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2020_01_27_boardMonday, January 27, 2020 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 4:30 P.M. Public Comments: Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to four minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. In Compliance with ADA: Contact Acting District Clerk, Gina Terraneo, 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. ADJOURN TO CLOSED SESSION 1. Discussion of the annual personnel evaluation of the General Manager pursuant to Government Code Section 54957 2. Discussion of compensation for the General Manager and providing the Board President with authority to negotiate with the General Manager pursuant to Government Code Section 54957.6 C. RECONVENE TO OPEN SESSION 1. Announce any reportable action taken in closed session D. 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 E. 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 December 10, 2019 3. Approve the Board of Directors Regular Meeting Minutes of December 19, 2019 4. Approve the Revised Board of Directors Regular Meeting Minutes of July 26, 2018 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Adopt Warrant Resolution No. CMSD 2020-07 Approving District Warrant Registers 7. Payroll Transparency Disclosure for December 2019 8. Accept the occupancy count as presented as 22,908 and direct staff to prepare a warrant to CR&R Environmental Services for $237,407.06 for December 2019 collection 9. Approve the preparation of a warrant to CR Transfer in the amount of $211,102.16 for December 2019 recycling and disposal services in the January 2020 warrant register 10. Contracts Signed by the General Manager 11. Citizens Advisory Committee (CAC) January 8, 2020 Meeting Overview F. PUBLIC HEARINGS G. GENERAL MANAGER'S REPORTS 1. Consider Dismissing Citizens Advisory Committee Members Albert Graham Jr. and Steven Takahashi 2. Consider Estancia High School Baseball Boosters Contribution Program Application 3. Consider Approving out-of-state travel for the Finance Manager and the Accountant to attend the 2020 Springbrook User Conference in Portland, Oregon on May 11-13,2020. 4. Consider Approving Out-of-State Travel for Maintenance Wastewater Superintendent, Steve Cano and Maintenance Worker Maintenance Worker 1, John Merlo for attending AC20 Conference in Reno Nevada 5. 2019 Year End Report 6. Receive and File the 2015-20 Strategic Plan Quarterly Update - FY 2019-20 2nd Quarter 7. Recieve and File the Fiscal Year 2019-20 Budget Review – Mid-Year 8. Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2019 9. Refund of Sanitary Assessment - APN 422-022-11 Hamilton Street 10. Refund of Sanitary and Trash Assessment - APN 422-102-09 Bernard Street 11. Consider Giving the General Manager the Authority to Auction 2015 Kenworth Vacall Sewer Combination Truck (Unit 1014) 12. Receive and File General Manager's 2019 Performance Goals and Consider Approving His Proposed 2020 Performance Goals 13. Performance Measurement Program - 2019 Annual Report 14. District Engineer 15. Consider Naming District Facility After the Late Robin Hamers H. ENGINEER'S REPORTS 1. Receive and File the Monthly Capital Improvements Project Status Report I. TREASURER'S REPORTS 1. Investment Report for the Month of December 2019 J. ATTORNEY'S REPORTS 1. 2277 Harbor Blvd., Costa Mesa Approving Vacation of District Sewer Main and Easement Quitclaim Deed K. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code Section 3.01.030.  For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (President Ferryman) 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) 4. California Special Districts Association (CSDA) - (Secretary Schafer) 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 L. OLD BUSINESS M. NEW BUSINESS N. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments O. CLOSING ITEMS 1. Adjourn in memory of Robin Hamers Monday, January 27, 2020 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 4:30 P.M. Public Comments: Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to four minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. In Compliance with ADA: Contact Acting District Clerk, Gina Terraneo, 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 Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ferryman Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Ooten Meeting Jan 27, 2020 - 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 Jan 27, 2020 - 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 Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Procedural B. ADJOURN TO CLOSED SESSION To discuss the annual personnel evaluation of the General Manager pursuant to Government Code Section 54957. Subject 1. Discussion of the annual personnel evaluation of the General Manager pursuant to Government Code Section 54957 Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Discussion B. ADJOURN TO CLOSED SESSION To discuss compensation for the General Manager and provide the Board President with authority to negotiate with the General Manager pursuant to Government Code Section 54957.6. Any final compensation negotiation will be subject to further proceedings on a publicly noticed agenda. Subject 2. Discussion of compensation for the General Manager and providing the Board President with authority to negotiate with the General Manager pursuant to Government Code Section 54957.6 Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Discussion C. RECONVENE TO OPEN SESSION Announce any reportable action taken in closed session. Subject 1. Announce any reportable action taken in closed session Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type D. 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 Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Procedural E. 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 Jan 27, 2020 - 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. E. 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 & District Clerk Date: January 27, 2020 Subject: Approve the Board of Directors Study Session Minutes of December 10, 2019 Summary The recorded minutes of the December 10, 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 December 10, 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 January 27, 2020 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 December 10, 2019 Meeting Jan 27, 2020 - 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 Dec 10, 2019 - Board of Directors Study Session minutes_2019_12_10_ss.pdf (126 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. 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/District Clerk Date: January 27, 2020 Subject: Approve the Board of Directors Regular Meeting Minutes of December 19, 2019 Summary The recorded minutes of the December 19, 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 December 19, 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 January 27, 2020 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 December 19, 2019 Meeting Jan 27, 2020 - 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 Dec 19, 2019 - Board of Directors Regular Meeting minutes_2019_12_19_rm.pdf (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. 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 & Acting District Clerk Date: January 27, 2020 Subject: Approve the Revised Board of Directors Regular Meeting Minutes of July 26, 2018 Summary The revised minutes of the July 26, 2018 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 revised meeting minutes as presented. Analysis Attached to the staff report are the revised minutes for the Board of Directors Regular Meeting on July 26, 2018. Upon review of these minutes, District staff identified a typographical error on page 9 that impacts the motion that was made with regard to Item D5 related to the sequencing of by-district voting elections. District staff reviewed the item's staff report, as well as the meeting video and audio to confirm that the error was typographical. The recommended revision will reflect the motion made and voted upon by the Board of Directors. 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 January 27, 2020 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions Subject 4. Approve the Revised Board of Directors Regular Meeting Minutes of July 26, 2018 Meeting Jan 27, 2020 - 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 26, 2018 - Board of Directors Regular Meeting 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2018_7_26_rm_rev_tracked_changes.pdf (215 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. 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/District Clerk Date: January 27, 2020 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 January 27, 2020 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 (2,548 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Jan 27, 2020 - 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_reimbursement.pdf (688 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. 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 2020-07.pdf (122 KB) Subject 6. Adopt Warrant Resolution No. CMSD 2020-07 Approving District Warrant Registers Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2020-07 approving District warrants for the month of December in the amount of $760,221.68. E. 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: January 27, 2020 Subject: Payroll Transparency Disclosure for December 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 January 27, 2020 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 December 2019 Meeting Jan 27, 2020 - 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 4.7 Demonstrate outstanding efforts in transparency 7.0 Finance File Attachments Payroll Transparency Disclosure Dec 2019.pdf (174 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. 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: January 27, 2020 Subject: Accept the occupancy count as presented as 22,908 and direct staff to prepare a warrant to CR&R Environmental Services for $237,407.06 for December 2019 collection Summary Accept the occupancy count as presented using 22,908 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,407.06 to be ratified in the January 2020 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,908 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,407.06 to be ratified in the January 2020 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. As of December 31, 2019, total District occupancy was at 22,908 with eighteen (18) new 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 December 2019: 22,908 x $10.3635 =$237,407.06 Legal Review Not Applicable Environmental Review Subject 8. Accept the occupancy count as presented as 22,908 and direct staff to prepare a warrant to CR&R Environmental Services for $237,407.06 for December 2019 collection Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors accept the occupancy count as presented using 22,908 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,407.06 to be ratified in the January 2020 warrant list. 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 January 27, 2020 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 2019-12-G CMSD Occupancy Report.pdf (138 KB) E. 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: January 27, 2020 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $211,102.16 for December 2019 recycling and disposal services in the January 2020 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 of 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 $211,102.16 for December 2019 recycling and disposal services to be ratified in the January 2020 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 $0.04, but CMSD will be paying the amount billed. Costa Mesa Newport Beach Total Residential Waste $154,712.04 $2,376.78 $157,088.82 Organics $54,013.34 $54,013.34 Total Payment $211,102.16 Tonnage Residential Waste 2,813.97 43.23 2,857.20 Organics 713.99 713.99 Total Tonnage 3,571.19 Legal Review Not Applicable Subject 9. Approve the preparation of a warrant to CR Transfer in the amount of $211,102.16 for December 2019 recycling and disposal services in the January 2020 warrant register Meeting Jan 27, 2020 - 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 $211,102.16 for December 2019 recycling and disposal services to be ratified in the January 2020 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 January 27, 2020 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. E. 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: January 27, 2020 Subject: Contracts Signed by General Manager Summary At the January 27, 2020 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 December 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 December 2019. Contracts 1. National Plant Services – Cleaning over 100,000 feet of sewer pipe to help District catch up on cleaning schedule. Cost: $66,368.25 2. ADS Environmental Services First Amendment – Temporary monitoring the sewer flow of the Mendoza Pump Station Tributary Area to analyze inflow. Cost: $13,000.00 3. Waste Management – Pharmaceutical drop off/collection program. Cost: $125.00 per collection and $4.85 per pound Purchase Orders 4. Orange Coast Electric – Procuring and installing LED lights at the Yard. Cost: $1,270.00 5. Golden Bell – Spraying sewer system to mitigate roaches. Cost: $24,997.50 6. Ken Grody Ford – Purchase F-350 Utility Truck for wastewater operations. Cost: $56,441.57 Total Contracts Signed in 2019 In 2019, the General Manager signed 52 contracts and purchase orders totaling $1,052,702.89. In addition, the District generated $5,830 in revenues for renting office space to Second Chance Orange County. Legal Review All contracts are reviewed and approved by District Counsel before contracts are executed. Subject 10. Contracts Signed by the General Manager Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action (Consent) Fiscal Impact No Budgeted Yes Recommended Action That the Board of Directors receive and file this report Goals 5.0 Administrative Management 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 January 27, 2020 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. E. 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: January 27, 2020 Subject: Citizens Advisory Committee (CAC) January 8, 2020 Meeting Overview Summary The following is an overview of the topics discussed by the CAC at their January 8, 2020 meeting. Recommendation That the Board of Directors receive and file this report. Analysis There were six items on the January 8 agenda that are described below. Public Comments - There were no public comments. 1. Approve the Citizens Advisory Committee Meeting Minutes of November 13, 2019 - The minutes were unanimously approved. 2. Review Approved Board of Directors Regular Meeting Minutes of November 21, 2019 - The CAC inquired if the Board is reading the staff report regarding CAC meeting overviews when it's on the consent calendar. Staff informed the CAC that the Board does read all the staff reports on the agenda, including staff reports on the consent calendar. Staff informed the CAC that any Board Member can pull any items off the consent calendar for discussion. 3. Review Draft Board of Directors Regular Meeting Minutes of December 19, 2019 - Staff informed the CAC that the Board discussed and/or took action on CR&R's Performance Audit. Staff informed the CAC that this item will be brought back to the CAC for discussion. Staff also informed the Board about the table top exercise conducted in the District's Emergency Operation Center. 4. Inflow & Infiltration (I/I): Mendoza Pump Station Smoke Test FINDINGS - Staff shared the smoke test findings with the CAC and informed members there were no significant defects in the system that are causing inflow. However, the consultant has made three recommendations that included notifying property owners of the defects found on their property, evaluating street flooding to consider sealing manholes, and installing flow monitoring devices at locations within the tributary area. Staff informed the CAC that two of the recommendations (evaluating street flooding and installing flow monitoring devices) are currently underway. Staff informed the CAC that as a result of the December rain events, it is believed that the inflow is coming from the Orange County Fairgrounds. Staff will be visiting the OC Fairgrounds during the next significant storm event to try to find any openings that lead to inflow into the system. Subject 11. Citizens Advisory Committee (CAC) January 8, 2020 Meeting Overview Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action (Consent) Fiscal Impact No Recommended Action That the Board of Directors receive and file this report. Goals 5.0 Administrative Management 5. #318 President Pump Station Reconstruction Recommendation for Alternative 2 UPDATE - Staff informed the CAC that the structural engineering study of the existing concrete pump station structure is sound for use as an emergency storage vault and the District is now proceeding finalizing the designs. Staff thanked the CAC for their recommendation on Alternative 2 for this project, which will save the district hundreds of thousands of dollars. 6. Consideration of new Appointee to Policy Review Ad Hoc Committee. Staff informed the CAC that Committee Member Takahashi has not attended any of the Policy Review Ad Hoc Committee meetings, and he has not responded to any of staff's attempts to contact him. Staff recommended that the CAC consider appointing another member to the Policy Review Ad Hoc Committee. The CAC unanimously approved appointing Sue Lester to the Committee. Committee Members & Staff Comments - Committee Member Lester commented and commended the District for participating in the Zero Waste workshop at Orange Coast College. She said if everyone finds at least one thing we can reuse and not throw away, it can make a significant difference. Committee Member Lester also thanked the District and the Board for the holiday dinner. Committee Member Lester also congratulated Nabila Guzman for being selected the District's Employee of the Year, and she inquired about what the District is going to do about CAC members that do not attend CAC meetings. Staff informed the CAC that a recommendation will be brought forward to the Board recommending removing these members from the CAC. Chairman Carey passed on a message from CAC Member Nielson that he regrets not attending tonight's meeting and thanked the District for the holiday dinner. Legal Review Not applicable Environmental Review Providing an overview of the CAC's January 8, 2020 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 January 27, 2020 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. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 27, 2020 Subject: Consider Dismissing Citizens Advisory Committee Members Albert Graham Jr. and Steven Takahashi Summary On October 26, 2017, the Board of Directors approved establishing a Citizens Advisory Committee (CAC) to study relevant issues, advise on subjects and make recommendations and comments to the Board of Directors. The CAC provides citizen involvement and a channel of public communication to the Board. Recommendation That the Board of Directors considers dismissing Albert Graham Jr. and Steven Takahashi from serving on the Citizens Advisory Committee (CAC) and direct staff to solicit applications to fill the two CAC vacancies. Analysis The CAC is guided by the policies described in the CAC Handbook. According to Section IV.C., CAC members are expected to attend all meetings and should make every effort to do so. Unless for an excused absence, unexcused absences that exceed more than three meetings a year would establish a basis for dismissal by the Chair. The CAC year is from May to May. To date the CAC has had meetings in May, July, September and November 2019 and January 2020. Vice Chair Albert Graham Jr. had unexcused absences for all five meetings and CAC Member Steven Takahashi had unexcused absences for four out of the five meetings. In addition, CAC Member Takahashi was absent from the October 10, and December 4, 2019 Policy Review Ad Hoc Committee. Staff has repeatedly tried to make contact with Vice Chair Graham Jr. and CAC Member Takahashi via email, telephone, and mail, but both members have not made contact with staff. Chairman Mike Carey supports the dismissal of Vice Chairman Albert Graham Jr. and Steven Takahashi. 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 There are not financial impacts to the District for dismissing CAC members. Public Notice Process Subject 1. Consider Dismissing Citizens Advisory Committee Members Albert Graham Jr. and Steven Takahashi Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Board of Directors considers dismissing Albert Graham Jr. and Steven Takahashi from serving on the Citizens Advisory Committee (CAC) and direct staff to solicit applications to fill the two CAC vacancies. Goals 5.0 Administrative Management Copies of this report are on file and will be included with the complete agenda packet for the January 27, 2020 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions 1. Vice Chair Graham Jr.'s term on the CAC expires in May 2020. The Board can do nothing and wait until his term expires before soliciting applications for his replacement. CAC Member Takahashi term expires in 2021, so it would be prudent to dismiss Mr. Takahashi now and begin soliciting applications for his replacement. 2. Direct staff to report back with more information. G. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II & Acting District Clerk Date: January 27, 2020 Subject: Consider Estancia High School Baseball Boosters Contribution Program Application Summary On December 12, 2019, the District received a Contribution Program Application from the Estancia High School Football Boosters Program to request a monetary contribution of $525 for a 7'x12' outfield banner, Facebook advertising, and website advertising. 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 Contribution Application, the Estancia Baseball Boosters are requesting $525 for a 7'x12' outfield banner for their 2020 baseball season. Below are the sponsorship options: Gold Sponsorship - $525 for a 7'x12' outfield banner, Facebook advertising, & website advertising Cardinal Sponsorship - $375 for a 4'x6' batting cage banner, Facebook advertising, & website advertising Eagle Sponsorship - $200 for Facebook advertising & website advertising On December 22, 2016, the Board of Directors approved a contribution of $500 for a 3'x5' outfield banner to promote the Organics Recycling Program. The banner artwork is attached to the staff report. Subject 2. Consider Estancia High School Baseball Boosters Contribution Program Application Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $525.00 Budgeted Yes Budget Source Solid Waste Public Info/Ed/Promo (10-100100-4420) Recommended Action That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High School Baseball Boosters Program; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $525 for a 7'x12' outfield banner, as well as Facebook and website advertisements. Goals 3.00 Partnerships 3.2 Strengthen our ties with local governments, Special districts and educational institutions 4.0 Community Outreach & Communications 4.4 District branding If the Board of Directors wish to sponsor a banner, a finding can be made that the banner meets the District's statutory purpose of recycling through the promotion of the Organics Recycling Program. The language on the proposed banner encourages residents to "recycle green waste and food scraps into renewable natural gas & compost." The proposed banner artwork matches the banners that are currently hanging in the Estancia and Costa Mesa High School football stadiums. Lastly, it is estimated that the banner will reach approximately 1,500 District customers during the team's 27-game season. Recommendation That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High School Baseball Boosters Program; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $525 for a 7'x12' outfield banner, as well as Facebook and website advertisements. Legal Review Not applicable. Environmental Review The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting a District recycling program is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review Currently, there are sufficient funds available in the FY 2019-20 Soli d Waste Public Information/Education/Community Promotions Sponsorships account for a $525 contribution. A total of $4,000 is budgeted for sponsorships during FY 2019-2020. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 27, 2020 Board of Directors Regular Board Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the contribution of $525. 2. Approve an alternative contribution amount of $375 for a 4'x6' batting cage banner or $200 for Facebook and website advertisements. 3. Refer the matter back to staff. File Attachments contribution_application.pdf (723 KB) 2017 Banner Artwork.pdf (548 KB) Proposed 2020 Banner Artwork.pdf (2,389 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: January 27, 2020 Subject: Consider Approving out-of-state travel for the Finance Manager and the Accountant to attend the 2020 Springbrook User Conference in Portland, Oregon on May 11-13,2020. Summary The Costa Mesa Sanitary District Operations Code Section 3.02.070 Staff Expenses requires prior Board approval for staff to travel out-of-state for conferences, meetings, seminars or related matters. Accela Springbrook, the District’s accounting software provider, holds its annual conference in Portland, Oregon from May 11-13, 2020. The adopted budget for fiscal year 2019-20 includes sufficient funds for the Finance Manager, Kaitlin Tran and the Accountant, Lieu Tran to attend the conference. Recommendation: That the Board of Directors Consider Approving Out-of-State Travel For the Finance Manager and the Accountant to attend the 2020 Springbrook User Conference in Portland, Oregon on May 11-13, 2020. Analysis Accela, a provider of Springbrook Software, holds an annual conference to provide software updates, introduce new features, and provide education/networking opportunities for their users. Attendance at the conference will offer an excellent opportunity for staff to discuss issues related to the upgrade and needed improvements as well as network with other local governments using the Springbrook platform. The adopted budget estimated cost of two attendees is as follows: Registration $1,500 Lodging $1,400 Airfare $800 Meals/Transportation/Misc.$200 Total $3,900 Legal Review Not Applicable. Environmental Review Subject 3. Consider Approving out-of-state travel for the Finance Manager and the Accountant to attend the 2020 Springbrook User Conference in Portland, Oregon on May 11-13,2020. Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Budgeted Yes Recommended Action That the Board of Directors Consider Approving Out-of-State Travel For the Finance Manager and the Accountant to attend the 2020 Springbrook User Conference in Portland, Oregon on May 11-13, 2020. Goals 3.4 Participate in the activities of professional associations 6.0 Personnel/Organizational Management 6.7 Promote high employee satisfaction 7.0 Finance Attendance at a conference is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review There are sufficient funds budgeted in the Finance Staff Development account of $3,900 for the 2019-20 fiscal year. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions Do not approve the conference attendance. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 27, 2020 Subject: Consider Approving Out-of-State Travel for Maintenance Wastewater Superintendent, Steve Cano and Maintenance Worker Maintenance Worker 1, John Merlo for attending AC20 Conference in Reno, Nevada Summary 2020 will be the first year when two water environment associations from two different states will have a joint conference. From March 31 through April 3, the California Water Environment Association (CWEA) and the Nevada Water Environment Association (NWEA) will have a joint conference in Reno. Recommendation That the Board of Directors Approve Out-of-State Travel for Maintenance Wastewater Superintendent, Steve Cano and Maintenance Worker Maintenance Worker 1, John Merlo for attending AC20 Conference in Reno, Nevada. Analysis The CWEA's annual conference is one of the highly anticipated events of the year for wastewater professionals. For several days there are technical break-out sessions regarding wastewater collection maintenance and management, and the conference attracts hundreds of vendors to showcase the latest technology and experiences for the profession. Some of the technical break-out sessions scheduled for the 2020 conference include the following: Strategies for Aging Collection Systems Asset Management Easements 101 Revised Waste Discharge Requirements OSHA requirements Nozzle Physics: Make Informed Decisions on Your Tools Selection Root foaming Below is a link to the conference that includes a brochure that can be downloaded from the site. https://ac.cwea.org/register/ Legal Review Subject 4. Consider Approving Out-of-State Travel for Maintenance Wastewater Superintendent, Steve Cano and Maintenance Worker Maintenance Worker 1, John Merlo for attending AC20 Conference in Reno Nevada Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Budgeted Yes Recommended Action That the Board of Directors Approve Out-of-State Travel for Maintenance Wastewater Superintendent, Steve Cano and Maintenance Worker Maintenance Worker 1, John Merlo for attending AC20 Conference in Reno, Nevada. Goals 1.0 Sewer Infrastructure 3.00 Partnerships 3.4 Participate in the activities of professional associations 6.0 Personnel/Organizational Management 6.7 Promote high employee satisfaction Not applicable Environmental Review Attendance at a seminar is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review There is $3,9000 included in the adopted budget for two staff members to attend this conference. There are sufficient funds available to cover for this expense. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 Board of Directors meeting at District Headquarters and on the District's website at www.cmsdca.gov. Alternative Actions 1. Do not send any employees to the AC20 Conference in Reno Nevada 2. Direct staff to report back with more information. G. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II & Acting District Clerk Date: January 27, 2020 Subject: 2019 Year End Report Summary Each year, the District produces a document highlighting the accomplishments achieved during the previous year. The 2019 Year- End Report is now complete and available for viewing. Recommendation That the Board of Directors receive and file this report. Analysis Thanks to the dedicated and professional staff of the Costa Mesa Sanitary District and the leadership and vision of the Board of Directors, the organization achieved extraordinary results in 2019, as demonstrated by the highlights listed below: Adopted biennial budget for Fiscal Years 2019-20 & 2020-21 Conducted Solid Waste Rate Study & implemented first solid waste rate increase in 15 years Hosted first-ever Compost Giveaway & Clothing Donation Event Promoted District solid waste programs at International City/County Management Association (ICMA) conference in Qingdao, China Hosted professional fellows from Laos & Cambodia through Young Southeast Asian Leadership Initiative (YSEALI) Celebrated Board President Jim Ferryman's 30 years of service on the Board of Directors Established free public sandbag filling station at District Yard Launched 75th Anniversary outreach campaign, including promotional videos, branded giveaway items, & an Open House event Completed a Citizen Survey of 500 residents to gauge customer awareness, satisfaction, preferred communication methods, & areas of improvement Installed solar panels at District headquarters Competed capital improvement projects, including the replacement of the Indus and Canyon force mains, rehabilitation of Canyon Pump Station, and completion of Phase 11 of Grade 5 sewer line segments The entire report is attached and available for review. Legal Review Not applicable. Environmental Review A document describing the District's 2019 year end accomplishments 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 Not applicable. Subject 5. 2019 Year End Report Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file this report. Goals 4.0 Community Outreach & Communications 5.0 Administrative Management Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 Board of Directors meeting at District Headquarters and on the District's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments 2019 Year-End Report.pdf (39,911 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 27, 2020 Subject: Receive and File 2015-20 Strategic Plan Quarterly Update - FY 2019-20 2nd Quarter Summary On May 28, 2015, the Board of Directors adopted the 2015-2020 Strategic Plan, which is a plan that establishes goals, objectives, strategies and work plans for the next five years and will help move the organization in a direction toward achieving its mission and vision. Attached is the quarterly update that demonstrates the progress staff is making toward achieving the strategic goals. Recommendation That the Board of Directors receive and file this report. Analysis Strategic Goals 3.4, 4.5 and 6.1 were completed in the second quarter. The on-going goals have been updated and described in more detail in the attachment. The next quarterly update will be the third quarter in FY 2019-20 and will be presented to the Board on April 27, 2020. Legal Review Not applicable Environmental Review The District’s Strategic Plan is a planning document and preparation and adoption of the plan itself is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. The environmental review of each of the efforts or projects outlined in the Strategic Plan will occur when the Board of Directors specifically considers each of the items since that is when the full scope of work of each effort or project will be described. Financial Review Activities described in the strategic goals are funded in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 Board of Directors regular meeting at CMSD headquarters (290 Paularino Avenue) and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. Subject 6. Receive and File the 2015-20 Strategic Plan Quarterly Update - FY 2019-20 2nd Quarter Meeting Jan 27, 2020 - 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 1.0 Sewer Infrastructure 2.00 Solid Waste 3.00 Partnerships 4.0 Community Outreach & Communications 5.0 Administrative Management 6.0 Personnel/Organizational Management 7.0 Finance File Attachments Qtly Progress Rpt 2019-20 - 2nd Qtr.pdf (554 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: January 27, 2020 Subject: Receive and File the Fiscal Year 2019-20 Budget Review – Mid-Year Summary This report serves as a summary of the District’s spending through December 31, 2019 as well as staff’s best estimate of projected balances for the year-ended June 30, 2020. Recommendation That the Board of Directors receive and file the Fiscal Year 2019-20 Budget Review – Mid-Year. Analysis Based on the spending trends through December 31, 2019, staff is projecting a minimal savings in the Solid Waste Fund and the Wastewater Fund. As of December 31, 2019, a total of 48.1% of the Solid Waste budget for the 2019-20 fiscal year has been expended. At this time, staff anticipates a budgetary savings of $57,300 at fiscal year-end. A total of 46.5% of the Wastewater Fund’s operating budget has been expended as of December 31, 2019. At this time, staff anticipates a budgetary savings of $167,800 at fiscal year-end. Please see the attached report for a more detailed analysis. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions Subject 7. Recieve and File the Fiscal Year 2019-20 Budget Review – Mid-Year Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Budgeted Yes Recommended Action That the Board of Directors receive and file the Fiscal Year 2019-20 Budget Review – Mid- Year. Goals 7.0 Finance Refer the matter back to staff for additional information. File Attachments A-FY 2019-20 Mid-Yr Budget Analysis.pdf (1,171 KB) B-Expenditure Analysis Through 12312019 .pdf (125 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: January 27, 2020 Subject: Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2019. Summary The Government Finance Officers Association (GFOA) established the Popular Annual Financial Reporting Program (PAFR) to encourage governments to take information from their Comprehensive Annual Financial Report (CAFR) and condense it into a smaller, easily understandable document that the general public can read without having a background in finance. The GFOA then recognizes governments for their achievement. The District has won this prestigious award from Fiscal Year 2014-15 to Fiscal Year 2017-18. The PAFR for the year ending June 30, 2019 has been completed and submitted to the GFOA. It is attached for your review. Recommendation That the Board of Directors receive and file the Popular Annual Financial Report for the year ended June 30, 2019. Analysis According to GFOA's website, the GFOA established the Popular Annual Financial Reporting Awards Program (PAFR Program) in 1991 to encourage and assist state and local governments to extract information from their CAFR to produce high quality popular annual financial reports specifically designed to be readily accessible and easily understandable to the general public and other interested parties without needing a background in public finance, and then to recognize individual governments that are successful in achieving that goal. The PAFR is another tool to demonstrate an agency's transparency efforts because it takes a large comprehensive finance report, the CAFR, and condenses it to several pages using graphs and charts so that the public can easily understand the spending trend of their local government. Surprisingly, not many municipalities and special districts in California received the PAFR award from GFOA. In 2018, only sixteen municipalities received the PAFR award (Huntington Beach and Fullerton are the only cities in Orange County to receive the award), and only six special districts received it (CMSD is the only special district in Orange County to receive the award). Special recognition goes to CMSD's Finance Department (Kaitlin Tran and Lieu Tran) for creating another outstanding PAFR! Legal Review Not applicable. Environmental Review The preparation of financial statements is an administrative action that is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Subject 8. Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2019 Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors receive and file the Popular Annual Financial Report for the year ended June 30, 2019. Goals 7.7 Create a popular report and upload document on the District’s website 7.0 Finance Financial Review The only financial impact is the application cost of $225, which was included in the District’s budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 Board of Directors regular meeting at District Headquarters and on District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments PAFR Final 2019.pdf (2,990 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. G. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: January 27, 2020 Subject: Refund of Sanitary Assessment - APN 422-022-11 Hamilton Street Summary The District's wastewater assessment on parcel APN 422-022-11, has been incorrectly charged since 2006. District staff has already refunded Mr. Michael Brick the difference between the charges placed and what was owed over the last four years. Mr. Brick is seeking a refund for the other ten years. Recommendation That the Board of Directors provide direction to staff on refund for APN 422-022-11. Analysis Attached is a request from Mr. Michael Brick to refund the District's wastewater assessment fees charged on assessor's parcel number 422-022-11, located at 552 Hamilton Street, Unit A1, Costa Mesa. This property is a single-family home and it was entered into the District's billing system correctly from 2003 through 2006. District staff changed the property from a single-family home to a multi-family home with six units in 2006. From FY 2006-2007 to FY 2019-2020, this home was incorrectly charged a wastewater rate. Mr. Brick has been in contact with staff regarding a refund for the amount overpaid. Per Ordinance 124 (adopted last year), the General Manager has the authority for minor refunds under $5,000, so on December 6, 2019 Mr. Brick was refunded $1,380.51. Mr. Brick is now seeking a refund for wastewater assessment overpayment from FY 2006-2007 to FY 2015-2016 in the amount of $3,501.57. Below is a chart illustrating the charges placed on the property per year, the charge that was actually owed and the difference due. Fiscal Year Sewer Charge Placed Actual Charge Owed Overpayment - Refunded 2019-20 $325.26 $92.38 $232.88 2018-19 $325.26 $92.38 $232.88 2017-18 $554.28 $92.38 $461.90 2016-17 $543.42 $90.57 $452.85 Total $1,748.22 $367.71 $1,380.51 Fiscal Year Sewer Charge Placed Actual Charge Owed Overpayment - Requested Refund 2015-16 $532.74 $88.79 $443.95 2014-15 $522.30 $87.05 $435.25 2013-14 $512.04 $85.34 $426.70 2012-13 $414.00 $69.00 $345.00 Subject 9. Refund of Sanitary Assessment - APN 422-022-11 Hamilton Street Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors provide direction to staff on refund for APN 422-022-11 2011-12 $414.00 $69.00 $345.00 2010-11 $414.00 $69.00 $345.00 2009-10 $414.00 $69.00 $345.00 2008-09 $380.88 $63.48 $317.40 2007-08 $355.44 $59.24 $296.20 2006-07 $242.48 $40.41 $202.07 Total $4,201.88 $700.31 $3,501.57 Legal Review This matter is governed by the Tort Claims Act, Government Code Section 53082, the gift of public funds doctrine (Cal Constit. Art. 16, Section 6), and Costa Mesa Sanitary District Operations Code Chapter 9.02. Generally, the Board adopted a policy that for sewer charges paid for which no service was provided (after 1992), that recovery was limited to the period of 180 days from the date of payment if a claim was filed within that time period. 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 additional $3,501.57 refund requested is detailed in the Analysis section and would be paid from assessments collected in the current fiscal year. The tax roll will be corrected from “multi-family home with six units” to “Single Family” for fiscal year 2020-21 wastewater assessments. Mr. Brick was refunded $1,380.51 on December 6, 2019, for wastewater overpayment from FY 2016-17 to FY 2019-20. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 27, 2020 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. File Attachments Mr. Brick Request.pdf (227 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: January 27, 2020 Subject: Refund of Sanitary and Trash Assessment - APN 422-102-09 Bernard Street Summary The District's wastewater and trash assessment on parcel APN 422-102-09 has been incorrectly charged. Mrs. Soffer is requesting a refund for overpayment of wastewater and trash assessment over the last four years for a total of $2,025.38. Recommendation That the Board of Directors provide direction to staff on refund for APN 422-102-09 Analysis Attached is a request from Mrs. Michiko Soffer to refund the District's wastewater and trash assessment fees charged on the assessor's parcel number 422-102-09, located at 540 Bernard Street, Costa Mesa. Details for this property were provided by the City of Costa Mesa and uploaded into the District's billing system based on what the City categorized this property. The City has this property listed as a multi-family home with three units. Over the years this home has been overcharged for trash and wastewater services. Mrs. Soffer met with District staff in December 2019 to review charges placed on her property. Staff has confirmed this property is a single-family home and contacted the City of Costa Mesa to verify that they still have this property listed as a multi- family home with three units. The District Counsel is of the opinion that there is a 180 day limit on refund claims for refunds for service after 1991. Nevertheless, staff recommends that the Board of Directors approve a refund for fiscal year 2016-17 through fiscal year 2019-20 in the amount of $2,025.38. Below is a breakdown of costs, $279.62 for wastewater overpayment and $1,745.76 for trash overpayment. FY Sewer Charge Placed Actual Charge Owed Difference Trash Charge Placed Actual Charge Owed Difference 19-20 $162.63 $92.38 $70.25 $674.64 $224.88 $449.76 18-19 $162.63 $92.38 $70.25 $648.00 $216.00 $432.00 17-18 $162.62 $92.38 $70.24 $648.00 $216.00 $432.00 16-17 $159.45 $90.57 $68.88 $648.00 $216.00 $432.00 Total $647.33 $367.71 $279.62 $2,618.64 $872.88 $1,745.76 Legal Review This matter is governed by the Tort Claims Act, Government Code Section 53082, the gift of public funds doctrine (Cal Constit. Art. 16, Section 6), and Costa Mesa Sanitary District Operations Code Chapter 9.02. Generally the Board adopted a policy that for sewer charges paid for which no service was provided (after 1992), that recovery was limited to the period of 180 days from the date of payment if a claim was filed within that time period. With regard to trash overcharges, Government Code Section 53082 would not apply, so the claimant would be entitled to refund of amounts paid within one year of filing the claim, pursuant to the Tort Claims Act. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities Subject 10. Refund of Sanitary and Trash Assessment - APN 422-102-09 Bernard Street Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review The $2,025.38 refund requested is detailed in the Analysis section and would be paid from the solid waste and wastewater assessments collected in the current fiscal year. The tax roll will be corrected from "a multi-family home with three units" to "a Single Family" for Fiscal Year 2020-21 solid waste and wastewater assessments. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 27, 2020 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. File Attachments Mrs. Soffer Request.pdf (105 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors From: General Manager Date: January 27, 2020 Subject: Consider Giving the General Manager the Authority to Auction 2015 Kenworth Vacall Sewer Combination Truck (Unit 1014) Summary In 2015, the District purchased a 6-cubic yard sewer combination truck from the manufacturer, Vacall, for $333,949. In October 2018, staff began experiencing problems with the transfer case not shifting into 4-4 gear, which allows the unit to go from driving on the street to pump mode. The facility that is authorized to perform repairs on Vacall units is called Environmental Rental Services (ERS), located in Artesia, California. Since October 2018, Unit 1014 has been brought back to ERS approximately sixteen times because the transfer case will not shift or other unit malfunctions such as transmission leak, blower repair, loose bolts, replacing oil seal gasket, etc. The extensive downtime of Unit 1014 caused the District to fall behind on its cleaning schedule, which resulted in numerous sewer spills in 2019. The District had to rent one sewer combination unit to try to keep up on its cleaning schedule and to date, the transfer case for Unit 1014 is still not shifting into 4-4 gear. District Counsel is recommending the District auction Unit 1014 and try to recover repair and rental costs from ERS, with litigation being an option if they are not cooperative. Recommendation That the Board of Directors approves giving the General Manager authority to auction 2015 Kenworth Vacall Sewer Combination Truck (Unit 1014). Analysis Sewer combination units are vital pieces of equipment in the wastewater industry that help prevent sanitary sewer overflows (SSO) from occurring. These specialized units use a jetter that releases water pressure of around 75 gallons per minute into the manhole. The water will flush out all the debris lodged in the pipe, including grease, sludge and grime, and when a warthog nozzle is attached to the hose, the jetter will cut and wash away tree roots. In addition to the jetter, the unit has an air vacuuming system that can vacuum debris and wastewater and stores it in the unit's disposal bin. The District’s standard operating procedure for sewer cleaning is to drive to the cleaning site and set up the unit, which includes placing cones onto the street, which is inherently dangerous. When the parked unit does not shift into 4-4 from the driving mode, it causes staff to pick up the cones and drive back to the yard to obtain a new assignment. In the yard, the unit will be experimented with, and if it can shift to 4-4 mode, it goes out again for sewer cleaning. The District has a video of the unit not shifting to 4-4 when the proper procedure is used. The District has other units that perform this function, and they do not have this problem. Recently, when staff spoke to ERS, the service manager seemed to suggest that all of these types of units have that problem. Staff disagreed with him. In the last round of repairs, ERS replaced the entire transfer case. They have provided the District with a release, which staff refused to sign because the unit is not fixed, and the release would bar the District from seeking redress for further damages. As mentioned earlier in this report, the District experienced numerous SSOs because staff fell behind on our cleaning schedule as a result of Unit 1014 downtime. Staff believes the problem with the transfer case and shifting was a contributing factor to the many SSOs in 2019. Can the District hold the manufacturer, Vacall, responsible for the defects? Subject 11. Consider Giving the General Manager the Authority to Auction 2015 Kenworth Vacall Sewer Combination Truck (Unit 1014) Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Recommended Action That the Board of Directors approves giving the general manager authority to auction 2015 Kenworth Vacall Sewer Combination Truck (Unit 1014) Goals 5.0 Administrative Management The short answer is no. Staff found the warranty for this unit does have a specific limited warranty. There is a basic one-year warranty on most features, with manufacturers providing supplemental coverage if applicable. An extended warranty was available for purchase for up to five years total, but staff did not purchase the extended warranty. Most importantly, all litigation against Vacall must be filed in Ohio and Ohio law applies. The warranty further provides that no other warranty is provided, including express and implied warranties, warranties that the equipment is fit for its purposes, or implied warranties of merchantability. No consequential or incidental damages are allowed. In light of the time that has expired, and the limitations on damages, the chances of recovery from Vacall are remote. Can the District Try to Recover Repair and Rental Costs from ERS? The short answer is yes. ERS is headquartered in Texas, but they have a local rental and repair facility in Artesia, California. Staff is unable to find any warranty on their work or any limits of liability. Unit 1014 had problems. ERS tried to fix them, but they were unsuccessful. Their liability and District damages relate not to the vehicle itself, but to their inability to fix the problems and the rental costs for the days the District was without Unit 1014, at the rate ERS charged the District. The jury instructions for damage to a vehicle suggest that District damages are the cost of repairs (the ones which were ineffective) and the District might be entitled to the daily rental rate for every day the District was without the unit or a replacement unit. This element of damages would use the rental rates that ERS was charging. Staff is recommending Unit 1014 be auctioned. According to Ordinance No. 124, which was adopted by the Board on March 28, 2019, the Board shall approve of any disposition of property reasonably valued in excess of Five Thousand Dollars. Staff contacted two auction companies, Ritchey Auction and Ken Porter Auctions. Ken Porter has a 10% commission while Ritchey has a commission of 15%, so staff will auction Unit 1014 at Ken Porter if the Board approves staff's recommendation. Staff will give ERS an opportunity to purchase the unit before it's transported to Ken Porter Auctions. Legal Review District Counsel assisted in the preparation of this staff report Environmental Review The sale of the Vacall unit is not a project under CEQA. Approval of the sale of surplus property does not have reasonably foreseeable environmental impacts. Friends of the Sierra R.R. v. Tuolumne Park & Recreation Dist. (2007) 147 Cal. App. 643. Financial Review After depreciation, the current value of Unit 1014 is roughly $200,000. The District will have to disclose the transfer case is not shifting into 4-4 gear to potential buyers, so staff hopes to obtain at least $100,000 for the unit. In addition, the District spent nearly $40,000 on repair and rental costs to ERS. District Counsel will try to recover repair and rental costs from ERS. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 Board of Directors regular meeting at District headquarters (290 Paularino Avenue) and on District’s website at www.cmsdca.go Alternative Actions 1. Do not approve giving the general manager authority to auction 2015 Kenworth Vacall Sewer Combination Truck (Unit 1014). 2. Direct staff to report back with more information. G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 27, 2020 Subject: Receive and File General Manager's 2019 Performance Goals and Consider Approving His Proposed 2020 Performance Goals Summary Annually, the Board reviews the General Manager’s performance goals for the past year and then establishes new goals for the upcoming year. Recommendation That the Board of Directors receive and file the General Manager's 2019 Performance Goals and consider approving his 2020 Performance Goals Analysis In 2019, the Board of Directors assigned the General Manager thirteen goals to achieve. Of the thirteen goals, nine are complete while four goals are not complete. Attached is a list of the General Manager’s goals along with a brief description of the status for each goal. Also, attached are the proposed 2020 Performance Goals. On January 21, 2020, the General Manager met with President Ferryman to discuss the 2020 Goals in which President Ferryman lends his support for the proposed goals. Legal Review Not applicable Environmental Review Consideration by the Board of Directors of the compensation paid to the District’s General Manager 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 The financial impacts are unknown until the Board approves 2020 performance goals and work can begin to achieve said goals. Goals that have a financial impact to the District will be brought back to the Board for review and if need be, consideration for budget appropriations. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 Board of Directors regular meeting at District headquarters (290 Paularino Avenue) and on District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. Subject 12. Receive and File General Manager's 2019 Performance Goals and Consider Approving His Proposed 2020 Performance Goals Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Budgeted No Recommended Action That the Board of Directors receive and file the General Manager's 2019 Performance Goals and consider approving his 2020 Performance Goals Goals 6.0 Personnel/Organizational Management File Attachments 2019 Goals.pdf (212 KB) 2020 Goals.pdf (287 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 27, 2020 Subject: Performance Measurement Program Update Report - 2019 Annual Report Summary On November 26, 2018, the Board of Directors approved a new program to engage with staff, the Board and the public regarding how well the District is performing. The Performance Measurement Program was approved by the Board to determine how well the District is performing in areas of efficiency, effective workforce, customer satisfaction, cost-effectiveness, citizen engagement and transparency. The purpose of the program is to continually look at ways to improve and/or enhance the level of service that is being provided internally to staff and externally to the public. Recommendation That the Board of Directors receive and file this report. Analysis Attached is the annual report for the 2019 calendar year. Below is a brief narrative of the District's performance that identifies achieved measurements and measurements that need improvement. Risk Management The District had zero number of days lost due workplace injuries and an experience modification of less than 100%, which demonstrates a strong safety culture within the organization. Wastewater 2019 was a challenging year for wastewater maintenance. The District experienced 3.57 Sanitary Sewer Overflows (SSOs) per 100 miles, which is the most SSOs per 100 miles since the District had 4.01 SSOs per 100 miles in 2007. Staff got behind on its cleaning schedule because one of its cleaning units was constantly breaking down. The unit was down for a total of 132 days in 2019. As a result, the District did not meet its goal of cleaning 67% of the entire wastewater system, nor did it meet its goal of cleaning an average of 3,602-feet of pipeline a day. Efforts to make up for lost cleaning days included renting one sewer combination cleaning unit, purchasing a new sewer combination cleaning unit and hiring a private contractor to help with cleaning the system. In addition, the District did not meet its goal of completing 100% of pump stations receiving their annual preventive maintenance (PM). PMs fell behind because of short staff that included two vacant positions and longer than expected period of sick time accrued by staff. The two vacant positions are now filled and the District hired a private contractor to help get caught up on PMs. The District did achieve the goal of having fewer gallons of wastewater reaching service water. Although the percentage of wastewater reaching service water was high at 67%, it was still below the percentage of wastewater reaching service water for Region 8 of the California Integrated Water Quality Control Board, which was 70%. In addition, the District achieved having fewer than 30 hotspots and it is taking less than one hour to clean one hot spot. Also, the District is saving more than 15% in total construction cost of all capital improvements by using no dig technology such as horizontal directional drilling. The District's residential wastewater rate is one of the lowest rates in the County. Solid Waste The District's solid waste diversion is remaining constant and nowhere near the 75% diversion goal. In 2020 the District will be implementing a cart-to-cart program that will try to encourage proper disposal of organics. 82% of code enforcement cases regarding trash carts stored in public view were closed within 15 working days, which is below the 90% goal for this measure. However, 2019 Subject 13. Performance Measurement Program - 2019 Annual Report Meeting Jan 27, 2020 - 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 5.0 Administrative Management did see progress being made for achieving this goal when compared to the 2017 and 2018 outcome of 62% and 80%. 99% of courtesy collection for trash carts occurred within one business day after reporting trash carts were not emptied on their regular scheduled day. This outcome surpassed its measurement of 90% and has achieved the highest outcome in the last five years. The same can be said for requesting trash cart replacement and replacing trash carts. 98% of residents requesting their trash carts replaced were responded to within one business day and 99% residents had their carts replaced within seven business days. As a result of keeping the solid waste rate stabilized for the past fifteen years, the District's net-to-hauler rate is only 3.79% higher the average net-to-hauler rate when compared to the rest of Orange County agencies. Transparency Not many public agencies measure transparency, but staff believes it's an important measurement because it demonstrates to the public the agency's willingness and commitment to openness, accountability and honesty. It also demonstrates good and just governance. The District created measurements from nonprofit organizations that advocate for increased government transparency such as Sunshine Review, which is now called Ballotpedia, and the Institute for Local Government. Following the recommendations from advocacy groups demonstrates the District is a leader in government transparency and a model for other public agencies. In addition, the District is proving its commitment by earning the Certificate of Excellence in Transparency from the Special District Leadership Foundation. The District's Citizens Environmental Protection Academy (CEPA) experienced an increased in attendees from 2018 and staff is uploading Board meetings on the website in less than two days. Administration The District is taking nearly a day and half to respond to public records requests with requested documents. Under the California Public Records Act, the District has ten calendar days to notify requesters whether the requested documents can be disclosed or not. The District is taking only one day to issue residential over-the-county wastewater permits and nearly eight business days to complete plan check review. The goal is to complete plan check review within 9 business days. The level of satisfaction with CEPA continues to be high with the average rating of 9.27 in 2019. The goal is to achieve a rating of 8. Employee satisfaction is on the rise. 86% of employees indicated the District is a better organization than it was compared to one year ago compared to 65% in 2018. Citizen Engagement Engaging citizens is important to good governance because citizens are made aware of available programs and services, and they learn about important decisions made by their elected officials. It also gives them a direct line to their government on issues they agree or disagree with, or if they need to log a complaint or need assistance on a specific service or program. The District's social media activities are surpassing all the goals by having thousands of engagements on Facebook and Instagram, and the number of followers continues to increase. The District's smart phone app, "GoCMSD," has increased its subscriptions to over 2,000 and the number of requests made on the app is nearing 1,000. The percentage of residents corresponding in GoCMSD indicated the courtesy of CMSD staff is Good or Superior is at 82%, below the goal of 90%, so staff will strategize on how to improve this measure. The next Performance Measurement Update Report will be presented to the Board on April 27th for the 2020 calendar year. Legal Review Not applicable Environmental Review Implementing a Performance Measurement Program is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There are no financial impacts to the District for implementing a Performance Measurement Program. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments 2019 Outcome and Performance Measurement Program.pdf (1,499 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 27, 2020 Subject: District Engineer Summary Robin Hamers and his firm, Robin Hamers & Associates (RBH), have provided engineering services for the District for the past 38 years. On January 9, 2020, Robin Hamers suddenly and unexpectedly passed away. RBH announced Michael L. Benesh will be the firm's new President and will continue Rob's legacy by providing engineering services to private clients and public agencies. Staff recommends to continue using RBH for the next six to nine months and then later as a resource because staff is recommending hiring a District Engineer as an employee of the District. Recommendation That the Board of Directors considers approving the following: 1. Job description and salary schedule for District Engineer position; and 2. Direct staff to request proposals from executive search firms to recruit for the District Engineer position; and 3. Beginning in FY 2020-21 the District Inspector will provide inspection services to private developments. Analysis Under contract with the District, Rob Hamers served as the District Engineer, through which he and his firm provided the following services: Administrative Functions 1. Provide engineering counsel for the Board of Directors, staff other public agencies, and the public. 2. Attend, as requested by General Manager, regularly scheduled District agenda and Board meetings. 3. Prepare letters in response to inquiries, questionnaires, or surveys regarding District's facilities, policies and procedures, or ordinances. 4. Confer with District staff and maintenance personnel for daily engineering and assistance. Subject 14. District Engineer Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $215,800.00 Budgeted Yes Budget Source Wastewater Fund Recommended Action That the Board of Directors consider approving the following: 1. Job description and salary schedule for District Engineer position; and 2. Direct staff to request proposals from executive search firms to recruit for the District Engineer position; and 3. Beginning in FY 2020-21 the District Inspector will provide inspection services to private developments Goals 1.0 Sewer Infrastructure 5.0 Administrative Management 6.0 Personnel/Organizational Management 6.2 Job Description Updates 5. Confer with contractors, developers, engineers, public agencies, and the public regarding existing sewer location and proposed sewer construction. 6. Prepare and submit, on a year-end basis, fixed asset and inventory reports. Assist in maintaining a fixed asset record file and an inventory of facilities. Assist staff and auditors with fixed asset audit. 7. Prepare and submit required information in a timely fashion. 8. Prepare and submit cash flow analysis for District CIP projects. 9. Prepare and submit Capital Improvement Action Request forms for all approved projects. 10. Prepare and submit, as requested by General Manager, proposed Capital Improvement Program with detailed descriptions and justifications for inclusion in the next year's Preliminary Budget. 11. Prepare and submit, as requested by General Manager, final Capital Improvement Program incorporating all changes requested by the Board for inclusion in the Final Budget. 12. Understand and implement all provisions of State of California Waste Discharge Requirements (WDR). 13. Provide California Environmental Quality Act (CEQA) review for staff reports. Engineering Functions 1. Prepare and maintain up-to-date District boundary records, including District map showing current boundary. 2. Maintain and update an overall District annexation map showing annexation number and area. 3. Maintain and update engineering data, records, pump station information, and CMSD Standard Plans and Specifications for the Construction of Sanitary Sewers. 4 Prepare responses to mandatory requests from state, county, and federal agencies and respond in writing to other local agencies regarding sewer availability. 5. Review proposed developments for effect on District facilities and submit appropriate conditions to be placed on those developments. 6. Prepare and submit to Board a monthly Project Status Report briefly detailing the status of each District capital project. Respond to public inquiry over the purpose, scope, and timing of each capital project. 7. Respond to sewer emergencies such as force main rupture or main line blockage. Plan Checking 1. Review plan check, and sign plans for all sewer construction proposed by developers or other entities within public right-of-way public easements, or on private property. Understand industry standard public works sewer design and private property sewer design in accordance with the California Plumbing Code. Upon completion of construction, as-built sewer plans and add CMSD sewer information to District's sewer atlas. 2. Determine inspection, plan check, and connection charges for all new developments. 3. Receive review and process right-of-way descriptions, maps and easements for public and private developments. Preparation of right-of-way documents, easements, and right-of-way acquisitions for District projects are a separate cost and are charged against the particular capital improvement project when budgeted and authorized by the Board. 4. Prepare District annexation documents, maps, and descriptions, and submit to District staff for processing new annexations. 5. Review annually and update as necessary the Capital Improvement Program Master Plan through, but not limited to flow characteristics, major private developments, and land use changes in effect. 6. Prepare written updates, when appropriate, of the District's Sewer System Management Plan (SSMP) as required under the State of California Waste Discharge Requirements (WDR). Perform self-audits in accordance with WDR schedule. 7. Update pumping station head curves and operating points upon purchase of new pumps. 8. Consult with Maintenance Supervisor regarding issues found in field. Initiate miscellaneous sewer work as appropriate to resolve matters. 9. Continue developing CMSD's long- term sewer planning to prepare for time when sewer lines reach their life expectancy. Attend, as requested by General Manager, CMSD strategic planning interviews, planning sessions, and workshops. 10. Work to resolve emerging issues of concern such as infiltration and inflow (I/I) and calcium in sewer mains and laterals. 11. As requested by General Manager, assist in preparing contracts for sewer cleaning, pumping station maintenance, root control, cockroach control, or work by consultants. 12. As requested by Board of Directors or General Manager, attend special meetings or perform work on special projects such as sewer transfers. Construction Inspection 1. Review, inspect, and approve sewer main construction in District by City, County, State, and private developer construction projects. 2. Review, inspect, and approve all sewer lateral construction in District from the property line to the main line for all development in Newport Beach and unincorporated Orange County. 3. Review, inspect, and approve all sewer lateral construction in District from just outside the building on private property to the main line for all development in the City of Costa Mesa. 4. Review and inspect all utility or street construction projects in the vicinity of or that impacts District facilities. 5. Field mark the location of all District owned pressure sewer mains, as required in response to Underground Service Alert notification. 6. Assist contractors and homeowners in locating existing gravity mains, force mains, and sewer laterals. 7. Respond to emergency sewer problems and assist in controlling emergencies. 8. Interface with CMSD sewer maintenance crews and contractors in the cleaning and maintaining of District facilities. On April 25, 2019, the Board approved revising RBH contract for inspection services that included the following: 1. RBH is the construction inspector for private development; and 2. A succession and knowledge transfer plan for inspection services where District Engineer will pass on his institutional knowledge to CMSD's Engineering Technician. The Engineering Technician will then take over public works inspections after certification. The Board also approved amending the job title from Engineering Technician to Engineering Technician/Construction Inspector that includes inspecting public works projects and approved RBH as the Alternate Construction Inspector when CMSD Engineering Technician/Construction Inspector is on leave. The District's Engineering Technician/Construction Inspector will begin inspecting public works project and RBH will inspect private development in FY 2020-21 after the Engineering Technician/Construction Inspector completes his inspection certification training. District Initiated Capital Improvement Projects 1. Upon authorization by Board on a per project basis, complete design phase of each capital improvement project, including providing the necessary engineering services to prepare, complete project plans and specifications, assisting in advertising said projects for bid, reviewing bids and making recommendations to Board for award of project. 2. Upon authorization by Board on a per project basis, administer inspect and review the construction of each capital project as completed by District selected contractor including, but not limited to, holding pre- construction meetings, reviewing contractors schedule and performance, providing construction staking, inspecting and reviewing contractor's work, reviewing and approving monthly progress payments and performing liaison with public. Relative Costs of In House Engineer vs. Independent Contractor The average annual cost to RBH for the last five years is $201,386. Please keep in mind that Rob's hourly rate was $105.00, which is substantially lower than the hourly rate for professional consulting engineers in the industry, which is $125 to $135 an hour (Source: salary.com), which includes salary, benefits, and 30% markup. RBH's new President, Michael Benesh, informed staff that for the time being, RBH rates will remain the same. Staff estimates the fully burdened cost to hire an in-house District Engineer is $215,800, which includes salaries and benefits. Staff conducted a salary survey of civil engineers in special districts in Orange County from agencies that provide wastewater collection services. As shown below, the top one-third median salary range is $126,076 to $170,128, which is the range staff is recommending Board approval. Staff is recommending a salary range within the top one-third salaries for public civil engineers to attract the highest qualified applicants. IRWD Principal Engineer 117,276 169,008 YLWD Principal Engineer 104,791 134,600 OCSD Senior Engineer 126,173 153,337 MNWD Principal Engineer 124,925 168,127 SCWD Sr Civil Engineer 126,500 170,128 TCWD Principal Engineer 128,555 160,548 ETWD Project Engineer 100,880 141,261 SMWD Sr Project Engineer 126,076 173,797 Average 119,397 158,851 Median 125,501 164,338 126,076 173,797 126,500 170,128 117,276 169,008 Ave Top Third 123,284 170,978 Median Top Third 126,076 170,128 The following are capital improvement projects that are in the two-year budget, but have not begun yet. These projects would be designed and administered by the in-house District Engineer. #322 Iowa Force Main Replacement #324 Brick Manhole Rehabilitation Phase 2 #326 19th Street Force Main Replacement #327 Calcium Removal Phase 1 #328 Ductile Iron Pipe Rehabilitation #329 Aviemore Force Main Replacement #330 Westbluff Pump Station Rehabilitation Staff anticipates the new District Engineer will begin in FY 2020-21. The office for the new District Engineer will be in the same office the District is renting to Second Chance Orange County. HQ has a smaller vacant office that can be made available to Second Chance, but if they believe the smaller office is not accommodating to their needs then our lease agreement will be terminated, which requires 30 days advance notice. Transition Plan Staff is recommending to continue using RBH for engineering and inspection services through the end of FY 2019-20 and part of FY 2020-21 until the projects below are completed. RBH will continue providing plan check review and the services described in RBH contract. The following designs are underway and need completion. Sewer Master Plan #318 President Pump Station Reconstruction design and preparing contract bid specifications. #320 Canyon Pump Station Reconstruction As-builts #321 Indus Phase 2 As-builts #331 Sewer Siphon Evaluation For inspection services, staff recommends continue using RBH for private and public inspection services through the end of FY 2019- 20 and then beginning in FY 2020-21 the District's Engineering Technician/Inspector will provide all inspection services, which includes public works projects and private developments. In the last five years, the District paid an average of $124,298 annually to RBH, but in April 2019, the Board approved amending inspection services provided by RBH. Since May 2019, the District has paid RBH $79,342 for inspection services. The fully burdened cost for the Engineering Technician/Inspector in FY 2020-21 will be $103,588. Staff recommends continue using RBH as the alternate inspector when the District's Engineering Technician/Inspector is on leave. If the demand for inspection services is causing the Engineering Technician/Inspector to fall behind on plan check review then staff may return to the Board and request a title change and salary adjustment fo the Administrative Assistant position because this position will assume more responsibilities for permit review and issuance and/or staff may recommend hiring a full time plans check review employee. Attached is the proposed organization chart for the Engineering Department in which the District Engineer will supervise inspection services and plan check review. Executive Recruitment Firm Staff is recommending the hiring of an executive recruiting firm to assist with the hiring of this important position. A professional recruiting firm can help find the best candidate that not only has the knowledge and experience engineering wastewater facilities, but is also the right fit for the organization. People looking for executive careers in the public sector often rely on professional recruiting firms to find the right organization for his/her career and the firms know who to contact to encourage people to apply for open positions. The recruiting firms will develop a three to four page recruitment brochure and then the brochure is posted on their website and mailed to people they believe would be a good fit for the organization. The firms will also assist vetting and recommending the top applicants and if the District chose to do so, they can conduct psychological exams of the top applicants to help determine the whether person's personality is a good fit or not. The firms will sit and observe applicant interviews and make suggestions. Staff estimate it will cost $25,000 - $30,000 to hire a professional executive firm. The following firms are the top recruiting firms in California for recruiting executive positions in the public sector. Bob Murray & Associates www.bobmurrayassoc.com Ralph Andersen & Associates www.ralphandersen.com Avery and Associates www.averyassoc.net CPS HR Consulting www.cpshr.us Peckham and McKenney, Inc. www.peckhamandmckenney.com Teri Black & Company, LLC www.tbcrecruiting.com Legal Review District Counsel has reviewed this staff report. Environmental Review The hiring of staff is not a "project" under CEQA because there is no possibility the action will have an effect on the environment [14 Cal. Code Regs. 15060.] Financial Review Due to savings in the Engineering budget in FY 2019-20, there is adequate funding to hire a professional executive recruiting firm in amount not to exceed $30,000. The fully burdened cost for an in-house District Engineer is $215,800, which is the maximum amount in the proposed salary schedule. The new District Engineer would start in FY 2020-21. The savings in the Engineer Department and the available Contingency budget in FY 2020-21 will be transferred to the Personnel Budget. Inspection services will be provided by RBH through the end of FY 2019-20 and may be extended for a couple of months in FY 2020- 21 until the District's Engineering Technician/Inspector is ready to begin inspections for the District. Staff believes there will be savings in the inspection budget by the end of 2020-21 because inspection services from RBH will be limited. The exact amount of savings won't be realized until the end of FY 2020-21. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Do not hire an in-house District Engineer. 2. Continue using RBH for engineering and inspection services. 3. Direct staff to solicit proposals from private engineering firms to serve as District Engineer. File Attachments Eng Dept Org Chart.pdf (181 KB) Revised - District Engineer.pdf (241 KB) G. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 27, 2020 Subject: Consider Naming District Facility After the Late Robin Hamers Summary On January 9, 2020, District Engineer, Robin Hamers, suddenly and unexpectedly passed away. The Board of Directors requested this item be placed on the agenda to consider naming a District Facility in honor of Robin Hamers for his 38 years of dedicated service to the District and to the community. Recommendation That the Board of Directors considers naming a District facility after the late Robin Hamers. Analysis Staff believes the following facilities would be ideal for honoring Robin Hamers because of his involvement constructing the facilities and all the facilities are highly visible for the public. Corporate Yard Elden Pump Station 19th Street Pump Station 23rd Street Pump Station Santa Ana Pump Station Canyon Pump Station Irvine Pump Station Iowa Pump Station California Pump Station Harbor Pump Station The dedication ceremony can be held at the site on May 20 or 21 when Rob Hamers' daughters and their families are planning to return to Southern California. The District does not have a policy for naming facilities, so the Board can select naming a facility tonight or wait on making a selection and direct staff to report back with a policy that includes procedures and criteria. Legal Review Not applicable Environmental Review Creating and installing a sign that dedicates a District facility in honor of Robin Hamers will not cause a physical change to the environment and therefore is not a “project” under CEQA. Financial Review Depending on the facility the Board decides to dedicate to Robin Hamers, the cost for creating a sign will vary. For instance, the Corporate Yard has two signs, one on Wilson Street and the other facing Fairview Road. An estimate received to replace the Yard sign on Fairview Road will cost $1,424. The cost to replace the Yard sign on Wilson will most likely double the cost of the sign on Fairview because of its uniqueness. Staff recommends to transfer funds from the Wastewater Contingency account to the Annual Sewer Maintenance account to cover for the cost. Subject 15. Consider Naming District Facility After the Late Robin Hamers Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Budgeted No Recommended Action That the Board of Directors considers naming a District facility after the late Robin Hamers Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 27, 2020 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not name a District facility after the late Robin Hamers. 2. Direct staff to create a policy for naming facilities and report back with said policy for approval consideration. 2. Direct staff to report back with more information. H. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Lieu Tran, Accountant Date: January 27, 2020 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 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 January 27, 2020 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 Jan 2020 mtg.pdf (714 KB) Subject 1. Receive and File the Monthly Capital Improvements Project Status Report Meeting Jan 27, 2020 - 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 1.4 System Wide Sewer Replacement and Repair Program 1.1 Manhole Cover Maintenance Program 1.0 Sewer Infrastructure I. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: January 27, 2020 Subject: Approve the Investment Report for the Month of December 2019 Summary Attached is the Investment Report for the month of December 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 December 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 December 31, 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 December 31, 2019, was 1.840%. The yield to maturity of the portfolio was 1.842%. The District’s weighted average interest rate was 20 basis points (0.203%) below the LAIF average monthly rate for December 2019 of 2.043%. The weighted average number of days to maturity for the District’s total portfolio was 552 days (1.51 years). The duration of the underlying securities in LAIF as of December 31, 2019 was 226 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 December 31, 2019 was 48.62%. 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 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: Subject 1. Investment Report for the Month of December 2019 Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the Investment Report for the month of December 2019. Goals 7.0 Finance 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 December 31, 2019, the portfolio has earned a weighted average interest rate of 1.836%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020 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 - December 2019.pdf (591 KB) J. ATTORNEY'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer (Alan R. Burns, District Counsel) Date: January 27, 2020 Subject: 2277 Harbor Blvd., Costa Mesa Resolution Approving Vacation of District Sewer Main and Easement Quitclaim Deed Summary In yesteryear, the District had a policy where all property owners had direct access to a Costa Mesa Sanitary District (District) sewer main. An example is a townhome development where there are multiple homes on small lots. The developer was required to construct a District sewer main in an easement on the property so each townhome had direct access to the sewer main. This policy resulted in many District sewer mains and easements on private property. However, in 1982 the District adopted a policy whereby developments with an HOA or similar governing body could be served by a common lateral because the HOA or similar governing body would be responsible for the operation and maintenance of the common lateral. The property at 2277 was previously developed with a motel. The District has a sewer main and easement that was constructed prior to the change in policy so it is appropriate to vacate/quitclaim the District sewer and easement. The new development will be served by a new private sewer. Recommendation The Board of Directors: 1. Approve in concept the developer request to vacate the sewer main and easement. 2. Have the attorney for the District consider an indemnification agreement protecting the District for any claim associated with removing the sewer main. Analysis Since 1982, the District has vacated/quitclaimed many of the District sewer mains and easements on private property. This policy also alleviates the need for the District’s large sewer cleaning vehicles to drive on private property to clean the sewer main. Large trucks can damage private property pavement. The policy also alleviates the necessity for the District’s large sewer cleaning vehicles from having to back out of the development onto public streets with heavy traffic. Recently, the attorney for the District created an indemnification agreement for protection of the District. The Developer has agreed to pay the legal and engineering costs involved. The law allows the District to vacate an easement when no longer necessary. The attached resolution makes those findings. This matter was noticed for hearing in the newspaper and the property posted. The Quitclaim Deed will accomplish the vacation. Staff asks that the Board provide it with additional authority to prepare the final Quitclaim Deed and indemnification provisions, subject to legal review by District Counsel. This matter was approved in concept at a Study Session held on March 28, 2019. Legal Review District Counsel prepared a resolution vacating the easement, a draft Quitclaim Deed and indemnification provisions. Environmental Review Subject 1. 2277 Harbor Blvd., Costa Mesa Approving Vacation of District Sewer Main and Easement Quitclaim Deed Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors: 1. Approve in concept the developer request to vacate the sewer main and easement. 2. Have the attorney for the District consider an indemnification agreement protecting the District for any claim associated with removing the sewer main. The removal of a small section of sewer main from the District's system is a minor alteration and is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” project as stated under 15301; “Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities …”; pertaining to 15301(b) “Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services”. Financial Review The sewer main is currently recorded on the District's financial records with a net book value. Should the District vacate the sewer main, the Wastewater Fund will incur a loss on the disposal of an asset in that same amount, which would represent an unbudgeted expense. Additional costs of the vacation will include attorney time and District Engineer time to prepare for and process the vacation. Should the Board approve this vacation in concept, staff will calculate the total cost to the District of vacating the sewer main for potential recovery from the developer. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 27, 2020, Board of Directors regular meeting at District Headquarters and on District’s website. Additionally, the vacation of the easement was subject to published notice of hearing in the newspaper and the property was posted. Alternative Actions 1. Do not approve the vacation/quitclaim in concept. 2. Refer the matter back to staff for additional information. Attachment: Letter of request from the developer with attachments. Resolution Approving the Vacation of the Easement and Quitclaim Deed Quitclaim Deed Draft Indemnification agreement Proof of Publication (Newspaper) File Attachments CMSD Quitclaim Deed.docx (15 KB) Reso No. 2020-927 vacating sewer easements.docx (15 KB) Costa Mesa 200 LUX Signed Sewer Easement Vacation Letter Per Jim Bynum 2-27-19.pdf (3,970 KB) Proof Of Publication.pdf (95 KB) K. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code Section 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 Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Information K. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code Section 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 Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Information K. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code Section 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 Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Information K. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code Section 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 Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Information K. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code Section 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 Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Information K. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code Section 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 Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Information N. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Jan 27, 2020 - 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 MONDAY, FEBRUARY 24, 2020 AT 4:30 P.M. IN THE DISTRICT'S BOARD ROOM, LOCATED AT 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn in memory of Robin Hamers Meeting Jan 27, 2020 - Board of Directors Regular Meeting Access Public Type Procedural