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2019_06_27_boardThursday, June 27, 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. Pledge of Allegiance - President Ferryman 2. Invocation - Vice President Ooten 3. 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.) 4. 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. 5. Ceremonial Matters and Presentations B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. 1. Public Comments C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1. Approve Consent Calendar 2. Approve the Board of Directors Study Session Minutes of May 14, 2019 3. Approve the Board of Directors Regular Meeting Minutes of May 23, 2019 4. Approve the Directors' Compensation and Reimbursement of Expenses 5. Adopt Warrant Resolution No. CMSD 2019-12 Approving District Warrant Registers 6. Payroll Transparency Disclosure for May 2019 7. Accept the occupancy count as presented as 22,801 and direct staff to prepare a warrant to CR&R Environmental Services for $223,344.92 for May 2019 collection 8. Approve the preparation of a warrant to CR Transfer in the amount of $206,887.57 for May 2019 recycling and disposal services in the June 2019 warrant register 9. Approve Investment Report for the Month of May 2019 10. Contracts Signed by General Manager D. PUBLIC HEARINGS 1. Adopt Ordinance No. 126 and Resolutions 2019-919 and 2019-920 for New Solid Waste Charges and Assessment of Solid Waste Annual Charges E. GENERAL MANAGER'S REPORTS 1. Adopt Resolution No. 2019-921 Adopting the Biennial Budget for Fiscal Years 2019-20 and 2020-21 2. CR&R Consumer Price Index Increase Request 3. Approve Auditor Engagement Letter for Fiscal Year 2018-19 Audit 4. Consider Contribution Program Application for Concerts in the Park 5. Consider Approving Agreement with EEC Environmental for GIS-CMMS Support Services 6. Project #321 Indus Sewer Main Replacement - Approving Contract Administration & Inspection Services with Robin B. Hamers & Associates, Inc. 7. Special Districts Risk Management Authority 2019 Board of Directors Election 8. Consider Revising CMSD's Operations Code Section 3.01.060 - Time of Regular Meetings 9. Debriefing of General Manager's Attendance to the 2019 International City Management Conference in Qingdao China F. ENGINEER'S REPORTS 1. Receive and File the Monthly Capital Improvements Project Status Report 2. Declaration of Conflict of Interest - 272 Esther St., Costa Mesa - John Weatherwax 3. #321 Indus Sewer Main Replacement; Bid Opening and Award of Contract in the amount of $267,040 4. #331 Sewer Siphon Evaluation Program; Recommendation to Create New Project and Transfer Funds G. TREASURER'S REPORTS 1. Financial Review of CR&R - Oral Report 2. Consider Adopting Resolution 2019-922 Approving the Statement of Investment Policy and Delegating the Investment Function to the Treasurer for Fiscal Year 2019-20 H. ATTORNEY'S REPORTS 1. Consider Adopting Ordinance No. 127 Prohibiting Interference with District Easements, Sewer Lines and Appurtenances and Adopting Sewer Easement Maintenance Cooperation Standards I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request  of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.  For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (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 J. OLD BUSINESS K. NEW BUSINESS L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. ADJOURN TO CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION -- Significant exposure to litigation pursuant to Paragraph (2) of subdivision (d) of Government Code Section 54956.9, as specified in subdivision (e)(3) exists: Claim of Steven Hodges received June 3, 2019 against the Costa Mesa Sanitary District, a copy of which will be made available to the public. N. RECONVENE TO OPEN SESSION 1. Reconvene to Open Session and report out of any action taken. O. CLOSING ITEMS 1. Adjourn Thursday, June 27, 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. Pledge of Allegiance - President Ferryman Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Invocation - Vice President Ooten Meeting Jun 27, 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 3. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 4. 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 Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 5. Ceremonial Matters and Presentations Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Procedural B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject 1. Public Comments Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Procedural C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 1. Approve Consent Calendar Meeting Jun 27, 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. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: 6/27/19 Subject: Approve the Board of Directors Study Session Minutes of May 14, 2019 Summary The recorded minutes of the May 14, 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 May 14, 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 June 27, 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 May 14, 2019 Meeting Jun 27, 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 May 14, 2019 - Board of Directors Study Session minutes_2019_05_14_ss.pdf (71 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: May 23, 2019 Subject: Approve the Board of Directors Regular Meeting Minutes of May 23, 2019 Summary The recorded minutes of the May 23, 2019 Board of Directors Regular Meeting are hereby submitted to the Board of Directors for review and approval. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Analysis Attached to the staff report are the minutes for the Board of Directors Regular Meeting on May 23, 2019. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 27, 2019 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments Subject 3. Approve the Board of Directors Regular Meeting Minutes of May 23, 2019 Meeting Jun 27, 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 May 23, 2019 - Board of Directors Regular Meeting minutes_2019_05_23_rm.pdf (80 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk Date: June 27, 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 June 27, 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 (253 KB) Subject 4. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Jun 27, 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 (421 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. File Attachments WARRANT RESO June 2019.pdf (207 KB) Subject 5. Adopt Warrant Resolution No. CMSD 2019-12 Approving District Warrant Registers Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2019-12 approving District warrants for the month of May 2019 in the amount of $835,749.32. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Lieu Tran, Accountant Date: June 27, 2019 Subject: Payroll Transparency Disclosure for May 2019 Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Recommendation That the Board of Directors approve and file the report. Analysis Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include .... C. Continuing administrative or maintenance activities." Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 27, 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. Subject 6. Payroll Transparency Disclosure for May 2019 Meeting Jun 27, 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 File Attachments Payroll Transparency Disclosure May 2019.pdf (1,366 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 27, 2019 Subject: Accept the occupancy count as presented as 22,801 and direct staff to prepare a warrant to CR&R Environmental Services for $223,344.92 for May 2019 collection Summary Accept the occupancy count as presented using 22,801 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,344.92 to be ratified in the June 2019 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,801 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,344.92 to be ratified in the June 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 May 31, 2019, total District occupancy was at 22,787, with fourteen (14) 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 May 2019: 22,801 x $9.7954 =$223,344.92 Legal Review Not Applicable Subject 7. Accept the occupancy count as presented as 22,801 and direct staff to prepare a warrant to CR&R Environmental Services for $223,344.92 for May 2019 collection Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors accept the occupancy count as presented using 22,801 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,344.92 to be ratified in the June 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 June 27, 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 2019-05-G CMSD Occupancy Report.pdf (101 KB) C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 27, 2019 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $206,887.57 for May 2019 recycling and disposal services in the June 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 $206,887.57 for May 2019 recycling and disposal services to be ratified in the June 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 $0.26, but CMSD will be paying the actual amount owed. Costa Mesa Newport Beach Total Residential Waste $143,612.32 $3,562.02 $147,174.34 Organics $56,906.85 $2,806.38 $59,713.23 Total Payment $206,887.57 Tonnage Residential Waste 2,763.37 68.54 2,831.91 Organics 795.90 39.25 835.15 Total Tonnage 3,667.06 Legal Review Not Applicable Subject 8. Approve the preparation of a warrant to CR Transfer in the amount of $206,887.57 for May 2019 recycling and disposal services in the June 2019 warrant register Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $206,887.57 for May 2019 recycling and disposal services to be ratified in the June 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 June 27, 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. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Marc Davis, District Treasurer Date: June 27, 2019 Subject: Approve the Investment Report for the Month of May 2019 Summary Attached is the Investment Report for the month of May 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 May 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 May 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 May 31, 2019, was 2.012%. The yield to maturity of the portfolio was 2.016%. The District’s weighted average interest rate was 44 basis points (0.437%) below the LAIF average monthly rate for May 2019 of 2.449%. The weighted average number of days to maturity for the District’s total portfolio was 471 days (1.29 years). The duration of the underlying securities in LAIF as of May 31, 2019 was 180 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 May 31, 2019 was 32.66%. The District has adequate cash reserves necessary to meet its obligations for the next six months. A majority of the District’s cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District’s cash and investments are as follows: Solid Waste Fund: Operating Reserve - Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Subject 9. Approve Investment Report for the Month of May 2019 Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Investment Report for the month of May 2019. Goals 7.0 Finance Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. Undesignated - Remaining available cash, which is available to be appropriated by the Board. Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund - Accumulation of funds in accordance with the asset management model for long- term replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not include….C. Continuing administrative or maintenance activities.” Financial Review The portfolio was budgeted to earn an average rate of 0.900% for the year ending June 30, 2019. Through May 31, 2019, the portfolio has earned a weighted average interest rate of 1.891%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 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 - May 2019.pdf (606 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 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 April 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 May 2019. Contracts: 1. GCI Construction, Inc. – Emergency construction work to install a temporary by-pass pump on Bristol Street that will enable the District to repair two sewer siphon pipes. Cost: $55,400 Purchase Orders: 1. IPC Fuel Distribution - Fuel for District Fleet. Cost: $6,001.68 2. United Pumping Services, Inc. - Emergency services for the inverted siphons on Bristol Street. Cost: $1,856 3. Xylem Dewatering Solutions - Maintenance on pump stations. Cost: $2,839.10 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 June 27, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Subject 10. Contracts Signed by General Manager Meeting Jun 27, 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. D. PUBLIC HEARINGS To: Board of Directors Via: Scott Carroll, General Manager From: Alan Burns, District Counsel Date: June 27, 2019 Subject: Adoption of New Solid Waste Charges and Assessment of Solid Waste Annual Charges and The Wastewater Annual Charges for FY 2019-2020 to be Collected with the General Taxes Summary The District has conducted a protest hearing for its solid waste charges and now needs to adopt those charges, including a five-year schedule of increases. The District adopted the procedures authorized by Health & Safety Code Section 5470 that allows solid waste and wastewater charges to be collected on the assessment roll. To do so we must adopt a report assessing the charges against the parcels every year. The proposed resolutions and confirming ordinance also make those assessments. Staff Recommendation That the Board of Directors: 1. Adopt Resolution No. 2019-919 adopting solid waste fees and a five year schedule of charges and confirming the solid waste annual charges for FY 2019-2020 to be collected with the general taxes and direct the District Clerk to file with the County Auditor; and 2. Adopt Resolution No. 2019-920 confirming the wastewater annual charges for FY 2019-2020 to be collected with the general taxes and direct the District Clerk to file with County Auditor. 3. Adopt Ordinance No. 126 confirming the charges. Analysis The District has adopted procedures provided in Health and Safety Code Section 5470 et seq. to allow our solid waste and wastewater collection charges to be collected with other taxes on the County assessment roll. To be able to do so, the District went through a mailed notice proceeding and the process was implemented. Proposition 218 was thereafter passed (Article XIIID of the California Constitution) which required that fees must be justified as proportional and in other ways proper whenever a new fee or increase is needed. That processing also requires mailed notice and a protest hearing. This year no fees are being increased for wastewater, but fees for solid waste collection will increase over a five-year schedule as follows: Current Rates Proposed Solid Waste Rates FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 $216.00 $224.88 $240.60 $257.40 $272.88 $289.20 The District followed the Proposition 218 procedures in considering the increase in solid waste charges and a protest hearing has been held and the protest failed. In accordance with Government Code Section 54756, the District will be required to give notice at least 30 days before each increase goes into effect. Subject 1. Adopt Ordinance No. 126 and Resolutions 2019-919 and 2019-920 for New Solid Waste Charges and Assessment of Solid Waste Annual Charges Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors: 1. Adopt Resolution No. 2019-919 adopting solid waste fees and a five year schedule of charges and confirming the solid waste annual charges for FY 2019-2020 to be collected with the general taxes and direct the District Clerk to file with the County Auditor; and 2. Adopt Resolution No. 2019-920 confirming the wastewater annual charges for FY 2019- 2020 to be collected with the general taxes and direct the District Clerk to file with County Auditor. 3. Adopt Ordinance No. 126 confirming the charges. However, we are still required to annually assess both the solid waste and wastewater charges by parcel for the Assessor. The procedure to assess parcels must be adopted after a noticed public hearing, which is published two weeks before in an appropriate newspaper. Said notice was published. The District will provide the County with an electronic version of a report which contains a description of each property receiving services and the charges. The real property may be described by reference to the assessor’s parcel map description. The hearing should be held to consider objections or protests to the assessments. Upon conclusion of the hearing, the Board may adopt the resolutions approving the assessments to be filed with the Auditor, and then adopt the ordinance confirming the charges. The District Clerk must then file the assessments with the Auditor before August 10. She must confirm that the charges were adopted by the Board. The Auditor must then enter the charges against the parcels on the assessment roll. The charges are then collected by the Assessor and if the charges are not paid, there are procedures for liens, penalties and collections. Legal Review District Counsel prepared this staff report and resolutions and ordinance that are attached hereto. 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 adopted Wastewater rate for the fiscal year 2019-2020 is the same as the prior fiscal year. The solid waste rates will be imposed pursuant to the adopted schedule. Public Notice Process The Proposition 218 protest hearing for increases to solid waste charges for future years based on the proposed schedule were conducted last month and the protest failed. No increases are proposed for wastewater charges so no Proposition 218 hearing was required. This matter was noticed for a public hearing on the adoption of the charges and the imposition of the charges on the properties for both solid waste and wastewater pursuant to the Health and Safety Code Section 5470 et seq. File Attachments Ordinance No. 126 Confirming Annual Charges for Solid Waste and Wastewater.docx (26 KB) Reso. 2019-919 Imposing Charges on the Assessment Roll for Solid Waste (1).docx (18 KB) Reso. 2019-920 Imposing Charges on the Assessment Roll for Wastewater.docx (16 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: June 27,2019 Subject: The Board of Directors Adopt Resolution No. 2019-921 Adopting the Biennial Budget for Fiscal Years 2019-20 and 2020-21. Summary Over the course of several meetings, staff received input from the Board of Directors and the public regarding the District’s proposed biennial budget for Fiscal Year (FY) 2019-20 and 2020-21. Staff has incorporated all recommendations into the budget, as directed by the Board, and is pleased to present the proposed budget for adoption. The total budget presented for adoption for FY 2019-20 is $12,272,700 and for FY 2020-21 is $12,387,000, as shown in attachment A and B. Staff Recommendation The Board of Directors Adopt Resolution No. 2019-921 Adopting the Biennial Budget for Fiscal Years 2019-20 and 2020-21. Analysis Proposed Budget FY 2019-2020: The total proposed budget for FY 2019-20 is $12,272,700. The Solid Waste Fund proposed budget of $6,337,700 assumes that expenses will exceed revenues by $728,100 creating a deficit which will require the use of reserves to balance the budget. This deficit was planned to reduce reserves in the Solid Waste Fund when the Board lowered the annual rate from $239.41 in fiscal year 2013-2014 to the current rate of $216. In addition to lowering the annual rate, the Board of Directors voted to implement the Organics Program effective July 1, 2015 without increasing rates to further reduce reserves. The Solid Waste Fund has been operating at a deficit, therefore, the Board decided to conduct a solid waste rate study. Based on the rate study conducted, the Board of Directors recommended a five-year rate structure that will increase revenues and eliminate the deficit spending. A public hearing was held on May 23, 2019 and the District did not receive a protest by a majority of parcel owners. Since the protest hearing failed, the Board of Directors may adopt the five-year rate structure at the June 27, 2019 meeting, which will be as follows: Current Rate 2018-19 - $216 annually or $18.00 a month Five-Year Rate Structure 2019-20 - $224.88 annually or $18.74 a month 2020-21 - $240.60 annually or $20.05 a month 2021-22 - $257.40 annually or $21.45 a month 2022-23 - $272.88 annually or $22.74 a month 2023-24 - $289.20 annually or $24.10 a month Subject 1. Adopt Resolution No. 2019-921 Adopting the Biennial Budget for Fiscal Years 2019-20 and 2020-21 Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action The Board of Directors Adopt Resolution No. 2019-921 Adopting the Biennial Budget for Fiscal Years 2019-20 and 2020-21. Goals 7.0 Finance The Wastewater Fund reflects a balanced budget of $5,935,000. The fiscal year 2017-2018 was the last year of the five-year 2% rate increase from the 2012 Sewer Rate Study adopted by the Board. The District is not planning to increase wastewater rates for the next two years. Wastewater revenue is projected to increase slightly due to an increase in new accounts during the year. This proposed budget includes the Class and Compensation Study and the Cost of Living Adjustment (COLA) of 2.5% to salaries equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach- Anaheim area the Board of Directors approved on April 25, 2019. CR&R submitted a 5.8% CPI rate increase request on March 29, 2019. Per section 3.4 of the 2018 CR&R contract, hauler rates may be considered for a Consumer Price Index (CPI) adjustment every two years during the term of the agreement. The hauler may request a two-year CPI adjustment using prior years' data to be applied for the two future years. Per the contract, CPI increases are not automatic and require Board of Directors approval. Based on the result of CR&R’s profit margin, the Board of Directors may approve or reject the rate increase requested. The proposed budget included the maximum 5.8% rate increase. Based on the April occupancy count of 22,801 accounts, staff updated the occupancy count for the proposed budget to 22,975 accounts for fiscal year 2019-20 resulting in the proposed trash hauler expense budget of $2,857,200. The proposed organics disposal expense budget of $789,800 is based on a projection of 10,440 tonnages a year. The District receives 1% property tax revenue from the County annually. The property tax is an unrestricted revenue which has been recorded in the Solid Waste Fund to stabilize the rate in previous years. For transparency purposes, starting fiscal year 2019-20 this will separate the property tax revenues to the General Fund. The proposed property tax revenue for FY 2019-20 is $320,000. At the March 12, 2019, Study Session, the Board of Directors approved to transfer $50,000 from the General Fund to the Wastewater Fund to contribute to the Portable Restroom at the Bridge Shelter. The remaining balance of $270,000 is being transferred to the Solid Waste Fund. The Solid Waste and the Wastewater activities are presented as Enterprise Funds which is a type of fund used to account for operations that are financed and operated in a manner similar to private business enterprises. The intent is that the costs (expenses) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. The District Headquarters was purchased by the Wastewater Fund and therefore is an asset of the Wastewater Fund. The Solid Waste Fund's employees and activities are conducted at the Headquarters building therefore it is appropriate for the Wastewater Fund to charge the Solid Waste fund rent. Approximately 20% of the 11,000 sq. ft. building is utilized for Solid Waste staff and activities, which equates to 2,200 sq. ft. In 2017 the District charged $2.00 per sq. ft. lease rate totaling rent of $4,400 per month or $52,800 per year. The $2.00 per sq. ft. lease rate was in the range of $1.25 to $2.50 obtained from a Broker for this area. Staff recently researched the current commercial lease rate per sq. ft. in the area range of $2.00 to $2.75. Staff is requesting Administration and Operation Capital Outlay funds of $68,000 for the continuation of replacement and upgrades to District's servers and software, and replacement of two rooftop air conditioning units. For staff safety and protection when working in the street, staff is requesting to purchase two new trucks for the Wastewater Maintenance Crew. These trucks will be used to park behind the cleaning trucks for better visibility from oncoming cars and better protection from traffic when the Maintenance Workers are working in the Street. Staff is proposing to transfer $140,000 from the Asset Replacement Fund to purchase the two trucks. Proposed Budget FY 2020-2021: The total proposed budget for FY 2020-2021 is $12,387,000. The Solid Waste Fund proposed budget of $6,442,000 assumes that expenses will exceed revenues by $358,500 thus creating a deficit which will require the use of reserves to balance the budget. This will be the second year of a five-year rate increase. The unrestricted 1% property tax revenues proposed budget is $326,000 in FY 2020-21. Staff is proposing to transfer the entire amount from General Fund to Solid Waste Fund to stabilize rates. As mentioned previously, the wastewater rate is stabilized until the rate study is conducted in the future. Wastewater revenue is projected to increase slightly due to an increase of new accounts during the year. The proposed Wastewater Fund budget reflects a balanced budget of $5,945,000. The fiscal year 2020-2021 proposed budget includes the reclassification of the Engineering Technician to Engineering Technician/Construction Inspector as approved by the Board of Directors in the Class and Compensation study on April 25, 2019. In addition, staff included an estimate for the Cost of Living Adjustment (COLA) to salaries of 2.5% for budgeting proposes. The proposed budget includes the maximum 5.8% CPI rate increase to the hauler, recycling/disposal, and organics disposal rates in the FY 2019-20. CR&R will not receive an additional CPI rate increase in the FY 2020-21. Staff is requesting Capital Outlay funds of $119,000 for the continuation of replacement and upgrades to District's servers and software and a new electric car for the Engineering Technician/Construction Inspector. Capital Improvement Projects: Staff is requesting $1,755,000 and $1,567,000 for Capital Improvement Projects for fiscal years 2019-2020 and 2020-2021, respectively. The following is a breakdown of the proposed CIP by fiscal year: Proposed Project FY 2019-20 FY 2020-21 President PS Rehab #318 $840,000 — 19th FM Replacement #326 $490,000 — Ductile Iron Pipe (DIP) Rehab PH1 #328 $425,000 $325,000 Iowa FM Replacement #322 —$270,000 Brick Manhole Rehab Ph 2 #324 —$117,000 Calcium Removal Ph 1 #327 —$450,000 Aviemore Force Main Replacement #329 —$230,000 Westbluff Pump Station Rehab #330 —$175,000 Total $1,755,000 $1,567,000 Legal Review District Counsel reviewed this staff report and resolutions that are attached hereto. 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 Proposed FY 2019-20 Budget: total revenues are $11,544,600; total expenses including transfers are $12,12,272,700; the deficient budget of $728,100. Proposed FY 2020-21 Budget: total revenues are $12,028,500; total expenses including transfers are $12,387,000; the deficient budget of $358,500. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2019 Board of Directors regular meeting at District Headquarters and on District website www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff for additional information. File Attachments A. Budget Resolution 2019-921.docx (30 KB) B. 19-20 Proposed Budget.pdf (633 KB) C. 20-21 Proposed Budget.pdf (568 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 27, 2019 Subject: CR&R Consumer Price Index Increase Request Summary Per section 3.4 of the 2018 CR&R contract, hauler rates may be considered for a Consumer Price Index (CPI) adjustment every two years during the term of the agreement. The hauler may request a two-year CPI adjustment using prior years' data to be applied for the two future years. Per the contract, CPI increases are not automatic and need Board of Director's approval. Contract language also stipulates the District has the right to audit the hauler's revenue to check hauler's profit margin before the Board of Directors makes a decision. Recommendation That the Board of Directors approves one of the options below to be adopted in the FY 19-21 budget. 1. Award CR&R their requested 5.8% CPI increase for FY 19-20 and rate remain the same for FY 20-21. 2. Award CR&R a split 5.8% CPI increase over the next two fiscal years. The District will award a 2.9% increase in FY 19-20 and an additional 2.9% in FY 20-21. 3. Award CR&R a 3% CPI Increase for FY 2019-20 and rate remain the same for FY 20-21. A 3% CPI increase was used in the solid waste study to project budget revenue and expenses. 4. Decline CR&R's request for a CPI increase and hauler rates will remain the same. Analysis Per section 3.4 of the 2018 CR&R contract, hauler rates may be considered for a Consumer Price Index adjustment every two years during the term of the agreement. The hauler may request a two-year CPI adjustment using prior years' data to be applied for the two future years. Per the contract, CPI increases are not automatic and need Board of Director's approval. Contract language also stipulates that the District has the right to audit the hauler's revenue to check hauler's profit margin before the Board of Directors makes a decision. At the April 16, 2019 Study Session Meeting, the Board of Director's directed the District Treasurer, Mr. Marc Davis to review CR&R's profit margin with respect to the services provided to the District and advise the Board of his findings. Audit findings were not available in time to include in this report but will be given out as an oral report at the Board Meeting by Mr. Davis. CR&R has requested a 5.8% increase to the hauler fee (occupancy), processing fee recycling/disposal fee, and conversion technology fee(organics). CR&R has not received a rate increase in over 10 years and if a CPI increase is granted, the new rates will be effective July 1, 2019. CR&R's request for a CPI increase is attached to this report for your review. Subject 2. CR&R Consumer Price Index Increase Request Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approves one of the options below to be adopted in the FY19- 21 budget. 1. Award CR&R their requested 5.8% CPI increase for FY 19-20 and rate remain the same for FY 20-21. 2. Award CR&R a split 5.8% CPI increase over the next two fiscal years. The District will award a 2.9% increase in FY 19-20 and an additional 2.9% in FY 20-21. 3. Award CR&R a 3% CPI Increase for FY 2019-20 and rate remain the same for FY 20-21. A 3% CPI increase was used in the solid waste study to project budget revenue and expenses. 4. Decline CR&R's request for a CPI increase and hauler rates will remain the same. Goals 2.00 Solid Waste 2.2 Annual Contract Audits 1. Hauler Fee (Occupancy) - This fee includes all hauler costs for the collection of mixed waste and organics carts. It includes the costs of equipment used including vehicles and issuing carts to customers. 2. Processing Fee Recycling/Disposal — Cost per ton to process mixed solid waste. This is a net rate to the District and includes any recyclable revenue retained by CR&R. 3. Conversion Technology Fee (Organics) — cost for delivery and processing of organic tonnage at the AD Facility. Legal Review Legal review is not required. Environmental Review Consideration of a consumer price index increase to hauler rates is an administrative matter and not a disturbance of the environment similar to grading or construction and not a project under CEQA or the District’s CEQA Guidelines. Financial Review CR&R is requesting a 5.8% CPI rates increase for the next two fiscal years 19-20 and 20-21. Included in the proposed Biennial Budget FY 2019-20 and 2020-21 is the 5.8% CPI rate increase for the Hauler, Recycling/Disposal and Organics fees. Refer to attachment A for staff recommendations of options 1-4. Rates Current (FY 18-19) 5.8% Hauler Fee (Occupancy, per unit)$9.7954 $10.3635 Processing Fee Recycling/Disposal (per ton)$51.97 $54.98 Conversion Technology Fee (Organics, per ton)$71.50 $75.65 Staff is recommending other alternatives CPI rate increase options: Rates CPI 3%Split CPI 2.9% FY 19-20 Split CPI 2.9% FY 20-21 Hauler Fee (Occupancy, per unit)$10.0893 $10.0795 $10.3635 Processing Fee Recycling/Disposal (per ton)$53.53 $53.48 $54.98 Conversion Technology Fee (Organics, per ton)$73.65 $73.57 $75.65 Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 27, 2019 Board of Directors Study Session meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Direct staff to report back with more information. File Attachments CPI Request.pdf (258 KB) A. District's Options 1-4 for CR&R CPI Rate Increase.pdf (81 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: June 27, 2019 Subject: Approve Auditor Engagement Letter for Fiscal Year 2018-19 Audit Summary On May 24, 2018, the Board approved the professional services agreement for independent audit services to Teaman, Ramirez & Smith, Inc. for the fiscal years ending June 30, 2018, 2019 and 2020. In preparation of the start of the June 30, 2019 audit, the auditors have issued an Auditor Engagement Letter (Attachment A) disclosing their responsibilities under U.S. Generally Accepted Auditing Standards and Government Auditing Standards, and the State Controller's Minimum Audit Requirements for California Special Districts. The audit is schedule to begin on October 7, 2019 and the report will be issued towards the end of the calendar year. Recommendation The Board of Directors approve and file this report. Analysis The District has contracted for annual audit services with the firm Teaman, Ramirez & Smith, Inc. on May 24, 2018. This agreement covers the fiscal years ended June 30, 2018 through June 30, 2020, plus options for two one-year extensions. The purpose of the Auditor Engagement Letter is to define the auditor’s responsibility, as described by professional standards, which is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. Generally Accepted Auditing Standards and Government Auditing Standards, and the State Controller's Minimum Audit Requirements for California Special Districts. The audit of our financial statements does not relieve you or management of your responsibilities as stated in our engagement letter dated May 9, 2019 (Attachment A). 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 The cost for the fiscal year 2018-2019 audit per the contract is $9,500 which was included in the budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 27, 2019 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions Refer the matter back to staff for additional information. Subject 3. Approve Auditor Engagement Letter for Fiscal Year 2018-19 Audit Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action The Board of Directors approve and file this report. Goals 7.0 Finance File Attachments A. Auditor Engagement Letter FY2018-19.pdf (1,136 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. E. GENERAL MANAGER'S REPORTS Summary On July 31, 2013, the Board of Directors approved implementing new procedures for sponsoring organizations and/or events. Staff is presenting the Board of Directors with a District Contribution Program Eligibility Application to provide a Gold level sponsorship of $2,500 for the Costa Mesa Foundation's Concerts in the Park series on July 9, 16, 23, and 30, 2019. Staff Recommendation That the Board of Directors: 1. Approve the Costa Mesa Foundation's contribution application requesting a $2,500 sponsorship for the Concerts in the Park series of events; and 2. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling and proper disposal through the hosting of a community booth and source separation activity. Analysis According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes include properly treating sewage, preventing SSOs, and recycling. Describe how the contribution will advance the District's purpose. In regards to these criteria, the sponsorship may serve the purpose of increasing District visibility by providing a community booth where District staff can promote recycling and source separation. At each concert in the series, District staff can host a recycling game at its community booth, through which attendees can test their knowledge of landfill, recyclable, organic, and hazardous waste types. Through this game, District staff can promote its Organics Recycling Program, Door-to-Door Household Hazardous Waste Collection, and the Citizens Environmental Protection Academy. As stated in the attachment, the District will be provided with the following for a Gold level sponsorship of $2,500: Logo/link on all materials, Daily Pilot advertising, and social media Logo on front cover and sponsor section of Concert Program (1000+ distributed at each concert) Logo on both sides of concert stage banners MC recognition at all concerts 10 x 10 community booth at all concerts, with storage included (includes table and chairs) that can be used to promote District's programs 2 preferred parking passes for all concerts Subject 4. Consider Contribution Program Application for Concerts in the Park Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $2,500.00 Budgeted Yes Budget Source 10-100100-4420 & 20-100100-4420 (Public Information/Education/Community Promotions Sponsorships) Recommended Action That the Board of Directors: 1. Approve the Costa Mesa Foundation's contribution application requesting a $2,500 sponsorship for the Concerts in the Park series of events; and 2. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling and proper disposal through the hosting of a community booth and source separation activity. Goals 4.0 Community Outreach & Communications 3.5 Participate in community groups and civic organization activities Additionally, the Costa Mesa Foundation will make recyclable containers available at the event. The District has sponsored the Concerts in the Park event series at the Gold level from 2014-2018. 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 the District is an administrative matter and is not a disturbance of the environment, similar to grading or construction, and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review There are sufficient funds in the Fiscal Year 2019-2020 Solid Waste and Wastewater Public Info/Education/Community Promotions accounts for this sponsorship. A total of $58,000 is budgeted for sponsorships during FY 2019-2020 and $8,000 is available for contributions. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 27, 2019 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Determine that no purpose exists for providing a sponsorship for the Concerts in the Park events. 2. Approve an alternative sponsorship level of $100, $500, or $1,500. (These sponsorship levels do not include an event booth.) File Attachments Contribution Application.pdf (315 KB) Sponsor Information Sheet & Sample Invoice.pdf (156 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2019 Subject: Consider Approving Agreement with EEC Environmental for GIS-CMMS Support Services Summary In 2009, EEC Environmental developed a Geographical Information System (GIS) and a Computerized Maintenance Management System (CMMS) to assist the District in maintaining its wastewater system. The GIS is a digital mapping system that provides locations of wastewater assists such as pipeline, manholes, and pump stations. The system also provides asset management information such as historical cleaning and maintenance records, as well as capital replacement projects. The CMMS is a work order system that helps with the planning and scheduling of preventive maintenance activities. Since the development of the GIS-CMMS, EEC has been maintaining both systems ever since. Recommendation That the Board of Directors approve the Agreement with EEC Environmental for GIS-CMMS Support Services Analysis The Fifth Amendment to the 2009 Agreement expires on June 30, 2019. A new Agreement for the Board to consider approving is attached. According to the District's Operations Code Section 4.04.070(g). Firms providing highly specialized or technical services that the Board or General Manager have determined require familiarity and/or continuity due to specialized knowledge of the system, specialized expertise not obtainable by utilizing the bidding process, or other unique factors that would make bidding meaningless are exempted from the District's bidding procedures. Due to the highly technical and specialized services required for maintaining GIS and CMMS system and EEC Environmental has specialized knowledge and familiarity to the District's existing systems, bidding for GIS CMMS support services is exempted. Under the new Agreement, EEC will provide enhanced services to the District. Using the existing CMMS, EEC will create an online scheduling system for construction inspection. This enhanced function will provide an online scheduling environment for automatically scheduling inspections, creating work orders from these scheduled inspections (for the inspector), and it will automate project management and reporting, as well as executing and collecting fees associated with these activities. In addition, EEC will install an add-on to CMMS that serves as a desktop application designed to track warehouse transactions at the Yard. The app tracks incoming and outgoing material from multiple storage areas and will include barcode scanning technology to help manage stock, material, cost, suppliers and requisitions. Finally, EEC will enhance customer service request by allowing citizen input collected from the District's mobile app (GovDelivery) and phone line to be incorporated into the GIS-CMMS system. The enhanced service will track citizen input and create service requests to facilitate management and reporting of citizen input. Subject 5. Consider Approving Agreement with EEC Environmental for GIS-CMMS Support Services Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $139,000.00 Budgeted Yes Budget Source Wastewater Fund Recommended Action That the Board of Directors approve the Agreement with EEC Environmental for GIS-CMMS Support Services Goals 1.0 Sewer Infrastructure 5.0 Administrative Management Legal Review District Counsel has reviewed and approved the attached Agreement. Environmental Review The consideration of contracts with a firm that performs computer related services such as GIS or CMMS 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 Adequate funding is in the Biennial Budget FY 2019-20 and FY 2020-21 for this expense. The cost to provide GIS-CMMS support services are $79,000 and $60,000 for FY 2019-20 and FY 2020-21, respectively. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 27, 2019 Board of Directors meeting at District Headquarters and posted on the District's website at www.cmsdca.gov Alternative Actions 1. Do not approve the Agreement and direct staff to solicit bids. 2. Direct staff to report back with more information. File Attachments EEC Agreement.pdf (7,022 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2019 Subject: Project #321 Indus Sewer Main Replacement - Approving Contract Administration & Inspection Services with Robin B. Hamers & Associates, Inc. Summary Later this evening the Board will be considering awarding a contract to replace a portion of the Indus Sewer Mainline. If the Board approves the construction contract then the General Manager is approving the contract administration and inspection services proposal from Robin B. Hamers & Associates, Inc. Recommendation That the Board of Directors receive and files this report. Analysis A portion of the Indus Sewer Mainline lies underneath a multi-family unit located at 20122 Santa Ana Avenue. The unit is sinking into the ground, which is crushing the mainline. The mainline has to be relocated to avoid complete failure of the pipeline. Robin B. Hamers & Associates, Inc. (RBH) submitted a proposal to perform contract administration and inspection services in the amount of $25,360. Industry standard for contract administration and inspection services is ten percent of the construction cost. RBH proposal is below ten percent, so the General Manager is approving the attached proposal. Legal Review Not applicable. Environmental Review The Board has previously determined that the purchase and use of the property at 2252 Fairview Road, which has a garage type building on it presently and is used as a trailer hitch assembly facility, is similar to what District desires for, namely to store vehicles and other equipment, and therefore is exempt from CEQA as a reconstruction of an existing facility or structure with the same purpose as the original structure ( 15 CCR 15302), as a conversion of an existing structure from one use to another with only minor exterior modifications ( 15 CCR 15303), or as an infill project ( 15 CCR 15332). Financial Review Project #321 Indus Sewer Main Replacement has a budget of $350,000. As of May 2019, this project has an available balance of $328,401. The Administration and inspection services costs of $25,360 are included in the construction budget for this project. Subject 6. Project #321 Indus Sewer Main Replacement - Approving Contract Administration & Inspection Services with Robin B. Hamers & Associates, Inc. Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $25,360.00 Budgeted Yes Budget Source Capital Improvement Recommended Action That the Board of Directors receive and file this report Goals 1.0 Sewer Infrastructure 5.0 Administrative Management Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 27, 2019 Board of Directors meeting at District Headquarters and posted on the District's website at www.cmsdca.gov Alternative Actions 1. Do not approve RBH proposal and direct staff to seek bids for contract administration and inspection services. File Attachments #321 Indus Proposal Letter for Contract Admin and Insp (003).pdf (79 KB) E. GENERAL MANAGER'S REPORTS File Attachments sdrma_official_ballot.pdf (824 KB) sdrma_candidate_statements.pdf (813 KB) Subject 7. Special Districts Risk Management Authority 2019 Board of Directors Election Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors select up to three (3) candidates to serve on the Special District Risk Management Authority Board of Directors for a four-year term beginning January 1, 2020 and ending on December 21, 2023. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2019 Subject: Consider Revising CMSD's Operations Code Section 3.01.060 - Time of Regular Meetings Summary The Board of Directors requested this item be placed on the agenda for discussion. The Board wants to consider changing Board of Directors regular standard meetings from the fourth Thursday of every month at 5:30 pm to the fourth Tuesday of every month at 4:30 pm. Recommendation That the Board of Directors direct staff to bring back an ordinance to revise CMSD's Operations Code Section 3.01.060 - Time of Regular Meeting Analysis If the Board wants to change the Board of Directors regular standard meeting then it's important to consider potential meeting conflicts with other agencies. Board members serve or may serve on the following agencies: Orange County Sanitation District (OCSD) Board of Directors meets on fourth Wednesday of every month at 6:00 pm. President Ferryman serves on the Board of Directors and Vice President Ooten serves as the alternate Director. OCSD Administrative Committee meets on the second Wednesday of every month at 5:00 pm. President Ferryman serves on the Administrative Committee. OCSD Operations Committee meets on the first Wednesday of every month at 5:00 pm OCSD Steering Committee meets on the fourth Wednesday of every month at 5:00 pm Santa Ana River Flood Protection Agency (SARFPA) meets on the fourth Thursday of every other month at 4:00 pm. President Ferryman and Director Perry serve on SARFPA. Orange County Council of Governments (OCCOG) meets on the fourth Thursday of every month at 10:30 am. President Ferryman and Director Scheafer serve on OCCOG Special Districts Risk Management Authority (SDRMA) meets on the first Wednesday and Thursday of every month at 3:00 pm and 8:00 am. The meetings occur in Sacramento. Director Scheafer serves on SDRMA. California Special Districts Association (CSDA) Board of Directors meet every other month on the first Friday at 9:30 am. The meetings occur in Sacramento. Secretary Schafer serves on CSDA Board of Directors. CSDA Legislative Committee meets three times annually in Sacramento. The dates and times vary. Secretary Schafer serves on the Committee CSDA Professional Development and Member Service Committees meet twice annually in Sacramento. The dates and times vary. Secretary Schafer serves on both Committees. Independent Special Districts of Orange County (ISDOC) Executive Committee meets on the first Tuesday of every month at 7:30 am. Secretary Schafer serves as 2nd Vice President of the Committee. San Diego Association of Governments (SANDAG) Borders Committee meets on the fourth Friday of the month at 12:30 pm. President Ferryman serves on the Borders Committee. National Water Research Institute (NWRI) Board of Directors meets quarterly on the second Tuesday at 12:30 pm. President Ferryman serves on the Board of Directors. Subject 8. Consider Revising CMSD's Operations Code Section 3.01.060 - Time of Regular Meetings Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Board of Directors direct staff to bring back an ordinance to revise CMSD's Operations Code Section 3.01.060 - Time of Regular Meeting Goals 5.0 Administrative Management Changing the Board of Directors standard meeting day and time will require the adoption of an ordinance to amend CMSD's Operations Code Section 3.01.060, Time of Regular Meetings, which states: "The Board of Directors shall hold its regular meetings on the fourth Thursday of the month at 5:30 pm unless notification is otherwise given." Legal Review Not applicable at this time; however, if the Board approves changing the standard meeting day and time, District Counsel will prepare a proposed ordinance for the Board to consider adopting. Environmental Review Consideration of a new date and time for the regular board meetings 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.or the District's CEQA guidelines. Financial Review There are no financial impacts if the Board approves changing the Board of Directors standard meeting day and time Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 27, 2019 Board of Directors study session meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2019 Subject: Debriefing of General Manager's Attendance to the 2019 International City Management Conference in Qingdao China Summary The General Manager is a member of the International City/County Management Association (ICMA), which is an organization that advances professional local government through leadership, management, innovation and ethics. According to ICMA's website, the organization helps local governments in the U.S. create sustainable, livable and resilient communities by researching and sharing leading management strategies and practices. Outside the U.S. ICMA provides peer-to-peer technical assistance, training, and resources to assist municipalities in developing and decentralizing countries to develop local capacity and promote good governance. ICMA has worked with more than 70 countries, including China. In 2011, the ICMA China Center was established as a partnership between ICMA and the China University of Political Science and Law (CUPL). One of the goals and objectives of the Center is to establish cooperative relationships between ICMA and institutions and organizations in China to facilitate training, research, information sharing, conferences and exchange. On June 9-10, 2019, the City of Qingdao, which is located on the coast of the Yellow Sea in the Shibei District of China, had its International City Management Conference that focused on city governance innovation and quality improvement. ICMA sent a small group of local government leaders from the U.S., Canada and Europe to the conference in which they invited the General Manager to be a part of the group as one of the conference's keynote speakers to discuss waste management practices at the Costa Mesa Sanitary District. The following is a brief synopsis of the General Manager's experience in China. More information will be presented at tonight's meeting. Recommendation That the Board of Directors receive and file this report Analysis One of the primary focus in Qingdao, and the rest of China for that matter, is waste management. In the 1980s, China did not have a garbage problem because most people were poor, so they didn't buy much, and they certainly didn't' waste much. Then, China began to prosper and with prosperity came large amount of consumerist trash such as computer parts, plastic packaging, milk cartons, broken cellphones, polystrene, cardboard, etc. Now, Chinese can do online shopping and for a nominal fee they can receive food delivery service. Recognizing the country has a growing trash problem, the central Chinese government is mandating local governments to recycle. In fact, they want one-third of the waste produced by large cities to be recycled by end of 2020. On Sunday, June 9, 2019, the General Manager toured Qingdao with City officials to learn about their recycling programs. Qingdao does provide source separating services (e.g. recycling, hazardous waste and trash) for businesses and residents as seen in the attached pictures. However, the challenge city officials are facing is contamination and education. Residents are not recycling because they don't want to, or they're not familiar with recycling products. During a round table discussion, in which the General Manager participated, City officials discussed ideas on how to incentivize residents to recycle such as making trash separation compulsory and/or conduct public outreach that include the media. The General Manager shared with the group the District's outreach efforts such as our quarterly newsletter, alkaline battery recycling program and waste free lunch seminars at elementary schools. Subject 9. Debriefing of General Manager's Attendance to the 2019 International City Management Conference in Qingdao China Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Board of Directors receive and file this report Goals 2.00 Solid Waste 3.00 Partnerships China believes in using incinerators to dispose of trash instead of landfills because landfills create odors. Incinerator technology was not shared, but Chinese officials did claim their technology is advanced to reduce polluted emissions into the atmosphere. Monday, June 10, 2019 was the conference opening ceremony and keynote speeches. The General Manager was one of the keynote speakers where he spoke in front of 250 to 300 Chinese educators, public administrators and practitioners about the District's waste management practices. The audience learned about special districts in the U.S., facts about CMSD, regulatory requirements, and our diversion programs including green waste recycling, household hazardous waste collections and textile donation event. Attached are pictures of the General Manager's keynote speech. On Tuesday, June 11, 2019, the ICMA group flew to Beijing where they met with Chinese official at the United Nations building to discuss waste reduction methods in the European country of Denmark and at the City of El Cerrito in Northern California. The group heard presentations from Chinese officials about performance measurement and data analysis on environmental governance. On Wednesday, June 12, 2019, the General Manager returned home. Legal Review Not applicable Environmental Review Receiving a debriefing from the General Manager regarding his travel to China to review the trash collection and recycling programs 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 or the District's CEQA Guidelines. Financial Review No District funds were expended on the General Manager's trip to China. The excursion was fully funded by the City of Qingdao, China University of Political Science and Law and ICMA Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 27, 2019 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions 1. Direct staff to return with more information. File Attachments Qingdao Trash Carts.jpg (1,845 KB) Qingdao Trash Cans.jpg (1,502 KB) Qingdao Recycling.jpg (1,538 KB) Qingdao Round Table.jpg (1,000 KB) Qingdao Conference Audience.jpg (2,227 KB) Qingdao Conference SC Bow.jpg (2,202 KB) Qingdao Conference SC.jpg (2,492 KB) United Nations.jpg (2,832 KB) United Nations1.jpg (3,982 KB) United Nations2.jpg (1,183 KB) F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: June 27, 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 June 27, 2019 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions 1. Refer item back to staff with further instructions. File Attachments CIP Updates June 2019 Mtg.pdf (574 KB) Subject 1. Receive and File the Monthly Capital Improvements Project Status Report Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file the report. Goals 4.7 Demonstrate outstanding efforts in transparency 7.2 Develop a long term CIP 1.10 Abandon five pump stations on the west side in conjunction with Orange County Sanitation District companion project 1.6 Evaluate Force Main Conditions on a Regular Basis 1.4 System Wide Sewer Replacement and Repair Program 1.1 Manhole Cover Maintenance Program 1.0 Sewer Infrastructure F. ENGINEER'S REPORTS To: General Manager, Alternate District Engineer From: District Engineer Re: Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 272 Esther St. Costa Mesa – John Weatherwax Please be advised that I have been retained to do private engineering work for the property at 272 Esther St, Costa Mesa, which is owned by John Weatherwax. I have reason to believe that this project or those persons involved in that project may have the need for District engineering approvals in the future. I have been retained by John Weatherwax and will be reporting this relationship as a source of income on my FPPC Statement of Economic Interests Form 700 next year. Pursuant to state law, District Operations Code Section 3.01.045, and my contract with the District: 1. I hereby notify you of this source of income or other relationship that causes me a conflict in approving any matters in my official capacity pertaining to this property and these persons. 2. I request that the General Manager alert the Alternate District Engineer that he is to provide all engineering approvals on behalf of the District with respect to these persons or that property. 3. That the Alternate District Engineer shall report directly to the General Manager and submit his bills for services directly to the General Manager. 4. That if any plans are required to be approved, that those shall show my seal and signature as private engineer of record, and the Alternate District Engineer shall provide his approval by signing as Alternate District Engineer. That these separate approvals shall be given on the same page and in a manner that clearly shows the separate capacities of each engineer in providing their respective approvals. 5. I request that the District Clerk maintain a copy of this Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer as a permanent record of the District or for as long as required under the District’s record retention schedule. I understand that this procedure does not allow me to enter into or influence the awarding of contracts in my official capacity in which I have a financial interest, which is a separate prohibition. (Gov. Code § 1090.) If I can provide further information about the identity of my source of income or about the scope of my assignment, please advise, and I will elaborate as necessary. Robin Hamers District Engineer Subject 2. Declaration of Conflict of Interest - 272 Esther St., Costa Mesa - John Weatherwax Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Receive and File F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: June 27, 2019 Subject: #321 Indus Sewer Main Replacement; Bid Opening and Award of Contract in the amount of $267,040 Summary The project consists of constructing a new 10” gravity sewer main in a District sewer easement on private property at 20122 Santa Ana Avenue, Newport Beach. The history of the situation is unknown but two residential apartment buildings are inside the sewer easement and the patios of one building were constructed directly over the sewer main. In the late 1990s, the property owner experienced sinking of Building 4 while the slabs of the four apartment units experienced differential settlement. Although the property owner’s investigation revealed poor storm water drainage that was identified as one of the primary causes of settlement, the District’s sewer main was viewed as a “leaky sewer” that added to the problem. A lawsuit was filed and settled and the District agreed to install a full length cured-in-place-pipe liner (CIPP) to seal the sewer main interior and prevent exfiltration (wastewater “leaking” from the interior of the sewer main through misaligned joints into the surrounding soil). No proof beyond accusatory statements was made regarding the exfiltration. The property owner hired a structural engineer to design foundation anchors to raise the sinking floor slabs and stabilize the foundation. In the 2006-2009 District-wide televising program and in the 2016-2018 District-wide televising program, the above referenced sewer main was televised. The sewer main appears to being continually pushed down and steadily worsening to a point where it is at risk of collapse. Therefore, a replacement sewer main has been designed and the project bid and a recommendation to award the contract is shown below. The redesigned sewer is no longer under Building 4 or the patios. Also, a bid protest was filed by the second low bidder against the low bidder and the attorney for the District has opined the protest is not supported by law for reasons stated later in this report. Recommendation The Board of Directors: 1. Reject the protest by Bonadiman Water, Inc., letter dated May 21, 2019 based on the finding that “soils engineering” is outside the definition of “subcontractor” so soils engineering does not have to be listed by the low bidder as a subcontractor. 2. Award a contract to the lowest responsive and responsible bidder, Gentry General Engineering, Inc., in the amount of $267,040 plus another $49,355 if Additive Bid Item A is constructed. 3. Approve a contingency of 10% in the amount of $26,704. Analysis Bids were opened on March 1, 2016 and the results are as follows: Engineer’s Estimate $275,000 Gentry General Engineering, Inc. $267,040 Bondiman Water, Inc. $269,000 Chi Construction $271,500 GCI Construction, Inc. $306,650 SRD Engineering, Inc. $334,559 Staff checked the licensing requirements and references for the low bidder, Gentry General Engineering, Inc., and found everything in order, therefore, a recommendation to award the contract is being made. Subject 3. #321 Indus Sewer Main Replacement; Bid Opening and Award of Contract in the amount of $267,040 Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Additive Bid Item “A” is the upstream portion of the sewer main that is damaged. It is believed no sinking of this portion of the line has occurred but cannot be confirmed until excavation down to the sewer main occurs. This section of line is identified on the plans as “Reach B.” If it is found necessary to replace Reach B, the District Engineer will return to the Board of Directors seeking additional funding for the project in the approximate amount of $60,000. The protest letter from Bonadiman Water stated the low bidder Gentry General Engineering, Inc., should be disqualified because the soils engineer was not list as a subcontractor. However, the attorney for the District quoted code sections stating a soils engineer is not listed as a subcontractor but a soils engineer is listed under another chapter that licenses professional civil engineers, land surveyors, and geologists. Based on these findings, the General Manager sent Bonadiman Water a letter rejecting their protest. Legal Review The attorney for the District prepared and signed the construction contract for this project. Environmental Review The replacement of a gravity sewer main with the same size main for the same rate of flow as shown on the plans for Project #321 is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c) “Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity“. Financial Review This project was budgeted as part of the District's 2018-2019 Capital Improvement Program. The project budget of $350,000 is sufficient unless Additive Bid Item A is added to the scope of work. If so, additional funding of $60,000 may be needed for the project. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2019 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not award the project to Gentry General Engineering, Inc. 2. Refer the matter back to staff for additional information Attachments: 1. Contract between Gentry General Engineering and CMSD 2. Bid Tab 3. Bonadiman Water, Inc. Protest Letter dated 5/21/19 4. Letter Rejecting Protest dated 6/4/19 File Attachments Bid Protest Rejection letter.pdf (482 KB) Bid Protest Letter.pdf (1,915 KB) Bid Tab.pdf (85 KB) F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: June 27, 2019 Subject: #331 Sewer Siphon Evaluation Program; Recommendation to Create New Project and Transfer Funds Summary Based on the poor condition of the District’s Bristol Street Sewer Siphon that is currently being rehabilitated under emergency night work, it was determined the District’s seven large and three to four small sewer siphons should be evaluated on a priority basis and any repair work required should be added into the capital improvement program budget. The Bristol Street sewer siphon was constructed in 1988 with ductile iron pipe (DIP) and has severely corroded to a point there are multiple holes in both barrels of the siphon. Because of the conditions of the pipe, the District’s cleaning hose and nozzle became jammed in the alternate siphon barrel and a National Plant Service hose and nozzle became jammed in the primary barrel. The District’s General Manager declared an emergency and the District hired GCI Construction to excavate and repair the siphon. Recommendation 1. Create Project #331 Sewer Siphon Evaluation Program. 2. Transfer $100,000 from Project #323 Force Main Evaluation to Project #331 Sewer Siphon Evaluation Program. 3. Direct the General Manager to complete the evaluation and incorporate the results into the District’s capital improvement program. Analysis Sewer siphons are technically “inverted siphons” because a traditional siphon has a high point in the middle of the line while the low point in sewer siphons is midway through the siphon. Siphons are typically used to cross under flood control channels, rivers, and other low lying improvements, and the siphons flow because the upstream side is sufficiently higher than the lower side. The Bristol Street sewer siphon was constructed in 1988 and is one of the younger siphons in the District. Ductile iron pipe (DIP) with an interior lining and outside coating was the material of choice years ago in the sewer industry because of its strength under heavy loading. It appears the lining and coating for the Bristol siphon was overtaken by corrosion. The scope of work for the design phase of the proposed project is to first prepare “clean and CCTV specifications” for the 7 large and 3-4 smaller inverted sewer siphons, then bid and manage the work, then utilizing the CCTV results along with contractor findings and maintenance crew opinions, prepare an analysis and report with a recommended capital improvement plan program to rehabilitate each of the siphons over several years. The projects would be blended into the District’s capital improvement program. The project report will also include an update on rehabilitation methods along with updates on the use of horizontal directional drilling in the construction of siphons. Assuming 10 siphons, the engineering budget breaks down to 8 hours for each siphon for research, review, analysis of existing operational parameters, plus preparation of plans, maps, traffic flows, wastewater flows, depths and hydraulic conditions. Also included is formalizing comments from the District cleaning crews, preparation of site-specific specifications, bid documents, bid opening, contract preparation, and managing the siphon cleaning and CCTV work. When the CCTV results are available, prepare an analysis of the operating conditions, corrosion, summary of deficiencies, estimates of life expectancy, rating for each siphon, rehabilitation methods including options, cost estimates, a narrative, and a project budget, along with inclusion in an overall report. This is the same approach the District successfully used in analyzing and replacing force mains. Legal Review Not required at this time. Environmental Review Subject 4. #331 Sewer Siphon Evaluation Program; Recommendation to Create New Project and Transfer Funds Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action The repair or replacement of a sewer siphon with the same size main for the same rate of flow as proposed in this project is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c) “Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity“. Financial Review The Finance Manager has reviewed and recommended approval of the transfer of $100,000 from Project #323 Force Main Evaluation to this project. Account Project Description Transfer 20-201323-4300 Force Main Evaluation #323 ($100,000) 20-201331-4300 (New) Sewer Siphon Evaluation Program #331 $100,000 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2019 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not fund an evaluation program of the sewer siphons at this time. 2. Refer the matter back to staff for additional information. G. TREASURER'S REPORTS Subject 1. Financial Review of CR&R - Oral Report Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Discussion Goals 2.00 Solid Waste 2.2 Annual Contract Audits 7.0 Finance 7.1 Perform long term solid and liquid waste rate projections G. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: June 27, 2019 Subject: Consider Adopting Resolution 2019-922 Approving the Statement of Investment Policy and Delegating the Investment Function to the Treasurer for Fiscal Year 2019-20 Summary Attached is the proposed Statement of Investment Policy for Fiscal Year 2019-20 (Policy). The Policy documents the Board’s guidelines under which the District Treasurer can invest the District’s idle funds. Recommendation That the Board of Directors adopt Resolution 2019-922 approving the Statement of Investment Policy and delegating the investment function to the Treasurer for Fiscal Year 2019-20 Analysis California Government Code §53646(a)(2) allows the District Treasurer to submit an annual investment policy to the Board for consideration. It is not a requirement to do so, but staff believes it is prudent to continue this practice. The enclosed Policy documents the Board’s objectives surrounding the selection of investments, as well as those investments in which the Board has authorized. It also provides limitations on specific investments. The responsibility for placing investments rests with the Board. California Government Code §53607 allows the Board to delegate the investment function to the District Treasurer for a period of one year. The attached Resolution approves the Policy and delegates the investment function to the District Treasurer for the 2019-20 fiscal year. The Policy has been attached in two versions. A clean version that the Board will be considering for approval, and a red-lined version so that the Board can review the proposed changes to the Policy. Once approved, the Policy will be distributed to the brokers assisting the District with the investment of its idle funds. Legal Review District Counsel has reviewed Resolution 2019-20 as to form. 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 Statement of Investment Policy guides the Treasurer in how to invest the District’s idle funds. The amount of investment earnings to be generated as a result of the investing function is based upon the market conditions at the time of investment. Public Notice Process Subject 2. Consider Adopting Resolution 2019-922 Approving the Statement of Investment Policy and Delegating the Investment Function to the Treasurer for Fiscal Year 2019-20 Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Resolution 2019-922 approving the Statement of Investment Policy and delegating the investment function to the Treasurer for Fiscal Year 2019-20 Goals 7.0 Finance 7.3 Evaluate the District’s investment policy Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2019 Board of Directors regular meeting at District Headquarters and on the District’s website at www.cmsdca.gov. Alternative Actions 1. Do not adopt Resolution and retain investment function at the Board level 2. Refer the matter back to staff Attachments Attachment 1 – Resolution Number 2019-922 Attachment 2 – Statement of Investment Policy for Fiscal Year 2019-20 Attachment 3 – Statement of Investment Policy for Fiscal Year 2019-20 (redline version) File Attachments Investment Resolution No 2019-922.docx (22 KB) Attachment 2 - Statement of Investment Policy for Fiscal Year 2019-20.pdf (224 KB) Attachment 3 - Statement of Investment Policy for Fiscal Year 2019-20 (redline version).pdf (239 KB) H. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: June 27, 2019 Subject: Consider Adopting Ordinance No. 127 Prohibiting Interference with District Easements, Sewer Lines and Appurtenances and Adopting Sewer Easement Maintenance Cooperation Standards Summary The District's sewer mainline runs under public and private property while manhole covers are located on the surface of these properties. The sewer pipeline under private property need regular maintenance, such as CCTV and cleaning, to prevent sanitary sewer overflows (SSOs) from occurring. Unfortunately, many property owners will obstruct the District's easement by erecting fences or planting trees and other vegetation, which can prevent District access to the mainline and manhole covers and risk SSOs. The attached ordinance will give the District authority to remove obstructions on the easement. Recommendation That the Board of Directors adopt Ordinance No. 127 Prohibiting Interference with District Easements, Sewer Lines and Appurtenances and Adopting Sewer Easement Maintenance Cooperation Standards Analysis The District's sewer mainline runs under public and private property while manhole covers are located on the surface of these properties. The sewer pipeline under private property need regular maintenance, such as CCTV and cleaning, to prevent sanitary sewer overflows (SSOs) from occurring. Unfortunately, many property owners will obstruct the District's easement by erecting fences or planting trees and other vegetation, which can prevent District access to the mainline and manhole covers and risk SSOs. The attached ordinance will give the District authority to perform the following remedies: Hold private property owners liable to the District for increased costs and repair or maintenance of the mainline that lies underneath their property. The District can remove the obstructions and require property owners to pay for the costs to remove such obstructions. The charges for the abatement may be collected on the property owner's tax roll. The District may terminate sewer service of any property owner found to be violating this ordinance. If adopted by the Board, the ordinance will go into effect one week after the District Clerk publishes the adopted ordinance in a newspaper. Legal Review District Counsel prepared the attached ordinance. Environmental Review Prohibiting property owners from interfering with the District's access and use of its easement 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 or the District's CEQA Guidelines. Subject 1. Consider Adopting Ordinance No. 127 Prohibiting Interference with District Easements, Sewer Lines and Appurtenances and Adopting Sewer Easement Maintenance Cooperation Standards Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Ordinance No. 127 Prohibiting Interference with District Easements, Sewer Lines and Appurtenances and Adopting Sewer Easement Maintenance Cooperation Standards Goals 1.0 Sewer Infrastructure 5.0 Administrative Management 5.4 Review and maintain Operations Code, policies and Administrative Regulations Financial Review There are no financial impacts to the District for adopting the ordinance. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 27, 2019 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions 1. Do not adopt the attached ordinance 2. Direct staff to report back with more information File Attachments Ordinance No. 127 - Easement Maintenance.docx (16 KB) I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 1. Orange County Sanitation District (OCSD) - (President Ferryman) Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer) Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Information L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Discussion M. ADJOURN TO CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Paragraph (2) of subdivision (d) of Government Code Section 54956.9, as specified in subdivision (e)(3) exists: Claim of Steven Hodges received June 3, 2019 against the Costa Mesa Sanitary District, a copy of which will be made available to the public. Subject 1. CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION -- Significant exposure to litigation pursuant to Paragraph (2) of subdivision (d) of Government Code Section 54956.9, as specified in subdivision (e)(3) exists: Claim of Steven Hodges received June 3, 2019 against the Costa Mesa Sanitary District, a copy of which will be made available to the public. Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type N. RECONVENE TO OPEN SESSION Subject 1. Reconvene to Open Session and report out of any action taken. Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Procedural O. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON JULY 25, 2019 IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Jun 27, 2019 - Board of Directors Regular Meeting Access Public Type Procedural