considers adopting the proposed revisions to the District's FOG Control Program Manual Analysis Attached is a copy of the FOG Control Program Manual that identifies the recommended revisions (e.g.. strike through and added texts). Revisions are made throughout the document, but the significant changes include new sections such as: 4.4.2 Gravity Grease Interceptors Maintenance Requirements 4.5 Hydro-Mechanical Grease Interceptors (HGI) 4.5.1 Sizing 4.5.2 Maintenance Requirements for HGI 4.6 Grease Removal Devices (GRD) 4.6.1 GRD Sizing 4.6.2 GRD Maintenance Requirements After adopting Manual revisions the next step is for staff to update the District's Sewer System Management Plan (SSMP), which will be done internally without Board approval. Legal Review Not applicable Environmental Review Adopting Manual revisions will result in better management of fats, oils, and grease and lead to a reduction in negative impacts to the District's sewer system. Financial Review There are no financial impacts to the District for adopting the proposed revisions to the District's FOG Control Program Manual. Public Notice Process Subject 3. Adopt Revisions to Fats Oil Grease (FOG) Control Program Manual Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors considers adopting the proposed revisions to the District's FOG Control Program Manual Goals 1.0 Sewer Infrastructure 1.8 Fats, Oil & Grease (FOG) Program Copies of this report are on file and will be included with the complete agenda packet for the November 29, 2018 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov. Alternative Actions 1. Do not adopt Manual revisions and direct staff to report back with more information. File Attachments FOG Control Manual Revised 11-29-19.doc (1,689 KB) FOG Control Manual Revised 11-29-19.pdf (1,517 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: November 29, 2018 Subject: Consider Adopting Administrative Regulations No. 70.00 - Performance Measurement Program Summary On November 26, 2018, staff presented to the Board a new program that will continually look at ways to improve and/or enhance the level of service being provided internally to staff and externally to the public. A Performance Measurement Program was developed as a useful tool to confirm District success and alerts staff to programs and/or services in need of greater scrutiny. Recommendation That the Board of Directors adopt Administrative Regulations No. 70.00 - Performance Measurement Program Analysis At the November 26th meeting, staff identified several steps to be taken to enhance the Performance Measurement Program. One of the steps mentioned was developing and adopting policies and procedures to a systematic approach to measure, analyze and report on performance of services provided by CMSD that strive for continuous improvement. Administrative Regulations No. 70.00, which is attached hereto, is that policy. Legal Review Not applicable Environmental Review Implementing a Performance Measurement Program is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There are no financial impacts to the District for implementing a Performance Measurement Program Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the November 29, 2018 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Do not adopt Administrative Regulations No. 70.00 and direct staff to report back with more information File Attachments AR No. 70.00 - Performance Measurement Program.doc (79 KB) Subject 4. Consider Adopting Administrative Regulations No. 70.00 - Performance Measurement Program Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Administrative Regulations No. 70.00 - Performance Measurement Program Goals 5.0 Administrative Management E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: November 29, 2018 Subject: Consider Adopting Ordinance No. 122 - Amending Chapters 7 and 8 of the Operations Code Pertaining to Solid Waste Summary On June 28, 2018, the Board of Directors approved a new solid waste agreement with CR&R Environmental Services. This new agreement introduces new services and terms that conflict with current language in the District's Operations Code. Staff is requesting the Board will consider adopting Ordinance No. 122, amending chapters 7 and 8 of the Operations Code pertaining to solid waste. Recommendation That the Board of Directors adopt Ordinance No. 122 amending chapters 7 and 8 of the Operations Code pertaining to solid waste. Analysis Attached is a copy of Ordinance No. 122 that identifies the recommended amendments (e.g. strike through and added texts). The amendments include moving all current definitions in Chapter 8, section 8.02.010 to Chapter 2, so that all definitions can be found in one place. Other changes include updating basic service definition, updating the current 3rd container charge, as well as adding a new section for the Door-to-Door Household Hazardous Waste program. In addition, existing section numbers were amended with the deletion of the definition section in Chapter 8. The Citizens Advisory Committee reviewed the ordinance at their last meeting on November 14th, their comments highlighted certain inconsistencies within the ordinance regarding tires, liquid waste and concrete and whether they are allowed to be collected in the weekly curbside pickup. Legal Counsel has reviewed the ordinance and made the changes necessary to remove these inconsistencies. If the the Board adopts Ordinance No. 122, the amended code will go into effect 30 days after adoption. Legal Review District Counsel has reviewed and approved Ordinance No. 122. Environmental Review A review of the solid waste ordinance is not a disturbance of the environment similar to grading or construction and does not constitute a project under CEQA or the District's CEQA Guidelines. Financial Review There are no fiscal impacts to the District for adopting Ordinance No. 122. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the November 29, 2018 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov. Alternative Actions 1. Do not adopt Ordinance No. 122 and direct staff to report back with more information. Subject 5. Consider adopting Ordinance No. 122 - Amending Chapters 7 and 8 of the Operations Code Pertaining to Solid Waste Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Ordinance No. 122 amending chapters 7 and 8 of the Operations Code pertaining to Solid Waste Goals 2.00 Solid Waste File Attachments Ordinance No. 122 - Track Changes.pdf (59 KB) Ordinance No. 122.pdf (49 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Marc Davis, Treasurer Date: November 29, 2018 Summary All appropriations lapse at the end of each fiscal year, therefore it is necessary to request that certain unspent appropriations and encumbrances for goods and/or services that have yet to be completed by fiscal year end be carried over into the subsequent fiscal year. After the close of the prior fiscal year, the Board of Directors reviews and approves a list of appropriations and encumbrances that are requested to be carryover in to the new fiscal year. Analysis All appropriations lapse at the end of each fiscal year, therefore it is necessary to request that certain unspent appropriations for goods and/or services be carried over into the subsequent fiscal year. The carryover appropriations represent budgeted Fiscal Year 2017-18 appropriations for goods and/or services that were not expended as of June 30, 2018, but are expected to be expended in the Fiscal Year 2018-19. Generally, allowable carryovers are limited to certain types of goods or services, such as professional service contracts, capital outlay or capital improvement projects (CIP). Due to their scope and size, CIP is inherently precluded from being completed within the fiscal year in which funding was initially appropriated. The carryover of operating transfers represents the use of specific resources to fund specific carryover appropriations. The carryover of revenues typically relates to grants where the money has been received but not earned. Encumbrances represent purchase orders (POs) issued for goods and/or services which were not received or completed during the prior fiscal year by June 30, 2018. A PO is a commitment created to reserve a portion of the appropriation’s available balance, but does not represent an expenditure or liability for budgetary or accounting purposes. The budget appropriations associated with encumbrance’s lapse at fiscal year-end unless the Board re-appropriates the funds in the subsequent fiscal year as requested in this report. After all payments are made for goods and services received by June 30, 2018, staff analyzes the remaining appropriation balances and open encumbrances to determine their validity. If the proposed continuing appropriations and encumbrances were not carried over into Fiscal Year 2018-19, there would not be sufficient appropriations in the current year budget to fund existing and the current year adopted projects. 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 Subject 6. Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2017-18 to Fiscal Year 2018-19 Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the re-appropriation of funds in the Fiscal Year 2018-19 for the carryover items from the prior fiscal year as detailed in Attachment A and B, and summarized as follows: 10 Solid Waste Fund: Carryover Appropriations $49,210, Encumbrances $0 20 Wastewater Fund: Carryover Appropriations $2,220,430, Encumbrances $21,960 Goals 7.0 Finance 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 total amount to be carried over for Solid Waste Fund is $49,210. The total amount to be carried over for Liquid Waste Fund is $2,242,390. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the November 29, 2018 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions Refer the matter back to staff File Attachments Attachment A .pdf (11 KB) Attachment B.pdf (9 KB) F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: November 29, 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 November 29, 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 Monthly Status Report - October 2018.pdf (142 KB) Subject 1. Receive and File Monthly Capital Improvement Projects Status Report Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 1.0 Sewer Infrastructure 1.1 Manhole Cover Maintenance Program 1.4 System Wide Sewer Replacement and Repair Program 1.6 Evaluate Force Main Conditions on a Regular Basis 4.7 Demonstrate outstanding efforts in transparency 7.2 Develop a long term CIP F. ENGINEER'S REPORTS To: General Manager, Alternate District Engineer From: District Engineer Re: Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 2942 Century Place, Costa Mesa – New Fire Line Please be advised that I have been retained to do private engineering work for the property at 2942 Century Place, Costa Mesa, which is owned by Keith Yung. I have reason to believe that this project or those persons involved in that project may have the need for District engineering approvals in the future. I have been retained by Keith Yung and will be reporting this relationship as a source of income on my FPPC Statement of Economic Interests Form 700 next year. Pursuant to state law, District Operations Code Section 3.01.045, and my contract with the District: 1. I hereby notify you of this source of income or other relationship that causes me a conflict in approving any matters in my official capacity pertaining to this property and these persons. 2. I request that the General Manager alert the Alternate District Engineer that he is to provide all engineering approvals on behalf of the District with respect to these persons or that property. 3. That the Alternate District Engineer shall report directly to the General Manager and submit his bills for services directly to the General Manager. 4. That if any plans are required to be approved, that those shall show my seal and signature as private engineer of record, and the Alternate District Engineer shall provide his approval by signing as Alternate District Engineer. That these separate approvals shall be given on the same page and in a manner that clearly shows the separate capacities of each engineer in providing their respective approvals. 5. I request that the District Clerk maintain a copy of this Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer as a permanent record of the District or for as long as required under the District’s record retention schedule. I understand that this procedure does not allow me to enter into or influence the awarding of contracts in my official capacity in which I have a financial interest, which is a separate prohibition. (Gov. Code § 1090.) If I can provide further information about the identity of my source of income or about the scope of my assignment, please advise, and I will elaborate as necessary. Robin Hamers District Engineer Subject 2. Declaration of Conflict of Interest - 2942 Century Place, Costa Mesa Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Receive and File G. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: November 29, 2018 Subject: Approve the Investment Report for the month of October 2018 Summary Attached is the Investment Report for the month of October 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 October 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 October 31, 2018. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the July 26, 2018 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 September 30, 2018, was 1.797%. The yield to maturity of the portfolio was 1.824%. The District’s weighted average interest rate was 32 basis points (0.320%) below the LAIF average monthly rate for October 2018 of 2.144%. The weighted average number of days to maturity for the District’s total portfolio was 781 days (2.14 years). The average duration of the underlying securities in LAIF as of October 31, 2018 was 201 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 October 31, 2018 was 21.33%. 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. Subject 1. Approve the Investment Report for the Month of October 2018 Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the Investment Report for the month of October 2018. Goals 7.0 Finance Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. Undesignated - Remaining available cash, which is available to be appropriated by the Board. Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund - Accumulation of funds in accordance with the asset management model for long-term replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not include….C. Continuing administrative or maintenance activities.” Financial Review The portfolio was budgeted to earn an average rate of 0.900% for the year ending June 30, 2019. Through October 31, 2018, the portfolio has earned a weighted average interest rate of 1.749%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the November 29, 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 - October 2018.pdf (596 KB) H. ATTORNEY'S REPORTS Subject 1. Attorney's Reports Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type 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 Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer) Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Information J. CLOSING ITEMS Subject 1. Oral Communications and Director Comments Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Discussion J. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON DECEMBER 20, 2018, IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Subject 2. Adjourn Meeting Nov 29, 2018 - Board of Directors Regular Meeting Access Public Type Procedural