The URL can be used to link to this page

agendapacket_2019_07_17_cacWednesday, July 17, 2019 Citizens Advisory Committee Meeting WHEN: Wednesday, July 17, 2019, 6:00 p.m. WHERE: Costa Mesa Sanitary District Headquarters 290 Paularino Avenue, Costa Mesa, CA 92626 CONTACT: Noelani Middenway, District Clerk PHONE: (949) 645-8400, Ext. 227 EMAIL: nmiddenway@cmsdca.gov A. OPENING ITEMS 1. Call to Order 2. Roll Call 3. Public Comments - Speakers will be limited to three minutes. The three minutes per speaker time allotted may be extended for good cause by a majority vote of the committee). B. ITEM 1. Approve the Citizens Advisory Committee Special Meeting Minutes of May 16, 2019 2. Approved Board of Directors Regular Meeting Minutes of May 23, 2019 3. Draft Amended Board of Directors Regular Meeting Minutes of June 27, 2019 4. Debriefing of General Manager's Attendance to the 2019 International City Management Conference in Qingdao China 5. Inflow & Infiltration (I/I): Mendoza Pump Station Smoke Test 6. Multi-family Solid Waste Proposal 7. Consider Changing the CAC Regular Meeting Date and Time - Oral Report C. CLOSING ITEMS 1. Committee Member & Staff Comments 2. Adjournment Wednesday, July 17, 2019 Citizens Advisory Committee Meeting WHEN: Wednesday, July 17, 2019, 6:00 p.m. WHERE: Costa Mesa Sanitary District Headquarters 290 Paularino Avenue, Costa Mesa, CA 92626 CONTACT: Noelani Middenway, District Clerk PHONE: (949) 645-8400, Ext. 227 EMAIL: nmiddenway@cmsdca.gov A. OPENING ITEMS Subject 1. Call to Order Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Procedural A. OPENING ITEMS Mike Carey, Chair Albert Graham, Jr., Vice Chair Andrew Nielsen Elodie Katz Judith Gielow Judith Takaya Mike McIlroy Monte Fields Phil Marsh Steven Takahashi Sue Lester Subject 2. Roll Call Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Public Comments - Speakers will be limited to three minutes. The three minutes per speaker time allotted may be extended for good cause by a majority vote of the committee). Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Procedural B. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: July 17, 2019 Subject: Approve the Citizens Advisory Committee Special Meeting Minutes of May 16, 2019 Summary The recorded minutes of the May 16, 2019 Citizens Advisory Committee Special Meeting are hereby submitted to the Citizens Advisory Committee for review and approval. Analysis Attached to the staff report are the minutes for the Citizens Advisory Committee Special Meeting on May 16, 2019. Staff Recommendation That the Citizens Advisory Committee approves 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 July 17, 2019 Joint Board of Directors and Citizens Advisory Committee 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 minutes_2019_05_16_cac.pdf (73 KB) Subject 1. Approve the Citizens Advisory Committee Special Meeting Minutes of May 16, 2019 Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Action, Minutes Recommended Action That the Citizens Advisory Committee approves the meeting minutes as presented. Minutes View Minutes for May 16, 2019 - Citizens Advisory Committee Special Meeting B. ITEM Board of Directors Regular Meeting (Thursday, May 23, 2019) Members present Art Perry, Bob Ooten, Mike Scheafer Members absent Arlene Schafer, Jim Ferryman Staff present Scott Carroll (General Manager), Alan Burns (District Counsel), Robin Hamers (District Engineer), Jacque Rogers (District Treasurer), Noelani Middenway (District Clerk), Kaitlin Tran (Finance Manager), Gina Terraneo (Management Analyst II) Others present Judith Gielow (resident & CAC Member), Mark Abrams (resident) Meeting called to order at 5:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - Vice President Ooten Vice President Ooten called the meeting to order at 5:30 P.M. Procedural: 2. Pledge of Allegiance - Vice President Ooten Vice President Ooten led the Pledge of Allegiance. Procedural: 3. Invocation - Director Scheafer Director Scheafer led the Invocation. Procedural: 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.) District Clerk, Noelani Middenway, conducted roll call and noted that Vice President Ooten, Director Scheafer, and Director Perry were present. Vice President Ooten noted that President Ferryman and Secretary Schafer were absent and excused. Procedural: 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. None at this time. Procedural: 6. Ceremonial Matters and Presentations None at this time. B. Public Comments Subject 2. Approved Board of Directors Regular Meeting Minutes of May 23, 2019 Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Minutes Minutes View Minutes for May 23, 2019 - Board of Directors Regular Meeting Procedural: 1. Public Comments Vice President Ooten opened public comments. Mark Abrams, a Costa Mesa resident, commented that he has made past complaints about CR&R, the District's trash hauler, and how they run their business. He noted that he received a residential guide (brochure) from CR&R and asked if the District paid for this brochure to be distributed. Additionally, Mr. Abrams asked if the District has a plan to find a new trash hauler. General Manager, Scott Carroll, replied that the District does not pay CR&R to make and distribute the brochure. He explained that the brochure was negotiated into CR&R's solid waste contract with the District. Mr. Carroll noted that the Board of Directors approved a 10-year solid waste contract with CR&R in 2018, and the contract has the option for an additional 10-year extension upon completion. Seeing no one else wishing to speak, Vice President Ooten closed public comments. C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of April 16, 2019 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the Board of Directors Regular Meeting Minutes of April 25, 2019 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2019-11 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2019-11 approving District warrants for the month of April 2019 in the amount of $1,132,376.02. Action (Consent): 5. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. Action (Consent): 6. Payroll Transparency Disclosure for April 2019 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Approve the preparation of a warrant to CR Transfer in the amount of $216,249.42 for April 2019 recycling and disposal services in the May 2019 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $216,249.42 for April 2019 recycling and disposal services to be ratified in the May 2019 warrant register. Action (Consent): 8. Accept the occupancy count as presented as 22,787 and direct staff to prepare a warrant to CR&R Environmental Services for $223,207.78 for April 2019 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,787 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for April 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,207.78 to be ratified in the May 2019 warrant list. Action (Consent): 9. Contracts Signed by General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 10. Adopt Resolution No. 2019-916 Ordering that Publication of Ordinance No. 124 has Occurred Recommendation: That the Board of Directors adopt Resolution No. 2019-916 ordering that publication of Ordinance No. 124 has occurred. Action (Consent): 11. Adopt Resolution No. 2019-917 Ordering that Publication of Ordinance No. 125 has Occurred Recommendation: That the Board of Directors adopt Resolution No. 2019-917 ordering that publication of Ordinance No. 125 has occurred. Action (Consent): 12. Approve Investment Report for the Month of April 2019 Recommendation: That the Board of Directors approve the Investment Report for the month of April 2019. Motion: To approve the Consent Calendar as presented. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 3-0-2 Aye: Art Perry, Bob Ooten, Mike Scheafer Not Present: Arlene Schafer, Jim Ferryman There was no discussion. D. PUBLIC HEARING - CONSIDERATION OF ANNUAL SOLID WASTE COLLECTION CHARGES TO BE COLLECTED WITH THE GENERAL TAXES Action: 1. A. Presentation of Report Justifying Increases -- Public Hearing and Consideration of Annual Solid Waste Collection Charges to be Collected with the General Taxes Recommendation: That the Board of Directors: 1. Determine whether a majority protest occurred for increasing the solid waste charge; and 2. If there is not a majority protest, direct staff to return on June 27, 2019 with a resolution confirming the charges; and 3. Direct the District Clerk to Notice a Public Hearing for the Imposition of the Charges on the Tax Roll. Vice President Ooten introduced the public hearing to consider an increase in the annual solid waste collection charges to be collected with the general taxes. He noted that all who wish to speak will be given an opportunity to speak, and he welcomed District Counsel, Alan Burns, to describe the Proposition 218 (Prop 218) procedures. Mr. Burns provided an overview of the requirements imposed by Prop 218, including the following: the revenues derived from the fee must not exceed the funds required to provide the service, the revenue from the fee or charge must not be used for any purpose other than that for which the fee or charge was imposed, the amount of the fee or charge imposed upon any parcel (as an incident of property ownership) must not exceed the proportional cost of the service attributable to the parcel, the fee or charge may not be imposed for service unless the service is actually used by or immediately available to the owner of the property, and no fee or charge can be imposed for general services, such as police, fire, ambulance, or libraries. He noted that the staff report details how each of the aforementioned requirements have been met, and he noted that online and hard copies of the staff report have been made available to the public. Mr. Burns noted that Ms. Middenway has provided notice by mail to all parcels subject to the charges. He explained that if written protests are provided by a majority of the 18,234 parcel owners, then the charges may not be imposed. He added that protest forms have been made available. Mr. Burns explained that if no majority written protest exists, then the Board of Directors can consider approving the proposed resolution at the June 27, 2019 Board Meeting. Mr. Carroll described how the proposed charges meet the substantive requirements of Prop 218, including the following: no components other than those directly related to providing the service (solid waste collection, disposal, recycling, education and special programs, and administration) were used to establish the charge, the revenue will only be used for the aforementioned components, the charge is determined by dividing the costs of all components by the number of parcels receiving service, properties not receiving solid waste collection service or that receive service from other entities are not charged, and all charges collected for solid waste collection are used only for that purpose. He noted that the proposed solid waste collection charge for Fiscal Year 2019-2020 is $224.88 per dwelling unit. Ms. Middenway confirmed that all appropriate notices and mailings have been posted and distributed. She noted that the District has received 12 written protests out of the 18,234 parcels. 2. B. Open Public Hearing Vice President Ooten opened the public hearing at 5:42 P.M. and noted that only written protests will be considered for the official protest count. Director Scheafer confirmed that today is the deadline for written protests to be submitted, and he confirmed that over 50% of parcel owners must submit written protest to constitute a majority protest. Mr. Abrams provided comments. He asked how the District's $50,000 contribution to the City of Costa Mesa for portable restrooms at the interim bridge homeless shelter complies with the aforementioned Prop 218 requirements. He commented that this is not an expenditure that the public should incur. Vice President Ooten explained that 1% of property taxes are distributed to various special districts and school districts, and the District used this revenue (which is considered to be unrestricted) for its contribution to the City of Costa Mesa. He noted that the contribution is therefore not derived from the annual solid waste or wastewater charges. Mr. Abrams commented that the general fund seems like a slush fund. He asked why there was not a public hearing regarding the District's contribution to the City of Costa Mesa. Vice President Ooten responded that the contribution was considered during a noticed public meeting. Mr. Burns noted that public comments were made when the contribution was considered. He added that the Board of Directors conducted an analysis and made a finding that the contribution met the District's statutory purpose and was not a gift of public funds. Vice President Ooten commented that the contribution was seen as a public safety opportunity. Mr. Abrams commented that he read that the District would also provide staffing for the portable restrooms. Vice President Ooten commented the District is not involved in staffing the restrooms. Mr. Abrams commented that he does not think the District should be increasing solid waste charges if it has the funds to provide this type of contribution to the City of Costa Mesa. He noted that he is a property owner, and he noted that the District is not the only agency that is raising its rates. Mr. Abrams expressed dissatisfaction with the proposed increase and with the District's continuing solid waste contract with CR&R. Judith Gielow, a Costa Mesa resident and Citizens Advisory Committee (CAC) Member, provided comments. She noted that she is downsizing and therefore is producing less waste. She asked if parcel owners are allowed to opt out of receiving District solid waste collection services. Mr. Burns noted that residents may recycle their own recyclables, but they cannot elect to have a competing trash hauler collect their trash in place of CR&R. Mrs. Gielow commented that this seems extreme. She noted that she (and possibly others) produce minimal waste, but will face an increase in annual charges nonetheless. Vice President Ooten commented that he also produces minimal waste, but is still required to pay the annual charge. Mr. Burns commented that from a philosophical standpoint, there are certain taxes that are not entirely fair and proportionate. He noted that for example, someone with grown children may still pay taxes that go toward schools. Mrs. Gielow commented that the solid waste charge will likely continue to increase over time, while her income decreases over time. Mr. Burns noted that the Board of Directors looked at the possibility of a tiered rate structure for solid waste charges, but found that it was not feasible at this time. There were no further comments. 3. C. Close Public Hearing Vice President Ooten closed the public hearing at 5:55 P.M. 4. D. Determination Regarding Whether a Majority Protest Occurred Ms. Middenway shared that the total number of written protests received remains at 12 out of 18,234 parcels. Vice President Ooten thus determined that no majority protest occurred. He added that 4 affirmative votes are required to adopt the proposed resolution to increase the annual solid waste collection charges, and since only 3 Board Members are present, the resolution will be considered at the June 27, 2019 Board Meeting. He then welcomed a motion to direct staff to return on June 27, 2019 with a resolution confirming the charges. Motion: To direct staff to return on June 27, 2019 with a resolution confirming the charges. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 3-0-2 Aye: Art Perry, Bob Ooten, Mike Scheafer Not Present: Arlene Schafer, Jim Ferryman There was no further discussion. E. GENERAL MANAGER'S REPORTS Discussion: 1. Preliminary Budget Review For FY 2019-2020 and FY 2020-2021 Recommendation: That the Board of Directors provide feedback to staff regarding the proposed FY 2019-20 and FY 2020-21 Budgets. Mr. Carroll shared that District staff presented the preliminary FY 2019-2020 and FY 2020-2021 budgets to the Board at the May 14 Study Session. He noted that this is another opportunity for the Board to ask questions, discuss, or provide comments related to the preliminary budgets. Vice President Ooten welcomed questions. Director Scheafer commented that the Board discussed the preliminary budgets thoroughly at the Study Session. Vice President Ooten noted that the District charges rent to the Solid Waste Fund for use of the District headquarters facility, and he suggested that the rent amount be more proportional to the rent that is charged to tenants of the extra offices in the facility. There were no further comments and the report was received. Action: 2. Adopt Resolution No. 2019-918 Certifying To the Board of Supervisors and County Auditor a Statement of Delinquent and Unpaid Charges for Sewer and Other Services and Requesting Collection with the Annual Taxes Imposing a Lien Recommendation: That the Board of Directors approve Resolution No. 2019-918 Certifying To the Board of Supervisors and County Auditor a Statement of Delinquent and Unpaid Charges for Sewer and Other Services and Requesting Collection with the Annual Taxes Imposing a Lien. Finance Manager, Kaitlin Tran, introduced Resolution No. 2019-918, which certifies to the Board of Supervisors and the County Auditor a statement of delinquent and unpaid charges for sewer and other services, and requests collection through the annual taxes. She explained that in 2016, the District and CR&R noted discrepancies in the occupancy count and billing for services. Ms. Tran noted that after auditing its records, District staff found that 95 properties were receiving service without being charged on the property tax rolls. She explained that some properties have been receiving free service for over 4 years; however, the District can only back charge for the current year plus 3 years. Ms. Tran noted that the properties were notified of the delinquent charges in February of 2018 and were offered payment plan options. She shared that as of December 31, 2018 a total of $28,367.04 was outstanding. Lastly, she explained that the recommended resolution will allow the District to place the remaining balances on the FY 2019-2020 assessments. Director Perry confirmed that there are 29 remaining properties with delinquent charges. He asked if the District has used this process to collect delinquent charges in the past. Mr. Burns responded that he believes this is the first time the District has used this process. Director Perry asked if there is a cost associated with adding these charges to the tax rolls. Ms. Tran noted that the county charges the District a percentage, but this cost has been calculated and deducted. Vice President Ooten confirmed that these parcels are not the same as the parcels that the District is annexing in Newport Beach. Ms. Tran noted that the Newport Beach properties were being billed by the City of Newport Beach and the District then billed the City of Newport Beach. Director Perry verified that the properties with delinquent charges were being included in the occupancy count, but they were not being charged for service. Discussion followed regarding the addresses with delinquent charges. Director Scheafer confirmed that these addresses will be included on the assessments moving forward. He noted that one of the addresses owes nearly $4,000 and asked how they could owe that much. Ms. Tran noted that the property could have been receiving free service for several years and it could have multiple units. Motion: To approve Resolution No. 2019-918 certifying to the Board of Supervisors and County Auditor a Statement of Delinquent and Unpaid Charges for sewer and other services and requesting collection with the annual taxes imposing a lien. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 3-0-2 Aye: Art Perry, Bob Ooten, Mike Scheafer Not Present: Arlene Schafer, Jim Ferryman There were no further questions or discussion. Action: 3. Consider Creating a Policy Review Ad Hoc Committee and Appoint Two Board Members to Serve on the Committee Recommendation: That the Board of Directors create a Policy Review Ad Hoc Committee and Appoint Two Board Members to Serve on the Committee. Mr. Carroll explained that the Board of Directors regularly establishes an Ad Hoc Committee to review policy and procedural documents such as the Administrative Regulations, Operations Code, and Employee Handbook. He noted that the CAC appointed 2 members, Monte Fields and Steven Takahashi, to the Ad Hoc Committee. Mr. Carroll requested that the Board of Directors appoint two members at this time, and he noted that the Ad Hoc Committee will hold public meetings that are compliant with the Brown Act. Director Perry asked why it is required that the Committee meetings follow the Brown Act procedures. Mr. Carroll noted that it is good practice and displays transparency. Vice President Ooten asked if District staff will provide input regarding the policy review. Mr. Carroll noted that during the previous Policy Review Ad Hoc Committee, Directors Schafer and Perry provided substantial input. Discussion followed regarding the last review process and the potential meeting schedule for the Committee. Director Perry noted that he would be happy to serve on the Committee if he were appointed. Director Scheafer noted that it may be useful to have a different set of appointees review the policy documents. Director Perry suggested that Director Scheafer and himself be appointed to the Committee for now, and changes can be made later if need be. Vice President Ooten asked if Director Scheafer would be willing to serve on the Committee. Director Scheafer confirmed that he would not mind serving on the Committee. Vice President Ooten appointed Director Perry and Director Scheafer to serve on the Policy Review Ad Hoc Committee. There was no further discussion. Action: 4. Consider Approving Amendment to Robin Hamers & Associates Agreement for Construction Inspection Services Recommendation: That the Board of Directors approve the Amendment to Robin Hamers & Associates Agreement for construction inspection services. District Engineer, Robin Hamers, sat in the audience for the duration of Item E4. Mr. Carroll noted that the Board is being asked to consider approving an amendment to Robin Hamers & Associates' agreement to provide both private and public construction inspection services for the District. He added that if approved, AndersonPenna will be given a 2-week notice to conclude services as of June 7, 2019. Motion: To approve the Amendment to Robin Hamers & Associates Agreement for construction inspection services. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 3-0-2 Aye: Art Perry, Bob Ooten, Mike Scheafer Not Present: Arlene Schafer, Jim Ferryman There was no discussion. Action: 5. Consider Approving the Priceless Pet Rescue Contribution Program Application Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to Priceless Pet Rescue; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $250 to have a booth at the Priceless Pet Rescue PACK WALK 2019 event to promote the District's special solid waste and wastewater programs. Management Analyst II, Gina Terraneo, introduced a contribution request from Priceless Pet Rescue in the amount of $250 to host a community booth at the 2019 PACK WALK event at TeWinkle Park in Costa Mesa. She provided an overview of Priceless Pet Rescue and noted that the contribution can be made in an effort to advance the District's purposes of recycling and proper disposal of waste. She explained that the contribution would go toward hosting a community booth at the event to share information about how pet waste can be disposed of in the organic waste cart and pet medications can be safely disposed of in the District's medication drop box. Director Perry confirmed that the Priceless Pet Rescue animal shelter and the event are both located in Costa Mesa. Ms. Terraneo noted that this is the first year that the event will be held in Costa Mesa and the expected attendance is about 1,000 people. Director Scheafer indicated concern about the sponsorship level. He clarified that the District will receive a community booth in return for its $250 sponsorship. Discussion followed regarding the event logistics. Director Perry commented that it may be worth making the contribution to find out if the event is beneficial for the District to attend. Director Scheafer indicated agreement with Director Perry. Motion: To contribute $250 to Priceless Pet Rescue to have a booth at the PACK WALK 2019 event to advance the District's purposes of recycling and proper disposal of waste by promoting the Organics Recycling Program and the medication drop box. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 3-0-2 Aye: Art Perry, Bob Ooten, Mike Scheafer Not Present: Arlene Schafer, Jim Ferryman There was no further discussion. Action: 6. Consider Approving the Costa Mesa High School Football Boosters Contribution Program Application Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Costa Mesa High Football Boosters; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $500 to hang a new Organics Recycling Program banner at Mustangs field. Vice President Ooten introduced the item. Director Scheafer noted that Estancia High School and Costa Mesa High School make these requests annually and the District typically contributes $500. Ms. Terraneo noted that Costa Mesa High School usually requests $1,000 for 2 banners, but District staff is recommending a contribution of $500 for 1 banner in order to remain within budget and to provide an equal amount as was provided to Estancia High School. She shared that she designed an updated Organics Recycling Program banner to replace the current banner artwork. Ms. Terraneo noted that the school will have the banner made and hung in the stadium if the contribution is approved. Director Perry indicated support for the recommendation and commented that Mustangs field is used frequently. Motion: To contribute $500 to the Costa Mesa High School Football Boosters to advance the purpose of recycling by promoting the Organics Recycling Program with a banner in Mustangs Field that includes messaging to encourage the use of the organics waste cart to recycle green waste and food scraps. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 3-0-2 Aye: Art Perry, Bob Ooten, Mike Scheafer Not Present: Arlene Schafer, Jim Ferryman There was no further discussion. F. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File the Monthly Capital Improvements Project Status Report Recommendation: That the Board of Directors receive and file the report. Vice President Ooten introduced the item and welcomed discussion. There was no discussion and the Board of Directors received and filed the report. G. TREASURER'S REPORTS Nothing to report. H. ATTORNEY'S REPORTS Nothing to report. I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (President Ferryman) Vice President Ooten noted that he attended the OCSD meeting and provided updates. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry shared updates that were provided by SARFPA's advocate in Washington D.C. regarding the Army Corps of Engineers. 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Director Scheafer noted that he did not attend the last ISDOC meeting. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer was not present to provide a CSDA update. 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Director Scheafer reported that SDRMA is financially sound and noted that he will be attending the Public Agency Risk Management Association conference in Orlando, FL. Ms. Middenway provided an update regarding CSDA Legislative Days. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Director Perry noted that he attended a Costa Mesa Historical Society meeting and provided updates. He noted that the Society will be interviewing Director Scheafer about his involvement in Costa Mesa institutions. He added that the Society has more historical photos that they can provide for any remaining pump stations that the District would like to wrap. J. OLD BUSINESS None at this time. K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Director Scheafer commented that he enjoys doing check presentations at local schools for the Alkaline Battery Recycling Program. Director Perry shared that the Lions Club will be hosting a golf tournament. Vice President Ooten shared that the Friends of the Library will be installing outdoor musical instruments for public use. M. ADJOURN TO CLOSED SESSION No closed session. N. RECONVENE TO OPEN SESSION No closed session. O. CLOSING ITEMS Procedural: 1. Adjourn Vice President Ooten adjourned the meeting at 6:48 P.M. B. ITEM DRAFT Amended Board of Directors Regular Meeting (Thursday, June 27, 2019) Members present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Colin Burns (District Counsel), Robin Hamers (District Engineer), Marc Davis (District Treasurer), Noelani Middenway (District Clerk), Kaitlin Tran (Finance Manager), Dyana Bojarski (Management Analyst II), Gina Terraneo (Management Analyst II), Nabila Guzman (Management Analyst I) Others present Dean Ruffridge (CR&R), Jim Mosher (District resident), Judith Gielow (District resident & Citizens Advisory Committee Member) Meeting called to order at 5:28 P.M. A. OPENING ITEMS Procedural: 1. Pledge of Allegiance - President Ferryman President Ferryman led the Pledge of Allegiance. Procedural: 2. Invocation - Vice President Ooten Vice President Ooten led the Invocation. Procedural: 3. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) District Clerk, Noelani Middenway, conducted roll call and noted that President Ferryman, Vice President Ooten, Director Scheafer, and Director Perry were present at this time. Procedural: 4. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. None at this time. Procedural: 5. Ceremonial Matters and Presentations None at this time. B. Public Comments Procedural: 1. Public Comments President Ferryman opened public comments. Subject 3. Draft Amended Board of Directors Regular Meeting Minutes of June 27, 2019 Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Minutes Minutes View Minutes for Jun 27, 2019 - Amended Board of Directors Regular Meeting Jim Mosher, a resident and District wastewater customer, provided comments regarding the Solid Waste Diversion Report presented at the June 18, 2019 Study Session. He explained that District staff confirmed that the last waste characterization study was completed in 2018, but he noted that the breakdown of waste types changed at the end of the fiscal year. Mr. Mosher suggested that the Board of Directors request a future Study Session report to fully explain the study. He commented that District staff provided a complicated answer when asked for the District's pounds per capita measurement, and he asserted that the District should be able to estimate how it compares with the state standards for this measurement. Secretary Schafer entered the meeting at 5:31 P.M. Judith Gielow, Citizens Advisory Committee Member and District solid waste customer, provided comments regarding the proposed increase in solid waste rates. She encouraged the District to continue researching alternatives to a flat rate increase in an effort to fairly account for variables such as the number and size of trash carts, the number of properties served, and the frequency of collection. Mrs. Gielow commented that this may be a time-consuming effort; however, the upcoming Census data could be helpful. Lastly, she shared that she believes in the importance of reducing, reusing, and recycling, and she asked that the Board refrain from increasing rates. Secretary Schafer verified that the District's last solid waste rate increase occurred 15 years ago. Seeing no one else wishing to speak, President Ferryman closed public comments. C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of May 14, 2019 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the Board of Directors Regular Meeting Minutes of May 23, 2019 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. Action (Consent): 5. Adopt Warrant Resolution No. CMSD 2019-12 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2019-12 approving District warrants for the month of May 2019 in the amount of $835,749.32. Action (Consent): 6. Payroll Transparency Disclosure for May 2019 Recommendation: That the Board of Directors approve and file the report. Action: 7. Accept the occupancy count as presented as 22,801 and direct staff to prepare a warrant to CR&R Environmental Services for $223,344.92 for May 2019 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,801 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,344.92 to be ratified in the June 2019 warrant list. Action: 8. Approve the preparation of a warrant to CR Transfer in the amount of $206,887.57 for May 2019 recycling and disposal services in the June 2019 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $206,887.57 for May 2019 recycling and disposal services to be ratified in the June 2019 warrant register. Action (Consent): 9. Approve Investment Report for the Month of May 2019 Recommendation: That the Board of Directors approve the Investment Report for the month of May 2019. Action (Consent): 10. Contracts Signed by General Manager Recommendation: That the Board of Directors receive and file this report. Motion: To approve the Consent Calendar as presented. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. D. PUBLIC HEARINGS Action: 1. Adopt Ordinance No. 126 and Resolutions 2019-919 and 2019-920 for New Solid Waste Charges and Assessment of Solid Waste and Wastewater Annual Charges Recommendation: That the Board of Directors: 1. Adopt Resolution No. 2019-919 adopting solid waste fees and a five year schedule of charges and confirming the solid waste annual charges for FY 2019-2020 to be collected with the general taxes and direct the District Clerk to file with the County Auditor; and 2. Adopt Resolution No. 2019-920 confirming the wastewater annual charges for FY 2019-2020 to be collected with the general taxes and direct the District Clerk to file with County Auditor. 3. Adopt Ordinance No. 126 confirming the charges. President Ferryman opened the public hearing at 5:36 P.M. He opened public comments. Mr. Mosher provided a comment about the public notice procedures for new assessments. He noted that an announcement must be published in the newspaper 2 times, 5 days apart. He pointed out that the notice only mentions the new solid waste rates (not wastewater rates), and he added that the solid waste notice only seems to have been published once. Lastly, Mr. Mosher questioned whether the District has met its public notice requirements. District Counsel, Colin Burns, thanked Mr. Mosher for his comments and responded that District staff received Mr. Mosher's written comments. He noted that after reviewing Mr. Mosher's comments, the notice was re-published. Mr. Burns added that the notices are not required to be published exactly 5 days apart, but at least 5 days apart. With regard to the wastewater rates, he explained that these were not included in the original notice because the District is not increasing wastewater rates, but rather re-ratifying these rates for the County. Mr. Burns commented that he believes this sufficiently meets the procedural requirements. Discussion followed regarding the public hearing timeline and the future of the District's wastewater rates. President Ferryman closed the public hearing at 5:42 P.M. Director Scheafer sought clarification regarding the public protest requirements for this rate increase. Mr. Burns confirmed that the District followed the appropriate protest and noticing procedures. He explained that the District has published 3-4 notices in the newspaper, including those for the Proposition 218 procedures. Director Scheafer commented that the public is entitled to protest the rate increase and verified that the District received a total of 12 protests from the public. He commented that the Board's intent is not to over-tax residents, and that the public has been given the opportunity to protest. Lastly, he added that the District has done its due diligence in terms of procedures. Motion: To: 1. Adopt Resolution No. 2019-919 adopting solid waste fees and a five year schedule of charges and confirming the solid waste annual charges for FY 2019-2020 to be collected with the general taxes and direct the District Clerk to file with the County Auditor; and 2. Adopt Resolution No. 2019-920 confirming the wastewater annual charges for FY 2019-2020 to be collected with the general taxes and direct the District Clerk to file with County Auditor. 3. Adopt Ordinance No. 126 confirming the charges. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. E. GENERAL MANAGER'S REPORTS Action: 1. Adopt Resolution No. 2019-921 Adopting the Biennial Budget for Fiscal Years 2019-20 and 2020-21 Recommendation: The Board of Directors Adopt Resolution No. 2019-921 Adopting the Biennial Budget for Fiscal Years 2019-20 and 2020-21. General Manager, Scott Carroll, presented Resolution No. 2019-921 to adopt the Biennial Budget for Fiscal Years 2019-2020 and 2020-2021. He welcomed questions. Motion: To adopt Resolution No. 2019-921 adopting the Biennial Budget for Fiscal Years 2019-20 and 2020-21. Motion by Art Perry, second by Arlene Schafer. Vice President Ooten commented that he thought the funds for the Iowa Force Main Replacement project were diverted toward an emergency Capital Improvement Project, and noted that this project appears in the Biennial Budget. District Engineer, Robin Hamers, noted that the funding has been diverted and the project is scheduled for a future year. Mr. Carroll noted that District staff will look into this. Vice President Ooten explained that he would like to know why the project was important enough to be scheduled in the first place, and then subsequently considered unimportant enough to delay for future completion. Mr. Carroll noted that the District reviews and assesses its asset management program annually to determine which projects are the highest priority. Mr. Hamers commented that the Iowa force main is short and has not had issues thus far, but he added that it is old and it is on the list for replacement. Vice President Ooten suggested that this discussion continue during the Engineer's Reports. Discussion followed regarding the Iowa Pump Station location. Mr. Hamers clarified that the funding for the Iowa Force Main Replacement was diverted to the Canyon Pump Station Project and was pushed back one year. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 2. CR&R Consumer Price Index Increase Request Recommendation: That the Board of Directors approves one of the options below to be adopted in the FY19- 21 budget. 1. Award CR&R their requested 5.8% CPI increase for FY 19-20 and rate remain the same for FY 20-21. 2. Award CR&R a split 5.8% CPI increase over the next two fiscal years. The District will award a 2.9% increase in FY 19-20 and an additional 2.9% in FY 20-21. 3. Award CR&R a 3% CPI Increase for FY 2019-20 and rate remain the same for FY 20-21. A 3% CPI increase was used in the solid waste study to project budget revenue and expenses. 4. Decline CR&R's request for a CPI increase and hauler rates will remain the same. Mr. Carroll noted that District Treasurer, Marc Davis, will provide an oral report (Item G1), followed by a report by Management Analyst I, Nabila Guzman. Discussion: 1. Financial Review of CR&R - Oral Report Recommendation: That the Board of Directors receive and file the oral report. Mr. Davis shared that he reviewed CR&R's profit margin, as stated in the District's agreement with CR&R. He noted that he met with CR&R staff twice to review their accounting records, and they were responsive to all his questions and requests, except for one item that they deemed to involve confidential information. Mr. Davis noted that after his review, he was satisfied that the profit margin he reviewed was reasonably calculated. He noted that the financial information he reviewed is confidential and therefore he cannot discuss it at this time. Director Scheafer commented that the Board is being asked to make a decision on something that they do not have all the information on. He added that he has complete faith in the information that Mr. Davis shared, but he commented that he would like to see the numbers for himself. He asked if this would be possible. Mr. Davis noted that the agreement does not specify that the Board cannot look at the financial information; however, he shared that CR&R indicated that the information is confidential and cannot be shared with the public. Director Scheafer commented that he has a hard time grappling with the idea that the Board is being asked to make a decision regarding spending public funds on a Consumer Price Index (CPI) increase for CR&R without being provided CR&R's financial information. Director Perry commented that the Board is expected to base their decision off of Mr. Davis' oral report. Secretary Schafer noted that the Board could hold off on making a decision and gather more information. Director Perry commented that the Board cannot view CR&R's financial records. Director Scheafer confirmed that Mr. Davis' opinion is that CR&R's profit margins are reasonably calculated. President Ferryman commented that the District may need to study this issue further. Secretary Schafer indicated agreement with President Ferryman. Director Perry commented that he believes the CPI request is reasonable. Mr. Davis clarified that although the agreement uses the term "audit," the purpose of the financial review is to look at CR&R's books and review their profit margins for all the operations pertaining to the District. He reiterated that CR&R shared all the information requested, except for one component of an expense item that they deemed confidential. He noted that this component would not have significantly impacted their profit margin. Mr. Carroll noted that District staff explained to the Board that CR&R's financial information would not be shared with the public at the time the agreement was presented to them for approval. He added that if the Board requests to see this information, perhaps CR&R would be willing to share it. Director Scheafer commented that he struggles with the idea that the District prides itself on transparency, and yet this information cannot be shared. He asked if this means that the Board cannot see the financial information that was reviewed by Mr. Davis. Mr. Burns explained that under the California Public Records Act, trade secrets can be kept confidential in order for companies to maintain their competitive edge. Director Scheafer asked if the Board can meet in closed session to review the financial information. Mr. Burns noted that there is no closed session exception for reviewing trade secrets. Director Scheafer asked if the Board Members can review the financial information individually with Mr. Davis. Mr. Burns noted that he believes this can be done, as long as the Board Members do not discuss any aspect of the information or their thoughts on it with each other. Director Perry verified that the agreement allows for CR&R to request a CPI increase once every 2 years, and the Board has the discretion to approve or deny the request. He also verified that CR&R has not had a CPI increase since at least 2006. Director Scheafer noted that the staff recommendation presents options for CPI increases in relation to 3 components of CR&R's services (Hauler Fee, Recycling Disposal, and Organics Disposal). He asked if the Board has the option to grant CPI increases on the individual components, rather than all 3 of the components. Mr. Carroll noted that the agreement does not specify whether the Board has discretion on this matter. He added that this would need to be discussed further with District Counsel, Alan Burns, upon his return from vacation. Director Scheafer commented that he struggles with the idea of a CPI increase for the processing fee for recycling and disposal, since CR&R receives revenue from recyclables. Mr. Carroll noted that there are costs associated with processing (sorting and baling) the recyclables. Director Perry commented that the recyclable markets are variable. Discussion continued with the report under Item E2. Action: 2. CR&R Consumer Price Index Increase Request Recommendation: That the Board of Directors approves one of the options below to be adopted in the FY19- 21 budget. 1. Award CR&R their requested 5.8% CPI increase for FY 19-20 and rate remain the same for FY 20-21. 2. Award CR&R a split 5.8% CPI increase over the next two fiscal years. The District will award a 2.9% increase in FY 19-20 and an additional 2.9% in FY 20-21. 3. Award CR&R a 3% CPI Increase for FY 2019-20 and rate remain the same for FY 20-21. A 3% CPI increase was used in the solid waste study to project budget revenue and expenses. 4. Decline CR&R's request for a CPI increase and hauler rates will remain the same. President Ferryman requested clarification regarding the staff recommendation. Ms. Guzman explained the 4 options proposed by District staff. She noted that Option 1 is a one-time 5.8% increase in FY 2019-20, Option 2 is a split 2.9% increase in FY 2019-20 and another 2.9% increase in FY 2020-21, Option 3 is a one-time 3% increase in FY 2019-20, and Option 4 would provide no increase. Discussion followed regarding the options, as shown in the attachment to the staff report. Ms. Guzman explained that the costs listed in the attachment account for anticipated increases in population and tonnage collected. Director Perry verified that the Biennial Budget accounts for Option 1. He confirmed that CR&R can request its next CPI increase in FY 2021-22. He commented that Option 1 seems like a reasonable request. Ms. Guzman noted that the last CPI increase was awarded in FY 2004-05. President Ferryman confirmed that there are no additional monetary requests from CR&R. Director Perry requested that District staff use a different method of displaying the costs next time, because he found the attachment difficult to comprehend. President Ferryman opened public comments. Mr. Mosher noted that he is not a solid waste customer, but he indicated agreement with Director Scheafer with regard to the transparency issue. He noted that Mr. Davis indicated that CR&R's profit margin is reasonably calculated, but not that it is a reasonable profit margin. Mr. Mosher also noted that there is nothing in California law, as far as he knows, that prohibits a company from revealing anything that they would like to reveal about their operations to the public. He commented that it is important to know what the contract actually states, and he commented that he struggles with the concept of the Board being asked to make a decision based on the profit margin when they do not know what the profit margin is. Motion: To award CR&R their requested 5.8% CPI increase for FY 19-20 and for the rate to remain the same for FY 20-21. Motion by Art Perry, second by Arlene Schafer. Director Scheafer noted that he is not going to support the motion because he is still struggling with the idea that the Board is not getting the chance to see the financial information and that part of the increase would go toward a processing fee for recycling and disposal. President Ferryman commented that he will support the motion because it seems fair and equitable, given that CR&R has not gotten a CPI increase in at least 11 years. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman No: Mike Scheafer Dean Ruffridge of CR&R commented that the negotiation process for the agreement was lengthy and Mr. Carroll was adamant about the District being able to review CR&R's profit margins. He noted that of the 54 franchises that CR&R has in southern California, the District is the only agency that has permission to review CR&R's books. Mr. Ruffridge noted that landfill fees have increased significantly since CR&R's last CPI increase in 2004. He commented that selling recyclables is very challenging at this time; however, CR&R has an environmental conscience and continues to recycle despite the impact on its finances. Director Perry added that there are additional special collection programs included in the District's latest agreement with CR&R. There was no further discussion. Action (Consent): 3. Approve Auditor Engagement Letter for Fiscal Year 2018-19 Audit Recommendation: The Board of Directors approve and file this report. Finance Manager, Kaitlin Tran, shared that the District's auditor, Teaman, Ramirez & Smith Inc., have issued an engagement letter for the FY 2018-19 audit. She noted that the audit is scheduled to begin on October 7, 2019 and staff is recommending that the Board approve and file the report. Director Perry confirmed that the cost of this audit is $9,500. Motion: To approve and file this report. Motion by Art Perry, second by Mike Scheafer. Secretary Schafer verified that this is the second year the District is working with Teaman, Ramirez & Smith Inc. Ms. Tran noted that the District's contract is for 3 years, with the option of an additional 2-year extension. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 4. Consider Contribution Program Application for Concerts in the Park Recommendation: That the Board of Directors: 1. Approve the Costa Mesa Foundation's contribution application requesting a $2,500 sponsorship for the Concerts in the Park series of events; and 2. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling and proper disposal through the hosting of a community booth and source separation activity. Mr. Carroll presented the report details. He noted that the Board has historically approved this contribution at the $2,500 level annually. Director Scheafer commented that this event series provides the biggest "bang for our buck" because it is highly attended. Secretary Schafer commented that this event series provides good advertising for the District. Motion: To approve the Costa Mesa Foundation's contribution application requesting a $2,500 sponsorship for the Concerts in the Park series of events and make a finding that this contribution will increase District visibility and promote the District's purposes of recycling and proper disposal through the hosting of a community booth and source separation activity. Motion by Mike Scheafer, second by Arlene Schafer. Director Perry confirmed that the District historically contributes $2,500 each year. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 5. Consider Approving Agreement with EEC Environmental for GIS-CMMS Support Services Recommendation: That the Board of Directors approve the Agreement with EEC Environmental for GIS-CMMS Support Services. Mr. Carroll shared that the District is proposing a new contract with EEC Environmental for Geographic Information Systems (GIS) Computerized Maintenance Management System (CMMS) Support Services, which will expand services for online scheduling of inspection services, a storeroom inventory system, and citizen service requests. He noted that the total cost in FY 2019-20 is $79,000 and the bidding procedures can be waived, per District code, because these services are highly specialized and technical. Motion: To approve the Agreement with EEC Environmental for GIS-CMMS Support Services. Motion by Arlene Schafer. Director Perry asked if residents know how to access the citizen service request app. Mr. Carroll confirmed that the District advertises its app regularly and residents can easily download it for free. Second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 6. Project #321 Indus Sewer Main Replacement - Approving Contract Administration & Inspection Services with Robin B. Hamers & Associates, Inc. Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented report details and shared that the contract has already been approved. He noted that this item does not require Board action. There was no discussion and the report was received. Action: 7. Special Districts Risk Management Authority 2019 Board of Directors Election Recommendation: That the Board of Directors select up to three (3) candidates to serve on the Special District Risk Management Authority Board of Directors for a four-year term beginning January 1, 2020 and ending on December 21, 2023. Mr. Carroll noted that the Board can discuss and decide who they would like to vote for to be on the Special Districts Risk Management Authority (SDRMA) Board of Directors. He noted that President Ferryman will cast the ballot on behalf of the District. Director Perry requested Director Scheafer's input, since he is involved in SDRMA. Director Scheafer recommended the re-election of the 2 incumbents, Sandy Seifert-Raffelson and Bob Swan, and commented that they have done an excellent job on the Board. He also recommended Patrick O'Rourke, whom he does not know, but he commented that his resume indicates that he is more qualified than the other remaining candidates. Motion: That President Ferryman cast votes for Sandy Seifert-Raffelson, Bob Swan, and Patrick O'Rourke to serve on the Special District Risk Management Authority Board of Directors for a four-year term beginning January 1, 2020 and ending on December 21, 2023. Motion by Mike Scheafer, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 8. Consider Revising CMSD's Operations Code Section 3.01.060 - Time of Regular Meetings Recommendation: That the Board of Directors direct staff to bring back an ordinance to revise CMSD's Operations Code Section 3.01.060 - Time of Regular Meeting. Mr. Carroll noted that this item has been discussed at previous meetings and District staff is seeking the Board's direction on whether the Regular Meeting date and time will change. Motion: To revise CMSD's Operations Code Section 3.01.060 to change the Regular Board of Directors Meetings to the Fourth Tuesday of each month at 4:30 p.m. Motion by Mike Scheafer, second by Bob Ooten. Director Perry confirmed that this day and time does not conflict with any of the meetings listed in the staff report. Director Scheafer commented that this meeting time is fair to District staff. Mr. Carroll noted that if this motion carries, District staff will bring an ordinance to the Board for approval and then publish the ordinance. He noted that the change may not be implemented for another 60 days. Mr. Mosher commented that he will not be able to attend District Board Meetings if this change is approved, because this new meeting time conflicts with the City of Newport Beach's Study Sessions. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer President Ferryman commented that if this does not work out, the Board can always change it back to its current day and time. There was no further discussion. Action: 9. Debriefing of General Manager's Attendance to the 2019 International City Management Conference in Qingdao China Recommendation: That the Board of Directors receive and file this report. Mr. Carroll shared an overview of his trip to Qingdao, China to attend the International City Managers Association's (ICMA) Conference and discuss solid waste management. He noted that he gave a presentation to Chinese officials about California's special districts and the District's solid waste collection system during the conference. Lastly, he noted that the trip was fully funded by ICMA and no District funds were spent. There was no discussion and the report was received. F. ENGINEER'S REPORTS Action, Receive and File: 1. Receive and File the Monthly Capital Improvements Project Status Report Recommendation: That the Board of Directors receive and file the report. Mr. Hamers presented the Capital Improvements Projects (CIP) Status Report and welcomed questions. There was no discussion and the report was received. Receive and File: 2. Declaration of Conflict of Interest - 272 Esther St., Costa Mesa - John Weatherwax Recommendation: That the Board of Directors receive and file the report. Mr. Hamers presented the Declaration of Conflict of Interest for the property at 272 Esther Street in Costa Mesa. He noted that the sewer plans for this project are being checked by the District's Alternate Engineer, per District procedures. There was no discussion and the report was received. Action: 3. #321 Indus Sewer Main Replacement; Bid Opening and Award of Contract in the amount of $267,040 Recommendation: The Board of Directors: 1. Reject the protest by Bonadiman Water, Inc., letter dated May 21, 2019 based on the finding that “soils engineering” is outside the definition of “subcontractor” so soils engineering does not have to be listed by the low bidder as a subcontractor. 2. Award a contract to the lowest responsive and responsible bidder, Gentry General Engineering, Inc., in the amount of $267,040 plus another $49,355 if Additive Bid Item A is constructed. 3. Approve a contingency of 10% in the amount of $26,704. Mr. Hamers shared that the District's sewer main is underneath the patios of a building and it is being compromised. He noted that the sewer will be moved away from the building as part of this project, and District staff is recommending that the contract be awarded to the most responsive and responsible bidder, Gentry General Engineering, Inc. Mr. Hamers noted that a protest was submitted by Bonadiman Water, Inc., but District staff is recommending that the protest be rejected. He commented that this sewer is getting worse over time and would collapse eventually, so this is an appropriate time to begin this project. Motion: To: 1. Reject the protest by Bonadiman Water, Inc., letter dated May 21, 2019 based on the finding that “soils engineering” is outside the definition of “subcontractor” so soils engineering does not have to be listed by the low bidder as a subcontractor. 2. Award a contract to the lowest responsive and responsible bidder, Gentry General Engineering, Inc., in the amount of $267,040 plus another $49,355 if Additive Bid Item A is constructed. 3. Approve a contingency of 10% in the amount of $26,704. Motion by Bob Ooten, second by Art Perry. Director Scheafer verified that the protester interpreted soils engineering to be a subcontractor (which was not listed in the bid), but Mr. Burns determined that a soils engineer is not considered a subcontractor. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 4. #331 Sewer Siphon Evaluation Program; Recommendation to Create New Project and Transfer Funds Recommendation: That the Board of Directors: 1. Create Project #331 Sewer Siphon Evaluation Program. 2. Transfer $100,000 from Project #323 Force Main Evaluation to Project #331 Sewer Siphon Evaluation Program. 3. Direct the General Manager to complete the evaluation and incorporate the results into the District’s capital improvement program. Mr. Hamers noted that the District is ahead of schedule for its force main replacement projects, but the recent need for emergency work on the Bristol sewer siphons indicates that the District's sewer siphons could be in poor shape. He noted that it may be smarter to do an evaluation of the sewer siphons prior to a force main evaluation. Mr. Hamers noted that the recommendation is to create this project and then Mr. Carroll will direct staff to implement it. Director Perry asked how much the project is estimated to cost. Mr. Hamers estimated that the design phase will cost about $19,000. He noted that specifications will be developed for contractors to clean and televise all the siphons, then District staff will analyze the results, determine whether repairs are necessary, and incorporate them into the CIP. Motion: To: 1. Create Project #331 Sewer Siphon Evaluation Program. 2. Transfer $100,000 from Project #323 Force Main Evaluation to Project #331 Sewer Siphon Evaluation Program. 3. Direct the General Manager to complete the evaluation and incorporate the results into the District’s capital improvement program. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. G. TREASURER'S REPORTS Action: 2. Consider Adopting Resolution 2019-922 Approving the Statement of Investment Policy and Delegating the Investment Function to the Treasurer for Fiscal Year 2019-20 Recommendation: That the Board of Directors adopt Resolution 2019-922 approving the Statement of Investment Policy and delegating the investment function to the Treasurer for Fiscal Year 2019-20. Mr. Davis commented that it is good practice to revisit this item annually and determine whether the Board would like to delegate its investment function to the District Treasurer. He noted that a red line version (with minor changes) and a finalized version of the policy are attached to the staff report for the Board's review. Director Scheafer confirmed that the Board can approve the resolution in a single motion. Motion: To adopt Resolution 2019-922 approving the Statement of Investment Policy and delegating the investment function to the Treasurer for Fiscal Year 2019-20 Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. H. ATTORNEY'S REPORTS Action: 1. Consider Adopting Ordinance No. 127 Prohibiting Interference with District Easements, Sewer Lines and Appurtenances and Adopting Sewer Easement Maintenance Cooperation Standards Recommendation: That the Board of Directors adopt Ordinance No. 127 Prohibiting Interference with District Easements, Sewer Lines and Appurtenances and Adopting Sewer Easement Maintenance Cooperation Standards. Mr. Burns explained that this ordinance stems from a recent case that involved a sanitary district facing difficulty going through the administrative and court processes to have a fence removed from above their easement. He noted that the ordinance says that a property owner cannot obstruct a District easement, and if they do create an obstruction, the District will provide a notice and give them an opportunity to be heard. He added that if there is no good cause for the obstruction, then the District can have them remove it at their own expense. Mr. Hamers commented that he had an opportunity to review the ordinance and that it includes all the necessary provisions, including that if the District needs to remove an obstruction, then the property owner would liable for the cost of the removal. Director Scheafer confirmed that the ordinance would help the District when dealing with residents that refuse to allow District staff to access its easements. Motion: To adopt Ordinance No. 127 prohibiting interference with District easements, sewer lines and appurtenances and adopting sewer easement maintenance cooperation standards. Motion by Art Perry, second by Mike Scheafer. President Ferryman opened public comments. Mr. Mosher commented that the ordinance includes a provision stating that the major consequence is termination of service and asked how the District is able to do this. Mr. Hamers explained that the District could use no-dig technology to put a liner over the property's lateral sewer line connection in order to stop wastewater from entering the sewer system. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Information: 1. Orange County Sanitation District (OCSD) - (President Ferryman) President Ferryman shared that OCSD recognized him for 30 years of service, and he thanked everyone who attended. Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry provided updates regarding SARFPA. He noted that President Ferryman will be Chair of SARFPA again next year, and that the budget was approved. Additionally, discussion followed regarding flood zones and flood insurance. Information: 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer noted that candidates for the Orange County Local Agency Formation Commission (OC LAFCO) spoke at the last ISDOC meeting. Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer shared that CSDA is in the process of updating its Strategic Plan and noted that she participated in a legislation webinar. Information: 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Nothing to report at this time. Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Director Perry shared that he attended the Costa Mesa Historical Society meeting and the Costa Mesa City Council Meeting. J. OLD BUSINESS None at this time. K. NEW BUSINESS None at this time. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments There were no comments. M. ADJOURN TO CLOSED SESSION President Ferryman adjourned the meeting to closed session at 7:34 P.M. to discuss the following: CONFERENCE WITH LEGAL COUNSEL- ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Paragraph (2) of subdivision (d) of Government Code Section 54956.9, as specified in subdivision (e)(3) exists: Claim of Steven Hodges received June 3, 2019 against the Costa Mesa Sanitary District, a copy of which will be made available to the public. N. RECONVENE TO OPEN SESSION Procedural: 1. Reconvene to Open Session and report out of any action taken. President Ferryman reconvened the meeting to open session at 7:50 P.M. and noted that no reportable action was taken. O. CLOSING ITEMS Procedural: 1. Adjourn President Ferryman adjourned the meeting at 7:50 P.M. B. ITEM To: Citizens Advisory Committee From: Scott Carroll, General Manager Date: July 17, 2019 Subject: Debriefing of General Manager's Attendance to the 2019 International City Management Conference in Qingdao China Summary The General Manager is a member of the International City/County Management Association (ICMA), which is an organization that advances professional local government through leadership, management, innovation and ethics. According to ICMA's website, the organization helps local governments in the U.S. create sustainable, livable and resilient communities by researching and sharing leading management strategies and practices. Outside the U.S. ICMA provides peer-to-peer technical assistance, training, and resources to assist municipalities in developing and decentralizing countries to develop local capacity and promote good governance. ICMA has worked with more than 70 countries, including China. In 2011, the ICMA China Center was established as a partnership between ICMA and the China University of Political Science and Law (CUPL). One of the goals and objectives of the Center is to establish cooperative relationships between ICMA and institutions and organizations in China to facilitate training, research, information sharing, conferences and exchange. On June 9-10, 2019, the City of Qingdao, which is located on the coast of the Yellow Sea in the Shibei District of China, had its International City Management Conference that focused on city governance innovation and quality improvement. ICMA sent a small group of local government leaders from the U.S., Canada and Europe to the conference in which they invited the General Manager to be a part of the group as one of the conference's keynote speakers to discuss waste management practices at the Costa Mesa Sanitary District. The following is a brief synopsis of the General Manager's experience in China. More information will be presented at tonight's meeting. Analysis One of the primary focus in Qingdao, and the rest of China for that matter, is waste management. In the 1980s, China did not have a garbage problem because most people were poor, so they didn't buy much, and they certainly didn't' waste much. Then, China began to prosper and with prosperity came large amount of consumerist trash such as computer parts, plastic packaging, milk cartons, broken cellphones, polystrene, cardboard, etc. Now, Chinese can do online shopping and for a nominal fee they can receive food delivery service. Recognizing the country has a growing trash problem, the central Chinese government is mandating local governments to recycle. In fact, they want one-third of the waste produced by large cities to be recycled by end of 2020. On Sunday, June 9, 2019, the General Manager toured Qingdao with City officials to learn about their recycling programs. Qingdao does provide source separating services (e.g. recycling, hazardous waste and trash) for businesses and residents as seen in the attached pictures. However, the challenge city officials are facing is contamination and education. Residents are not recycling because they don't want to, or they're not familiar with recycling products. During a round table discussion, in which the General Manager participated, City officials discussed ideas on how to incentivize residents to recycle such as making trash separation compulsory and/or conduct public outreach that include the media. The General Manager shared with the group the District's outreach efforts such as our quarterly newsletter, alkaline battery recycling program and waste free lunch seminars at elementary schools. China believes in using incinerators to dispose of trash instead of landfills because landfills create odors. Incinerator technology was not shared, but Chinese officials did claim their technology is advanced to reduce polluted emissions into the atmosphere. Monday, June 10, 2019 was the conference opening ceremony and keynote speeches. The General Manager was one of the keynote speakers where he spoke in front of 250 to 300 Chinese educators, public administrators and practitioners about the District's waste management practices. The audience learned about special districts in the U.S., facts about CMSD, regulatory Subject 4. Debriefing of General Manager's Attendance to the 2019 International City Management Conference in Qingdao China Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Discussion Goals 1.0 Sewer Infrastructure 3.00 Partnerships requirements, and our diversion programs including green waste recycling, household hazardous waste collections and textile donation event. Attached are pictures of the General Manager's keynote speech. On Tuesday, June 11, 2019, the ICMA group flew to Beijing where they met with Chinese official at the United Nations building to discuss waste reduction methods in the European country of Denmark and at the City of El Cerrito in Northern California. The group heard presentations from Chinese officials about performance measurement and data analysis on environmental governance. On Wednesday, June 12, 2019, the General Manager returned home. Legal Review Not applicable Environmental Review Receiving a debriefing from the General Manager regarding his travel to China to review the trash collection and recycling programs will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA or the District's CEQA Guidelines. Financial Review No District funds were expended on the General Manager's trip to China. The excursion was fully funded by the City of Qingdao, China University of Political Science and Law and ICMA Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 17, 2019 Citizens Advisory Committee meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions 1. Direct staff to return with more information. File Attachments Qingdao Trash Carts.jpg (1,845 KB) Qingdao Trash Cans.jpg (1,502 KB) Qingdao Recycling.jpg (1,538 KB) Qingdao Round Table.jpg (1,000 KB) Qingdao Conference Audience.jpg (2,227 KB) Qingdao Conference SC Bow.jpg (2,202 KB) Qingdao Conference SC.jpg (2,492 KB) United Nations.jpg (2,832 KB) United Nations1.jpg (3,982 KB) United Nations2.jpg (1,183 KB) B. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: July 17, 2019 Subject: Inflow & Infiltration (I/I): Mendoza Pump Station Smoke Test Summary Orange County Sanitation District (OCSD) as well as the State Water Resources Control Board under the Waste Discharge Requirements (WDR) prohibits inflow and Infiltration (I/I) of surface and groundwater into the sewer system. Treating wastewater is costly and the addition of surface water causes OCSD to construct additional capacity at its treatments plants. I/I also negatively affects the performance of sewer systems by taking up the capacity that was designed for wastewater. The Costa Mesa Sanitary District’s (CMSD) I/I program consists of manhole plugging and sealing and has been active since the winter of 2009- 2010. The District has determined there is little to no infiltration into the system but there is inflow of surface water into the system due to flooding streets and alleys, possible illegal connections, and pool discharges. The District has plugged and sealed approximately 1,000 manholes out of 4,720 total manholes in the District. The District’s Inflow Reduction Program has previously prevented water from mid level storms from entering the system and these results have been reported to the Board and Orange County Sanitation District. The District's goal is to limit inflow to less than 2% rain ingress, which is OCSD’s goal as well. Generally, the District does not calculate inflow into the system for storms of less than 1” of rainfall due to inaccuracies in small storm calculations. However, during the last three storm events, the rainfall exceed one inches, which resulted the ingress to surpass the 2% goal. On December 7, 2018, the rain ingress was 3.8% and on January 12, 2019 the rain ingress was 3.75%. On February 15, 2019 a storm of 2.76 inches of rainfall caused the Mendoza Pump Station to run an extra 377 minutes equating to 361,920 gallons of rainwater in the wastewater system, which caused a rain ingress of 2.59%. The District’s other pump stations also pump stormwater but Mendoza Station is usually the largest offender. Based on the overall results from this storm and another, District Management determined the manhole plugging and sealing from prior years needed to be re-established and that additional steps should be taken. Management decided to consider “smoke testing”, the surest method to finding illegal connections that create inflow. Subject 5. Inflow & Infiltration (I/I): Mendoza Pump Station Smoke Test Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $40,000.00 Budgeted No Budget Source Wastewater Fund Recommended Action That Citizens Advisory Committee recommend the Board of Directors consider smoke testing the Mendoza Pump Station Tributary Area to locate inflow sources. Goals 1.0 Sewer Infrastructure 1.2 Inflow Reduction Program 1.7 Pump Station Maintenance & Standardization Program District Staff is currently in the process of obtaining and evaluating proposals for smoke testing the Mendoza Pump Station tributary area in order to find and terminate the connections allowing rainwater to enter the wastewater system. Five firms have been contacted: ADS, Michael Baker, Psomas, Empire, and Dudek. A few public agencies stated they perform their own smoke testing. Recommendation That Citizens Advisory Committee recommend the Board of Directors consider smoke testing the Mendoza Pump Station Tributary Area to locate inflow sources. Analysis Infiltration is groundwater (underground water) entering into sewer lines through cracks and/or separated joints in the sewer lines. Groundwater may be from storm water infiltrating down through the soil or from naturally occurring groundwater. Inflow is surface water entering through the vent holes in the cover and water entering through the annular space between the manhole ring and cover. Inflow generally occurs during storms that flood streets and may also be caused by illegal connections. An example of an illegal connection is a property owner solving his backyard flooding problem by installing a drain and connecting it to the sanitary sewer. When the District televised the sewer system from 2006-2009, only two instances of heavy infiltration (termed “gushers”) were discovered and these sources of water were immediately terminated. During the 2016-2018 televising program, there were no instances of heavy infiltration. The source of I/I water in the District’s system is inflow and this conclusion is supported by extra runtimes in the pumping stations immediately after a rain event. Inflow will occur immediately after the rain event whereas infiltration of underground water into the sewer is delayed from the time of the storm as the water must first percolate through the soil all the way down to the sewer system. The District’s Inflow Reduction Program is an attempt to reduce the amount of surface water entering the sewer system during winter storms. Many streets in Costa Mesa are relatively flat and flood during large storms. Standing water from curb to curb where manholes are located causes large volumes of water to enter the system though the vent holes and the space between the ring and cover. The cure for flooded streets is additional storm drain catch basins and pipelines but the City has struggled with funding these improvements. Therefore, Staff has used plugging and sealing manholes as the best course of action to prevent inflow. The risk in plugging and sealing manholes is the lack of oxygen circulation in the system and the inability to see a backup in the system since a backup manifests itself through these same vent holes. The lack of oxygen causes a buildup in hydrogen sulfide, which leads to more pronounced odors and corrosion in the system. The use of smoke testing represents the District’s next step in inflow reduction. The concept is simple and works as follows: A smoke machine and blower drive smoke into the sewer main, which is usually located underground along the center line of a street. The smoke travels up the main and up the sewer laterals all the way into each of the residences connected to the main. Smoke will then exit through openings leading to the sewer lateral. For instance, smoke exiting through a plumbing roof vent indicates the house is connected to the system but smoke emanating from a backyard storm drain grate indicates the homeowner is solving his drainage problems by illegally connecting to the sewer system. After the testing, the District will take steps to have the illegal connections removed. Legal Review Not applicable at this time. Environmental Review Smoke testing is performed with non-hazardous smoke that will quickly dissipate into the atmosphere. Also, there is no disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review Preliminary cost estimates for smoke testing Mendoza pumping station tributary area is approximately $27,000. Assuming additional costs for traffic control, permits, liaison, follow-up, etc., an initial total budget recommendation is to allocate $30,000 for the project. This project has a budget of $10,000. Additional funding is available from the Annual Sewer Maintenance or Contingency accounts. Public Notice Process Copies of this report are on file and will be included with the agenda packet for the July 17, 2019 Citizens Advisory Committee meeting and on the District’s website. Alternative Actions 1. Do not use smoke testing to determine points of inflow. 2. Refer the matter back to staff for additional information. Attachments: Mendoza Pump Station Tributary Area File Attachments Mendoza Pump Station Tributary Area.pdf (1,916 KB) B. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: July 17, 2019 Subject: Multi-family Solid Waste Proposal Summary The Costa Mesa Sanitary District (CMSD) is proposing providing solid waste collection services to all multi-family homes in the City of Costa Mesa. Merging all residential customers under the CMSD would result in many benefits to both multi-family residents and the city. Residents would see an improvement in programs and services available to them as well as an added value of having CMSD to contact if assistance is needed. The city would see savings in the number of abandoned items collected annually and money spent on fixing city streets. Staff Recommendation That the Citizens Advisory Committee receive and file the report. Analysis Per direction from the Board of Directors, District staff has prepared a proposal to provide solid waste collection services to all multi- family homes in the City of Costa Mesa. Currently, the District provides more than just curbside collection for its customers and would like to make the variety of award-winning solid waste programs and services available to all residents in the City of Costa Mesa. The proposal outlines the various benefits of merging all residential customers under the CMSD franchise such as improvement in programs and services to residents and savings to the City of Costa Mesa. The proposal briefly details the current problems with split residential service such as the number of trucks operating under the open market system and the effect it has on city streets. Additionally, haulers participating in the open market system do not have programs in place to dispose of abandon items left behind by customers they serve. These items then become the responsibility of the city which costs the city money and staff time to pick up and dispose of abandon items. Staff explains how CMSD will resolve these problems and what the District thinks the best approach plan is. Staff has also identified possible challenges associated with the proposed residential merge such as hiring additional staff to assist in the management of the solid waste contract. Staff is proposing hiring a Management Assistant and a part-time Code Enforcement Officer. The District's educational and outreach budget would need to be doubled to account for all the new solid waste customers. This is an estimated increase in education and outreach budget of $50,000 annually. If the City of Costa Mesa accepts the proposal, CMSD would need to go out to bid to provide dumpster service for multi-family residential customers. Currently, under its solid waste agreement with CR&R, CMSD is only to provide solid waste cart service. Staff does not know what rates for dumpster would be until a winning bid is chosen. Costs for the bid process, rate study, prop 218 notices and all outreach costs associated with the merge of services would be fully absorbed by the CMSD. Legal Review Not applicable. Environmental Review Consideration of the multi-family proposal 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 Total revenues and expenditures for the proposed residential merge are unknown at this time but staff has projected the following Subject 6. Multi-family Solid Waste Proposal Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Action, Receive and File Recommended Action That the Citizens Advisory Committee receive and file the report. preliminary expenses: Full-Time Management Assistant $98,000 Part-Time Code Enforcement Officer $30,000 Education and Outreach budget increase of $50,000 Rate Study and Proposition 218 costs $60,000 Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 17, 2019 Citizens Advisory Committee meeting at District Headquarters and posted on the District’s website. B. ITEM Subject 7. Consider Changing the CAC Regular Meeting Date and Time - Oral Report Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Action Recommended Action That the Citizens Advisory Committee consider changing its regular meeting date and time. C. CLOSING ITEMS Subject 1. Committee Member & Staff Comments Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Procedural C. CLOSING ITEMS Subject 2. Adjournment Meeting Jul 17, 2019 - Citizens Advisory Committee Meeting Access Public Type Procedural