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2019-03-28Thursday, March 28, 2019 Board of Directors Special Meeting 290 Paularino Avenue, Costa Mesa at 4:30 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 Ferryman Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Procedural A. OPENING ITEMS James Ferryman, President Robert Ooten, Vice President Arlene Schafer, Secretary Michael Scheafer, Director Arthur Perry, Director 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 Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Additions/Deletions to Closed Session Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type A. OPENING ITEMS Subject 4. Public Comments on Closed Session Items Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type A. OPENING ITEMS Subject 5. Recess to Closed Session Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type B. CLOSED SESSION Subject 1. Public Employee Performance Evaluation (Gov. Code 54957) - Title: General Manager Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type C. RECONVENE THE REGULAR MEETING OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS - 5:30 P.M. Subject 1. Pledge of Allegiance - President Ferryman Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Procedural C. RECONVENE THE REGULAR MEETING OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS - 5:30 P.M. Subject 2. Invocation - Vice President Ooten Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Procedural C. RECONVENE THE REGULAR MEETING OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS - 5:30 P.M. Subject 3. 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 Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Procedural D. CEREMONIAL MATTERS & PRESENTATIONS Subject 1. Recognizing Newport-Mesa Unified School District’s Early College High School for being named a 2019 California Distinguished School Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Presentation D. CEREMONIAL MATTERS & PRESENTATIONS Subject 2. Recognizing the Citizens Advisory Committee Members for their Service Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Presentation E. 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 Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Procedural F. 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 Mar 28, 2019 - Board of Directors Special 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. F. 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: March 28, 2019 Subject: Approve the Board of Directors Study Session Minutes of February 12, 2019 Summary The recorded minutes of the February 12, 2019 Board of Directors Study Session are hereby submitted to the Board of Directors for review and approval. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Analysis Attached to the staff report are the minutes for the Board of Directors Study Session on February 12, 2019. 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 March 28, 2019 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 February 12, 2019 Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. Minutes View Minutes for Feb 12, 2019 - Board of Directors Study Session minutes_2019_02_12_ss.pdf (80 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. F. 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: March 28, 2019 Subject: Approve the Board of Directors Regular Meeting Minutes of February 28, 2019 Summary The recorded minutes of the February 28, 2019 Board of Directors Regular Meeting are hereby submitted to the Board of Directors for review and approval. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Analysis Attached to the staff report are the minutes for the Board of Directors Regular Meeting on February 28, 2019. 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 March 28, 2019 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 February 28, 2019 Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. Minutes View Minutes for Feb 28, 2019 - Board of Directors Regular Meeting minutes_2019_02_28_rm.pdf (78 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. F. 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 March 2019 Mtg.pdf (280 KB) Subject 4. Adopt Warrant Resolution No. CMSD 2019-9 Approving District Warrant Registers Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2019-9 approving District warrants for the month of February 2019 in the amount of $324,913.21. 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. F. 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: March 28, 2019 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 March 28, 2019 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_director_compensation.pdf (251 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as presented. b_director_expense.pdf (54 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. F. 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: March 28, 2019 Subject: Payroll Transparency Disclosure for February 2019 Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Recommendation That the Board of Directors approve and file the report. Analysis Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 28, 2019 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 Subject 6. Payroll Transparency Disclosure for February 2019 Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors approve and file the report. Goals 7.0 Finance Payroll Transparency Disclosure Feb 2019.pdf (151 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. F. 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: March 28, 2019 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $162,812.81 for February 2019 recycling and disposal services in the March 2019 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 $162,812.81 for February 2019 recycling and disposal services to be ratified in the March 2019 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 over billed the District by $0.24, but CMSD will be paying the actual amount owed. Costa Mesa Newport Beach Total Residential Waste $117,751.55 $2,991.37 $120,742.92 Organics $40,092.91 $1,976.98 $42,069.89 Total Payment $162,812.81 Tonnage Residential Waste 2265.76 57.56 2323.32 Organics 560.74 27.65 588.39 Total Tonnage 2911.71 Legal Review Not Applicable Subject 7. Approve the preparation of a warrant to CR Transfer in the amount of $162,812.81 for February 2019 recycling and disposal services in the March 2019 warrant register Meeting Mar 28, 2019 - Board of Directors Special 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 $162,812.81 for February 2019 recycling and disposal services to be ratified in the March 2019 warrant register. 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 March 28, 2019 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. F. 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: March 28, 2019 Subject: Accept the occupancy count as presented as 22,765 and direct staff to prepare a warrant to CR&R Environmental Services for $222,992.28 for February 2019 collection Summary Accept the occupancy count as presented using 22,765 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,992.28 to be ratified in the March 2019 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,765 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,992.28 to be ratified in the March 2019 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 February 28, 2019, total District occupancy was at 22,765, with thirteen (13) accounts added since the last billing period. District staff will continue to track the number of new service addresses. The payment calculation is based on the following: District's Current Rate for February 2019: 22,765 x $9.7954 =$222,992.28 Legal Review Not Applicable Subject 8. Accept the occupancy count as presented as 22,765 and direct staff to prepare a warrant to CR&R Environmental Services for $222,992.28 for February 2019 collection Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 22,765 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,992.28 to be ratified in the March 2019 warrant list. 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 March 28, 2019 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. 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. F. 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. RESOLUTION NO. 2019-912 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 121 AMENDING CHAPTER 6.07 OF THE OPERATIONS CODE PERTAINING TO GREASE CONTROL HAS OCCURRED WHEREAS, the Board of Directors on October 25, 2018 adopted Ordinance No. 121 amending Chapter 6.07 of the Operations Code pertaining to grease control; and WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on October 31, 2018; and WHEREAS, Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE, the Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 121 amending Chapter 6.07 of the Operations Code pertaining to grease control has occurred. PASSED and ADOPTED on this day of 2019. _______________________________ _______________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, NOELANI MIDDENWAY, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2019-912 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the day of March, 2019 by the following votes: Subject 9. Adopt Resolution No. 2019-912 Ordering that Publication of Ordinance No. 121 has Occurred Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors Adopt Resolution No. 2019-912 Ordering that Publication of Ordinance No. 121 has Occurred AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ day of ___________________ 2019. _________________________________ Noelani Middenway Clerk of the Costa Mesa Sanitary District File Attachments RESOLUTION NO. 2019-912 ORDERING THAT PUBLICATION OF ORDINANCE NO. 121 HAS OCCURED.pdf (13 KB) 5960990.pdf (179 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. F. 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. RESOLUTION NO. 2019-913 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 122 ADOPTING SOLID WASTE REGULATIONS HAS OCCURRED WHEREAS, the Board of Directors on November 29, 2018 adopted Ordinance No. 122 adopting solid waste regulations; and WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on February 16, 2019; and WHEREAS, Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE, the Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 122 adopting solid waste regulations has occurred. PASSED and ADOPTED on this day of 2019. _______________________________ _______________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, NOELANI MIDDENWAY, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2019-913 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the___day of March, 2019 by the following votes: AYES: Subject 10. Adopt Resolution No. 2019-913 Ordering that Publication of Ordinance No. 122 has Occurred Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors Adopt Resolution No. 2019-913 Ordering that Publication of Ordinance No. 122 has Occurred NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ day of ___________________ 2019. _________________________________ Noelani Middenway Clerk of the Costa Mesa Sanitary District File Attachments RESOLUTION NO. 2019-913 ORDERING THAT PUBLICATION OF ORDINANCE NO. 122 HAS OCCURED.pdf (13 KB) 6145341.pdf (116 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. F. 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. RESOLUTION NO. 2019-914 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 123 ADOPTING ROSENBERG'S RULES OF ORDER HAS OCCURRED WHEREAS, the Board of Directors on December 20, 2018 adopted Ordinance No. 123 adopting Rosenberg's Rules of Order; and WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on February 20, 2019; and WHEREAS, Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE, the Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 123 adopting Rosenberg's Rules of Order has occurred. PASSED and ADOPTED on this ____day of March 2019. _______________________________ _______________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, NOELANI MIDDENWAY, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2019-914 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the___day of March, 2019 by the following votes: AYES: Subject 11. Adopt Resolution No. 2019-914 Ordering that Publication of Ordinance No. 123 has Occurred Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors Adopt Resolution No. 2019-914 Ordering that Publication of Ordinance No. 123 has Occurred NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ day of ___________________ 2019. _________________________________ Noelani Middenway Clerk of the Costa Mesa Sanitary District File Attachments RESOLUTION NO. 2019-914 ORDERING THAT PUBLICATION OF ORDINANCE NO. 123 HAS OCCURED.pdf (64 KB) 6145308.pdf (116 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. F. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Dyana Bojarski, Management Analyst II Date: March 28, 2019 Subject: 2018 Annual Health Benefits Broker Fees Report Summary As required by Section 1367.08 of the California Health and Safety Code and Section 10604.5 of the California Insurance Code, the Costa Mesa Sanitary District must disclose any group health insurance premiums, fees, and commissions paid to all agents, providers, and brokers. Recommendation That the Board of Directors receive and file the report. Analysis Section 1367.08 of the Health and Safety Code A health care service plan shall annually disclose to the governing board of a public agency that is the subscriber of a group contract, the name and address of, and amount paid to, any agent, broker, or individual to whom the plan paid fees or commissions related to the public agency's group contract. As part of this disclosure, the health care service plan shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. Section 10604.5 of the Insurance Code An insurer shall annually disclose to the governing board of a public agency that is the policyholder of a group health insurance policy, the name and address of, and amount paid to, any agent, broker, or individual to whom the insurer paid fees or commissions related to the public agency's group health insurance policy.As part of this disclosure, the insurer shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. Summary of Health Benefits CalPERS (California Public Employee Retirement Services) administers and negotiates rates and coverage for all District medical plans. Services provided by CalPERS includes: plan design, negotiating with medical and pharmaceutical carriers, developing and printing plan summaries, outlines and brochures, billing, claims processing, hosting an online database for enrollments and changes, participant appeals and grievances, website design and maintenance, and free workshops/seminars for employers, employees, and retirees. Subject 12. Receive and File 2018 Annual Health Benefits Broker Fees Report Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file the report. Goals 6.0 Personnel/Organizational Management 5.0 Administrative Management All non-medical health plans which include dental, vision, life, long-term disability, voluntary AD&D, and other individual plans such as accident, hospital, and short-term disability are administered and/or brokered by SDRMA (Special District Risk Management Authority) or Aflac (American Family Life Assurance Company). Services provided by SDRMA and Aflac include: plan design options, negotiating rates and benefits with carriers, legal and compliance updates and advice, open enrollment support, assistance with claims processing and resolution, and free workshops to staff. Although the District obtains non-medical health plans through SDRMA, the disclosure codes do not apply because the agency administers the non-medical programs through the California State Associations of Counties Excess Insurance Authority (CSAC-EIA Health); it does not contract directly with brokers or insurance carriers of the Health Benefit Programs. Agent, Broker, or Individuals Paid in Calendar Year 2018 Medical Broker/Administrator Medical Broker/Administrator CalPERS 400 Q Street Sacramento, CA 95811 AFLAC 1932 Wynnton Road Columbus, GA 31999 The 2018 CalPERS Total Fees/Commissions amount was $494 and the percentage of premiums was .34%. The 2018 Aflac Total Fees/Commissions amount was $1,300 and the percentage of premiums was 13.35%. Plan Year Broker - Administrator Coverage Premiums Total Fees & Commissions % of Premiums 2018 CalPERS Medical $145,180 $494 .34% 2018 Aflac Non- medical $9,735 $1,300 13.35% Legal Review Not applicable. Environmental Review Disclosure and discussion of group health insurance premiums, fees, and commissions paid to agents or providers are administrative matters and not a disturbance of the environment similar to grading or construction and the discussion is not a project under CEQA or the District’s CEQA Guidelines. Financial Review The District paid a total of $154,915 in premiums for medical and non-medical expenses and $1,794 for fees and commissions in 2018. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors regular meeting at District Headquarters and on the District's website. Alternative Actions 1. Direct staff to report back with more information. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. F. 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: Scott Carroll, General Manager Date: March 28, 2019 Subject: Contracts Signed by General Manager Summary At the January 24, 2019 Board of Directors meeting, the Board directed the General Manager to submit a list of contracts he signed during the previous month. Below are the contracts he signed in the month of February 2019. Recommendation That the Board of Directors receive and file this report Analysis Below are the contracts signed by the General Manager in the month of February 2019. Contracts: 1. Occupational Safety Training Systems (OSTS) – Facilitates safety training seminars for staff. Cost: $5,826.25 2. C&R Drains – After hours emergency sewer services. Cost: $600 first hour minimum charge then $250 for each additional ½ hours; $264 an hour for an additional person and $200 per month for after hours answering service. Last fiscal year, the District paid C&R Drains $13,190.50 and the year before that the District paid C&R Drains $7,832.5 for emergency sewer services. 3. Second Chance Orange County – Renting office space at CMSD HQ. Revenue: $530 per month. 4. PeopleReady, Inc. - Temporary person to work on wastewater cleaning crew until Intern is hired. Cost: $25.83 an hour for 40 hours a week. Purchase Orders: 5. Schuler Constructors, Inc. – Repairing airvac vacuum system at Elden Pump Station. Cost: $1,997. 6. YC Equipment & Services – Repair generator at District Yard. Cost: $3,357 7. Xylem, Inc. – Remove and replace plugs and seals at Irvine Pump Station. Cost: $11,922.50 Legal Review All contracts are reviewed and approved by District Counsel before contracts are executed. Environmental Review Providing the Board of Directors a monthly list of contracts signed by the General Manager 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 Subject 13. Contracts Signed by General Manager Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. Goals 5.0 Administrative Management Total estimated annual cost to the District for executing the six contacts above is $38,236. In addition, the District will generate $6,360 a year in revenue for the contract with Second Chance Orange County. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. F. 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: March 28, 2019 Subject: Approve the Investment Report for the month of February 2019 Summary Attached is the Investment Report for the month of February 2019. 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 February 2019. 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 February 28, 2019. 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 February 28, 2019, was 1.980%. The yield to maturity of the portfolio was 1.984%. The District’s weighted average interest rate was 41 basis points (0.412%) below the LAIF average monthly rate for February 2019 of 2.392%. The weighted average number of days to maturity for the District’s total portfolio was 579 days (1.59 years). The average duration of the underlying securities in LAIF as of February 28,2019 was 184 days. The District’s investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than one year as of February 28, 2019 was 35.06%. 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 14. Approve the Investment Report for the Month of February 2019 Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Investment Report for the month of February 2019. 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 February 28, 2018, the portfolio has earned a weighted average interest rate of 1.845%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 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 - February 2019.pdf (599 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. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Citizens Advisory Committee (CAC) March 13, 2019 Meeting Overview Summary The following is an overview of the topics discussed by the CAC at their March 13, 2019 meeting Recommendation That the Board of Directors receive and file this report. Analysis There were seven items on the March 13 agenda that are described below. 1. Approve the Citizens Advisory Committee Meeting Minutes of February 13, 2019 - The minutes were unanimously approved. 2. Draft Board of Directors Meeting Minutes of February 28, 2019 - There was no discussion regarding this item. 3. CMSD 75th Anniversary Update - Staff ran four short videos about CMSD programs that will be available for public viewing at the Starlight Triangle Square Cinemas for the entire year. The first video, large item collections, is currently airing in the Cinemas. The CAC suggested the District reach out to local cable companies and to the City's Costa Mesa Television to see if the videos can be shown on TV. 4. #318 President Pump Station Reconstruction - District Engineer, Rob Hamers, attended the meeting to describe the four alternatives to reconstruct the President Pump Station. For over forty-five minutes the CAC engaged with Mr. Hamers and staff regarding the four alternatives. The CAC had several concerns with Alternative #4, constructing a new pump station at the end of the cul-de-sac, such as: The construction and inconvenience to residents Eyesore when District trucks are at the station for maintenance The closeness of the storm drain to the station Alternative #4 was the least favorite by the CAC. The CAC is recommending the Board consider Alternative #2 because the proposed cost is within budget, but if the infrastructure testing does not come out favorably then the CAC's second choice is Alternative #3. 5. Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment - Staff explained the purpose for the proposed ordinance. The CAC inquired what type of equipment and supplies are valued less than $5,000 and the CAC wanted to know how was the $5,000 threshold determined. The CAC approved recommending the Board adopt Ordinance No. 124, which included the recommended revisions by Mr. Jim Mosher. 6. Ordinance No. 125 - Establishing Regulations for District Facilities - Staff explained the purpose for the proposed ordinance. The CAC approved recommending the Board adopt Ordinance No. 124, which included the recommended revisions by Mr. Jim Mosher. 7. Consider Changing the CAC Meeting Date to the Third Wednesday of Every Other Month - The CAC approved changing the May meeting to the third Wednesday, May 15, but decided to let the new CAC determine the standard meeting day for future meetings. Subject 1. Citizens Advisory Committee (CAC) March 13, 2019 Meeting Overview Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report Goals 5.0 Administrative Management Staff Comments - Staff shared with the CAC two recent stories on the Daily Pilot's website regarding the Board's decision to contribute $50,000 to the City of Costa Mesa's temporary bridge shelter and the Board's decision to accept the CAC's recommendation for increasing solid waste rates. Staff thanked outgoing CAC members Sue Lester, Jana Oak, Monte Fields, Tom Brenneman and Shayne Smith for their service on the CAC and invited them to attend the March 28 Board of Directors meeting to be recognized for their service. The CAC members mention are serving a one year term on the CAC, but they can reapply to continue serving on the CAC. Legal Review Not applicable Environmental Review Providing an overview of the CAC's March 2019 meeting is an administrative matter, which will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA. Financial Review There are no financial impacts to the District. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Noelani Middenway, CMC Date: March 28, 2019 Subject: Consider Appointing Five Members to the Citizens Advisory Committee to Serve a Two-Year Term Ending March 2021 Summary There are five vacancies on the Citizens Advisory Committee (CAC) that require the Board to appoint new members to serve on the committee. Analysis The Citizens Advisory Committee (CAC) consists of 11 members that provide advisory input on subject matters desired by the Board of Directors. CAC members serve staggered terms of one or two years, with five members concluding their one-year term on March 13, 2019. It is now appropriate for the Board of Directors to nominate and appoint new members to fill said vacancies. Nine applications have been received and are included with this report for the Boards' consideration. The newly appointed members will serve on the CAC for two years, ending March 2021. Recommendation That the Board of Directors appoint five members to the Citizens Advisory Committee to serve a two-year term ending March 2021. Legal Review Not applicable. Environmental Review Appointing members to the Citizens Advisory Committee is an administrative matter, which will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA. 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 March 28, 2019 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions Refer the matter back to staff. File Attachments Subject 2. Consider Appointing Five Members to the Citizens Advisory Committee to Serve a Two-Year Term Ending March 2021 Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type redacted_applications_2019_final.pdf (2,152 KB) Administrative File Attachments conness_jack_2019.pdf (1,136 KB) fields_monte_2019.pdf (426 KB) gielow_judith_2019.pdf (202 KB) lester_sue_2019.pdf (261 KB) quinn_martin_2019.pdf (110 KB) takahashi_steven_2019.pdf (174 KB) takaya_judy_2019.pdf (146 KB) trahan_rebecca_2019.pdf (341 KB) reynolds_olga_2019.pdf (93 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Approve General Manager's 2019 Performance Goals Summary On February 28, 2019, the General Manager presented a proposed list of performance goals to achieve in 2019. The Board made revisions to the draft list of goals and directed the General Manager to bring back the updated and final list for approval consideration. Attached is the final list. Recommendation That the Board of Directors approve the General Manager's 2019 Performance Goals Analysis Attached for your approval consideration is the General Manager's 2019 Performance Goals. Legal Review Not applicable. Environmental Review Adopting the General Manager's performance goals are an administrative matter and are not a disturbance of the environment similar to grading or construction and therefore this item is 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 with the entire agenda packet for the March 28, 2019 Board of Directors regular meeting at CMSD headquarters and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Direct the General Manager to report back with more information. File Attachments 2019 Goals.pdf (71 KB) Subject 3. Consider Approving General Manager's 2019 Performance Goals Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Recommended Action That the Board of Directors approve the General Manager's 2019 Performance Goals Goals 5.0 Administrative Management 6.0 Personnel/Organizational Management 6.7 Promote high employee satisfaction G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Consider Approving Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station Summary Orange County Sanitation District (OCSD) currently treats the Baker-Main Interceptor for odor and corrosion with a continuous feed of a chemical called, ferrous chloride, to the sludge in the force main at the Michelson Water Reclamation Plant (MWRP), which is owned and operated by Irvine Ranch Water District (IRWD). IRWD is constructing a biosolids processing facility and other operations activities, which have interfered with OCSD's chemical treatment activities and soon such treatment will be no longer be available to OCSD. About ten years ago OCSD conducted a study at CMSD's Mendoza Pump Station to evaluate the effectiveness of adding chemicals into the wastewater system to reduce odor and corrosion of pipeline. The results of the study showed that chemicals are effective to reducing odor and corrosion and now OCSD wants to place a permanent odor control treatment facility at Mendoza Pump Station to control odor and corrosion at the Baker-Main Interceptor. On February 23, 2017, the Board approved the site access and license agreement with OCSD; however, the agreement is being brought back to you tonight because the land where the odor control treatment facility is being located on is owned by the City of Costa Mesa. The Costa Mesa City Council will consider approving the agreement at one of their April 2019 meeting. Recommendation That the Board of Directors approves the Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station Analysis OCSD is proposing to install one 8,460 gallon chemical tank that is ten feet tall and twelve feet in diameter. A 990 square foot secondary containment structure will be placed around the tank to capture chemicals that may have unexpectedly leaked. The secondary containment facility can hold 10,660 gallons of liquid. The treatment facility will have an alarm system in place to detect leaks and will notify OCSD staff, via email, when the alarm is activated. OCSD's chemical vendor is required to respond within four hours after the alarm goes off. The facility will have a pump control system and a ten foot tall chain link fence with privacy screens around the facility (the pump station grounds has an existing chain link fence to prevent public access). The type of chemicals OCSD will be storing in the tank will be ferrous chloride, magnesium hydroxide and/or calcium nitrate. These chemicals are considered hazardous and can cause health risks if not properly handled. The Material Safety Data Sheet (MSDS) for each chemical is attached. OCSD will be responsible for notifying CMSD, City of Costa Mesa and nearby residents when chemicals are scheduled for delivery. In addition, OCSD has notified the City of Costa Mesa and nearby residents about the odor treatment facility. Subject 4. Consider Approving Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Recommended Action That the Board of Directors approves the Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station Goals 1.0 Sewer Infrastructure 3.00 Partnerships 3.2 Strengthen our ties with local governments, Special districts and educational institutions In the near future, staff will bring back an addendum to the Site Access and License Agreement because the City wants to deed the property to the District. Legal Review District Counsel has reviewed and approved the attached Site Access and License Agreement. Environmental Review On September 6, 2017, OCSD filed with the California State Clearinghouse Addendum No. 3 to the 2002 Supplemental Environmental Impact Report (SEIR) for the Permanent Odor Control Treatment Facility at Mendoza Pump Station. The findings in Addendum No. 3 found the project would not result in new significant environmental effects or an increase in the severity of significant effects from the findings determined by the 2002 SEIR. Attached is a copy of the 2002 SEIR Executive Summary and Mitigation Measures and Addendum No. 3. A copy of the full 219 page SEIR report is available upon request. On October 2, 2017, OCSD posted a Notice of Exemption that this Project is exempt from CEQA under Class 3 and 11 categorical exemptions set forth in California Code of Regulations, Title 14, section 15303 and 15311. Section 15303 (Class 3) exempts from CEQA "construction and location of limited numbers of new, small facilities or structures [and] installation of small new equipment and facilities in small structures... Examples of this exemption include but are not limited to: ...(d) Water main, sewage... and other utility extensions ... to serve such construction." The Project will consist of the installation and operation of a chemical dosing station. This will include an 8,460 gallon tank, equipment for the feed system and controls. These minor Project components constitute limited numbers of new, small facilities and equipment. Therefore, the Class 3 exemption applies. Section 15311 (Class 11) exempts from CEQA "Construction, or placement of minor structures accessory to existing commercial, industrial, or institutional facilities, including but not limited to: (a) "On-premise signs:" This project will consist of the installation of signage on the premise as required; thus, Class 11 exemption applies. Attached is the Notice of Exemption. Financial Review There are no financial impacts to the Districts. OCSD will incur all construction, operation and maintenance costs for this project. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Do not approve the Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa 2. Direct staff to report back with more information. File Attachments Site Access and License Agreement_Mendoza PS_WSS 3.6.19.pdf (5,338 KB) 10.02-CEQA SIER -Addedum NO 3 Mendoza Costa Mesa Final Aug 2017.pdf (1,016 KB) Mendoza Pump Station NOE recorded 10-2-2017.pdf (2,086 KB) 2002 SEIR - Executive Summary and Mitigation Measures.pdf (339 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Consider Approving sending Steve Cano, Wastewater Superintendent and Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri-State Seminar in Las Vegas, Nevada Summary Tri-State Seminar is a group of water and wastewater professionals from Arizona, Nevada and California that meet once a year to share the latest information and technology in the industry. The conference is supported by the California Water Environment Association (CWEA), Nevada Water Environment Association (NWEA) and Arizona Water Association (AWA). Recommendation That the Board of Directors approve sending Steve Cano, Wastewater Superintendent Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri-State Seminar in Las Vegas, Nevada on August 6-8, 2019 Analysis This three day conference focuses on the water and wastewater industry. For wastewater collections, some of the topics that will be discussed include the following: Odor Control Using Acoustic Inspections Asset Management Root Control Confine Space Rescue Reducing Corrosion, Infiltration, Inflow and Odors in Manholes In addition, there will be 300 exhibitors showcasing the latest technologies in the wastewater industry. Board approval is needed because this conference is being held out of California. Legal Review Not applicable Subject 5. Consider Approving sending Steve Cano, Wastewater Superintendent and Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri- State Seminar in Las Vegas, Nevada Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $1,500.00 Budgeted Yes Budget Source Wastewater Fund Recommended Action That the Board of Directors approve sending Steve Cano, Wastewater Superintendent and Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri-State Seminar in Las Vegas, Nevada on August 6-8, 2019 Goals 1.0 Sewer Infrastructure 3.00 Partnerships 3.4 Participate in the activities of professional associations Environmental Review Attendance at a seminar is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review The total cost for both employees to attend the seminar is $1,500.00, which includes airfare, hotel, registration and food. There is sufficient funding for this conference available in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors study session at District Headquarters and on District’s website at www.cmsdca.gov. Alternative Actions 1. Do not approve sending Steve Cano and Jose (Tony) Gomez to the seminar. 2. Refer the matter back to staff for additional information. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Solar Photovoltaic System at CMSD HQ - Accept Improvements, File Notice of Completion, Exonerate Bonds Summary On March 22, 2018, the Board of Directors approved an agreement with Precision Electric Company to procure and install a solar photovoltaic system on HQ rooftop for $156,500. This project is complete and ready for the Board to accept the Notice of Completion. Recommendation The Board of Directors approves the following action: 1. Accept improvements as completed and file a Notice of Completion. 2. Authorize payment of 5% retention 35 days after Notice of Completion is recorded. 3. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Analysis In keeping with the spirit of CMSD's mission, protecting our community's health and the environment, the Board approved in the FY 2017-18 Budget the installation of a solar photovoltaic system on the rooftop at headquarters (HQ). A solar photovoltaic system will help combat greenhouse gas emissions and reduce our collective dependence on fossil fuel, while at the same time reducing energy costs at HQ. Work began in May 2018 and into FY 2018-19, and on November 29, 2018, the Board approved the carryover encumbrance for this project. There was one change order for this project in the amount of $4,272.43 for installing roofing material pads under the solar panel brackets and cable tray. The solar photovoltaic system was fully energizing HQ in December 2018. In the first month of operations, the District experienced a 44.6% decrease in energy cost from $1,169.50 in November to $648.33 in December 2018. The energy costs for the next two months at HQ are as follows: Jan-19 $675.82 Feb-19 $705.02 Legal Review Not applicable Subject 6. Solar Photovoltaic System at CMSD HQ - Accept Improvements, File Notice of Completion, Exonerate Bonds Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Fiscal Impact Yes Budgeted Yes Recommended Action The Board of Directors approves the following action: 1. Accept improvements as completed and file a Notice of Completion. 2. Authorize payment of 5% retention 35 days after Notice of Completion is recorded. 3. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Goals 5.0 Administrative Management Environmental Review The installation of solar panels at the District headquarters is a minor alteration and is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” project as stated under 15301; “Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities …”; pertaining to 15301(b) “Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services”. Financial Review The adopted budget for this project is $180,000. The project was completed within the adopted budget amount and below are the project expenses: Construction Cost $156,500 Change order #1 $ 4,272 Total Construction Cost $160,772 Other Expenses Included: Utility Cost Management (UCM) LLC for reviewing utility data and recommending the optimal system size. UCM also assisted preparing bid specifications and reviewing bids. Cost: $12,800 Miscellaneous vendors. Cost: $4,669 Total Project Cost: $178,241 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors regular meeting at District Headquarters and on District’s website at www.cmsdca.gov Alternative Actions 1. Do not accept the project as complete. 2. Direct staff to report back with more information File Attachments Notice of Completion Solar at HQ.docx (15 KB) G. GENERAL MANAGER'S REPORTS Subject 7. Consider Directing Staff to Budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $50,000.00 Budgeted No Budget Source Wastewater Fund Recommended Action That the Board of Directors consider directing staff to budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter Goals 1.0 Sewer Infrastructure 3.00 Partnerships 3.2 Strengthen our ties with local governments, Special districts and educational institutions directing staff to budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter On March 12, 2019, the Board of Directors approved contributing $50,000 for portable restrooms at the City of Costa Mesa temporary bridge shelter on Anaheim Avenue. The Board directed staff to bring this item back to tonights meeting to consider directing staff to budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter. in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter On March 5, 2019, the City Council approved purchasing the warehouse property at 3175 Airway Avenue as the City's permanent bridge shelter for the community's homeless population. The permanent shelter on Airway Avenue will have indoor restrooms. The City is requesting an ongoing $50,000 annual contribution from the District to help offset the costs of operating the permanent shelter. The restrooms are inside the building, which will have indoor plumbing. The District typically does not get involved with operations and maintenance of indoor plumbing systems because that is the responsibility of the property owner. Please see District Counsel legal review below about making a contribution to the permanent bridge shelter. To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Consider Summary Recommendation That the Board of Directors consider directing staff to budget $50,000 Analysis According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes include properly treating sewage, preventing SSOs, and recycling. Describe how the contribution will advance the District's purpose. The permanent bridge shelter will establish the District purpose of safely collecting and disposing wastewater by removing people off the streets who were once compromising the sanitary conditions by relieving themselves in public, but now they will have a place where humane waste can be safely collected and treated. The contribution will advance the District's purpose because the restrooms in the permanent bridge shelter will prevent the homeless population from causing unsanitary conditions in the community. Legal Review The District does have the authority to plan, maintain and operate sewers, drains, and septic tanks, and to engage in sewerage collection. (H & S C §6512) This provides authority for the District to provide funds for portable toilets so that homeless persons do not relieve themselves in public, creating a sanitary and health issue. This same authority does not extend to paying for ongoing sewage bills for connected facilities with permanent indoor plumbing. The Board should make a finding on this matter of how an expenditure will advance the District’s purposes and that finding will be upheld if it is based on substantial evidence. The Courts will generally defer to the Board’s decision on such matters unless it finds that the Board acted arbitrarily and capriciously. Environmental Review Installing a prefabricated restroom structure that requires utility connections for water, sewer, and electricity, is categorically exempt under the California Environmental Quality Act (CEQA) Section 15303. The section states: "Class 3 consists of construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures..." Financial Review If the Board approves an on-going annual contribution of $50,000, funding will be appropriately budgeted in the FY 2019/20-2020-21 Budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Do not approve contributing $50,000 to the City of Costa Mesa. 2. Approve a lesser contributing amount than $50,000 such as $25,000. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Consider Sponsoring State of the City Luncheon with Mayor Katrina Foley Summary On Wednesday, April 10, 2019, the Costa Mesa Chamber of Commerce is hosting the State of the City Luncheon with Mayor Katrina Foley at the Renee and Henry Segerstrom Concert Hall located at the Segerstrom Center for the Arts. The Costa Mesa Chamber of Commerce is seeking the District's support for the event as one of its sponsors. Recommendation That the Board of Directors consider being a Silver Sponsor to the State of the City Luncheon with Mayor Katrina Foley for $1,500 Analysis Silver sponsors will have their logo on event signage, a "thank you" to the Chamber's database, social media exposure and six seats for the event. According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes include properly treating sewage, preventing SSOs, and recycling. Describe how the contribution will advance the District's purpose. In addition to the benefits mentioned above for Silver Sponsorships, the Chamber has agreed to place a statement below the District's logo to advance the District's purpose. For instance, the statement can say, "Recycle your food scraps in CMSD's Organics Recycling Program," and statements advancing the District's purpose will be on the Chamber's social media feed and announced from the podium as they thank their sponsors during the event. Legal Review District Counsel established the criteria to follow when considering contributions for sponsorships. Environmental Review The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting the District is an administrative matter and is not a disturbance of the environment, similar to grading or construction, and is not a project under CEQA or the District’s CEQA Guidelines. Subject 8. Consider Sponsoring State of the City Luncheon with Mayor Katrina Foley Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $1,500.00 Budgeted No Recommended Action That the Board of Directors consider being a Silver Sponsor to the State of the City Luncheon with Mayor Katrina Foley for $1,500 Goals 3.00 Partnerships 3.2 Strengthen our ties with local governments, Special districts and educational institutions Financial Review The cost to be a Silver Sponsor is $1,500. This expenditure is not budgeted. The expenditure would be split in half in both the Solid Waste and Wastewater Fund Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Do not approve being a sponsor to the State of the City Luncheon with Mayor Katrina Foley for $1,500 File Attachments CMCC_StateLuncheon_Flyer.pdf (267 KB) State of the City Sponsorship Levels.png (57 KB) H. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: March 28, 2019 Subject: Capital Improvement Projects Status Report Summary Attached is a summary of the Capital Improvement Project activities during the month. Recommendation That the Board of Directors receive and file the report. Analysis Attached are nine capital improvement projects that are in progress or will soon begin. 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 March 28, 2019 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 - March 2019.pdf (94 KB) Subject 1. Receive and File the Monthly Capital Improvement Projects Status Report Meeting Mar 28, 2019 - Board of Directors Special 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 H. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: March 28, 2019 Subject: 2277 Harbor Blvd., Costa Mesa Approval in Concept of District Sewer Main and Easement Vacation/Quitclaim Summary In yesteryear, the District had a policy where all property owners had direct access to a Costa Mesa Sanitary District (District) sewer main. An example is a townhome development where there are multiple homes on small lots. The developer was required to construct a District sewer main in an easement on the property so each townhome had direct access to the sewer main. This policy resulted in many District sewer mains and easements on private property. However, in 1982 the District adopted a policy whereby developments with an HOA or similar governing body could be served by a common lateral because the HOA or similar governing body would be responsible for the operation and maintenance of the common lateral. The property at 2277 has a District sewer main and easement that was constructed prior to the change in policy so it is appropriate to vacate/quitclaim the District sewer and easement. The development will be served by a new private sewer. Analysis Since 1982, the District has vacated/quitclaimed many of the District sewer mains and easements on private property. This policy also alleviates the need for the District’s large sewer cleaning vehicles to drive on private property to clean the sewer main. Large trucks can damage private property pavement. The policy also alleviates the necessity for the District’s large sewer cleaning vehicles from having to back out of the development onto public streets with heavy traffic. Recently, the attorney for the District created an indemnification agreement for protection of the District when new construction occurs where a District sewer main was previously located. Recommendation The Board of Directors: 1. Approve in concept the developer request to vacate the sewer main and bring the matter back with a procedure and formal vacation documents. 2. Have the attorney for the District consider an indemnification agreement protecting the District for any claim associated with removing the sewer main. Legal Review District Counsel will provide a vacation/quitclaim procedure and will prepare the formal documents. Environmental Review The removal of a small section of sewer main from the District's system is a minor alteration and is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” project as stated under 15301; “Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities …”; pertaining to 15301(b) “Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services”. Financial Review The sewer main is currently recorded on the District's financial records with a net book value. Should the District vacate the sewer main, the Wastewater Fund will incur a loss on the disposal of an asset in that same amount, which would represent an unbudgeted expense. Additional costs of the vacation will include attorney time and District Engineer time to prepare for and process the vacation. Should the Board approve this vacation in concept, staff will calculate the total cost to the District of vacating the sewer main for potential recovery from the developer. Subject 2. 2277 Harbor Blvd., Costa Mesa Approval in Concept of District Sewer Main and Easement Vacation/Quitclaim Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not approve the vacation/quitclaim in concept. 2. Refer the matter back to staff for additional information. File Attachments Costa Mesa 200 LUX Signed Sewer Easement Vacation Letter Per Jim Bynum 2-27-19.pdf (439 KB) S-145.pdf (1,103 KB) C-1-CMSD Demo-30x42.pdf (464 KB) C-3-GRAD-30x42.pdf (1,965 KB) J. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: March 28, 2019 Subject: Consider Approving the Second Amendment to the General Manager's Employment Agreement Summary The Second Amendment to the General Manager’s Employment Agreement represents the tentative agreement reached between the General Manager and the President, as the Board’s negotiator, with authority provided in closed session. The Second Amendment would provide a one-time 3% incentive pay to the General Manager of $5741, and provide him with a contribution towards a fitness gym membership of up to $25 per month. Recommendation That the Board of Directors consider approving the Second Amendment to the General Manager's Employment Agreement Analysis The General Manger was hired by the District in 2010 after a competitive search. His performance has been reviewed annually against the goals that have been set for him and the results he has achieved. This year the Board, acting through the President pursuant to authority granted him in closed sessions, reached tentative agreement with the General Manager to provide him with a one-time incentive payment of 3% of his salary. This incentive payment is to be non- base building and is “non-PERSable.” The incentive payment amount equates to $5,741 (based on his salary of $191,380.41). In addition, the parties have tentatively agreed that the District would provide a contribution up to $25 per month towards a fitness gym or health club membership of the General Manager’s choosing. The agreements is tentative because the law does not allow a public entity to set the compensation of an executive without complying with certain procedural steps, as discussed further under Public Notice Process. Those steps are now required after the "Bell" scandal, and require that compensation be set at a regular meeting, that a public oral report must precede any action to increase compensation, and that the vote is not be taken on a consent calendar. (Government Code Sections 54956(b); 54953(c)(3).) Legal Review This Second Amendment was prepared pursuant to authority granted the President to negotiate in closed session. The process for providing Executive compensation in light of the post “Bell” reform legislation has been followed. Environmental Review The incentive pay and health club membership benefits granted are an activity for which there is no possibility that the action will have a significant effect on the environment, and therefore falls under the “common sense” exemption from CEQA. Subject 1. Consider Approving the Second Amendment to the General Manager's Employment Agreement Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $5,741.00 Budgeted No Recommended Action That the Board of Directors considers approving the Second Amendment to the General Manager's Employment Agreement Goals 6.0 Personnel/Organizational Management 6.7 Promote high employee satisfaction Financial Review The General Manager's incentive pay will cost $5,741 and the contribution towards a fitness gym or health club membership could be up to $300 a year. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov In addition an oral report will proceed the vote as required. Alternative Actions 1. Do not approve the Second Amendment. 2. Direct staff to report back with more information. File Attachments GM CMSD 2nd Amendment Contract.docx (17 KB) J. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: March 28, 2019 Subject: Consider Adopting Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment Summary The District currently has no process in place for minor reimbursement requests for trash or sewer assessment charges. From time to time there will be a reimbursement request from residents that have been inaccurately assessed a trash or sewer charge in which the amount is less than $5,000. Staff is requesting that the Board of Directors review the proposed changes to Chapter 4 of the Operations Code and provide feedback if any. Recommendation That the Board of Directors adopt Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment Analysis Attached is a copy of Ordinance No. 124 that identifies the recommended addition to Chapter 4 in the District's Operation Code. The language added includes giving the General Manager the authority to authorize refunds of payments made to the District that are less than $5,000.00. The authority in this ordinance is limited to sewer and trash refunds. Currently, there is no administrative process in place for the authorization of minor refunds which significantly increases the amount of time a resident waits to receive their refund. Any refund requests over $5,000 will go to the Board of Directors for approval. In accordance with Chapter 9 of the Operations Code, the refund policy states the claimant must present a written request for a refund from the Board of Directors within one year of the charge being placed. Refunds are allowed for up to four years if fees were paid but no service was received. Additionally, the ordinance also allows the General Manager to dispose of obsolete or worn out equipment and supplies. The property will be used as a trade-in for other supplies or dispose of by an auction house or other methods that ensure the best interest of the District. On March 12, 2019, the Board of Directors reviewed and discussed Ordinance No. 124, which included comments submitted by Mr. Mosher (see attachment). On March 13, 2019, Ordinance No. 124 was presented to the Citizens Advisory Committee (CAC). The CAC is recommending the Board of Directors adopt Ordinance No. 124 that includes the recommended revisions submitted by Mr. Jim Mosher. Legal Review District Counsel has reviewed and approved Ordinance No. 124. On March 15, 2019, District Counsel submitted a written response (see attachment) to Mr. Mosher's comments. District Counsel is recommending the Board of Directors adopt Ordinance No. 124 as it was presented to the Board on March 12 and without Mr. Mosher suggested revisions. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Subject 2. Consider Adopting Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment Goals 5.0 Administrative Management 5.4 Review and maintain Operations Code, policies and Administrative Regulations Financial Review There are no fiscal impacts to the District for adopting Ordinance No. 124. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 12, 2019 Board of Directors study session meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information File Attachments Ordinance 124.pdf (15 KB) Ord No. 124 Mosher Comments.pdf (414 KB) 20190315 Ordinance Language Changes.pdf (144 KB) J. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: March 28, 2019 Subject: Ordinance No. 125 - Establishing Regulations for District Facilities Summary Ordinance No. 125, if approved by the Board, will give the General Manager authority to set hours of operations for District facilities, which includes the yard and headquarters. The ordinance will also identify restricted access areas such as the yard and pump stations. Recommendation That the Board of Directors adopt Ordinance 125 - Establishing Regulations for District Facilities Analysis In previous years, the General Manager would seek Board approval for setting operational hours at headquarters and the Yard. For example, in 2018, the General Manager requested Board approval to close operations at noon the day before Thanksgiving to give staff ample time for traveling to their destination for the holiday. In addition, the General Manager requested Board approval to close operations the day before Christmas and New Year's Day. The Board requested an amendment to the District's Operations Code that will give the General Manager authority to set hours of operations at headquarters and the yard without obtaining approval from the Board. In addition to hours of operation of District facilities, the proposed ordinance addresses restricted access areas such as the yard and pump stations. These facilities are not intended for public gathering places and should be restricted to public access. Adopting Ordinance No. 125 will allow staff to place signs at enclosed facilities informing the public that entering such facilities is prohibited and in violation of District Operations Code, which could be enforced as a misdemeanor crime. On March 12, 2019, the Board of Directors reviewed and discussed Ordinance No. 125, which included comments submitted by Mr. Mosher (see attachment). On March 13, 2019, Ordinance No. 125 was presented to the Citizens Advisory Committee (CAC). The CAC is recommending the Board of Directors adopt Ordinance No. 125 that includes the recommended revisions submitted by Mr. Jim Mosher. Legal Review District Counsel prepared Ordinance No. 125. On March 15, 2019, District Counsel submitted a written response (see attachment) to Mr. Mosher's comments. District Counsel is recommending the Board of Directors adopt Ordinance No. 125 as it was presented to the Board on March 12 and without Mr. Mosher suggested revisions. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Subject 3. Consider Adopting Ordinance No. 125 - Establishing Regulations for District Facilities Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Ordinance No. 125 - Establishing Regulations for District Facilities Goals 5.0 Administrative Management 5.4 Review and maintain Operations Code, policies and Administrative Regulations There are no finance impacts to the District for adopting Ordinance No. 125. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 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. File Attachments Ordinance No. 125.pdf (72 KB) Ord No. 125 Mosher Comments.pdf (288 KB) 20190315 Ordinance Language Changes.pdf (144 KB) K. 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) - (President Ferryman) Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Information K. 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 Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Information K. 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) - (Secretary Schafer) Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Information K. 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 Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Information K. 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) - (Director Scheafer) Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Information K. 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 Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Information N. REPORT ON CLOSED SESSION ACTIONS Subject 1. Report on Closed Session Actions Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Receive and File O. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Discussion P. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON APRIL 25, 2019, IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Mar 28, 2019 - Board of Directors Special Meeting Access Public Type Procedural Thursday, March 28, 2019 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 4:30 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 Ferryman 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.) 3. Additions/Deletions to Closed Session 4. Public Comments on Closed Session Items 5. Recess to Closed Session B. CLOSED SESSION 1. Public Employee Performance Evaluation (Gov. Code 54957) - Title: General Manager C. RECONVENE THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS MEETING - 5:30 P.M. 1. Pledge of Allegiance - President Ferryman 2. Invocation - Vice President Ooten 3. 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. D. CEREMONIAL MATTERS & PRESENTATIONS 1. Recognizing Newport-Mesa Unified School District’s Early College High School for being named a 2019 California Distinguished School 2. Recognizing the Citizens Advisory Committee Members for their Service E. 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 F. 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 February 12, 2019 3. Approve the Board of Directors Regular Meeting Minutes of February 28, 2019 4. Adopt Warrant Resolution No. CMSD 2019-9 Approving District Warrant Registers 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Payroll Transparency Disclosure for February 2019 7. Approve the preparation of a warrant to CR Transfer in the amount of $162,812.81 for February 2019 recycling and disposal services in the March 2019 warrant register 8. Accept the occupancy count as presented as 22,765 and direct staff to prepare a warrant to CR&R Environmental Services for $222,992.28 for February 2019 collection 9. Adopt Resolution No. 2019-912 Ordering that Publication of Ordinance No. 121 has Occurred 10. Adopt Resolution No. 2019-913 Ordering that Publication of Ordinance No. 122 has Occurred 11. Adopt Resolution No. 2019-914 Ordering that Publication of Ordinance No. 123 has Occurred 12. Receive and File 2018 Annual Health Benefits Broker Fees Report 13. Contracts Signed by General Manager 14. Approve the Investment Report for the Month of February 2019 G. GENERAL MANAGER'S REPORTS 1. Citizens Advisory Committee (CAC) March 13, 2019 Meeting Overview 2. Consider Appointing Five Members to the Citizens Advisory Committee to Serve a Two-Year Term Ending March 2021 3. Consider Approving General Manager's 2019 Performance Goals 4. Consider Approving Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station 5. Consider Approving sending Steve Cano, Wastewater Superintendent and Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri-State Seminar in Las Vegas, Nevada 6. Solar Photovoltaic System at CMSD HQ - Accept Improvements, File Notice of Completion, Exonerate Bonds 7. Consider Directing Staff to Budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter 8. Consider Sponsoring State of the City Luncheon with Mayor Katrina Foley H. ENGINEER'S REPORTS 1. Receive and File the Monthly Capital Improvement Projects Status Report 2. 2277 Harbor Blvd., Costa Mesa Approval in Concept of District Sewer Main and Easement Vacation/Quitclaim I. TREASURER'S REPORTS J. ATTORNEY'S REPORTS 1. Consider Approving the Second Amendment to the General Manager's Employment Agreement 2. Consider Adopting Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment 3. Consider Adopting Ordinance No. 125 - Establishing Regulations for District Facilities K. 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) - (President Ferryman) 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) 4. California Special Districts Association (CSDA) - (Secretary Schafer) 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 L. OLD BUSINESS M. NEW BUSINESS N. REPORT ON CLOSED SESSION ACTIONS 1. Report on Closed Session Actions O. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments P. CLOSING ITEMS 1. Adjourn Thursday, March 28, 2019 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 4:30 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 Ferryman Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS James Ferryman, President Robert Ooten, Vice President Arlene Schafer, Secretary Michael Scheafer, Director Arthur Perry, Director 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 Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Additions/Deletions to Closed Session Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type A. OPENING ITEMS Subject 4. Public Comments on Closed Session Items Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type A. OPENING ITEMS Subject 5. Recess to Closed Session Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type B. CLOSED SESSION Subject 1. Public Employee Performance Evaluation (Gov. Code 54957) - Title: General Manager Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type C. RECONVENE THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS MEETING - 5:30 P.M. Subject 1. Pledge of Allegiance - President Ferryman Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Procedural C. RECONVENE THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS MEETING - 5:30 P.M. Subject 2. Invocation - Vice President Ooten Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Procedural C. RECONVENE THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS MEETING - 5:30 P.M. Subject 3. 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 Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Procedural D. CEREMONIAL MATTERS & PRESENTATIONS Subject 1. Recognizing Newport-Mesa Unified School District’s Early College High School for being named a 2019 California Distinguished School Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Presentation D. CEREMONIAL MATTERS & PRESENTATIONS Subject 2. Recognizing the Citizens Advisory Committee Members for their Service Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Presentation E. 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 Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Procedural F. 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 Mar 28, 2019 - 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. F. 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: March 28, 2019 Subject: Approve the Board of Directors Study Session Minutes of February 12, 2019 Summary The recorded minutes of the February 12, 2019 Board of Directors Study Session are hereby submitted to the Board of Directors for review and approval. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Analysis Attached to the staff report are the minutes for the Board of Directors Study Session on February 12, 2019. 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 March 28, 2019 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 February 12, 2019 Meeting Mar 28, 2019 - 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 Feb 12, 2019 - Board of Directors Study Session minutes_2019_02_12_ss.pdf (80 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. F. 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: March 28, 2019 Subject: Approve the Board of Directors Regular Meeting Minutes of February 28, 2019 Summary The recorded minutes of the February 28, 2019 Board of Directors Regular Meeting are hereby submitted to the Board of Directors for review and approval. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Analysis Attached to the staff report are the minutes for the Board of Directors Regular Meeting on February 28, 2019. 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 March 28, 2019 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 February 28, 2019 Meeting Mar 28, 2019 - 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 Feb 28, 2019 - Board of Directors Regular Meeting minutes_2019_02_28_rm.pdf (78 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. F. 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 March 2019 Mtg.pdf (280 KB) Subject 4. Adopt Warrant Resolution No. CMSD 2019-9 Approving District Warrant Registers Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2019-9 approving District warrants for the month of February 2019 in the amount of $324,913.21. 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. F. 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: March 28, 2019 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 March 28, 2019 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_director_compensation.pdf (251 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Mar 28, 2019 - 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. b_director_expense.pdf (54 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. F. 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: March 28, 2019 Subject: Payroll Transparency Disclosure for February 2019 Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Recommendation That the Board of Directors approve and file the report. Analysis Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 28, 2019 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 Subject 6. Payroll Transparency Disclosure for February 2019 Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors approve and file the report. Goals 7.0 Finance Payroll Transparency Disclosure Feb 2019.pdf (151 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. F. 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: March 28, 2019 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $162,812.81 for February 2019 recycling and disposal services in the March 2019 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 $162,812.81 for February 2019 recycling and disposal services to be ratified in the March 2019 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 over billed the District by $0.24, but CMSD will be paying the actual amount owed. Costa Mesa Newport Beach Total Residential Waste $117,751.55 $2,991.37 $120,742.92 Organics $40,092.91 $1,976.98 $42,069.89 Total Payment $162,812.81 Tonnage Residential Waste 2265.76 57.56 2323.32 Organics 560.74 27.65 588.39 Total Tonnage 2911.71 Legal Review Not Applicable Subject 7. Approve the preparation of a warrant to CR Transfer in the amount of $162,812.81 for February 2019 recycling and disposal services in the March 2019 warrant register Meeting Mar 28, 2019 - 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 $162,812.81 for February 2019 recycling and disposal services to be ratified in the March 2019 warrant register. 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 March 28, 2019 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. F. 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: March 28, 2019 Subject: Accept the occupancy count as presented as 22,765 and direct staff to prepare a warrant to CR&R Environmental Services for $222,992.28 for February 2019 collection Summary Accept the occupancy count as presented using 22,765 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,992.28 to be ratified in the March 2019 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,765 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,992.28 to be ratified in the March 2019 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 February 28, 2019, total District occupancy was at 22,765, with thirteen (13) accounts added since the last billing period. District staff will continue to track the number of new service addresses. The payment calculation is based on the following: District's Current Rate for February 2019: 22,765 x $9.7954 =$222,992.28 Legal Review Not Applicable Subject 8. Accept the occupancy count as presented as 22,765 and direct staff to prepare a warrant to CR&R Environmental Services for $222,992.28 for February 2019 collection Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 22,765 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,992.28 to be ratified in the March 2019 warrant list. 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 March 28, 2019 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. 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. F. 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. RESOLUTION NO. 2019-912 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 121 AMENDING CHAPTER 6.07 OF THE OPERATIONS CODE PERTAINING TO GREASE CONTROL HAS OCCURRED WHEREAS, the Board of Directors on October 25, 2018 adopted Ordinance No. 121 amending Chapter 6.07 of the Operations Code pertaining to grease control; and WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on October 31, 2018; and WHEREAS, Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE, the Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 121 amending Chapter 6.07 of the Operations Code pertaining to grease control has occurred. PASSED and ADOPTED on this day of 2019. _______________________________ _______________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, NOELANI MIDDENWAY, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2019-912 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the day of March, 2019 by the following votes: Subject 9. Adopt Resolution No. 2019-912 Ordering that Publication of Ordinance No. 121 has Occurred Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors Adopt Resolution No. 2019-912 Ordering that Publication of Ordinance No. 121 has Occurred AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ day of ___________________ 2019. _________________________________ Noelani Middenway Clerk of the Costa Mesa Sanitary District File Attachments RESOLUTION NO. 2019-912 ORDERING THAT PUBLICATION OF ORDINANCE NO. 121 HAS OCCURED.pdf (13 KB) 5960990.pdf (179 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. F. 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. RESOLUTION NO. 2019-913 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 122 ADOPTING SOLID WASTE REGULATIONS HAS OCCURRED WHEREAS, the Board of Directors on November 29, 2018 adopted Ordinance No. 122 adopting solid waste regulations; and WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on February 16, 2019; and WHEREAS, Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE, the Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 122 adopting solid waste regulations has occurred. PASSED and ADOPTED on this day of 2019. _______________________________ _______________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, NOELANI MIDDENWAY, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2019-913 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the___day of March, 2019 by the following votes: AYES: Subject 10. Adopt Resolution No. 2019-913 Ordering that Publication of Ordinance No. 122 has Occurred Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors Adopt Resolution No. 2019-913 Ordering that Publication of Ordinance No. 122 has Occurred NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ day of ___________________ 2019. _________________________________ Noelani Middenway Clerk of the Costa Mesa Sanitary District File Attachments RESOLUTION NO. 2019-913 ORDERING THAT PUBLICATION OF ORDINANCE NO. 122 HAS OCCURED.pdf (13 KB) 6145341.pdf (116 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. F. 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. RESOLUTION NO. 2019-914 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 123 ADOPTING ROSENBERG'S RULES OF ORDER HAS OCCURRED WHEREAS, the Board of Directors on December 20, 2018 adopted Ordinance No. 123 adopting Rosenberg's Rules of Order; and WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on February 20, 2019; and WHEREAS, Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE, the Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 123 adopting Rosenberg's Rules of Order has occurred. PASSED and ADOPTED on this ____day of March 2019. _______________________________ _______________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, NOELANI MIDDENWAY, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2019-914 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the___day of March, 2019 by the following votes: AYES: Subject 11. Adopt Resolution No. 2019-914 Ordering that Publication of Ordinance No. 123 has Occurred Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors Adopt Resolution No. 2019-914 Ordering that Publication of Ordinance No. 123 has Occurred NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ day of ___________________ 2019. _________________________________ Noelani Middenway Clerk of the Costa Mesa Sanitary District File Attachments RESOLUTION NO. 2019-914 ORDERING THAT PUBLICATION OF ORDINANCE NO. 123 HAS OCCURED.pdf (64 KB) 6145308.pdf (116 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. F. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Dyana Bojarski, Management Analyst II Date: March 28, 2019 Subject: 2018 Annual Health Benefits Broker Fees Report Summary As required by Section 1367.08 of the California Health and Safety Code and Section 10604.5 of the California Insurance Code, the Costa Mesa Sanitary District must disclose any group health insurance premiums, fees, and commissions paid to all agents, providers, and brokers. Recommendation That the Board of Directors receive and file the report. Analysis Section 1367.08 of the Health and Safety Code A health care service plan shall annually disclose to the governing board of a public agency that is the subscriber of a group contract, the name and address of, and amount paid to, any agent, broker, or individual to whom the plan paid fees or commissions related to the public agency's group contract. As part of this disclosure, the health care service plan shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. Section 10604.5 of the Insurance Code An insurer shall annually disclose to the governing board of a public agency that is the policyholder of a group health insurance policy, the name and address of, and amount paid to, any agent, broker, or individual to whom the insurer paid fees or commissions related to the public agency's group health insurance policy.As part of this disclosure, the insurer shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. Summary of Health Benefits CalPERS (California Public Employee Retirement Services) administers and negotiates rates and coverage for all District medical plans. Services provided by CalPERS includes: plan design, negotiating with medical and pharmaceutical carriers, developing and printing plan summaries, outlines and brochures, billing, claims processing, hosting an online database for enrollments and changes, participant appeals and grievances, website design and maintenance, and free workshops/seminars for employers, employees, and retirees. Subject 12. Receive and File 2018 Annual Health Benefits Broker Fees Report Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file the report. Goals 6.0 Personnel/Organizational Management 5.0 Administrative Management All non-medical health plans which include dental, vision, life, long-term disability, voluntary AD&D, and other individual plans such as accident, hospital, and short-term disability are administered and/or brokered by SDRMA (Special District Risk Management Authority) or Aflac (American Family Life Assurance Company). Services provided by SDRMA and Aflac include: plan design options, negotiating rates and benefits with carriers, legal and compliance updates and advice, open enrollment support, assistance with claims processing and resolution, and free workshops to staff. Although the District obtains non-medical health plans through SDRMA, the disclosure codes do not apply because the agency administers the non-medical programs through the California State Associations of Counties Excess Insurance Authority (CSAC-EIA Health); it does not contract directly with brokers or insurance carriers of the Health Benefit Programs. Agent, Broker, or Individuals Paid in Calendar Year 2018 Medical Broker/Administrator Medical Broker/Administrator CalPERS 400 Q Street Sacramento, CA 95811 AFLAC 1932 Wynnton Road Columbus, GA 31999 The 2018 CalPERS Total Fees/Commissions amount was $494 and the percentage of premiums was .34%. The 2018 Aflac Total Fees/Commissions amount was $1,300 and the percentage of premiums was 13.35%. Plan Year Broker - Administrator Coverage Premiums Total Fees & Commissions % of Premiums 2018 CalPERS Medical $145,180 $494 .34% 2018 Aflac Non- medical $9,735 $1,300 13.35% Legal Review Not applicable. Environmental Review Disclosure and discussion of group health insurance premiums, fees, and commissions paid to agents or providers are administrative matters and not a disturbance of the environment similar to grading or construction and the discussion is not a project under CEQA or the District’s CEQA Guidelines. Financial Review The District paid a total of $154,915 in premiums for medical and non-medical expenses and $1,794 for fees and commissions in 2018. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors regular meeting at District Headquarters and on the District's website. Alternative Actions 1. Direct staff to report back with more information. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. F. 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: Scott Carroll, General Manager Date: March 28, 2019 Subject: Contracts Signed by General Manager Summary At the January 24, 2019 Board of Directors meeting, the Board directed the General Manager to submit a list of contracts he signed during the previous month. Below are the contracts he signed in the month of February 2019. Recommendation That the Board of Directors receive and file this report Analysis Below are the contracts signed by the General Manager in the month of February 2019. Contracts: 1. Occupational Safety Training Systems (OSTS) – Facilitates safety training seminars for staff. Cost: $5,826.25 2. C&R Drains – After hours emergency sewer services. Cost: $600 first hour minimum charge then $250 for each additional ½ hours; $264 an hour for an additional person and $200 per month for after hours answering service. Last fiscal year, the District paid C&R Drains $13,190.50 and the year before that the District paid C&R Drains $7,832.5 for emergency sewer services. 3. Second Chance Orange County – Renting office space at CMSD HQ. Revenue: $530 per month. 4. PeopleReady, Inc. - Temporary person to work on wastewater cleaning crew until Intern is hired. Cost: $25.83 an hour for 40 hours a week. Purchase Orders: 5. Schuler Constructors, Inc. – Repairing airvac vacuum system at Elden Pump Station. Cost: $1,997. 6. YC Equipment & Services – Repair generator at District Yard. Cost: $3,357 7. Xylem, Inc. – Remove and replace plugs and seals at Irvine Pump Station. Cost: $11,922.50 Legal Review All contracts are reviewed and approved by District Counsel before contracts are executed. Environmental Review Providing the Board of Directors a monthly list of contracts signed by the General Manager 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 Subject 13. Contracts Signed by General Manager Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. Goals 5.0 Administrative Management Total estimated annual cost to the District for executing the six contacts above is $38,236. In addition, the District will generate $6,360 a year in revenue for the contract with Second Chance Orange County. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. F. 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: March 28, 2019 Subject: Approve the Investment Report for the month of February 2019 Summary Attached is the Investment Report for the month of February 2019. 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 February 2019. 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 February 28, 2019. 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 February 28, 2019, was 1.980%. The yield to maturity of the portfolio was 1.984%. The District’s weighted average interest rate was 41 basis points (0.412%) below the LAIF average monthly rate for February 2019 of 2.392%. The weighted average number of days to maturity for the District’s total portfolio was 579 days (1.59 years). The average duration of the underlying securities in LAIF as of February 28,2019 was 184 days. The District’s investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than one year as of February 28, 2019 was 35.06%. 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 14. Approve the Investment Report for the Month of February 2019 Meeting Mar 28, 2019 - 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 February 2019. 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 February 28, 2018, the portfolio has earned a weighted average interest rate of 1.845%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 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 - February 2019.pdf (599 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. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Citizens Advisory Committee (CAC) March 13, 2019 Meeting Overview Summary The following is an overview of the topics discussed by the CAC at their March 13, 2019 meeting Recommendation That the Board of Directors receive and file this report. Analysis There were seven items on the March 13 agenda that are described below. 1. Approve the Citizens Advisory Committee Meeting Minutes of February 13, 2019 - The minutes were unanimously approved. 2. Draft Board of Directors Meeting Minutes of February 28, 2019 - There was no discussion regarding this item. 3. CMSD 75th Anniversary Update - Staff ran four short videos about CMSD programs that will be available for public viewing at the Starlight Triangle Square Cinemas for the entire year. The first video, large item collections, is currently airing in the Cinemas. The CAC suggested the District reach out to local cable companies and to the City's Costa Mesa Television to see if the videos can be shown on TV. 4. #318 President Pump Station Reconstruction - District Engineer, Rob Hamers, attended the meeting to describe the four alternatives to reconstruct the President Pump Station. For over forty-five minutes the CAC engaged with Mr. Hamers and staff regarding the four alternatives. The CAC had several concerns with Alternative #4, constructing a new pump station at the end of the cul-de-sac, such as: The construction and inconvenience to residents Eyesore when District trucks are at the station for maintenance The closeness of the storm drain to the station Alternative #4 was the least favorite by the CAC. The CAC is recommending the Board consider Alternative #2 because the proposed cost is within budget, but if the infrastructure testing does not come out favorably then the CAC's second choice is Alternative #3. 5. Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment - Staff explained the purpose for the proposed ordinance. The CAC inquired what type of equipment and supplies are valued less than $5,000 and the CAC wanted to know how was the $5,000 threshold determined. The CAC approved recommending the Board adopt Ordinance No. 124, which included the recommended revisions by Mr. Jim Mosher. 6. Ordinance No. 125 - Establishing Regulations for District Facilities - Staff explained the purpose for the proposed ordinance. The CAC approved recommending the Board adopt Ordinance No. 124, which included the recommended revisions by Mr. Jim Mosher. 7. Consider Changing the CAC Meeting Date to the Third Wednesday of Every Other Month - The CAC approved changing the May meeting to the third Wednesday, May 15, but decided to let the new CAC determine the standard meeting day for future meetings. Subject 1. Citizens Advisory Committee (CAC) March 13, 2019 Meeting Overview Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report Goals 5.0 Administrative Management Staff Comments - Staff shared with the CAC two recent stories on the Daily Pilot's website regarding the Board's decision to contribute $50,000 to the City of Costa Mesa's temporary bridge shelter and the Board's decision to accept the CAC's recommendation for increasing solid waste rates. Staff thanked outgoing CAC members Sue Lester, Jana Oak, Monte Fields, Tom Brenneman and Shayne Smith for their service on the CAC and invited them to attend the March 28 Board of Directors meeting to be recognized for their service. The CAC members mention are serving a one year term on the CAC, but they can reapply to continue serving on the CAC. Legal Review Not applicable Environmental Review Providing an overview of the CAC's March 2019 meeting is an administrative matter, which will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA. Financial Review There are no financial impacts to the District. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Noelani Middenway, CMC Date: March 28, 2019 Subject: Consider Appointing Five Members to the Citizens Advisory Committee to Serve a Two-Year Term Ending March 2021 Summary There are five vacancies on the Citizens Advisory Committee (CAC) that require the Board to appoint new members to serve on the committee. Analysis The Citizens Advisory Committee (CAC) consists of 11 members that provide advisory input on subject matters desired by the Board of Directors. CAC members serve staggered terms of one or two years, with five members concluding their one-year term on March 13, 2019. It is now appropriate for the Board of Directors to nominate and appoint new members to fill said vacancies. Eight applications have been received and are included with this report for the Boards' consideration. The newly appointed members will serve on the CAC for two years, ending March 2021. Recommendation That the Board of Directors appoint five members to the Citizens Advisory Committee to serve a two-year term ending March 2021. Legal Review Not applicable. Environmental Review Appointing members to the Citizens Advisory Committee is an administrative matter, which will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA. 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 March 28, 2019 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions Refer the matter back to staff. File Attachments Subject 2. Consider Appointing Five Members to the Citizens Advisory Committee to Serve a Two-Year Term Ending March 2021 Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type redacted_applications_2019_final.pdf (2,053 KB) Administrative File Attachments conness_jack_2019.pdf (1,136 KB) fields_monte_2019.pdf (426 KB) gielow_judith_2019.pdf (202 KB) lester_sue_2019.pdf (261 KB) quinn_martin_2019.pdf (110 KB) takahashi_steven_2019.pdf (174 KB) takaya_judy_2019.pdf (146 KB) trahan_rebecca_2019.pdf (341 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Approve General Manager's 2019 Performance Goals Summary On February 28, 2019, the General Manager presented a proposed list of performance goals to achieve in 2019. The Board made revisions to the draft list of goals and directed the General Manager to bring back the updated and final list for approval consideration. Attached is the final list. Recommendation That the Board of Directors approve the General Manager's 2019 Performance Goals Analysis Attached for your approval consideration is the General Manager's 2019 Performance Goals. Legal Review Not applicable. Environmental Review Adopting the General Manager's performance goals are an administrative matter and are not a disturbance of the environment similar to grading or construction and therefore this item is 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 with the entire agenda packet for the March 28, 2019 Board of Directors regular meeting at CMSD headquarters and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Direct the General Manager to report back with more information. File Attachments 2019 Goals.pdf (71 KB) Subject 3. Consider Approving General Manager's 2019 Performance Goals Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the General Manager's 2019 Performance Goals Goals 5.0 Administrative Management 6.0 Personnel/Organizational Management 6.7 Promote high employee satisfaction G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Consider Approving Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station Summary Orange County Sanitation District (OCSD) currently treats the Baker-Main Interceptor for odor and corrosion with a continuous feed of a chemical called, ferrous chloride, to the sludge in the force main at the Michelson Water Reclamation Plant (MWRP), which is owned and operated by Irvine Ranch Water District (IRWD). IRWD is constructing a biosolids processing facility and other operations activities, which have interfered with OCSD's chemical treatment activities and soon such treatment will be no longer be available to OCSD. About ten years ago OCSD conducted a study at CMSD's Mendoza Pump Station to evaluate the effectiveness of adding chemicals into the wastewater system to reduce odor and corrosion of pipeline. The results of the study showed that chemicals are effective to reducing odor and corrosion and now OCSD wants to place a permanent odor control treatment facility at Mendoza Pump Station to control odor and corrosion at the Baker-Main Interceptor. On February 23, 2017, the Board approved the site access and license agreement with OCSD; however, the agreement is being brought back to you tonight because the land where the odor control treatment facility is being located on is owned by the City of Costa Mesa. The Costa Mesa City Council will consider approving the agreement at one of their April 2019 meeting. Recommendation That the Board of Directors approves the Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station Analysis OCSD is proposing to install one 8,460 gallon chemical tank that is ten feet tall and twelve feet in diameter. A 990 square foot secondary containment structure will be placed around the tank to capture chemicals that may have unexpectedly leaked. The secondary containment facility can hold 10,660 gallons of liquid. The treatment facility will have an alarm system in place to detect leaks and will notify OCSD staff, via email, when the alarm is activated. OCSD's chemical vendor is required to respond within four hours after the alarm goes off. The facility will have a pump control system and a ten foot tall chain link fence with privacy screens around the facility (the pump station grounds has an existing chain link fence to prevent public access). The type of chemicals OCSD will be storing in the tank will be ferrous chloride, magnesium hydroxide and/or calcium nitrate. These chemicals are considered hazardous and can cause health risks if not properly handled. The Material Safety Data Sheet (MSDS) for each chemical is attached. OCSD will be responsible for notifying CMSD, City of Costa Mesa and nearby residents when chemicals are scheduled for delivery. In addition, OCSD has notified the City of Costa Mesa and nearby residents about the odor treatment facility. Subject 4. Consider Approving Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approves the Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station Goals 1.0 Sewer Infrastructure 3.00 Partnerships 3.2 Strengthen our ties with local governments, Special districts and educational institutions In the near future, staff will bring back an addendum to the Site Access and License Agreement because the City wants to deed the property to the District. Legal Review District Counsel has reviewed and approved the attached Site Access and License Agreement. Environmental Review On September 6, 2017, OCSD filed with the California State Clearinghouse Addendum No. 3 to the 2002 Supplemental Environmental Impact Report (SEIR) for the Permanent Odor Control Treatment Facility at Mendoza Pump Station. The findings in Addendum No. 3 found the project would not result in new significant environmental effects or an increase in the severity of significant effects from the findings determined by the 2002 SEIR. Attached is a copy of the 2002 SEIR Executive Summary and Mitigation Measures and Addendum No. 3. A copy of the full 219 page SEIR report is available upon request. On October 2, 2017, OCSD posted a Notice of Exemption that this Project is exempt from CEQA under Class 3 and 11 categorical exemptions set forth in California Code of Regulations, Title 14, section 15303 and 15311. Section 15303 (Class 3) exempts from CEQA "construction and location of limited numbers of new, small facilities or structures [and] installation of small new equipment and facilities in small structures... Examples of this exemption include but are not limited to: ...(d) Water main, sewage... and other utility extensions ... to serve such construction." The Project will consist of the installation and operation of a chemical dosing station. This will include an 8,460 gallon tank, equipment for the feed system and controls. These minor Project components constitute limited numbers of new, small facilities and equipment. Therefore, the Class 3 exemption applies. Section 15311 (Class 11) exempts from CEQA "Construction, or placement of minor structures accessory to existing commercial, industrial, or institutional facilities, including but not limited to: (a) "On-premise signs:" This project will consist of the installation of signage on the premise as required; thus, Class 11 exemption applies. Attached is the Notice of Exemption. Financial Review There are no financial impacts to the Districts. OCSD will incur all construction, operation and maintenance costs for this project. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Do not approve the Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa 2. Direct staff to report back with more information. File Attachments Site Access and License Agreement_Mendoza PS_WSS 3.6.19.pdf (5,338 KB) 10.02-CEQA SIER -Addedum NO 3 Mendoza Costa Mesa Final Aug 2017.pdf (1,016 KB) Mendoza Pump Station NOE recorded 10-2-2017.pdf (2,086 KB) 2002 SEIR - Executive Summary and Mitigation Measures.pdf (339 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Consider Approving sending Steve Cano, Wastewater Superintendent and Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri-State Seminar in Las Vegas, Nevada Summary Tri-State Seminar is a group of water and wastewater professionals from Arizona, Nevada and California that meet once a year to share the latest information and technology in the industry. The conference is supported by the California Water Environment Association (CWEA), Nevada Water Environment Association (NWEA) and Arizona Water Association (AWA). Recommendation That the Board of Directors approve sending Steve Cano, Wastewater Superintendent Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri-State Seminar in Las Vegas, Nevada on August 6-8, 2019 Analysis This three day conference focuses on the water and wastewater industry. For wastewater collections, some of the topics that will be discussed include the following: Odor Control Using Acoustic Inspections Asset Management Root Control Confine Space Rescue Reducing Corrosion, Infiltration, Inflow and Odors in Manholes In addition, there will be 300 exhibitors showcasing the latest technologies in the wastewater industry. Board approval is needed because this conference is being held out of California. Legal Review Not applicable Subject 5. Consider Approving sending Steve Cano, Wastewater Superintendent and Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri- State Seminar in Las Vegas, Nevada Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $1,500.00 Budgeted Yes Budget Source Wastewater Fund Recommended Action That the Board of Directors approve sending Steve Cano, Wastewater Superintendent and Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri-State Seminar in Las Vegas, Nevada on August 6-8, 2019 Goals 1.0 Sewer Infrastructure 3.00 Partnerships 3.4 Participate in the activities of professional associations Environmental Review Attendance at a seminar is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review The total cost for both employees to attend the seminar is $1,500.00, which includes airfare, hotel, registration and food. There is sufficient funding for this conference available in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors study session at District Headquarters and on District’s website at www.cmsdca.gov. Alternative Actions 1. Do not approve sending Steve Cano and Jose (Tony) Gomez to the seminar. 2. Refer the matter back to staff for additional information. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Solar Photovoltaic System at CMSD HQ - Accept Improvements, File Notice of Completion, Exonerate Bonds Summary On March 22, 2018, the Board of Directors approved an agreement with Precision Electric Company to procure and install a solar photovoltaic system on HQ rooftop for $156,500. This project is complete and ready for the Board to accept the Notice of Completion. Recommendation The Board of Directors approves the following action: 1. Accept improvements as completed and file a Notice of Completion. 2. Authorize payment of 5% retention 35 days after Notice of Completion is recorded. 3. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Analysis In keeping with the spirit of CMSD's mission, protecting our community's health and the environment, the Board approved in the FY 2017-18 Budget the installation of a solar photovoltaic system on the rooftop at headquarters (HQ). A solar photovoltaic system will help combat greenhouse gas emissions and reduce our collective dependence on fossil fuel, while at the same time reducing energy costs at HQ. Work began in May 2018 and into FY 2018-19, and on November 29, 2018, the Board approved the carryover encumbrance for this project. There was one change order for this project in the amount of $4,272.43 for installing roofing material pads under the solar panel brackets and cable tray. The solar photovoltaic system was fully energizing HQ in December 2018. In the first month of operations, the District experienced a 44.6% decrease in energy cost from $1,169.50 in November to $648.33 in December 2018. The energy costs for the next two months at HQ are as follows: Jan-19 $675.82 Feb-19 $705.02 Legal Review Not applicable Subject 6. Solar Photovoltaic System at CMSD HQ - Accept Improvements, File Notice of Completion, Exonerate Bonds Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Budgeted Yes Recommended Action The Board of Directors approves the following action: 1. Accept improvements as completed and file a Notice of Completion. 2. Authorize payment of 5% retention 35 days after Notice of Completion is recorded. 3. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Goals 5.0 Administrative Management Environmental Review The installation of solar panels at the District headquarters is a minor alteration and is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” project as stated under 15301; “Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities …”; pertaining to 15301(b) “Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services”. Financial Review The adopted budget for this project is $180,000. The project was completed within the adopted budget amount and below are the project expenses: Construction Cost $156,500 Change order #1 $ 4,272 Total Construction Cost $160,772 Other Expenses Included: Utility Cost Management (UCM) LLC for reviewing utility data and recommending the optimal system size. UCM also assisted preparing bid specifications and reviewing bids. Cost: $12,800 Miscellaneous vendors. Cost: $4,669 Total Project Cost: $178,241 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors regular meeting at District Headquarters and on District’s website at www.cmsdca.gov Alternative Actions 1. Do not accept the project as complete. 2. Direct staff to report back with more information File Attachments Notice of Completion Solar at HQ.docx (15 KB) G. GENERAL MANAGER'S REPORTS Subject 7. Consider Directing Staff to Budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $50,000.00 Budgeted No Budget Source Wastewater Fund Recommended Action That the Board of Directors consider directing staff to budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter Goals 1.0 Sewer Infrastructure 3.00 Partnerships 3.2 Strengthen our ties with local governments, Special districts and educational institutions directing staff to budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter On March 12, 2019, the Board of Directors approved contributing $50,000 for portable restrooms at the City of Costa Mesa temporary bridge shelter on Anaheim Avenue. The Board directed staff to bring this item back to tonights meeting to consider directing staff to budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter. in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter On March 5, 2019, the City Council approved purchasing the warehouse property at 3175 Airway Avenue as the City's permanent bridge shelter for the community's homeless population. The permanent shelter on Airway Avenue will have indoor restrooms. The City is requesting an ongoing $50,000 annual contribution from the District to help offset the costs of operating the permanent shelter. The restrooms are inside the building, which will have indoor plumbing. The District typically does not get involved with operations and maintenance of indoor plumbing systems because that is the responsibility of the property owner. Please see District Counsel legal review below about making a contribution to the permanent bridge shelter. To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Consider Summary Recommendation That the Board of Directors consider directing staff to budget $50,000 Analysis According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes include properly treating sewage, preventing SSOs, and recycling. Describe how the contribution will advance the District's purpose. The permanent bridge shelter will establish the District purpose of safely collecting and disposing wastewater by removing people off the streets who were once compromising the sanitary conditions by relieving themselves in public, but now they will have a place where humane waste can be safely collected and treated. The contribution will advance the District's purpose because the restrooms in the permanent bridge shelter will prevent the homeless population from causing unsanitary conditions in the community. Legal Review The District does have the authority to plan, maintain and operate sewers, drains, and septic tanks, and to engage in sewerage collection. (H & S C §6512) This provides authority for the District to provide funds for portable toilets so that homeless persons do not relieve themselves in public, creating a sanitary and health issue. This same authority does not extend to paying for ongoing sewage bills for connected facilities with permanent indoor plumbing. The Board should make a finding on this matter of how an expenditure will advance the District’s purposes and that finding will be upheld if it is based on substantial evidence. The Courts will generally defer to the Board’s decision on such matters unless it finds that the Board acted arbitrarily and capriciously. Environmental Review Installing a prefabricated restroom structure that requires utility connections for water, sewer, and electricity, is categorically exempt under the California Environmental Quality Act (CEQA) Section 15303. The section states: "Class 3 consists of construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures..." Financial Review If the Board approves an on-going annual contribution of $50,000, funding will be appropriately budgeted in the FY 2019/20-2020-21 Budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Do not approve contributing $50,000 to the City of Costa Mesa. 2. Approve a lesser contributing amount than $50,000 such as $25,000. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2019 Subject: Consider Sponsoring State of the City Luncheon with Mayor Katrina Foley Summary On Wednesday, April 10, 2019, the Costa Mesa Chamber of Commerce is hosting the State of the City Luncheon with Mayor Katrina Foley at the Renee and Henry Segerstrom Concert Hall located at the Segerstrom Center for the Arts. The Costa Mesa Chamber of Commerce is seeking the District's support for the event as one of its sponsors. Recommendation That the Board of Directors consider being a Silver Sponsor to the State of the City Luncheon with Mayor Katrina Foley for $1,500 Analysis Silver sponsors will have their logo on event signage, a "thank you" to the Chamber's database, social media exposure and six seats for the event. According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes include properly treating sewage, preventing SSOs, and recycling. Describe how the contribution will advance the District's purpose. In addition to the benefits mentioned above for Silver Sponsorships, the Chamber has agreed to place a statement below the District's logo to advance the District's purpose. For instance, the statement can say, "Recycle your food scraps in CMSD's Organics Recycling Program," and statements advancing the District's purpose will be on the Chamber's social media feed and announced from the podium as they thank their sponsors during the event. Legal Review District Counsel established the criteria to follow when considering contributions for sponsorships. Environmental Review The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting the District is an administrative matter and is not a disturbance of the environment, similar to grading or construction, and is not a project under CEQA or the District’s CEQA Guidelines. Subject 8. Consider Sponsoring State of the City Luncheon with Mayor Katrina Foley Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $1,500.00 Budgeted No Recommended Action That the Board of Directors consider being a Silver Sponsor to the State of the City Luncheon with Mayor Katrina Foley for $1,500 Goals 3.00 Partnerships 3.2 Strengthen our ties with local governments, Special districts and educational institutions Financial Review The cost to be a Silver Sponsor is $1,500. This expenditure is not budgeted. The expenditure would be split in half in both the Solid Waste and Wastewater Fund Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Do not approve being a sponsor to the State of the City Luncheon with Mayor Katrina Foley for $1,500 File Attachments CMCC_StateLuncheon_Flyer.pdf (267 KB) State of the City Sponsorship Levels.png (57 KB) H. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: March 28, 2019 Subject: Capital Improvement Projects Status Report Summary Attached is a summary of the Capital Improvement Project activities during the month. Recommendation That the Board of Directors receive and file the report. Analysis Attached are nine capital improvement projects that are in progress or will soon begin. 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 March 28, 2019 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 - March 2019.pdf (94 KB) Subject 1. Receive and File the Monthly Capital Improvement Projects Status Report Meeting Mar 28, 2019 - 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 H. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: March 28, 2019 Subject: 2277 Harbor Blvd., Costa Mesa Approval in Concept of District Sewer Main and Easement Vacation/Quitclaim Summary In yesteryear, the District had a policy where all property owners had direct access to a Costa Mesa Sanitary District (District) sewer main. An example is a townhome development where there are multiple homes on small lots. The developer was required to construct a District sewer main in an easement on the property so each townhome had direct access to the sewer main. This policy resulted in many District sewer mains and easements on private property. However, in 1982 the District adopted a policy whereby developments with an HOA or similar governing body could be served by a common lateral because the HOA or similar governing body would be responsible for the operation and maintenance of the common lateral. The property at 2277 has a District sewer main and easement that was constructed prior to the change in policy so it is appropriate to vacate/quitclaim the District sewer and easement. The development will be served by a new private sewer. Analysis Since 1982, the District has vacated/quitclaimed many of the District sewer mains and easements on private property. This policy also alleviates the need for the District’s large sewer cleaning vehicles to drive on private property to clean the sewer main. Large trucks can damage private property pavement. The policy also alleviates the necessity for the District’s large sewer cleaning vehicles from having to back out of the development onto public streets with heavy traffic. Recently, the attorney for the District created an indemnification agreement for protection of the District when new construction occurs where a District sewer main was previously located. Recommendation The Board of Directors: 1. Approve in concept the developer request to vacate the sewer main and bring the matter back with a procedure and formal vacation documents. 2. Have the attorney for the District consider an indemnification agreement protecting the District for any claim associated with removing the sewer main. Legal Review District Counsel will provide a vacation/quitclaim procedure and will prepare the formal documents. Environmental Review The removal of a small section of sewer main from the District's system is a minor alteration and is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” project as stated under 15301; “Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities …”; pertaining to 15301(b) “Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services”. Financial Review The sewer main is currently recorded on the District's financial records with a net book value. Should the District vacate the sewer main, the Wastewater Fund will incur a loss on the disposal of an asset in that same amount, which would represent an unbudgeted expense. Additional costs of the vacation will include attorney time and District Engineer time to prepare for and process the vacation. Should the Board approve this vacation in concept, staff will calculate the total cost to the District of vacating the sewer main for potential recovery from the developer. Subject 2. 2277 Harbor Blvd., Costa Mesa Approval in Concept of District Sewer Main and Easement Vacation/Quitclaim Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not approve the vacation/quitclaim in concept. 2. Refer the matter back to staff for additional information. File Attachments Costa Mesa 200 LUX Signed Sewer Easement Vacation Letter Per Jim Bynum 2-27-19.pdf (439 KB) S-145.pdf (1,103 KB) C-1-CMSD Demo-30x42.pdf (464 KB) C-3-GRAD-30x42.pdf (1,965 KB) J. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: March 28, 2019 Subject: Consider Approving the Second Amendment to the General Manager's Employment Agreement Summary The Second Amendment to the General Manager’s Employment Agreement represents the tentative agreement reached between the General Manager and the President, as the Board’s negotiator, with authority provided in closed session. The Second Amendment would provide a one-time 3% incentive pay to the General Manager of $5741, and provide him with a contribution towards a fitness gym membership of up to $25 per month. Recommendation That the Board of Directors consider approving the Second Amendment to the General Manager's Employment Agreement Analysis The General Manger was hired by the District in 2010 after a competitive search. His performance has been reviewed annually against the goals that have been set for him and the results he has achieved. This year the Board, acting through the President pursuant to authority granted him in closed sessions, reached tentative agreement with the General Manager to provide him with a one-time incentive payment of 3% of his salary. This incentive payment is to be non- base building and is “non-PERSable.” The incentive payment amount equates to $5,741 (based on his salary of $191,380.41). In addition, the parties have tentatively agreed that the District would provide a contribution up to $25 per month towards a fitness gym or health club membership of the General Manager’s choosing. The agreements is tentative because the law does not allow a public entity to set the compensation of an executive without complying with certain procedural steps, as discussed further under Public Notice Process. Those steps are now required after the "Bell" scandal, and require that compensation be set at a regular meeting, that a public oral report must precede any action to increase compensation, and that the vote is not be taken on a consent calendar. (Government Code Sections 54956(b); 54953(c)(3).) Legal Review This Second Amendment was prepared pursuant to authority granted the President to negotiate in closed session. The process for providing Executive compensation in light of the post “Bell” reform legislation has been followed. Environmental Review The incentive pay and health club membership benefits granted are an activity for which there is no possibility that the action will have a significant effect on the environment, and therefore falls under the “common sense” exemption from CEQA. Subject 1. Consider Approving the Second Amendment to the General Manager's Employment Agreement Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $5,741.00 Budgeted No Recommended Action That the Board of Directors considers approving the Second Amendment to the General Manager's Employment Agreement Goals 6.0 Personnel/Organizational Management 6.7 Promote high employee satisfaction Financial Review The General Manager's incentive pay will cost $5,741 and the contribution towards a fitness gym or health club membership could be up to $300 a year. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov In addition an oral report will proceed the vote as required. Alternative Actions 1. Do not approve the Second Amendment. 2. Direct staff to report back with more information. File Attachments 201903 GM CMSD 2nd Amendment Contract.docx (14 KB) ARB EDITS 201903 GM CMSD 2nd Amendment Contract (3).docx (16 KB) J. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: March 28, 2019 Subject: Consider Adopting Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment Summary The District currently has no process in place for minor reimbursement requests for trash or sewer assessment charges. From time to time there will be a reimbursement request from residents that have been inaccurately assessed a trash or sewer charge in which the amount is less than $5,000. Staff is requesting that the Board of Directors review the proposed changes to Chapter 4 of the Operations Code and provide feedback if any. Recommendation That the Board of Directors adopt Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment Analysis Attached is a copy of Ordinance No. 124 that identifies the recommended addition to Chapter 4 in the District's Operation Code. The language added includes giving the General Manager the authority to authorize refunds of payments made to the District that are less than $5,000.00. The authority in this ordinance is limited to sewer and trash refunds. Currently, there is no administrative process in place for the authorization of minor refunds which significantly increases the amount of time a resident waits to receive their refund. Any refund requests over $5,000 will go to the Board of Directors for approval. In accordance with Chapter 9 of the Operations Code, the refund policy states the claimant must present a written request for a refund from the Board of Directors within one year of the charge being placed. Refunds are allowed for up to four years if fees were paid but no service was received. Additionally, the ordinance also allows the General Manager to dispose of obsolete or worn out equipment and supplies. The property will be used as a trade-in for other supplies or dispose of by an auction house or other methods that ensure the best interest of the District. On March 12, 2019, the Board of Directors reviewed and discussed Ordinance No. 124, which included comments submitted by Mr. Mosher (see attachment). On March 13, 2019, Ordinance No. 124 was presented to the Citizens Advisory Committee (CAC). The CAC is recommending the Board of Directors adopt Ordinance No. 124 that includes the recommended revisions submitted by Mr. Jim Mosher. Legal Review District Counsel has reviewed and approved Ordinance No. 124. On March 15, 2019, District Counsel submitted a written response (see attachment) to Mr. Mosher's comments. District Counsel is recommending the Board of Directors adopt Ordinance No. 124 as it was presented to the Board on March 12 and without Mr. Mosher suggested revisions. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Subject 2. Consider Adopting Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment Goals 5.0 Administrative Management 5.4 Review and maintain Operations Code, policies and Administrative Regulations Financial Review There are no fiscal impacts to the District for adopting Ordinance No. 124. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 12, 2019 Board of Directors study session meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information File Attachments Ordinance 124.pdf (15 KB) Ord No. 124 Mosher Comments.pdf (414 KB) 20190315 Ordinance Language Changes.pdf (144 KB) J. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: March 28, 2019 Subject: Ordinance No. 125 - Establishing Regulations for District Facilities Summary Ordinance No. 125, if approved by the Board, will give the General Manager authority to set hours of operations for District facilities, which includes the yard and headquarters. The ordinance will also identify restricted access areas such as the yard and pump stations. Recommendation That the Board of Directors adopt Ordinance 125 - Establishing Regulations for District Facilities Analysis In previous years, the General Manager would seek Board approval for setting operational hours at headquarters and the Yard. For example, in 2018, the General Manager requested Board approval to close operations at noon the day before Thanksgiving to give staff ample time for traveling to their destination for the holiday. In addition, the General Manager requested Board approval to close operations the day before Christmas and New Year's Day. The Board requested an amendment to the District's Operations Code that will give the General Manager authority to set hours of operations at headquarters and the yard without obtaining approval from the Board. In addition to hours of operation of District facilities, the proposed ordinance addresses restricted access areas such as the yard and pump stations. These facilities are not intended for public gathering places and should be restricted to public access. Adopting Ordinance No. 125 will allow staff to place signs at enclosed facilities informing the public that entering such facilities is prohibited and in violation of District Operations Code, which could be enforced as a misdemeanor crime. On March 12, 2019, the Board of Directors reviewed and discussed Ordinance No. 125, which included comments submitted by Mr. Mosher (see attachment). On March 13, 2019, Ordinance No. 125 was presented to the Citizens Advisory Committee (CAC). The CAC is recommending the Board of Directors adopt Ordinance No. 125 that includes the recommended revisions submitted by Mr. Jim Mosher. Legal Review District Counsel prepared Ordinance No. 125. On March 15, 2019, District Counsel submitted a written response (see attachment) to Mr. Mosher's comments. District Counsel is recommending the Board of Directors adopt Ordinance No. 125 as it was presented to the Board on March 12 and without Mr. Mosher suggested revisions. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Subject 3. Consider Adopting Ordinance No. 125 - Establishing Regulations for District Facilities Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Ordinance No. 125 - Establishing Regulations for District Facilities Goals 5.0 Administrative Management 5.4 Review and maintain Operations Code, policies and Administrative Regulations There are no finance impacts to the District for adopting Ordinance No. 125. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2019 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. File Attachments Ordinance No. 125.pdf (72 KB) Ord No. 125 Mosher Comments.pdf (288 KB) 20190315 Ordinance Language Changes.pdf (144 KB) K. 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) - (President Ferryman) Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Information K. 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 Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Information K. 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) - (Secretary Schafer) Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Information K. 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 Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Information K. 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) - (Director Scheafer) Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Information K. 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 Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Information N. REPORT ON CLOSED SESSION ACTIONS Subject 1. Report on Closed Session Actions Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Receive and File O. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Discussion P. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON APRIL 25, 2019, IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Mar 28, 2019 - Board of Directors Regular Meeting Access Public Type Procedural