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2019_04_25_boardThursday, April 25, 2019 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 5:30 P.M. Public Comments: Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to four minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS 1. Call to Order - President Ferryman 2. Pledge of Allegiance - President Ferryman 3. Invocation - Vice President Ooten 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. B. CEREMONIAL MATTERS AND PRESENTATIONS 1. Presentation of a Proclamation Recognizing the week of May 5 through May 11, 2019 as Municipal Clerks Week C. 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 D. 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 March 12, 2019 3. Approve the Board of Directors Special Meeting and Regular Meeting Minutes of March 28, 2019 4. Adopt Warrant Resolution No. CMSD 2019-10 Approving District Warrant Registers 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Payroll Transparency Disclosure for March 2019 7. Approve the preparation of a warrant to CR Transfer in the amount of $189,886.60 for March 2019 recycling and disposal services in the April 2019 warrant register 8. Accept the occupancy count as presented as 22,774 and direct staff to prepare a warrant to CR&R Environmental Services for $223,080.44 for March 2019 collection 9. Contracts Signed by General Manager E. PUBLIC HEARINGS F. GENERAL MANAGER'S REPORTS 1. Construction Inspection Program 2. Consider Approving Cost of Living Adjustment (COLA) to salaries in FY 2019-20 to be equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area of 2.5% as outlined in the Employee Handbook 3. Classification and Compensation Study Outcome 4. Request for Increase in Hourly Rate Harper & Burns LLP 5. Request for Rate Adjustment - Davis Farr LLP 6. Adopt Resolution No. 2019-915 Authorizing Staff to Submit an Application for Household Hazardous Waste Grant (Thirty-Third Cycle) 7. Citizens Advisory Committee (CAC) Meeting Overview 8. Performance Measurement Program Update Report: January - March 2019 9. Receive and File the Third Quarter Budget Review for FY2018-19 10. Receive and File 2015-20 Strategic Plan Quarterly Update - FY 2018-19 3rd Quarter 11. Approve out-of-state travel for Nabila Guzman, to attend the Waste Expo Conference in Las Vegas, Nevada. 12. Consider Approving the Estancia Football Boosters Contribution Program Application 13. Approve Payment of Administrative Civil Liability Associated with Sewer System Overflow G. ENGINEER'S REPORTS 1. Receive and File the Monthly Capital Improvement Project Status Report H. TREASURER'S REPORTS 1. Approve the Investment Report for the month of March 2019 I. ATTORNEY'S REPORTS J. 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 K. OLD BUSINESS L. NEW BUSINESS M. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments N. CLOSING ITEMS 1. Adjourn Thursday, April 25, 2019 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 5:30 P.M. Public Comments: Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to four minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS Subject 1. Call to Order - President Ferryman Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ferryman Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Ooten Meeting Apr 25, 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 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural B. CEREMONIAL MATTERS AND PRESENTATIONS Subject 1. Presentation of a Proclamation Recognizing the week of May 5 through May 11, 2019 as Municipal Clerks Week Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural C. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject 1. Public Comments Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural D. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 1. Approve Consent Calendar Meeting Apr 25, 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. D. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: April 25, 2019 Subject: Approve the Board of Directors Study Session Minutes of March 12, 2019 Summary The recorded minutes of the March 12, 2019 Board of Directors Study Session are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Study Session on March 12, 2019. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the April 25, 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 March 12, 2019 Meeting Apr 25, 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 Mar 12, 2019 - Board of Directors Study Session minutes_2019_03_12_ss.pdf (72 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. D. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: April 25, 2019 Subject: Approve the Board of Directors Special Meeting and Regular Meeting Minutes of March 28, 2019 Summary The recorded minutes of the March 28, 2019 Board of Directors Special Meeting and Regular Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Special Meeting and Regular Meeting on March 28, 2019. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the April 25, 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. Subject 3. Approve the Board of Directors Special Meeting and Regular Meeting Minutes of March 28, 2019 Meeting Apr 25, 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 Mar 28, 2019 - Board of Directors Special Meeting File Attachments minutes_2019_03_28_special.pdf (132 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. D. 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 April 2019 Mtg.pdf (416 KB) Subject 4. Adopt Warrant Resolution No. CMSD 2019-10 Approving District Warrant Registers Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2019-10 approving District warrants for the month of March 2019 in the amount of $1,443,438.21 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. D. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk Date: April 25, 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 April 25, 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_compensation.pdf (265 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Apr 25, 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_expense.pdf (181 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. D. 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: April 25, 2019 Subject: Payroll Transparency Disclosure for March 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 Subject 6. Payroll Transparency Disclosure for March 2019 Meeting Apr 25, 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 Copies of this report are on file and will be included with the complete agenda packet for the April 25, 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 Payroll Transparency Disclosure March 2019.pdf (165 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. D. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: April 25, 2019 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $189,886.60 for March 2019 recycling and disposal services in the April 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 $189,886.60 for March 2019 recycling and disposal services to be ratified in the April 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 $0.25, but CMSD will be paying the actual amount owed. Costa Mesa Newport Beach Total Residential Waste $133,549.39 $2,849.50 $136,398.88 Organics $50,973.78 $2,513.94 $53,487.72 Total Payment $189,886.60 Tonnage Residential Waste 2569.74 54.83 2624.57 Organics 712.92 35.16 748.08 Total Tonnage 3372.65 Legal Review Not Applicable Subject 7. Approve the preparation of a warrant to CR Transfer in the amount of $189,886.60 for March 2019 recycling and disposal services in the April 2019 warrant register Meeting Apr 25, 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 $189,886.60 for March 2019 recycling and disposal services to be ratified in the April 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 April 25, 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. D. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: April 25, 2019 Subject: Accept the occupancy count as presented as 22,774 and direct staff to prepare a warrant to CR&R Environmental Services for $223,080.44 for March 2019 collection Summary Accept the occupancy count as presented using 22,774 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for March 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,080.44 to be ratified in the April 2019 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,774 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for March 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,080.44to be ratified in the April 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 March 31, 2019, total District occupancy was at 22,774, with nine (9) 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 March 2019: 22,774 x $9.7954 =$223,080.44 Legal Review Not Applicable Subject 8. Accept the occupancy count as presented as 22,774 and direct staff to prepare a warrant to CR&R Environmental Services for $223,080.44 for March 2019 collection Meeting Apr 25, 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 22,774 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for March 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,080.44 to be ratified in the April 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 April 25, 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. File Attachments 2019-03-G CMSD Occupancy Report.pdf (13 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. D. 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: April 25, 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 March 2019. Contracts: 1. AndersonPenna Partners, Inc. – First Amendment to extend term for inspection services. Contract expires on March 9, 2019. Term extended to end on June 30, 2019. Cost: $125.00 an hour. 2. Schuler Constructors, Inc. – Annual Air Vac Inspection Program. Cost: $7,051 3. Orange County Sanitation District – Extension and Amendment to Employee Lending Agreement. This is for the Alternate District Engineer position. Cost: $98.44 an hour. 4. Environmental Rental Services – Renting one wastewater cleaning truck because CMSD’s cleaning truck is down for service. Cost: Daily: $750, Weekly: $3,500, Monthly: $11,500 5. Mighty Ducts Heating and Cooling – Replacing ducts at HQ. Cost: $65,350 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 There is adequate funding in the budget for the expenses referenced above. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 25, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Subject 9. Contracts Signed by General Manager Meeting Apr 25, 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 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. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: April 25, 2019 Subject: Construction Inspection Program Summary On February 12, 2019, the Board of Directors considered reinstating the firm, Robin B. Hamers & Associates (RBHA) for providing construction inspection services. The Board also took into consideration the creation of a construction inspector position within CMSD. Due to concern RBHA proposal did not include prevailing wage, the Board directed staff to bring this item back for discussion after Rob Hamers has reviewed prevailing wage requirements and submit a revised proposal. Attached is RBHA revised proposal. Staff has concerns with RBHA charging the District two different rates for inspections because disputes may arise in determining the correct rate for inspection services. Staff wants to avoid significant billing disputes with RBHA regarding inspection services. Therefore, staff has developed a plan that we believe is a "win-win" for both RBHA and the District. On April 16, 2019, staff presented this report to the Board of Directors during the Board's study session meeting. The Board directed staff to bring this item back to tonight's meeting for approval consideration. Recommendation That the Board of Directors considers approving the following: 1. Enter into an agreement with County of Orange Public Works for construction inspection services for public works projects; and 2. Approve Robin B Hamers & Associates as construction inspector for private development; and 3. Approve a succession and knowledge transfer plan for inspection services where District Engineer will pass on his institutional Subject 1. Construction Inspection Program Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Budget Source Wastewater Fund Recommended Action That the Board of Directors considers approving the following: 1. Enter into an agreement with County of Orange Public Works for construction inspection services for public works projects; and 2. Approve Robin B Hamers & Associates as construction inspector for private development; and 3. Approve a succession and knowledge transfer plan for inspection services where District Engineer will pass on his institutional knowledge to CMSD's Engineering Technician; and 4. Approve amending job title from Engineering Technician to Engineering Technician/Construction Inspector that includes inspecting public works projects; and 5. Approve hiring Robin B Hamers & Associates as the Alternate Construction Inspector when CMSD Engineering Technician/Construction Inspector is on leave. Goals 1.0 Sewer Infrastructure 3.00 Partnerships 3.2 Strengthen our ties with local governments, Special districts and educational institutions 5.0 Administrative Management 6.0 Personnel/Organizational Management 6.5 Create a Development Plan 6.7 Promote high employee satisfaction knowledge to CMSD's Engineering Technician; and 4. Approve amending job title from Engineering Technician to Engineering Technician/Construction Inspector to include inspecting public works projects; and 5. Approve hiring Robin B Hamers & Associates as the Alternate Construction Inspector when CMSD Engineering Technician/Construction Inspector is on leave. Analysis Staff is recommending a hybrid approach to construction inspections. An effective construction inspection program is needed to ensure contractors are following plan designs and specifications. Without construction inspection, contractors may avoid performing tasks to save money or their workmanship may not conform to industry standards, which could potentially cause a sanitary sewer overflow. Currently, construction inspection services is performed by a private firm, AndersonPenna Partners, Inc. at $125.00 an hour, which is well above the current California prevailing wage rate for construction inspection at 74.90 an hour. Because public works inspection services is prevailing wage, AndersonPenna is required to register its services with the California Department of Industrial Relations (DIR), otherwise known as PWC 100 form. AndersonPenna assigned DIR Project ID number is 273971, and they are required to use this number when they submit certified payroll records in DIR's Electronic Certified Payroll Reporting (eCPR) database. The inspector from AndersonPenna is inspecting public works and private development projects. In accordance with California Labor Code, Section 1771, prevailing wages are required to be paid by private firms to their workers on public works projects. Public works projects are defined as construction, alteration, demolition, installation or repair work done under contract and paid in whole or in part out of public funds. This means inspectors do not have to be paid prevailing wages when they are inspecting private development. RBHA's proposal of $65.00 an hour to perform private development inspections would not violate Section 1771 and the District would experience immediate savings from its current inspection contract. Furthermore, RBHA would not have to file his firm with DIR and the firm does not have to submit certified payroll records in eCPR database. Public agencies are exempt from Section 1771 and do not have to pay prevailing wages to public employees working on public projects. In attempt to reduce the District's current hourly rate for construction inspection, staff contacted officials at Orange County Sanitation District (OCSD) to inquire their interest to providing temporary construction inspection services. Unfortunately, OCSD declined to provide construction inspection services because they do not have the resources to assist CMSD. In fact, OCSD is supplementing their construction inspection with private firms. Staff contacted officials at the County of Orange Public Works Department to inquire their interest to providing temporary construction inspection services. Attached is a letter from OC Public Works along with position descriptions and the hourly labor rate for each position. The hourly rate for a construction inspector is $97.62, which is an immediate savings from the District's current inspection contract. Staff is recommending a contract with the County because of the savings and resources they can provide to the District such as personnel, technology, tools, vehicles, etc. Attached is a copy of a sample agreement from the County that would be executed if the Board approves staff's recommendation. To reduce inspection costs even further staff is recommending the job description for the District's Engineering Technician be amended to include construction inspection services. An analysis performed by District consultant, Ralph Anderson & Associates, found it appropriate to amend the Engineering Technician's job description by including construction inspection to the position's existing duties. The consultant is recommending the Engineering Technician title be changed to Engineering Technician/Construction Inspector and the maximum salary range increase from $41.7144 to $43.8262 an hour. By including District benefits the maximum fully burden hourly rate for the Engineering Technician/Construction Inspector position is $56.9741. If approved by the Board, the amended position and salary range will be in the FY 2020-21 Budget. As mentioned in the February 12, 2019 staff report, The District's Engineering Technician has expressed interest performing construction inspection services. A professional development plan has been created for him that includes enrolling at Santiago Canyon College to earn a Public Works Certificate with an emphasis on construction inspection and signing up using American Public Works Association (APWA) eLearning portal for APWA Construction Inspection 201 webinar, which is a 24-course program. The program includes an array of information for the Engineering Technician, including: communication; contractor relations; plans and specifications; construction meetings; progress meetings; scheduling; documentation; negotiations; and project close-out. In addition, the Engineering Technician is going on ride along with the current inspector from AndersonPenna to gain firsthand knowledge and experience as a construction inspector. If the Board approves a contract with OC Public Works for inspection services, the Engineer Technician would go on ride along with the inspector. When CMSD's inspector is on leave due for vacation or sick time, RBHA would serve as the District's Alternate Inspector for public works project at 98.00 an hour. This will ensure inspection services is continued on a regular basis. RBHA would be required to register with the California Department of Industrial Relations (DIR) for public works inspection services and the firm would be required to submit certified payroll records in DIR's Electronic Certified Payroll Reporting (eCPR) database. In an effort to continue our partnership with RBHA, staff is recommending Rob Hamers continues meeting with the Engineering Technician to mentor and transfer his institutional knowledge to him. This is good succession planing and its already occurring as the Engineering Technician is preparing to take his public engineer's test within a few years. In RBHA proposal, Mr. Hamers identified six proper procedures for inspections and indicated the District is not performing steps 3, 4, 5 and 6. The following is staff's response to Mr. Hamer's claim. The procedures below will continue with the County inspector and when inspections are performed by the Engineering Technician/Construction Inspector. 3. Prior to inspection, Rob reviews the plans with the inspector to explain the work, the contractor’s procedure, the critical steps, and other fine points. The District Engineer uses each project as a “teaching moment” to explain contractor techniques, advances in the industry, no dig technologies, and other important points to educate the inspector. The District's Engineering Technician has a Mechanical Engineering degree and knows how to review plans. The Engineering Technician can review approved sewer plans with Mr. Hamers at the time he delivers plans to the District for upcoming projects and will note the critical steps and procedures required to inspect. The Engineering Technician can also review with Mr. Hamers before inspections for specific pointers to inspect each project and relay the message to the inspector. The Engineering Technician will keep a list of approved sewer plans with notes from Mr. Hamers to relay to inspector. As Mr. Hamers mentions above, this procedure is used as a "teaching moment." This procedure will conform to Recommendation Number 3 above by having Mr. Hamers transfer his institutional knowledge to the District Engineering Technician as he develops and trains to become the District's inspector. 4. During the construction work by the contractor, the inspector calls the district engineer with updates and visits the district engineer to review situations and discuss problems. The AndersonPenna inspector has kept in contact with both Mr. Hamers and the Engineering Technician of changes in the field that needs to be addressed before inspection can continue. The inspector has requested project engineers to revise sewer plans for Mr. Hamers to approve before proceeding with inspections. For private sewer developments, Mr. Hamers informs AndersonPenna inspector that work can continue and changes can be made in the field as long as the changes are noted on the plans to keep the work flowing. 5. When project is complete, the inspector provides his red lined set of plans to the district engineer for review. After any clarifications are made, the construction plans are as-built and go into the “atlas update bin.” Since AndersonPenna has started inspections in September 2018, there has not been any major improvement projects in the right of way that has been completed. CMSD has recently started requesting for four copies instead of three copies of sewer plans to be approved so that AndersonPenna inspector can have a set when he goes out to the field to inspect and mark any changes. 6. Periodically, the plans in the “atlas update bin” are used to update the GIS atlas and a portion of the plans are saved. The saved plans are given a reference number, such as S-2018-1.1 to 1.5, and then added to the permanent records of the District. Once a project is completed, CMSD will have the inspector turn in the red lines and notes. Legal Review District Counsel has reviewed and approved the sample agreement from the County. Environmental Review Job classification and compensation for an Inspector position 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 Staff estimates the annual cost for the County to provide construction inspection services for public works projects is $97,620. The average annual inspection hours accrued in the last three years for inside inspections (e.g. CIP and public works projects) was 1,161 hours. Staff is assuming the County will spend 1,000 hours inspecting public works projects. Staff estimates the annual cost for RBHA to provide construction inspection services for private development is $58,500. The average annual inspection hours accrued in the last three years for outside inspection was 900 hours. The cost to the FY 2020-21 Budget to amend the Engineering Technician position to Engineering Technician/Construction Inspector is an additional $3,541. The Engineering Technician/Construction Inspector will not be at the maximum salary range in FY 2020-21 and will not reach the maximum range for at least four years. Additional one-time expenses for the Inspector position would include a vehicle. To support the District's mission of protecting the community's health and the environment, staff recommends acquiring an electric vehicle like the Ford Focus Electric at an estimated cost of$53,000, which includes outfitting the vehicle with exterior warning lights. Other expenses would include procuring and installing a vehicle charger for $6,000 and a wireless tablet, mount and router for$2,700 so the inspector can take pictures and use an electronic inspection log while in the field. If approved by the Board, these expenses will be budgeted in the FY 2020-21 Budget. By having RBHA perform outside inspections services the duties for the Engineering Technician/Construction Inspector can be performed by one person, which means the District would not have to hire another person if the Board approves the amended position. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the April 25, 2019 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report with more information. File Attachments Inspection Request rev 1.pdf (230 KB) Letter to Scott Carroll with Costa Mesa Sanitary District from Khalid Bazmi regarding Municipal Services Construction Management Costa Mesa Sanitar.pdf (292 KB) County Agreement.pdf (90 KB) F. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: April 25, 2019 Subject: Consider Approving Cost of Living Adjustment (COLA) to salaries in FY 2019-20 to be equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area of 2.5% as outlined in the Employee Handbook. Summary Per Policy 2.2 in the Employee Handbook, all district employees receive a salary adjustment equal to the February to February Consumer Price Index (CPI) with the approval of the Board effective July 1 of each fiscal year. The February Los Angeles-Long Beach-Anaheim CPI is 2.5%. Upon Board approval the 2.5% Cola salary adjustment will be included in the upcoming FY 2019-20 budget. Subject 2. Consider Approving Cost of Living Adjustment (COLA) to salaries in FY 2019- 20 to be equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area of 2.5% as outlined in the Employee Handbook Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve a Cost of Living Adjustment (COLA) to salaries in FY 2019-20 to be equal to the February to February Consumer Price Index for the Los Angeles-Long Beach-Anaheim area of 2.5% as outlined in the Employee Handbook. Goals 7.0 Finance 6.7 Promote high employee satisfaction File Attachments Consumer Price Index_Los Angeles.pdf (1,191 KB) Employee Handbook - page 47.pdf (106 KB) Recommendation That the Board of Directors approve a Cost of Living Adjustment (COLA) to salaries in FY 2019-20 to be equal to the February to February Consumer Price Index for the Los Angeles-Long Beach-Anaheim area of 2.5% as outlined in the Employee Handbook. Analysis The February Los Angeles-Long Beach-Anaheim CPI of 2.5% would result in an approximate $41,000 increase in salaries for the FY 2019-20 budget. As with all salary expenses, this expense will compound and carry into future budget years. The General Manager will not receive the salary adjustment based on February to February Consumer Price Index (CPI) because his compensation is negotiated with the Board of Directors. Legal Review Not applicable. Environmental Review Subject activity is exempt from requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of the exempt classes", and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6 ""Projects" does not include...C. Continuing administrative or maintenance activities." Financial Review The 2.5% Cola is estimated to result in a $41,000 increase to salaries in the 2019-20 budget document to be submitted for Board approval at the May 2019 Board meeting. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 25, 2019 Board of Directors regular meeting at District Headquarters and on the District's website at www.cmsdca.gov. Alternative Actions 1. Approve Cost of Living Adjustment (COLA) to salaries in FY 2019-20 of 2.5%. 2. Do not approve a Cost of Living Adjustment (COLA) to salaries in FY 2019-20. F. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Dyana Bojarski, Management Analyst II Date: April 25, 2019 Subject: Classification and Compensation Study Outcome Summary In December 2018, the District contracted with Ralph Andersen and Associates, to conduct a comprehensive classification and compensation study for all full-time and part-time positions. It is a recommended practice, as an industry standard, to periodically review and update personnel classifications and adjust compensation levels as necessary. This meets the District's Strategic Plan objective of employing and retaining a high quality, motivated workforce while offering competitive compensation and benefits. The study also included a survey of surrounding agencies compensation and benefits for Board Members. As a result of the classification segment, the Consultant recommended position title changes that align better with the market and reclassifications that allocate staff to more applicable positions. For the compensation segment of the study, adjustments to the current salary schedule were recommended based on market data and the internal relationships. Recommendation That the Board of Directors approve new classifications and bring existing classifications into the recommended salary ranges. Analysis In order to support the District’s strategic plan objective of employing and retaining a high quality, motivated workforce the District contracted with Ralph Andersen and Associates, to perform a comprehensive classification and compensation study. A comprehensive salary and job classification study helps to ensure the District is offering a salary and benefits package that is competitive with the private and public sector labor market and has the ability to attract and retain well-qualified employees. It also helps to assure that job descriptions consistently reflect actual work duties. The components of the Classification and Compensation Study include: Conducting orientation kickoff session with employees Job analysis questionnaires completed by employees Job analysis interviews with employees to follow-up with questionnaire Subject 3. Classification and Compensation Study Outcome Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action, Discussion Fiscal Impact Yes Dollar Amount $81,863.19 Budgeted No Budget Source Wastewater and Solid Waste Funds Recommended Action That the Board of Directors approve new classification and bring existing classification into the recommended salary range. Goals 6.2 Job Description Updates 6.0 Personnel/Organizational Management Preparation of classification specifications Review process and finalization of classification study recommendations Identifying comparison agencies and collecting and analyzing compensation data Developing salary recommendations for all job classes Developing implementation strategy options and computing implementation cost The study consisted of two phases, classification and compensation. The classification phase involved revising job descriptions to ensure legal compliance and reflect an accurate description of duties being performed. Major duties and functions of each position were considered along with qualification requirements including certifications and licenses. Career growth and flexibility was also factored in. Classification Recommendations Table 1 reflects the results of the study. The Consultant recommended position title changes that align better with the labor market and reclassifications that allocate staff to more applicable positions. TABLE 1 - MASTER CLASS OF TITLE RECOMMENDATIONS District Wide Classifications Office Specialist It is recommended that a new classification of Office Specialist be created to provide general clerical and office support duties in the following areas. The District Clerk/Public Information Department, which with the addition of the Citizen’s Advisory Committee and Citizen’s Environmental Protection Academy has experienced a significant increase in workload for the department. Assistance with records management is also needed in the District Clerk/Public Information Department, as well as the area of Human Resources. Additional support for the Human Resources Department includes scanning and indexing certificates of insurance, and assistance with recruitment activities. The Office Specialist would also assist the Solid Waste Department with data entry and verification of information in Springbrook, updating the Organics Program exemptions list, and keeping an inventory of kitchen pails and sharps containers. Administration - Human Resources Management Analyst II In order to more accurately reflect the duties and responsibilities assigned to the Management Analyst II position, it is recommended that it be re-allocated to Administrative Services Manager. This position is responsible for planning, organizing, managing, and providing oversight for all functions and activities related to human resources administration, risk management, and employee relations. This position is also responsible for overseeing facilities maintenance activities. District Clerk District Clerk In order to more accurately reflect the duties and responsibilities assigned to the District Clerk position, it is recommended that the title be changed to District Clerk/Public Information Officer. This position is responsible for planning, organizing, managing, and providing oversight for all functions and activities of the District Clerk office, as well as overseeing, emergency operations management and coordination, the information technology contract for the District and the additional duties of the public information activities. Maintenance Maintenance Assistant It is recommended that the title of the Maintenance Assistant position be changed to Facilities Maintenance Worker. This position is responsible for performing a variety of custodial and general facility maintenance duties including minor painting, carpentry, electrical, and plumbing work. This position was originally developed to serve the needs of the District on a part-time basis at the District’s previous facility which was much smaller than our current facility. The Maintenance Assistant is also responsible for working closely with and maintaining communications with contractors on various projects. This title aligns more closely with the duties being performed. These title changes would become effective 2019-20 Fiscal Year Engineering Engineering Technician In order to more accurately reflect the duties and responsibilities assigned to the Engineering Technician position, it is recommended that the title be changed to Engineering Technician/Construction Inspector. The proposed timeline for this change to take effect would be the 2020-21 Fiscal Year. The Engineering Technician is responsible for performing technical/paraprofessional engineering tasks related to the issuance and processing of sewer permits including plan checking and calculating and collecting associated fees. With the title change, the additional duties will include field engineering work involved in inspecting construction activities on assigned District projects. Compensation The second phase of the study focused on compensation which began with identifying surrounding comparison agencies. The agencies utilized in the survey were: South Coast Water District Santa Margarita Water District Mesa Water District Orange County Sanitation District Yorba Linda Water District City of Newport Beach City of Irvine Irvine Ranch Water District City of Fountain Valley El Toro Water District Orange County Water District City of Huntington Beach Moulton Niguel Water District City of Costa Mesa City of Orange City of Tustin Source documents included position control documents, job descriptions, salary schedules, benefit summaries and MOUs. Base salary and major benefit data was considered. The development and modification of the District’s pay plan involved: A comparison of District salary ranges with salary ranges for comparable jobs in agencies that represent the labor market An analysis of the District’s major benefits using a total compensation model. This analysis identifies areas of strengths and weaknesses in the District’s benefits compared to market practices Salary range analysis uses a combination of market data and a review and analysis of internal salary relationships After careful analysis, that included pay structure trends and base salary analysis, the calculation of the survey data mean, median, and selected percentiles was calculated. Internal pay relationships were also analyzed in order to attain sound and equitable relationships for the compensation. In assessing classifications with comparable agencies, classifications with similar duties and responsibilities were matched. However, not all classifications were matched, only those that are most common in the market, also known as benchmarks. Benchmarking is an industry best practice. It helps to provide greater stability and reduces skewing. It captures key market trends and ignores less reliable data. The Consultant’s objective was to adjust District salary ranges to be within 5% of the market median. Table 2 shows the recommended salary range adjustments. TABLE 2 - SALARY RECOMMENDATIONS Board Member Per Diem/Meeting Survey The same survey agencies, with the addition of Midway City Sanitary District, were used for the Board Member per diem/meeting survey as was used for the full-time and part-time employee survey. The average rate of the surveyed agencies for per diem/meeting is $231 and the median rate is $216. The current rate for District Board Members is $295 per meeting with a maximum of six eligible monthly meetings. Table 3 reflects the rates below. TABLE 3 - BOARD MEMBER PER DIEM/MEETING RATES File Attachments Master Class List of Title Recommendations.pdf (53 KB) Costa Mesa SD Salary Range Recs 2019-04-11.pdf (34 KB) Costa Mesa SD Board Member Data.pdf (37 KB) Recommended Impact.xlsx (11 KB) Costa Mesa SD Base Survey Data 2019-04-11.pdf (261 KB) Costa Mesa SD Total Comp Survey Data 2019-04-11.pdf (583 KB) Recommended Salary Schedule FY19-20.pdf (109 KB) Recommended Salary Schedule FY19-20 - w COLA.pdf (130 KB) Legal Review Not applicable. Environmental Review A classification and compensation study 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 Incorporating the recommended salary ranges would result in a total annual increase to personnel salaries in the amount of $81,863.19. This is due to the new Office Specialist classification; the amended job classification title from Maintenance Assistant to Facilities Maintenance Worker and from Management Analyst II to Administrative Services Manager; and the adjustment to bring the Management Analyst I and the Finance Manager classifications into the recommended salary ranges. Table 4 reflects the annual impact. TABLE 4 - ANNUAL RECOMMENDED IMPACT Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 25, 2019 Board of Directors meeting at District Headquarters and on District's website. Alternative Actions That the Board of Directors direct staff to come back with additional information. F. GENERAL MANAGER'S REPORTS To: Honorable President and Board of Directors From: District Counsel Date: April 25, 2019 Re: Request for Increase in Hourly Rate We respectfully request that the Board consider increasing our hourly rates in accordance with the CPI for the area for the ensuing years. Our last increase was on February 26, 2015 at which time we were raised to $197.00 per hour. Our expenses have gone up in the last years (employee salaries and benefits, insurance, computers, legal publications, postage, utilities, State Bar licenses and taxes, etc.) This increase will mitigate those CPI increases while still keeping our rates highly competitive. Attached please find our calculations. We are sure that in any survey that the Board might consider, that our rates would be found low. I thank you for your consideration. Respectfully submitted, HARPER & BURNS LLP Alan R. Burns District Counsel File Attachments CMSD Attachment.docx (14 KB) Subject 4. Request for Increase in Hourly Rate Harper & Burns LLP Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors increase the Harper & Burns LLP hourly rate of $197.00 per hour in accordance with the CPI for the area for the ensuing years. F. GENERAL MANAGER'S REPORTS March 28, 2019 Mr. Scott Carroll General Manager Costa Mesa Sanitary District 290 Paularino Avenue Costa Mesa, California 92626 RE: REQUEST FOR RATE ADJUSTMENT Dear Mr. Carroll: Davis Farr LLP (Davis Farr) has been providing Treasurer and, on occasion, other financial services to the Costa Mesa Sanitary District (District) since it separated from the City of Costa Mesa in 2004. Services performed have been paid at rates last approved by the Board of Directors effective July 1, 2017. Since then, the Consumer Price Index (CPI) for All Urban Consumers has increased 5.95% as follows for the Los Angeles-Long Beach-Anaheim areas: February 2019 CPI 269.608 March 2017 254.525 Increase in CPI 15.155 Percent increase in CPI 5.95% In order to coincide with the District’s new budget cycle, we respectfully request that the hourly Proposed Current Increase Classification Rate Rate Amount Percent Partner $132 $126 $6 4.75% Senior Consultant 94 90 4 4.44% Thank you for consideration of this rate adjustment. Sincerely Subject 5. Request for Rate Adjustment - Davis Farr LLP Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the request for rate adjustment from Davis Farr LLP. rates for Treasurer services be increased as follows, to be effective beginning July 1, 2019. Sincerely, Marcus D. Davis, CPA Partner F. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: April 25, 2019 Subject: Adopt Resolution No. 2019-915 Authorizing Staff to Submit an Application for Household Hazardous Waste Grant (Thirty-Third Cycle) Summary On Wednesday, March 6th, 2019, the Household Hazardous Waste (HHW) Grant was made available through the CalRecycle website. This grant cycle has been designed for smaller projects that complement existing and/or regional HHW programs in California. Grant applications must include one or more of the following types of projects: HHW public education and outreach for general audiences. Implementation of new and sustainable EPR collection opportunities (e.g., retail take back or collection events of batteries or fluorescents). Set-up and operation of temporary or mobile collection program for one-day or multi-day collection events. New or expanded curbside and/or door-to-door collection programs to allow for the collection of new and eligible HHW materials. Purchase of personal protection equipment. 8-hour refresher Hazardous Waste Operations and Emergency Response Standards (HAZWOPER) training. Projects that do not fall within one of these six categories will not be eligible for funding. The maximum amount of funds available for individual applicants is $50,000. The deadline for the application was Wednesday, April 3, 2019 at 11:59 pm. The current resolution expires April 24, 2019, so the District must submit a new valid resolution before May 8th, 2019. Recommendation That the Board of Directors adopt Resolution No. 2019-915 Authorizing Staff to Submit an Application for Household Hazardous Waste Grant (Thirty-Third Cycle). Analysis If awarded, the District will use the grant funds for the following programs: Bilingual public outreach for the Door-to-Door HHW Program and OCC Recycling Center HHW pickups in the amount of $5,000 Battery recycling program (multi-day collection event for schools) in the amount of $20,000; and Collection and disposal of HHW at the OCC Recycling Center in the amount of $25,000 The total grant amount that the District is requesting is $50,000. If awarded, the grant funds will start when the District receives the “Notice to Proceed” and the grant term will be available through September 27, 2022. Please note that this is a reimbursement grant and the District will need to submit progress reports and periodically request for reimbursements. Legal Review Staff submitted the Resolution to District Counsel for review and recommends its adoption. Subject 6. Adopt Resolution No. 2019-915 Authorizing Staff to Submit an Application for Household Hazardous Waste Grant (Thirty-Third Cycle) Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Resolution No. 2019-915 Authorizing Staff to Submit an Application for Household Hazardous Waste Grant (Thirty-Third Cycle) Goals 2.00 Solid Waste 2.6 Apply for waste diversion grants Environmental Review The application for grant funds for household hazardous waste recycling is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. The recycling program itself is betterment to the environment. Financial Review If the District receives the $50,000 in grant funds, the costs would offset operational costs. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 25, 2019 Board of Directors regular meeting at District Headquarters and on District website www.cmsdca.gov Alternative Actions Refer the matter back to staff File Attachments Resolution 2019-915.pdf (11 KB) F. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: April 25, 2019 Subject: Citizens Advisory Committee (CAC) Meeting Overview Summary The Citizens Advisory Committee (CAC) did not have an April meeting because the CAC approved their meeting schedule to be bi- monthly. Their next meeting is Wednesday, May 8. Recommendation That the Board of Directors receive and file this report. Analysis At the May 8 meeting, the District will swear in five members to the CAC in which two of the five members are returning and three are new CAC members. The five CAC members being sworn in are: Re-appointed CAC members: Monte Fields, Sue Lester Newly appointed members: Judith Gielow, Steven Takahashi, Judith Takaya After the swearing in ceremony, the CAC will be receiving a presentation by staff on the proposed FY 2019-20/2020-21 Budgets and will have the opportunity to ask questions and make recommendations to the Board. Legal Review Not applicable Environmental Review Providing an overview of the CAC's April 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 April 25, 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. Subject 7. Citizens Advisory Committee (CAC) Meeting Overview Meeting Apr 25, 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 F. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: April 25, 2019 Subject: Performance Measurement Program Update Report : January - March 2019 Summary On November 26, 2018, the Board of Directors approved a new program to engage with staff, the Board and the public regarding how well the District is performing. The Performance Measurement Program was approved by the Board to determine how well the District is performing in areas of efficiency, effective workforce, customer satisfaction, cost-effectiveness, citizen engagement and transparency. The purpose of the program is to continually look at ways to improve and/or enhance the level of service that is being provided internally to staff and externally to the public. Recommendation That the Board of Directors receive and file this report. Analysis Attached is the first report for 2019 that covers the months of January through March. The outcome to some measures are already being achieved while the outcome for other measures are not applicable during this reporting period because data is not yet available. As the year progresses, the data will be adjusted to reflect the performance. Measures that are not achieving their outcome will be discussed among staff in which strategies will be developed to achieve the outcome. The next Performance Measurement Update Report will be presented to the Board on July 25, 2019. Legal Review Not applicable Environmental Review Implementing a Performance Measurement Program is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There are no financial impacts to the District for implementing a Performance Measurement Program Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 25, 2019 regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. File Attachments 2019 Jan-Mar Outcome and Performance Measurement Program.pdf (1,132 KB) Subject 8. Performance Measurement Program Update Report: January - March 2019 Meeting Apr 25, 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 F. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: April 25, 2019 Subject: Receive and File the Third Quarter Budget Review for FY 2018-19 Summary This report serves as a summary of the District’s spending through March 31, 2019 as well as staff’s best estimate of projected balances for the year-ending June 30, 2019. Recommendation That the Board of Directors receive and file this report. Analysis Based on the spending trends through March 31, 2019, staff is projecting a savings in both the Solid Waste and Wastewater Funds. As of March 31, 2019, a total of 65.5% of the Solid Waste budget for the 2018-19 fiscal year has been expended. Staff estimates the Solid Waste Fund will be under budget by approximately 1%. A total of 59.8% of the Wastewater Fund’s operating budget has been expended as of March 31, 2019. At this time, staff anticipates a budgetary savings of approximately 6% at fiscal year-end. Please see the attached report for a more detailed analysis. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 25, 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 for additional information. Subject 9. Receive and File the Third Quarter Budget Review for FY2018-19 Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Budgeted Yes Recommended Action That the Board of Directors receive and file this report. Goals 7.0 Finance File Attachments A- FY 2018-19 Third Quarter Budget Analysis.pdf (423 KB) B-Solid Waste Expenditure Analysis Through 3-31-19.pdf (16 KB) C-Wastewater Expenditure Analysis Through 3-31-19.pdf (42 KB) F. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: April 25, 2019 Subject: Receive and File 2015-20 Strategic Plan Quarterly Update - FY 2018-19 3rd Quarter Summary On May 28, 2015, the Board of Directors adopted the 2015-2020 Strategic Plan, which is a plan that establishes goals, objectives, strategies and work plans for the next five years and will help move the organization in a direction toward achieving its mission and vision. Attached is the quarterly update that demonstrates the progress staff is making toward achieving the strategic goals. Recommendation That the Board of Directors receive and file this report. Analysis 28 out of the 48 strategic goals (Strategic Goal 1.10 was canceled) are complete while two strategic goals are in process. Several goals are on-going and are achieving results. The next quarterly update will be the fourth quarter in FY 2018-19 and will be presented to the Board on July 25, 2019. Legal Review Not applicable Environmental Review The District’s Strategic Plan is a planning document and preparation and adoption of the plan itself is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. The environmental review of each of the efforts or projects outlined in the Strategic Plan will occur when the Board of Directors specifically considers each of the items since that is when the full scope of work of each effort or project will be described Financial Review Activities described in the strategic goals are funded in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 25, 2019 Board of Directors regular meeting at CMSD headquarters (290 Paularino Avenue) and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. Subject 10. Receive and File 2015-20 Strategic Plan Quarterly Update - FY 2018-19 3rd Quarter Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report Goals 1.0 Sewer Infrastructure 2.00 Solid Waste 3.00 Partnerships 4.0 Community Outreach & Communications 5.0 Administrative Management 6.0 Personnel/Organizational Management 7.0 Finance File Attachments Qtly Progress Rpt 2018-19 - 3rd Qtr.pdf (302 KB) F. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: April 25, 2019 Subject: Approve out-of-state travel for Nabila Guzman, to attend the Waste Expo Conference in Las Vegas, Nevada. Summary The Costa Mesa Sanitary District Operation Code Section 3.02.070 Staff Expenses requires prior Board approval for Staff to travel out-of-state for conferences, meetings, seminars or related matters. The National Waste & Recycling Association (NWRA) and Waste 360 have partnered to hold the Waste Expo Conference from May 6 to 9, 2019 in Las Vegas, Nevada. The adopted budget for fiscal year 2018-2019 does not include sufficient fund for Nabila Guzman, Management Analyst I to attend the conference, an appropriation from the Solid Waste Fund is needed to cover these expenses. Recommendation That the Board of Directors: 1. Approve out-of-state travel for Nabila Guzman, to attend the Waste Expo Conference in Las Vegas, Nevada. 2. Approve budget adjustment to fund out-of-state travel. Analysis The National Waste & Recycling Association (NWRA) and Waste 360 have partnered to hold the Waste Expo Conference in Las Vegas to provide sector updates, introduce new solid waste programs and provide education/networking opportunities for attendees. This year, Waste Expo is offering an Organics Recycling track that staff is specifically interested in. In a recent phone call with CalRecyle, staff was informed that the State is considering no exemptions of SB 1383, they believe the law applies to all generators of organic waste. Since the implementation of the organics program, the District has allowed for exemptions of homes that do not have enough space for an organics cart or do not generate enough green waste/food to need an organics cart. Most of these exemptions are within the City of Costa Mesa because the City has experienced an increase in new townhomes or three-story condos being developed. CalRecyle just recently ended their informal rulemaking period for SB 1383 and is working on releasing a second draft of their regulations before final regulations are adopted by the end of the year. Because this conference has a specific organics track and it is being held so close to the state's border, staff is confident SB 1383 will be a topic of discussion. The estimate the cost of attendance is as follows: Registration $1,195 Lodging $900 Airfare $600 Meals/Misc. $250 Subject 11. Approve out-of-state travel for Nabila Guzman, to attend the Waste Expo Conference in Las Vegas, Nevada. Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Budgeted No Recommended Action That the Board of Directors: 1. Approve out-of-state travel for Nabila Guzman, to attend the Waste Expo Conference in Las Vegas, Nevada. 2. Approve budget adjustment to fund out-of-state travel. Goals 2.00 Solid Waste 2.4 Develop Strategies for 75% Waste Diversion Account Number Account Name Increase Decrease 10-100800-4505 Staff Development $3,000 10-100002-4300 Household Hazardous Waste $3,000 $2,945 Legal Review Not applicable Environmental Review Attendance at a conference 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 The Solid Waste Staff Development budget for Fiscal Year 2018-19 has been fully expended. Staff anticipates that there will be approximately $34,400 in budgetary savings in the Household Hazardous Waste Program for the fiscal year. Should the Board approve the out-of-state travel, the following budget adjustment will be required: Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 25, 2019 Board of Directors regular meeting at District Headquarters and on District website www.cmsdca.gov Alternative Actions Refer the matter back to staff F. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: April 25, 2019 Subject: Consider Approving the Estancia Football Boosters Contribution Program Application Summary On April 9, 2019, the District received a Contribution Program Eligibility Application from the Estancia High School Football Boosters Programial,Helvetica,sans-serif;"> in an effort to advance the District's purpose of recycling and diverting organic waste from landfills by promoting the Organics Recycling Program in a highly visible location. Legal Review Not applicable. Environmental Review The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting a District recycling program is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review There are sufficient funds budgeted in the Public Information/Education/Community Promotions Sponsorship account to cover the cost of sponsoring the stadium banner. Staff recommends a $500 sponsorship in order to remain consistent with prior years and to allow for other anticipated sponsorship requests prior to the end of the fiscal year (Concerts in the Park, Costa Mesa High School football banner, etc.). If it is determined that the banner will promote a solid waste program, the sponsorship will be charged to the Solid Waste Fund (10-100100-4420), which currently has a remaining $6,505 for the purpose of sponsorships and promotion of the District's 75th Anniversary. If it is determined that the banner will promote a wastewater program, the sponsorship will be charged to the Wastewater Fund (20-100100-4420), which currently has a remaining $1,241 for the purpose of sponsorships and promotion of the District's 75th Anniversary. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the April 25, 2019 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the contribution of $500 to continue hanging a CMSD banner at Jim Scott Stadium. Subject 12. Consider Approving the Estancia Football Boosters Contribution Program Application Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Budget Source 10-100100-4420 & 20-100100-4420 (Public Information/Education/Community Promotions Sponsorship) Recommended Action That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High School Football Boosters Program; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $500 for a 3'x5' stadium banner in Jim Scott Stadium. Goals 4.0 Community Outreach & Communications 3.2 Strengthen our ties with local governments, Special districts and educational institutions 2. Approve an alternative sponsorship amount of $100, $150, $250, or $500 for an advertisement in the Estancia Football Program. 2. Refer the matter back to staff. File Attachments Contribution Application.pdf (282 KB) Estancia Organics Banner Photo.jpg (5,733 KB) F. GENERAL MANAGER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Via: Scott Carroll, General Manager Date: April 25, 2019 Subject: Approve Payment of Administrative Civil Liability Associated with Sewer System Overflow Summary In response to Administrative Civil Liability (ACL) Order No. R8-2015-0037, the Costa Mesa Sanitary District (District) is required to pay $406,396 to the State Water Pollution Cleanup and Abatement Account. The payment is due on May 2, 2019. Recommendation That the Board of Directors: 1. Appropriate $56,936 to Settlement and Fees within the Wastewater Fund; and 2. Approve payment in the amount of $406,936 to State Water Pollution and Cleanup Abatement Account for administrative civil liability associated with the SSO at Irvine Avenue. Analysis On August 31, 2013, the District incurred a Sewer System Overflow (SSO) at its Irvine Avenue pump station. This SSO resulted in a spill of 76,000 gallons, which caused the closure of upper back bay and Newport Dunes during the Labor Day weekend. The District was originally assessed a penalty for the spill. The District appealed this decision. Both the Superior Court and Court of Appeals have upheld the Santa Ana Regional Water Quality Control Board's decision. The total penalty payable is as follows. Description Amount Penalty $364,130 Interest 42,481 Filing fees 325 Total payable $406,936 During fiscal year, 2014-15, once the likelihood of an unfavorable outcome was made for financial reporting purposes, a contingent liability in the amount of $350,000 was recorded in the District's financial statements. As such, with the total amount payable of $406,936, the District needs to appropriate an additional $56,936 from retained earnings in order to pay the penalty. Legal Review District Counsel approves the ACL amount. 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 Subject 13. Approve Payment of Administrative Civil Liability Associated with Sewer System Overflow Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors: 1. Appropriate $56,936 to Settlements and Fees within the Wastewater Fund 2. Approve payment in the amount of $406,936 to the State Water Pollution and Cleanup Abatement Account for administrative civil liability associated with the SSO at Irvine Avenue 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 District recorded a contingent liability in the amount of $350,000 in its financial statements for the year ended June 30, 2015. No funds were included in the adopted budget for fiscal year 2018-19 for payment of this penalty. As such, in order to provide adequate funding for the total amount payable of $406,936, the following budget adjustment is required in the Wastewater Fund: Account No.Account Name Increase Decrease 20-200000-5000 Settlements & Fees $56,936 20-200000-2900 Retained Earnings $56,936 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 25, 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. G. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: April 25, 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 April 25, 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 - April 2019.pdf (94 KB) Subject 1. Receive and File the Monthly Capital Improvement Project Status Report Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 1.0 Sewer Infrastructure 1.10 Abandon five pump stations on the west side in conjunction with Orange County Sanitation District companion project 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. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: April 25, 2019 Subject: Approve the Investment Report for the Month of March 2019 Summary Attached is the Investment Report for the month of March 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 March 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 March 31, 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 March 31, 2019, was 1.949%. The yield to maturity of the portfolio was 1.953%. The District’s weighted average interest rate was 49 basis points (0.487%) below the LAIF average monthly rate for March 2019 of 2.436%. The weighted average number of days to maturity for the District’s total portfolio was 539 days (1.48 years). The average duration of the underlying securities in LAIF as of March 31, 2019 was 179 days. The District’s investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than one year as of March 31, 2019 was 36.58%. The District has adequate cash reserves necessary to meet its obligations for the next six months. A majority of the District’s cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District’s cash and investments are as follows: Solid Waste Fund: Operating Reserve - Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Subject 1. Approve the Investment Report for the month of March 2019 Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the Investment Report for the month of March 2019. Goals 7.0 Finance Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. Undesignated - Remaining available cash, which is available to be appropriated by the Board. Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund - Accumulation of funds in accordance with the asset management model for long- term replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not include….C. Continuing administrative or maintenance activities.” Financial Review The portfolio was budgeted to earn an average rate of 0.900% for the year ending June 30, 2019. Through March 31, 2019, the portfolio has earned a weighted average interest rate of 1.857%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 25, 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 - March 2019.pdf (597 KB) J. 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 Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Information J. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Information J. 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 Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Information J. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer) Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Information J. 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 Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Information J. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Information M. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Discussion N. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON MAY 23, 2019 IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Apr 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural