2019_03_12_studyTuesday, March 12, 2019
Board of Directors Study Session
290 Paularino Avenue, Costa Mesa at 9:30AM
Public Comments: Any member of the public may address the Board. Speakers on agenda items
should identify themselves to the District Clerk before the meeting so that their input can be
provided at the time the item is considered. Speakers on non-agenda items will be heard under
Public Comments.
Pursuant to State law, the Board may not discuss or take action on non-agenda items except
under special circumstances. Speakers must limit their remarks to four minutes or as decided
upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out
of order.
Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part
of the agenda packet. If any document or other writing pertaining to an agenda item is
distributed to all or a majority of the Board after the packet is prepared, a copy of that writing
may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California.
In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours
prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II).
A. OPENING ITEMS
1. 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.)
B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on
items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this
agenda. Members of the public will have the opportunity to address the Board of Directors about all other
items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the
Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to
a subsequent meeting. The Board of Directors will respond after public comment has been received.
Please state your name. Each speaker will be limited to four (4) continuous minutes.
1. Public Comments
C. ITEMS OF STUDY
1. Consider Contributing $50,000 to the City of Costa Mesa for Portable Restrooms at Bridge Shelter
2. February 2019 Code Enforcement Officer Report
3. Organics Tonnage Report
4. Solid Waste Diversion Report
5. Review Ordinance No. 124 Authority for Minor Refunds and Disposal of Surplus Equipment
6. Ordinance No. 125 - Establishing Regulations for District Facilities
7. Solid Waste Rate Study
8. CalPERS Optional Membership
9. Consider Changing the Date or Cancelling the April 9 Study Session due to the Board of Directors Attendance of
the Special Districts Leadership Academy April 7 - 10, 2019
D. CLOSING ITEMS
1. Oral Communications and Director Comments
2. Adjournment
Tuesday, March 12, 2019
Board of Directors Study Session
290 Paularino Avenue, Costa Mesa at 9:30AM
Public Comments: Any member of the public may address the Board. Speakers on agenda items
should identify themselves to the District Clerk before the meeting so that their input can be
provided at the time the item is considered. Speakers on non-agenda items will be heard under
Public Comments.
Pursuant to State law, the Board may not discuss or take action on non-agenda items except
under special circumstances. Speakers must limit their remarks to four minutes or as decided
upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out
of order.
Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part
of the agenda packet. If any document or other writing pertaining to an agenda item is
distributed to all or a majority of the Board after the packet is prepared, a copy of that writing
may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California.
In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours
prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II).
A. OPENING ITEMS
James Ferryman, President
Robert Ooten, Vice President
Arlene Schafer, Secretary
Michael Scheafer, Director
Arthur Perry, Director
Subject 1. Roll Call - (If absences occur, consider whether to deem those absences
excused based on facts presented for the absence – such determination shall be
the permission required by law.)
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Procedural
B. PUBLIC COMMENTS - This time has been set aside for persons in the
audience to make comments on items within the subject matter jurisdiction of
the Costa Mesa Sanitary District that are not listed on this agenda. Members of
the public will have the opportunity to address the Board of Directors about all
other items on this agenda at the time those items are considered. Under the
provisions of the Brown Act, the Board of Directors is prohibited from taking
action on oral requests but may refer the matter to staff or to a subsequent
meeting. The Board of Directors will respond after public comment has been
received. Please state your name. Each speaker will be limited to four (4)
continuous minutes.
Subject 1. Public Comments
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Procedural
C. ITEMS OF STUDY
To: Board of Directors
From: Scott Carroll, General Manager
Date: March 12, 2019
Subject: Consider Contributing $50,000 to the City of Costa Mesa for Portable Restrooms at Bridge Shelter
Summary
On Tuesday Jan. 15, the Costa Mesa City Council directed staff to enter into negotiations with the Lighthouse Church of the
Nazarene to operate an interim bridge shelter on a portion of the property located at 1885 Anaheim Avenue. This would expand what
is an already existing inclement weather shelter into a reservation-based, high-security temporary solution to offer shelter beds to
those in need.
On Tuesday Feb. 5, the Costa Mesa City Council approved a $1.45 million annual agreement with Mercy House for professional
shelter operator services at both the City’s temporary interim and long-term bridge shelters. On March 5, 2019, the City Council
approved purchasing the warehouse property at 3175 Airway Avenue as the long term bridge shelter.
City of Costa Mesa officials contacted CMSD officials to request a contribution from CMSD in the amount of $50,000 that will fund
portable toilets at the temporary bridge shelter on Anaheim Avenue and for CMSD to continue funding for restrooms at the long term
bridge shelter, at $50,000 annually, for future years to come.
Recommendation
That the Board of Directors:
1. Consider making a $50,000 contribution to the City of Costa Mesa for portable toilets at the temporary bridge shelter; and
2. Consider directing staff to budget $50,000 in the budget for FY 2019-20 and FY 2020-21 for restrooms at the long-term bridge
shelter.
Analysis
The bridge shelter will provide the additional 50 shelter beds for Costa Mesa homelessness as required in the proposed settlement
between the City and OC Catholic Worker lawsuit. The temporary bridge shelter on Anaheim Avenue will be open for business
in April 2019 and it's expected to be in operations for at least a year until the permanent bridge shelter is open for business. If, the
Board approves the $50,000 contribution for the temporary bridge shelter, the money will be spent on the following:
Renting six portable toilets outside the bridge shelter that will be available 24 hours a day seven days a week.
Subject 1. Consider Contributing $50,000 to the City of Costa Mesa for Portable
Restrooms at Bridge Shelter
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Action
Fiscal Impact Yes
Dollar Amount $50,000.00
Budgeted No
Recommended Action That the Board of Directors:
1. Consider making a $50,000 contribution to the City of Costa Mesa for portable
restroom at the temporary bridge shelter; and
2. Consider directing staff to budget $50,000 in the budget for FY 2019-20 and FY 2020-
21 for portable restrooms at the long-term bridge shelter
Goals 1.0 Sewer Infrastructure
3.00 Partnerships
3.2 Strengthen our ties with local governments, Special districts and educational
institutions
Maintenance and operations, which consist of cleaning the insides, emptying the waste tanks and restocking with supplies
Security monitoring to ensure the toilets are used for their intended purpose.
According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a
contribution should be made:
Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s
statutory powers or a power that would be incidental to those purposes. For example, District purposes include properly
treating sewage, preventing SSOs, and recycling.
Describe how the contribution will advance the District's purpose.
The $50,000 contribution will go towards portable toilets at the temporary bridge shelter, which serves the Districts purpose of safely
collecting and disposing wastewater. The contribution will advance the District's purpose because the portable
toilets will help prevent untreated wastewater from contaminating the environment.
The permanent shelter on Airway Avenue will have indoor restrooms. The City is requesting an ongoing $50,000 annual
contribution from the District to help offset the costs of operating the permanent shelter. The restrooms are inside the building, which
will have indoor plumbing. The District typically does not get involved with operations and maintenance of indoor plumbing systems
because that is the responsibility of the property owner. Please see District Counsel legal review below about making a contribution
to the permanent bridge shelter.
Legal Review
The District does have the authority to plan, maintain and operate sewers, drains, and septic tanks, and to engage in sewerage
collection. (H & S C §6512) This provides authority for the District to provide funds for portable toilets so that homeless persons do
not relieve themselves in public, creating a sanitary and health issue. This same authority does not extend to paying for ongoing
sewage bills for connected facilities with permanent indoor plumbing. The Board should make a finding on this matter of how an
expenditure will advance the District’s purposes and that finding will be upheld if it is based on substantial evidence. The Courts will
generally defer to the Board’s decision on such matters unless it finds that the Board acted arbitrarily and capriciously.
Environmental Review
Installing a prefabricated restroom structure that requires utility connections for water, sewer, and electricity, is categorically exempt
under the California Environmental Quality Act (CEQA) Section 15303. The section states: "Class 3 consists of construction and
location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures..."
Financial Review
The contribution of $50,000 is not budgeted in the FY 2018-19 Budget. Funding would come from the District's Wastewater Fund
Balance. If the Board approves an on-going annual contribution of $50,000, funding will be appropriately budgeted in the FY
2019/20-2020-21 Budget.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the March 12, 2019 Board of Directors
meeting at District Headquarters and on District website at www.cmsdca.gov
Alternative Actions
1. Do not approve contributing $50,000 to the City of Costa Mesa.
2. Approve a lesser contributing amount than $50,000.
C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Ed Roberts, Code Enforcement Officer
Date: March 12, 2019
Subject: February 2019 Code Enforcement Officer Report
Summary
Attached is the monthly report from Officer Roberts describing his enforcement activities for the month of February regarding
scavenging of recyclable materials, trash carts stored in public view and graffiti on trash carts.
Recommendation
That the Board of Directors receive and file this report.
Analysis
In the month of February, Officer Roberts approached six (6) individuals he observed scavenging from CMSD trash carts. In the same
month he issued 111 warning notices to residents storing their trash carts in public view. Officer Roberts found no graffiti on trash
carts in the month of February.
Officer Roberts enforcement activities are described in more detail in the attached report.
Legal Review
Not applicable.
Environmental Review
Code enforcement activities and reporting are not a disturbance of the environment similar to grading or construction and do not
constitute a project under CEQA or the District’s CEQA Guidelines.
Financial Review
Officer Roberts' activities are funded in the adopted budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the March 12, 2019 Board of Directors
Study Session meeting at District Headquarters and posted on the District’s website.
Alternative Actions
1. Direct staff to report back with more information.
File Attachments
February 2019 CEO report.doc (1,390 KB)
Subject 2. February 2019 Code Enforcement Officer Report
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type
C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Nabila Guzman, Management Analyst I
Date: March 12, 2019
Subject: Organics Tonnage Report
Summary
A total of 561.30 tons of organic waste were collected and recycled in February 2019.
Staff Recommendation
That the Board of Directors receives and file this report.
Analysis
Below is a graph depicting the total tonnage of organic waste collected during each month of the last three fiscal years.
Subject 3. Organics Tonnage Report
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Action, Receive and File
Recommended Action That the Board of Directors receive and file this report
Goals 2.00 Solid Waste
File Attachments
Organics Recycling.png (17 KB)
Tonnage Summary.png (21 KB)
Legal Review
Not applicable.
Environmental Review
Consideration of the Organics Tonnage Report 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
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the March 12, 2019 Board of Directors Study
Session meeting at District Headquarters and posted on the District’s website.
C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Nabila Guzman, Management Analyst I
Date: March 12, 2019
Subject: Solid Waste Diversion Report
Summary
A total of 1,725.35 tons of solid waste were collected and recycled in February 2019.
Staff Recommendation
That the Board of Directors receive and file this report.
Analysis
Using data from CR&R's Recycling Report and OCC's Recycling Center Recycling Report, staff has calculated the diversion rate for
the last eight months at 61.72%. A total of 29,292.48 tons of solid waste materials have been collected, of which 18,079.44 tons have
been diverted away from landfills. In addition to curbside collection from CR&R, CMSD offers a variety of other waste diversion
programs including large item pickup, where white goods are collected. The total tonnage of white goods for the month of February
was not available in time to include in this report. However, these numbers will be included in the March report. Attachment A is the
fiscal year 2018-19 diversion rate support.
Legal Review
Not applicable.
Environmental Review
Consideration of the Solid Waste Diversion Report 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
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the March 12, 2019 Board of Directors Study
Session meeting at District Headquarters and posted on the District’s website.
Alternative Action
1. Direct staff to report back with more information.
File Attachments
CRR-OCC Diversion.pdf (74 KB)
Subject 4. Solid Waste Diversion Report
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Action, Receive and File
Recommended Action That the Board of Directors receive and file this report
Goals 2.00 Solid Waste
C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Nabila Guzman, Management Analyst I
Date: March 12, 2019
Subject: Review Ordinance No. 124 — Authority for Minor Refunds and Disposal of Surplus Equipment
Summary
The District currently has no process in place for minor reimbursement requests for trash or sewer assessment charges. From time to
time there will be a reimbursement request from residents that have been inaccurately assessed a trash or sewer charge in which the
amount is less than $5,000. Staff is requesting that the Board of Directors review the proposed changes to Chapter 4 of the
Operations Code and provide feedback if any.
Recommendation
That the Board of Directors direct staff to bring this item back to the March 28, 2019 Board of Directors meeting to consider adopting
Ordinance No. 124
Analysis
Attached is a copy of Ordinance No. 124 that identifies the recommended addition to Chapter 4 in the District's Operation Code. The
language added includes giving the General Manager the authority to authorize refunds of payments made to the District that are less
than $5,000.00. The authority in this ordinance is limited to sewer and trash refunds. Currently, there is no administrative process in
place for the authorization of minor refunds which significantly increases the amount of time a resident waits to receive their refund.
Any refund requests over $5,000 will go to the Board of Directors for approval. In accordance with Chapter 9 of the Operations Code,
the refund policy states the claimant must present a written request for a refund from the Board of Directors within one year of the
charge being placed. Refunds are allowed for up to four years if fees were paid but no service was received.
Additionally, the ordinance also allows the General Manager to dispose of obsolete or worn out equipment and supplies. The property
will be used as a trade-in for other supplies or dispose of by an auction house or other methods that ensure the best interest of the
District.
Legal Review
District Counsel has reviewed and approved Ordinance No. 124.
Environmental Review
A review of the solid waste ordinance is not a disturbance of the environment similar to grading or construction and does not
constitute a project under CEQA or the District's CEQA Guidelines.
Financial Review
There are no fiscal impacts to the District for adopting Ordinance No. 124.
Public Notice Process
Subject 5. Review Ordinance No. 124 Authority for Minor Refunds and Disposal of Surplus
Equipment
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Action, Receive and File
Recommended Action That the Board of Directors direct staff to bring this item back to the March 28, 2019
Board of Directors meeting to consider adopting Ordinance No. 124
Goals 5.0 Administrative Management
5.4 Review and maintain Operations Code, policies and Administrative Regulations
Copies of this report are on file and will be included with the complete agenda packet for the March 12, 2019 Board of Directors study
session meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov.
Alternative Actions
1. Direct staff to report back with more information.
File Attachments
Ordinance 124.pdf (15 KB)
C. ITEMS OF STUDY
To: Board of Directors
From: Scott Carroll, General Manager
Date: March 12, 2019
Subject: Ordinance No. 125 - Establishing Regulations for District Facilities
Summary
Ordinance No. 125, if approved by the Board, will give the General Manager authority to set hours of operations for District facilities,
which includes the yard and headquarters. The ordinance will also identify restricted access areas such as the yard and pump
stations.
Recommendation
That the Board of Directors direct staff to bring this item back to the March 28, 2019 Board of Directors meeting to consider adopting
Ordinance No. 125
Analysis
In previous years, the General Manager would seek Board approval for setting operational hours at headquarters and the Yard. For
example, in 2018, the General Manager requested Board approval to close operations at noon the day before Thanksgiving to give
staff ample time for traveling to their destination for the holiday. In addition, the General Manager requested Board approval to close
operations the day before Christmas and New Year's Day. The Board requested an amendment to the District's Operations Code
that will give the General Manager authority to set hours of operations at headquarters and the yard without obtaining approval from
the Board.
In addition to hours of operation of District facilities, the proposed ordinance addresses restricted access areas such as the yard and
pump stations. These facilities are not intended for public gathering places and should be restricted to public access. Adopting
Ordinance No. 125 will allow staff to place signs at enclosed facilities informing the public that entering such facilities is prohibited
and in violation of District Operations Code, which could be enforced as a misdemeanor crime.
Legal Review
District Counsel prepared Ordinance No. 125.
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 no finance impacts to the District for adopting Ordinance No. 125.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the March 12, 2019 Board of Directors study
session meeting at District Headquarters and on District website at www.cmsdca.gov
Alternative Actions
Subject 6. Ordinance No. 125 - Establishing Regulations for District Facilities
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Action
Recommended Action That the Board of Directors direct staff to bring this item back to the March 28, 2019
Board of Directors meeting to consider adopting Ordinance No. 125
Goals 5.0 Administrative Management
5.4 Review and maintain Operations Code, policies and Administrative Regulations
1. Do not adopt Ordinance No. 125
2. Direct staff to report back with more information.
File Attachments
Ordinance No. 125.pdf (72 KB)
C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Nabila Guzman, Management Analyst I
Date: March 12, 2019
Subject: Solid Waste Rate Study
Summary
On February 12, 2019, the Board of Directors received a draft report and a presentation of the District's solid waste rate study. The
audit was performed by NBS Government Finance Group in which they recommended a one-time rate increase that would allow
District staff to acquire the data and systems necessary to implement a tier-rate structure in the future. Option number 2 is a flat rate
five-year increase.
Staff Recommendation
That the Board of Directors:
1. Accept the solid waste rate study by NBS Government Finance Group; and
2. Select one of the two options identified in the study; and
3. Direct staff to prepare a mail Proposition 218 Notice to all CMSD property owners receiving solid waste collection services at least
45 days prior to a scheduled public hearing; and
4. Schedule a public hearing on May 23, 2019 to consider adopting new solid waste rates.
Analysis
On February 12, 2019, the Board of Directors received a draft report and presentation by NBS Government Finance Group in which
they presented their study methodology, findings and rate increase recommendations.
The recommended option for adoption will increase rates to $19.95 a month or $239.40 a year for the following two fiscal years, rates
after fiscal year 20-21 are unknown at this time. During fiscal year 20-21 a new rate study would need to be performed with the data
CMSD will by then have verified. New solid waste rates based on cart-sizes would need to be implemented by July 1, 2021. It is
important to note the recommended option does not fully cover trash hauler expenses or eliminate the operating deficit. It instead just
gives the District time to implement a charge by cart-size rate system.
This one time rate increase is now the District's and Consultant's recommended option with a five-year flat rate increase as the
alternative option for adoption. Both of the recommendations are presented in the consultant's draft report attached and briefly
explained below.
Option 1 — One-Time Rate Increase in 2019 (Recommended)
One single rate increase in July 2019 of 10.83%. This option gives staff time to evaluate the feasibility of verifying cart size data and
making changes to the District's billing software to enable the implementation of rates based on cart-size. Under this option, rates
would return to their 2005-2011 level of $19.95 a month or 239.40 annually.
Subject 7. Solid Waste Rate Study
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Action, Receive and File
Recommended Action That the Board of Directors:
1. Accept the solid waste rate study by NBS Government Finance Group; and
2. Select one of the two options identified in the study; and
3. Direct staff to prepare a mail Proposition 218 Notice to all CMSD property owners
receiving solid waste collection services at least 45 days prior to a scheduled public
hearing; and
4. Schedule a public hearing on May 23, 2019 to consider adopting new solid waste rates.
Option 2 — Eliminate the Deficit in Five Years (Alternative)
Under this Option, the rates are increased 4.1% in year 1, 7.0% in years 2 and 3, and 6.0% iin years 4 and 5, which equates to an
increase over 5 years of 33.9%.
The Citizens Advisory Committee reviewed the solid waste rate study twice, on January 9th the CAC was provided two flat rate
increase options, and they recommended staff look at a variable rate structure for the different cart sizes. Staff brought back the
current recommendations at their February 26, 2019, meeting. The CAC is recommending the Board adopt the alternative option
(Option 2) because they believe there are too many unknowns and it will save the District about $100,000. With a vote of 4-3 with one
abstention, the motion passed to recommend option 2 to the Board. It is important to note that three CAC members were absent from
the meeting.
On Wednesday, January 30, 2019, the District held the first of two Town Hall meetings to discuss the solid waste rate increase. Two
members of the public attended the meeting and asked a few questions regarding both options presented. The District held a second
Town Hall Meeting on Wednesday, February 26, 2019 with a total of four members of the public in attendance. Residents attending
the second Town Hall meeting favored option number 2 for implementation.
Legal Review
The NBS Report provides the analysis required by Proposition 218 before rates may be adopted.
Environmental Review
Consideration of a solid waste rate increase 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 Solid Waste Fund has been operating at a deficit in order to eliminate the large reserve fund balance at Board direction. The
implementation of the organics program without a rate increase is helping to reduce the reserve balance. Based upon current
projections, the Solid Waste Fund will not have adequate operating reserves according to existing Board policy toward the end of
Fiscal Year (FY) 20-21, and will enter a deficit cash position during (FY) 22-23. Should the Board select Option 1, the Solid Waste
Fund will not have adequate operating reserves according to the proposed policy (35% of operations and maintenance budget)
during FY 21-22, and the deficit cash position will be delayed until FY 24-25. Should the Board select Option 2, the Solid Waste Fund
will not have adequate operating reserves according to the proposed policy during FY 21-22, and the deficit cash position will be
delayed until FY 26-27. Due to the unavailability of cart size data, any financial impact as the result of a tiered structure cannot be
determined at this time.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the March 12, 2019 Board of Directors Study
Session meeting at District Headquarters and posted on the District’s website.
Alternative Actions
1. Direct staff to report back with more information.
File Attachments
NBS Draft Rate Study Report 02.11.19.pdf (2,370 KB)
C. ITEMS OF STUDY
Summary
The Board of Directors of the Costa Mesa Sanitary District (CMSD) have the option of electing membership in the District’s retirement
system, California Public Employees Retirement System (CalPERS). None of the District’s current Board Members have opted for
CalPERS membership to date.
Analysis
CMSD Board of Directors have the option of electing Optional Membership in CalPERS, the District’s retirement system. To date,
none of the Board Members have opted for membership. If a Board Member were to enroll in membership, the cost to the District and
to the Board Member is:
$295.00 Board Member rate per meeting
6 Number of monthly meetings
$1,770.00 Maximum monthly paycheck
$115.05 CalPERS PEPRA rate of 6.5% per payroll
$1,380.60 Annual amount - Employee
$1,380.60 Annual amount - Employer
Because Vice President Ooten voluntarily chooses to be compensated less than Board members eligible compensation of $295 per
meeting, Vice President Ooten's Optional Member Rate would be different than the rest of the Board. Vice President
Ooten's Optional Member Rate would be as follows:
$ 221.00 Director Ooten's rate per meeting
6 Number of monthly meetings
$ 1,326.00 Maximum monthly paycheck
$ 86.19 CalPERS PEPRA rate of 6.5% per payroll
$ 1,034.28 Annual amount - Employee
$ 1,034.28 Annual amount - Employer
Electing optional membership is an irrevocable election. There is no Government Code provision to allow for cancellation of
membership prior to separation from the elected/appointed position.
Legal Review
District Counsel believes this matter requires further analysis, which is why staff is recommending the Board direct District Counsel to
conduct further legal review regarding this issue and to report back with his findings.
Environmental Review
The consideration of Optional Membership into CalPERS is an administrative matter and is not a disturbance of the environment
similar to grading or construction and does not constitute a project under CEQA or the District's CEQA guidelines.
Subject 8. CalPERS Optional Membership
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Action
Fiscal Impact Yes
Budgeted No
Recommended Action That the Board of Directors direct District Counsel to conduct further legal review
regarding this issue and to report back with his findings.
Goals 6.0 Personnel/Organizational Management
Financial Review
The annual cost for Optional Membership in CalPERS for the District per Board Member, with the exception of Vice President Ooten,
would be $1,380.60 plus administrative fees. The annual cost of Optional Membership for Vice President Ooten would be $1,034.28
plus administrative fees. If all five Board Members opted for membership into CalPERs, the annual cost to the District would be
$6,556.68 plus administrative fees.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the March 12, 2019 Board of Directors
Study Session at District Headquarters and posted on the District’s website.
Alternative Actions
1. Direct staff to report back with more information.
C. ITEMS OF STUDY
Subject 9. Consider Changing the Date or Cancelling the April 9 Study Session due to the
Board of Directors Attendance of the Special Districts Leadership Academy April
7 - 10, 2019
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Action
Recommended Action That the Board of Directors direct staff to change the date or cancel the April 9, 2019
Study Session.
D. CLOSING ITEMS
Subject 1. Oral Communications and Director Comments
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type
D. CLOSING ITEMS
Subject 2. Adjournment
Meeting Mar 12, 2019 - Board of Directors Study Session
Access Public
Type Procedural