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2019_08_22_boardThursday, August 22, 2019 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 5:30 P.M. Public Comments: Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to four minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS 1. Call to Order - President Ferryman 2. Pledge of Allegiance - President Ferryman 3. Invocation - Vice President Ooten 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. 6. Ceremonial Matters and Presentations B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. 1. Public Comments C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1. Approve Consent Calendar 2. Approve the Board of Directors Study Session Minutes of July 9, 2019 3. Approve the City/Districts Liaison Committee Meeting Minutes of July 19, 2019 4. Approve the Board of Directors Regular Meeting Minutes of July 25, 2019 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Adopt Warrant Resolution No. CMSD 2020-02 Approving District Warrant Registers 7. Payroll Transparency Disclosure for July 2019 9. Approve the preparation of a warrant to CR Transfer in the amount of $231,996.05 for July 2019 recycling and disposal services in the August 2019 warrant register 10. Approve the Investment Report for the Month of July 2019 11. Contracts Signed by the General Manager D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Citizens Advisory Committee (CAC) July 17, 2019 Meeting Overview 2. Consider Contribution Program Application for Newport-Mesa Schools Foundation's State of the Schools Breakfast 3. Consider Approving Contribution Application for Costa Mesa-Newport Harbor Fish Fry 4. Consider Approving Agreement with City of Newport Beach for Collecting Sewer Flow from Certain City of Newport Beach Properties 5. Adopt Ordinance No. 129 Amending the Operations Code to Provide A New Day and Time for the Monthly Regular Meetings 6. Consider Approving the Special District Risk Management Authority (SDRMA)Health Benefits Amended Memorandum of Understanding and Resolution No. 2019-923 F. ENGINEER'S REPORTS 1. Receive and File the Monthly Capital Improvements Project Status Report G. TREASURER'S REPORTS H. ATTORNEY'S REPORTS I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request  of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.  For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (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 8. Accept the occupancy count as presented as 22,846 and direct staff to prepare a warrant to CR&R Environmental Services for $236,764.52 for July 2019 collection K. NEW BUSINESS L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. ADJOURN TO CLOSED SESSION N. RECONVENE TO OPEN SESSION O. CLOSING ITEMS 1. Adjourn Thursday, August 22, 2019 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 5:30 P.M. Public Comments: Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to four minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS Subject 1. Call to Order - President Ferryman Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ferryman Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Ooten Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS James Ferryman, President Robert Ooten, Vice President Arlene Schafer, Secretary Michael Scheafer, Director Arthur Perry, Director Subject 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Aug 22, 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 Aug 22, 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 Aug 22, 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: August 22, 2019 Subject: Approve the Board of Directors Study Session Minutes of July 9, 2019 Summary The recorded minutes of the July 9, 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 July 9, 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 August 22, 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 July 9, 2019 Meeting Aug 22, 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 Jul 9, 2019 - Board of Directors Study Session minutes_2019_07_09_ss.pdf (48 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: August 22, 2019 Subject: City/Districts Liaison Committee Meeting Minutes of July 19, 2019 Summary The recorded minutes of the July 19, 2019 City/Districts Liaison Committee Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the City/Districts Liaison Committee Meeting on July 19, 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 August 22, 2019 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. Subject 3. Approve the City/Districts Liaison Committee Meeting Minutes of July 19, 2019 Meeting Aug 22, 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 Jul 19, 2019 - City/District Liaison Committee Meeting File Attachments minutes_2019_07_19_liaison.pdf (42 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: August 22, 2019 Subject: Approve the Board of Directors Regular Meeting Minutes of July 25, 2019 Summary The recorded minutes of the July 25, 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 July 25, 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 August 22, 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 4. Approve the Board of Directors Regular Meeting Minutes of July 25, 2019 Meeting Aug 22, 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 Jul 25, 2019 - Board of Directors Regular Meeting minutes_2019_07_25_rm.pdf (86 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: August 22, 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 August 22, 2019 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the compensation and reimbursement of expenses as presented. 2. Direct staff to report back with more information. File Attachments a_director_compensation.pdf (264 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as presented. b_director_expense_reimbursement.pdf (183 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 August 2019.pdf (195 KB) Subject 6. Adopt Warrant Resolution No. CMSD 2020-02 Approving District Warrant Registers Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2020-02 approving District warrants for the month of July 2019 in the amount of $930,687.72. 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: Aug 22, 2019 Subject: Payroll Transparency Disclosure for July 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 Aug 22, 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 7. Payroll Transparency Disclosure for July 2019 Meeting Aug 22, 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 July 2019.pdf (294 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: August 22, 2019 Subject: Accept the occupancy count as presented as 22,846 and direct staff to prepare a warrant to CR&R Environmental Services for $236,764.52 for August 2019 collection Summary Accept the occupancy count as presented using 22,846 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for July 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $236,764.52 to be ratified in the August 2019 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,846 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for July 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $236,764.52 to be ratified in the August 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 $10.3635 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. Over the last two years, District staff has been working with CR&R to reconcile the entire list of service addresses and has finally completed the project. As of June 30, 2019, total District occupancy was at 22,846, with thirty (30) new accounts added since the last billing period and five (5) accounts removed. 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 July 2019: 22,846 x $10.3635 =$236,764.52 Legal Review Not Applicable Subject 8. Accept the occupancy count as presented as 22,846 and direct staff to prepare a warrant to CR&R Environmental Services for $236,764.52 for July 2019 collection Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 22,846 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for July 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $236,764.52 to be ratified in the August 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 August 22, 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 Revised CMSD Occupancy Report 7.2019.pdf (112 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: August 22, 2019 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $231,996.05 for July 2019 recycling and disposal services in the August 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 $231,996.05 for July 2019 recycling and disposal services to be ratified in the August 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 underbilled the District by $0.05, but CMSD will be paying the actual amount owed. Costa Mesa Newport Beach Total Residential Waste $157,028.93 $3,937.07 $160,966.00 Organics $67.692.38 $3,337.68 $71,030.05 Total Payment $231,996.05 Tonnage Residential Waste 2856.11 71.61 2927.72 Organics 894.81 44.12 938.93 Total Tonnage 3,866.65 Legal Review Not Applicable Subject 9. Approve the preparation of a warrant to CR Transfer in the amount of $231,996.05 for July 2019 recycling and disposal services in the August 2019 warrant register Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $231,996.05 for July 2019 recycling and disposal services to be ratified in the August 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 August 22, 2019 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 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: August 22, 2019 Subject: Approve the Investment Report for the Month of July 2019 Summary Attached is the Investment Report for the month of July 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 July 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 June 30, 2019. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 27, 2019 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 July 31, 2019, was 1.926%. The yield to maturity of the portfolio was 1.929%. The District’s weighted average interest rate was 45 basis points (0.453%) below the LAIF average monthly rate for July 2019 of 2.379%. The weighted average number of days to maturity for the District’s total portfolio was 462 days (1.27 years). The duration of the underlying securities in LAIF as of July 31, 2019 was 182 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 July 31, 2019 was 42.88%. The District has adequate cash reserves necessary to meet its obligations for the next six months. A majority of the District’s cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District’s cash and investments are as follows: Solid Waste Fund: Operating Reserve - Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Designated for Revenue Dry Period - Equal to a maximum of 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 Subject 10. Approve the Investment Report for the Month of July 2019 Meeting Aug 22, 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 July 2019. of its annual charges from the County of Orange. The revenue dry period is from June through October. 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 a maximum of 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. The revenue dry period is from June through October. 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 1.418% for the year ending June 30, 2020. Through July 31, 2019, the portfolio has earned a weighted average interest rate of 1.926%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the August 22, 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 - July 2019.pdf (345 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: August 22, 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 June 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 July 2019. Contracts: 1. Eco Partners - produces the District's quarterly newsletter. Cost: $40,592 2. JIMNI Systems - perform preventive maintenance at six pump stations. Cost: $5,763.88 3. Discover Science Center - Education Program for 6th Grade Students. Cost: $12,000 Purchase Orders: 4. EJ USA, Inc. - purchase composite manhole cover sets. Cost: $24,565.63 5. IPC Fuel Distribution - Diesel fuel at District Yard. Cost: $5,158.48 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 August 22, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Subject 11. Contracts Signed by the General Manager Meeting Aug 22, 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. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: August 22, 2019 Subject: Citizens Advisory Committee (CAC) July 17, 2019 Meeting Overview Summary The following is an overview of the topics discussed by the CAC at their July 17, 2019 meeting Recommendation That the Board of Directors receive and file this report. Analysis There were eight items on the July 17 agenda that are described below. 1. Public Comments - Mr. Mosher reminded the CAC about an upcoming staff report regarding the District's Recycling Program that will be presented at the August Board Study Session meeting, and he encouraged CAC members to attend the meeting or watch the recorded video of the meeting. 1. Approve the Citizens Advisory Committee Meeting Minutes of May 16, 2019 - The minutes were unanimously approved. 2. Draft Board of Directors Meeting Minutes of May 23, 2019 - There was no discussion regarding this item. 3. Draft Board of Directors Meeting Minutes of June 27, 2019 - There was no discussion regarding this item. 4. Debriefing of General Manager's Attendance to the 2019 International City Management Conference in Qingdao China - The General Manager gave a power point presentation of his experience in China. CAC member Nielson inquired the funding source for the organizations sponsoring this event. The CAC was informed that membership dues for the International City/County Management Association (ICMA) is the primary revenue source for the organization. CAC member Lester wanted to know the single most valuable takeaway the General Manager received from his experience in China. The CAC was informed that China is technology advanced in certain areas, but were behind when it comes to water, wastewater and solid waste infrastructure. 5. Inflow & Infiltration (I/I): Mendoza Pump Station Smoke Test - District Engineer, Rob Hamers, gave the CAC an overview of the District I/I program and explained the purpose for smoke testing the Mendoza Pump Station tributary area. A member of the CAC wanted to know the start date for the smoke testing. The CAC was informed that testing could start within a month. A member of the CAC wanted to know where will the smoke testing start. The CAC was informed that the start location will be near the fairgrounds. Chairman Carey wanted to know how would staff determine there is an illegal connection in someone's backyard? Staff would knock on the front door and asked to enter the backyard to see where the smoke is coming out of and explain the problem to homeowners. Secretary Schafer asked if the fairgrounds is involved with the District regarding the smoke testing. The CAC was informed that staff has not informed fairground officials because the project has not been approved by the Board. CAC Nielson inquired if the problem occurs when the pump station exceeds its capacity or when the pump station is pumping everything to the treatment facility. The CAC was informed pump stations do not know the difference between rain water from wastewater, so it keeps running during the storm and the District does not exceed capacity of the system. The District has never had an overflow in a large rain storm. CAC Nielson commented the risk is at the treatment facility which would increase costs as a result of rain water from all the agencies. The CAC was informed that cost does increase due to excessive rain water entering the system. CAC Lester wanted to know if the Mendoza pump station is serving multi-family or single family homes. The CAC was informed that approximately 90% of the homes serviced by Mendoza Pump Station is single family. CAC Lester wants to know if unmaintained rain gutters are part of the problem when it Subject 1. Citizens Advisory Committee (CAC) July 17, 2019 Meeting Overview Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report Goals 5.0 Administrative Management rains. The CAC was informed that flooding is the cause for inflow and the District will be plugging and sealing manholes before the next storm arrives. CAC member Neilson wanted to know if open areas, ike a carwash, have something that diverts rainwater. The CAC was informed about rain water valves that automatically closes when it rains preventing water entering the sewer system The valve will open up when it stops raining. Mr. Mosher wanted know if the company being hired has a way to codify the results when there is snow everywhere. The CAC was informed the company being hired is an engineering firm that produces excellent reports. CAC Katz inquired if plugging and sealing of manholes will no longer be required if the smoke test found illegal connections, but staff informed the CAC that due to flooding in the streets the District will continue to plug and seal manhole covers. CAC Katz wanted to know how does staff determine which manholes to plug and seal? The CAC was informed that If rain water slopes to the center of the street or an alley, or if the manhole is near the curb and gutter it's plugged and sealed. If a manhole is located in the middle of the street, staff will review flood maps from the City to determine which manhole is plugged and sealed. CAC member Mcllroy wanted to know if the District is going to go to every house to inspect backyards. The CAC was informed that staff will not need access to every backyard. You can see the smoke while walking in front of homes. The CAC unanimously approved recommending the Board of Directors consider smoke testing the Mendoza Pump Station tributary area to locate inflow sources. 6. Multi-family Solid Waste Proposal - Staff gave a brief overview of the draft proposal the District is considering presenting to City officials for taking over multi-family solid waste/recycling collection services. Chair Carey wanted clarification that if the proposal is approved, the City would still be responsible for managing solid waste and recycling services from commercial businesses. The CAC was informed that the District wants to focus on multi-family and prove the District can manage these services well then the next step will be presenting a proposal for managing commercial accounts. Chairman Carey inquired that a different waste hauler, other than CR&R, could be the service provider for multi-family residents. In addition, Chairman Carey wanted to know will the same services provided to single-family households be offered to multi-family residents. Staff informed the CAC that the District wants to provide the same level of service to multi-family residents. CAC member Nielson inquired confirmation that multi-family buildings of four or less units are serviced by the District with the same size bins. Staff informed CAC that all District customers have same carts. CAC member Nielson wanted to know how large apartment complexes can switch haulers. Staff informed the CAC that the City keeps a list of approved haulers on their website and it's up to the property manager to contact haulers and negotiate a fair price. CAC member Nielson wanted to know if staff's proposal is approved than property owners would not have a choice of hauler to pick from, but instead they must use the hauler that is approved by the District. Staff informed the CAC the multi-family program would have one exclusive franchise hauler responsible for collecting solid waste and recyclable materials and each multi-family complex will be billed directly from the hauler. There was discussion about revenues and franchise fees and how the money will be allocated between the City and the District. There was also discussion about the City's existing permits that are renewed annually. No action was taken by the CAC. This item was a receive and file. 7. Consider Changing the CAC Regular Meeting Date and Time - The CAC approved to table this item to September 18, 2019. 8. Committee Members & Staff Comments - CAC member Katz wanted to know in light of the recent earthquake what kind of measures have the District taken to prepare for earthquakes. Staff informed CAC about EOC training and the improvements performed at pump stations. CAC member Lester wanted to clarify that the CAC had a spilt vote to approving a variable solid waste rate structure, which failed by one vote. She wants the Board to consider approving funding to perform a cart size analysis to determine where the carts are located. CAC member Lester also made comments about the Board's decision to approve a CPI increase of CR&R's fees to the District. Legal Review Not applicable Environmental Review Providing an overview of the CAC's July 17 2019 meeting is an administrative matter, which will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA. Financial Review There are no financial impacts to the District. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the August 22, 2019 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff. E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: August 22, 2019 Subject: Contribution Program Application for Newport-Mesa Schools Foundation's State of the Schools Breakfast Summary On July 23, 2019, the District received a Contribution Program Application from Pat Courter of the Newport-Mesa Schools Foundation. The Foundation is seeking a monetary contribution of $1,000 from the District to support its annual State of the Schools Breakfast, which will be held on October 2, 2019 at Estancia High School. Recommendation That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Newport-Mesa Schools Foundation; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $1,000 for the State of the Schools Breakfast. 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. Subject 2. Consider Contribution Program Application for Newport-Mesa Schools Foundation's State of the Schools Breakfast Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Action Preferred Date Aug 22, 2019 Absolute Date Aug 22, 2019 Fiscal Impact Yes Dollar Amount $1,000.00 Budgeted Yes Budget Source 10-100100-4420 & 20-100100-4420 (Public Information/Education/Community Promotions Sponsorships) Recommended Action That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Newport-Mesa Schools Foundation; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $1,000 for the State of the Schools Breakfast. Goals 4.0 Community Outreach & Communications 3.2 Strengthen our ties with local governments, Special districts and educational institutions As stated on the Contribution Program Application (Attachment A), the Newport-Mesa Schools Foundation is requesting a monetary contribution of $1,000 to sponsor the annual State of the Schools Breakfast. Organized by the Newport-Mesa Schools Foundation and the Newport-Mesa Unified School District (NMUSD), the State of the Schools Breakfast brings community members and schools together to share the accomplishments and upcoming goals of NMUSD students and educators. According to its website, the Newport-Mesa Schools Foundation is a non-profit organization that was established over 20 years ago to raise funds to augment necessary instructional programs for schools within NMUSD. Additionally, the Foundation provides grants to teachers in order to purchase supplies and materials for innovative new programs. District Board Members have attended this event in the past and the District sponsored the event in 2017 and 2018 in the amount of $1,000. Attachment B includes photos of sponsorship recognition at the 2017 and 2018 breakfasts on event signage, the event program, a certificate of appreciation, and the District's giveaway item (promoting the Alkaline Battery Recycling Program). The following sponsorship levels are available for the 2019 State of the Schools Breakfast: $2,500 - Breakfast Champion 6 tickets to the breakfast CMSD name and logo on welcome sign CMSD logo in welcome announcement and program 2 teacher grants in CMSD's name Pass for 2 to attend any NMUSD theater or sporting events VIP parking Opportunity to provide 250 "goodie bag" items with a promotional message $1,000 - Breakfast Partner 4 tickets to the breakfast CMSD logo in welcome announcement and program 1 teacher grant in CMSD's name VIP parking Opportunity to provide 250 "goodie bag" items with a promotional message $500 - Breakfast Friend 2 tickets to the breakfast CMSD logo in welcome announcement and program Opportunity to provide 250 "goodie bag" items with a promotional message If the Board of Directors wishes to sponsor this event, a finding can be made that the sponsorship would advance the District's purposes of recycling and source reduction by providing a "goodie bag" item that contains messaging to promote either the Alkaline Battery Recycling Program or the Pharmaceuticals dropbox. Both programs encourage the proper disposal of waste that can be hazardous to the environment. If the sponsorship is approved, the "goodie bag" item and the accompanying messaging would be distributed to all of the 250 attendees that are expected at the event. Legal Review District Counsel has reviewed the criteria and the law. The determination of whether the expenditure advances a District purpose (and is not a gift of public funds) is a matter within the Board’s discretion as long as it is based on substantial evidence." 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 available in the FY 2019-20 Public Information/Education/Community Promotions Sponsorships account for this $1,000 contribution. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 22, 2019 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the contribution of $1,000. 2. Approve an alternative contribution amount. 3. Refer the matter back to staff. File Attachments A - Contribution Request.pdf (182 KB) B - Past Sponsorship Recognition.pdf (11,436 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: August 22, 2019 Subject: Consider Approving Contribution Application for Costa Mesa-Newport Harbor Fish Fry 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 Contribution Program Application requesting that the District provide 4 generators for the Costa Mesa-Newport Harbor Lions Club Fish Fry event on September 20-22, 2019. Recommendation That the Board of Directors: 1. Establish the purpose the District is trying to serve by contributing; 2. Describe how the contribution will advance the District's purpose; and 3. Approve the Costa Mesa-Newport Harbor Lions Club's Contribution Application requesting 4 District generators for the Fish Fry event. 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. As stated on the application, the District will be provided with a booth at the event and sponsorship recognition on all event materials. Hosting a community booth at the event will allow District staff to engage with customers and share information about its special programs, such as the Organics Recycling Program, Large Item Collection, Door-to-Door Household Hazardous Waste Collection, various drop boxes (medications, sharps, and American flags), FOG recycling, and the Sewer Inspection Rebate Program. Additionally, District staff will host a recycling activity and promote its upcoming State of the District/75th Anniversary Open House event on October 12th. This engagement would advance the District's statutory purposes of solid waste collection, recycling, source reduction, and wastewater collection. Subject 3. Consider Approving Contribution Application for Costa Mesa-Newport Harbor Fish Fry Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Action Preferred Date Aug 22, 2019 Absolute Date Aug 22, 2019 Fiscal Impact No Recommended Action That the Board of Directors: 1. Establish the purpose the District is trying to serve by contributing; 2. Describe how the contribution will advance the District's purpose; and 3. Approve the Costa Mesa-Newport Harbor Lions Club's Contribution Application requesting 4 District generators for the Fish Fry event. Goals 4.0 Community Outreach & Communications 3.5 Participate in community groups and civic organization activities The District has loaned its mobile generators to the Club for the Fish Fry event in 2015, 2016, 2017, and 2018 Legal Review District Counsel has reviewed the criteria and the law. The determination of whether the loaning of generators advances a District purpose (and is not a gift of public funds) is a matter within the Board’s discretion as long as it is based on substantial evidence. Environmental Review The environmental review for the program that allows local non-profit groups to use the District’s small generators was originally completed when the concept was first discussed by the Board of Directors, and at that time, the program was found to have a negligible effect on the environment. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 22, 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 generators for the Fish Fry event. 2. Determine that the District may contribute to the Fish Fry event in a different capacity. File Attachments Contribution Application - Fish Fry Generators.pdf (1,198 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: August 22, 2019 Subject: Consider Approving Agreement with City of Newport Beach for collecting sewer flow from Certain City of Newport Beach Properties Summary On February 12, 2019, staff presented information to the Board regarding certain properties in the City of Newport Beach having their wastewater flow into the District's mainline, but the properties are located outside District boundaries, and therefore, these properties are not assessed a wastewater fee by the District for wastewater collection services. For the past 57 years, the City of Newport Beach paid CMSD a "capacity" fee for collecting and delivering wastewater to treatment facilities at Orange County Sanitation District. Recommendation That the Board of Directors considers Approving Agreement with City of Newport Beach for collecting sewer flow from Certain City of Newport Beach Properties. Analysis In the early 1960's, areas of Newport Beach were developed where the wastewater connects to the CMSD mainline instead of the typical connection to a City mainline. This was most likely done due to ease of connection, hydraulics, and/or costs. All the wastewater eventually goes to treatment facilities at Orange County Sanitation District (OCSD). On January 19, 1961, the Costa Mesa Sanitary District (CMSD) and the City of Newport Beach entered into their first agreement for 162 residential lots near the intersection of Irvine Avenue and 22nd Street. As more properties were developed, new contracts between the agencies were executed such as May 14, 1962 and September 1, 1971. The last agreement between CMSD and the City of Newport Beach was executed on August 9, 1979. An amendment of the agreement was entered into on December 12, 1991 where the fees increased, but the term and conditions of the 1979 Agreement remained the same. The agreement expired nearly twenty years ago on August 9, 1999, but CMSD and City officials have agreed to a "gentlemen" agreement where the City would continue paying the capacity fees to CMSD. Every year, CMSD sends an invoice to the City's Finance Department and the invoice is paid in full. A new ten-year Agreement has been drafted, which includes amending the number of lots being serviced, and is attached hereto. On August 13, 2019, the Newport Beach City Council unanimously approved the Agreement. On February 13, 2019, the Citizens Advisory Committee unanimously approved recommending the Board of Directors approve a new agreement with the City of Newport Beach for wastewater capacity fees. The next step is to consider annexing properties from Mesa Drive, Harbor Christian Church, Interpretive Center, Tract 4444, YMCA and Bay Corporate Plaza into CMSD's service area. Annexation will be brought back in the fall 2019 for Board consideration. If annexation is approved by Orange County Local Agency Formation Commission (LAFCO), the Agreement will be amended in which the City will continue paying capacity fees to the District for properties in Tract 3801. The remaining properties will have assessment fees applied to their property tax roll and appropriated to CMSD's budget. Legal Review Subject 4. Consider Approving Agreement with City of Newport Beach for Collecting Sewer Flow from Certain City of Newport Beach Properties Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors Considers Approving Agreement with City of Newport Beach for collecting sewer flow from Certain City of Newport Beach Properties Goals 1.0 Sewer Infrastructure 3.00 Partnerships 3.2 Strengthen our ties with local governments, Special districts and educational institutions District Counsel has reviewed and approved the Agreement. Environmental Review Providing information regarding the wastewater service boundaries between CMSD and City of Newport Beach is an administrative matter, which will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA. Financial Review The District will receive nearly $14,595.45 annually from the City of Newport Beach. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the August 22, 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 report back with more information. File Attachments Wastewater Collection Services Agreement.pdf (1,539 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: August 22, 2019 Subject: Adopt Ordinance No. 129 Amending the Operations Code to Provide A New Day and Time for the Monthly Regular Meetings Summary On July 25, 2019, the Board directed staff to bring back an ordinance that will change the day and time for regular monthly meetings. The Board wants to have regular meetings on the fourth Monday of the month at 4:30 pm. Recommendation That the Board of Directors Adopt Ordinance No. 129 Amending the Operations Code to Provide A New Day and Time for the Monthly Regular Meetings and begin the new meeting schedule effective January 2020. Analysis As per Board direction, attached is Ordinance No. 129 amending the Operations Code to provide a new day and time for monthly regular meetings. Due to upcoming holidays and potential confusion from the public, the new meeting date and time will not go into effect until January 2020. This will also give staff ample time to advertise and notify the public about the meeting change. The first meeting on the new date and time will be on January 27, 2020 at 4:30 pm. Legal Review District Counsel prepared Ordinance No. 129 Environmental Review Amending the Operations Code to provide a new day and time for the monthly regular meetings is an administrative matter, which will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA. Financial Review There are no financial impacts to the District for changing Board of Directors regular 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 August 22, 2019 Board of Directors meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions 1. Do not adopt Ordinance No. 129 and continue having Board of Directors regular meetings on the fourth Thursday of the month at 5:30 pm. 2. Direct staff to report back with more information. File Attachments Subject 5. Adopt Ordinance No. 129 Amending the Operations Code to Provide A New Day and Time for the Monthly Regular Meetings Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors Adopt Ordinance No. 129 Amending the Operations Code to Provide A New Day and Time for the Monthly Regular Meetings and begin the new meeting schedule effective January 2020. Goals 5.0 Administrative Management 5.4 Review and maintain Operations Code, policies and Administrative Regulations Ordinance No. 129 - Change Regular Bd Meeting.pdf (45 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Dyana Bojarski, Administrative Services Manager Date: August 22, 2019 Subject: Special District Risk Management Authority (SDRMA) Health Benefits Amended Memorandum of Understanding and Resolution Summary The Special District Risk Management Authority (SDRMA) provides coverage for the District's Health Benefits program that includes plans for Dental; Vision, Employee Assistance Program; Basic Life/AD&D; Supplemental Life; and Long Term Disability. In June 2019, the SDRMA Board of Directors approved amendments to the Memorandum of Understanding (MOU) between the District and SDRMA. These amendments were made to align the MOU with IRS guidelines, the Affordable Care Act, and the California State Association of Counties Excess Insurance Authority (CSAC-EIA) pool guidelines. In order to maintain the current benefits, the Board of Directors is required to execute the attached MOU and Resolution and submit to SDRMA by November 1, 2019. Analysis The SDRMA Board of Directors approved amendments to the MOU between the District and SDRMA in June 2019. These amendments were made to align the MOU with IRS guidelines, the Affordable Care Act, and the CSAC- EIA pool guidelines. CSAC-EIA is the organization that provides coverage for the Health Benefits Program. In July 2009, the District executed the original MOU and Resolution with SDRMA. Included in the original MOU, was language giving the SDRMA Board of Directors the authority to make amendments, subject to approval of the District's designated representative, or alternate, who has the authority to execute the Memorandum. Any entity that fails or refuses to execute the amendment to the attached MOU and Resolution shall be deemed by SDRMA to have withdrawn from the program on the next annual renewal date. Recommendation That the Board of Directors consider approving and execute the Special District Risk Management Authority (SDRMA) Health Benefits Amended Memorandum of Understanding and Resolution No. 2019-923. Legal Review The amendments were made to align the MOU with IRS guidelines, the Affordable Care Act and the CSAC-EIA pool guidelines. Subject 6. Consider Approving the Special District Risk Management Authority (SDRMA)Health Benefits Amended Memorandum of Understanding and Resolution No. 2019-923 Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Board of Directors consider approving and execute the Special District Risk Management Authority (SDRMA) Health Benefits Amended Memorandum of Understanding and Resolution No. 2019-923 Goals 5.0 Administrative Management Environmental Review Approval and execution of the Amended Memorandum of Understanding and Resolution 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 no financial impacts if the Board of Directors approves and executes the amended MOU and Resolution with SDRMA. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the August 22, 2019 Board of Directors meeting at District Headquarters and posted on the District's website at www.cmsdca.gov Alternative Actions 1. That the Board of Directors not approve and execute the amended MOU and Resolution with SDRMA and terminate benefits effective January 1, 2020. File Attachments SDRMA Memorandum of Understanding.pdf (253 KB) SDRMA Resolution.pdf (89 KB) F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: August 22, 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 ten capital improvement projects that are in progress or will soon begin. Legal Review Not Applicable. Environmental Review The capital improvement project status report is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Each of the individual projects does go through an environmental review at the time the project is proposed and when the project is started. 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 August 22, 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 August 2019 Mtg.pdf (642 KB) Subject 1. Receive and File the Monthly Capital Improvements Project Status Report Meeting Aug 22, 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 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 Aug 22, 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 Aug 22, 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 Aug 22, 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 Aug 22, 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 Aug 22, 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 Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Information L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Discussion O. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON SEPTEMBER 19, 2019 IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Aug 22, 2019 - Board of Directors Regular Meeting Access Public Type Procedural