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2021_01_25_board1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 1/3 Monday, January 25, 2021 Board of Directors Regular Meeting Time: 4:30 P.M. IMPORTANT NOTICE REGARDING JANUARY 25, 2021 REGULAR BOARD MEETING This meeting is being conducted utilizing teleconferencing and electronic means consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. *** The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary. In accordance with Executive Order N-29-20, the public may only view the meeting online and not in the District's Board Room. *** To participate in the meeting by computer: 1. Copy and paste the following into your browser - https://us02web.zoom.us/join 2. Enter the Meeting ID number - 832 0989 2356 3. Click "Join." *** To join the meeting with a mobile device: 1. Download the Zoom app at the Google Play Store (for Android devices) or the App Store (for Apple devices) 2. Open the Zoom app. Select "Join a Meeting." 3. Enter Zoom Meeting ID. Select "Join Meeting." *** To join the meeting by phone: 1. Call 1-669-900-6833. 2. You will be asked to enter the Meeting ID number. Dial 832 0989 2356# 3. Lastly, you will be asked to enter your Participant ID. Press the # symbol again to bypass this step. *** Public Comments: Members of the public can submit any comments in writing for the Board of Directors' consideration by sending them to the District Clerk, Noelani Middenway, at nmiddenway@cmsdca.gov. Those comments will be made part of the official public record of the meeting. *** 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 from the District Clerk's Office. *** In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS 1. Call to Order - President Ooten 2. Pledge of Allegiance - President Ooten 3. Invocation - Vice President Scheafer 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 2/3 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. 6. Ceremonial Matters and Presentations B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. 1. Public Comments C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1. Approve Consent Calendar 2. Approve the Board of Directors Special Meeting Minutes of December 4, 2020 3. Approve the Board of Directors Study Session Minutes of December 8, 2020 4. Approve the Board of Directors Regular Meeting Minutes of December 21, 2020 5. Adopt Warrant Resolution No. CMSD 2021-07 Approving District Warrant Registers 6. Approve the Directors' Compensation and Reimbursement of Expenses 7. Approve Payroll Transparency Disclosure for December 2020 8. Accept the occupancy count as presented as 22,996 and direct staff to prepare a warrant to CR&R Environmental Services for $238,319.05 for December 2020 collection 9. Approve the preparation of a warrant to CR Transfer in the amount of $217,110.14 for December 2020 recycling and disposal services in the January 2021 warrant register 10. Receive and File the December 2020 Organics Tonnage Report 11. Receive and File the December 2020 Solid Waste Diversion Report 12. Receive and File Contracts Signed by the General Manager December 2020 D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Introduction of District Engineer, Mark Esquer 2. Receive and File the Fiscal Year 2020-21 Mid-Year Budget Review 3. Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2020 4. Discuss Preliminary Budget Calendar for the 2021-2023 Biennial Budget 5. Consider Adopting the Sewer System Management Plan and Approving Recertification of the Plan 6. Receive and File 2020 Annual Performance Measurement Report 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 3/3 7. Receive and File 2020-25 Strategic Plan Quarterly Update - FY 2020-21 2nd Quarter 8. Review and File the 2020 Year End Report 9. Receive and File General Manager's 2020 Performance Goals F. ENGINEER'S REPORTS 1. Receive and File the Monthly Capital Improvements Project Status Report G. TREASURER'S REPORTS 1. Approve the Investment Report for the Month of December 2020 H. ATTORNEY'S REPORTS I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request  of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.  For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (President Ooten) 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) 4. California Special Districts Association (CSDA) - (Secretary Schafer) 5. Special District Risk Management Authority (SDRMA) - (Vice President Scheafer) 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 J. OLD BUSINESS K. NEW BUSINESS L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. ADJOURN TO CLOSED SESSION 1. Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager 2. Conference with Legal Counsel – Existing Litigation Paragraph (1) of subdivision (d) Section 54956.9 California River Watch v. Costa Mesa Sanitary District, USDC No.: 8:20-cv-01702 N. RECONVENE TO OPEN SESSION 1. Report Out of Closed Session O. CLOSING ITEMS 1. Adjourn 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 1/61 Monday, January 25, 2021 Board of Directors Regular Meeting Time: 4:30 P.M. IMPORTANT NOTICE REGARDING JANUARY 25, 2021 REGULAR BOARD MEETING This meeting is being conducted utilizing teleconferencing and electronic means consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. *** The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary. In accordance with Executive Order N-29-20, the public may only view the meeting online and not in the District's Board Room. *** To participate in the meeting by computer: 1. Copy and paste the following into your browser - https://us02web.zoom.us/join 2. Enter the Meeting ID number - 832 0989 2356 3. Click "Join." *** To join the meeting with a mobile device: 1. Download the Zoom app at the Google Play Store (for Android devices) or the App Store (for Apple devices) 2. Open the Zoom app. Select "Join a Meeting." 3. Enter Zoom Meeting ID. Select "Join Meeting." *** To join the meeting by phone: 1. Call 1-669-900-6833. 2. You will be asked to enter the Meeting ID number. Dial 832 0989 2356# 3. Lastly, you will be asked to enter your Participant ID. Press the # symbol again to bypass this step. *** Public Comments: Members of the public can submit any comments in writing for the Board of Directors' consideration by sending them to the District Clerk, Noelani Middenway, at nmiddenway@cmsdca.gov. Those comments will be made part of the official public record of the meeting. *** 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 from the District Clerk's Office. *** In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS Subject 1. Call to Order - President Ooten Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Procedural 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 2/61 A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ooten Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Procedural 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 3/61 A. OPENING ITEMS Subject 3. Invocation - Vice President Scheafer Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Procedural 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 4/61 A. OPENING ITEMS Robert Ooten, President Michael Scheafer, Vice President Arlene Schafer, Secretary Brett Eckles, Director Arthur Perry, Director Subject 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Procedural 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 5/61 A. OPENING ITEMS Subject 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Procedural 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 6/61 A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Procedural 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 7/61 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 Jan 25, 2021 - Board of Directors Regular Meeting Type Procedural 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 8/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 1. Approve Consent Calendar Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors approve the Consent Calendar as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 9/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: January 25, 2021 Subject: Approve the Board of Directors Special Meeting Minutes of December 4, 2020 Summary The recorded minutes of the December 4, 2020 Board of Directors Special Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Special Meeting on December 4, 2020. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 25, 2021 Board of Directors Regular Meeting held via teleconference 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_2020_12_04_sm.pdf (109 KB) Subject 2. Approve the Board of Directors Special Meeting Minutes of December 4, 2020 Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 10/61 Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jan 14, 2021 11:09 AM :: Submitted by Gina Terraneo. Routed to Alan Burns for approval. Jan 21, 2021 5:54 PM :: Forced Approval by Noelani Middenway as the document publisher. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 11/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: January 25, 2021 Subject: Approve the Board of Directors Study Session Minutes of December 8, 2020 Summary The recorded minutes of the December 8, 2020 Board of Directors Study Session are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Study Session on December 8, 2020. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 25, 2021 Board of Directors Regular Meeting held via teleconference 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_2020_12_08_ss.pdf (159 KB) Subject 3. Approve the Board of Directors Study Session Minutes of December 8, 2020 Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 12/61 Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jan 14, 2021 11:27 AM :: Submitted by Gina Terraneo. Routed to Alan Burns for approval. Jan 21, 2021 5:54 PM :: Forced Approval by Noelani Middenway as the document publisher. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 13/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: January 25, 2021 Subject: Approve the Board of Directors Regular Meeting Minutes of December 21, 2020 Summary The recorded minutes of the December 21, 2020 Board of Directors Regular Meeting are hereby submitted to the Board of Directors for review and approval. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Analysis Attached to the staff report are the minutes for the Board of Directors Regular Meeting on December 21, 2020. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 25, 2021 Board of Directors Regular Meeting held via teleconference 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_2020_12_21_rm.pdf (251 KB) Subject 4. Approve the Board of Directors Regular Meeting Minutes of December 21, 2020 Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 14/61 Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jan 14, 2021 12:05 PM :: Submitted by Gina Terraneo. Routed to Alan Burns for approval. Jan 21, 2021 5:54 PM :: Forced Approval by Noelani Middenway as the document publisher. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 15/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Lieu Tran, Accountant Date: January 25, 2021 Subject: Adopt Warrant Resolution No. CMSD 2021-07 Approving District Warrant Registers Summary Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were paid. Recommendation That the Board of Directors approve and file the report. Analysis Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were paid. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include .... C. Continuing administrative or maintenance activities." Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 25, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Subject 5. Adopt Warrant Resolution No. CMSD 2021-07 Approving District Warrant Registers Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action, Action (Consent) Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2021-07 approving District warrants for the month of December in the amount of $343,761.24. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 16/61 WARRANT RESO 2021-07.pdf (245 KB) Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jan 20, 2021 6:00 PM :: Submitted by Lieu Tran. Routed to Kaitlin Tran for approval. Jan 20, 2021 8:45 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jan 21, 2021 1:05 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:06 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 17/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk & PIO Date: January 25, 2021 Subject: Directors' Compensation and Reimbursement of Expenses Summary The Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses. Staff Recommendation That the Board of Directors approve the compensation and reimbursement of expenses as presented. Legal Review Not applicable. Environmental Review Consideration of the compensation and reimbursement of expenses is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6. "Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 25, 2021 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the compensation and reimbursement of expenses as presented. 2. Direct staff to report back with more information. File Attachments directors_comp_dec2020.pdf (1,369 KB) Subject 6. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as presented. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 18/61 All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 19/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Lieu Tran, Accountant Date: January 25, 2021 Subject: Approve Payroll Transparency Disclosure for December 2020 Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Recommendation That the Board of Directors approve and file the report. Analysis Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include .... C. Continuing administrative or maintenance activities." Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 25, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. Subject 7. Approve Payroll Transparency Disclosure for December 2020 Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors approve and file the report. Goals 4.7 Demonstrate outstanding efforts in transparency 7.0 Finance 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 20/61 File Attachments Payroll Transparency Disclosure Dec 2020.pdf (1,394 KB) Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jan 20, 2021 6:10 PM :: Submitted by Lieu Tran. Routed to Kaitlin Tran for approval. Jan 20, 2021 8:46 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jan 21, 2021 1:05 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:06 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 21/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: January 25, 2021 Subject: Accept the occupancy count as presented using 22,996 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for $238,319.05 for December 2020 collection Summary Accept the occupancy count as presented using 22,996 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2020 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,319.05 to be ratified in the January 2021 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,996 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2020 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,319.05 to be ratified in the January 2021 warrant list. Analysis The occupancy count is the number of residential customers that the District pays CR&R for the trash truck to stop and pick-up trash. The District pays CR&R $10.3635 per occupant, per month. Each month, new residential customers in brand-new developments contact the District to establish new trash service. District staff contacts CR&R to approve the drop-off of carts at the residence, which results in an increase in the occupancy count as shown on the attached list. As of December 31, 2020, total District occupancy was at 22,996 with seven (7) new accounts added since the last billing period. District staff will continue to track the number of new service addresses. The payment calculation is based on the following: District's Current Rate for December 2020: 22,996 x $10.3635 =$238,319.05 Legal Review Not Applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which Subject 8. Accept the occupancy count as presented as 22,996 and direct staff to prepare a warrant to CR&R Environmental Services for $238,319.05 for December 2020 collection Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 22,996 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2020 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,319.05 to be ratified in the January 2021 warrant list. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 22/61 fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 25, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. Alternative Actions Refer item back to staff with further instructions. File Attachments 2020-12-G CMSD Occupancy Report.pdf (331 KB) Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jan 20, 2021 3:54 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for approval. Jan 20, 2021 3:58 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jan 20, 2021 4:24 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:07 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 23/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: January 25, 2021 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $217,110.14 for December 2020 recycling and disposal services in the January 2021 warrant register Summary This payment to CR Transfer is for the sorting of recyclables from the mixed waste and disposal of the remaining waste at the landfill. With the implementation of the Organics Recycling Program adopted by the Board, this payment also includes the diverting of the organics waste to the Anaerobic Digestion facility to be recycled into fertilizer or renewable natural gas to fuel the refuse trucks. Recommendation That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $217,110.14 for December 2020 recycling and disposal services to be ratified in the January 2021 warrant register. Analysis Below is a chart depicting the total tonnage and payments due for residential and organic waste collected in Costa Mesa and Newport Beach. Due to weight ticket calculation rounding, monthly invoices may be slightly off by a few pennies. Invoices that are slightly off are marked by an asterisk below. Type of Waste InvoiceTonnage Rate Amount Billed Residential Waste - Costa Mesa 40021 1,523.49 $54.98$83,761.48* Residential Waste - Costa Mesa 39974 1,376.39 $54.98$75,673.92* Residential Waste - Newport Beach39975 31.48 $54.98$1,730.77 Residential Waste - Newport Beach40022 16.98 $54.98$933.56 Total Residential Waste 2,948.34 $162,099.73 Organics 40012 369.49 $75.65$27,951.92* Organics 40054 357.68 $75.65$27,058.49* Total Organics 727.17 $55,010.41 Grand Total 3,675.51 $217,110.14 Legal Review Not Applicable Environmental Review Subject 9. Approve the preparation of a warrant to CR Transfer in the amount of $217,110.14 for December 2020 recycling and disposal services in the January 2021 warrant register Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $217,110.14 for December 2020 recycling and disposal services to be ratified in the January 2021 warrant register. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 24/61 Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 25, 2021 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jan 20, 2021 3:54 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for approval. Jan 20, 2021 3:59 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jan 20, 2021 4:25 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:07 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 25/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: January 25, 2021 Subject: Receive and File the December 2020 Organics Tonnage Report Summary A total of 727.17 tons of organic waste were collected in December 2020. Staff Recommendation That the Board of Directors receive and file this report. Analysis Below is a graph depicting the total tonnage of organic waste collected during each month of the last five fiscal years. Additionally, a graph is included breaking down the total tonnage collected and how much material was recycled and landfilled from the organics program. Subject 10. Receive and File the December 2020 Organics Tonnage Report Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action (Consent), Receive and File Recommended Action That the Board of Directors receive and file this report. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 26/61 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 Januart 25, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. File Attachments Organics Tonnage.png (15 KB) Organics.png (7 KB) Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jan 20, 2021 3:53 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for approval. Jan 20, 2021 4:00 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jan 20, 2021 4:26 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:07 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 27/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: January 25, 2021 Subject: Receive and File the December 2020 Solid Waste Diversion Report Summary Per direction from the Board of Directors the monthly solid waste diversion report has been temporarily suspended due to inaccurate data as a result from the COVID-19 pandemic. Staff Recommendation That the Board of Directors receive and file this report. Analysis Per direction from the Board of Directors at the April 14, 2020 Study Session meeting, the monthly solid waste diversion report has been temporarily suspended. Due to the COVID-19 pandemic, CR&R Environmental Services temporarily suspended their recycling processing at their Stanton Materials Recovery Facility (MRF) where the District's mixed waste is processed from March to September 2020. Below is a chart of all solid waste collected over the last seventeen years. Subject 11. Receive and File the December 2020 Solid Waste Diversion Report Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action (Consent), Receive and File Recommended Action That the Board of Directors receive and file this report. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 28/61 File Attachments Tonnage.png (37 KB) Workflow Legal Review Not applicable. Environmental Review Consideration of the Solid Waste 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 January 25, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jan 20, 2021 3:53 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for approval. Jan 20, 2021 4:02 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jan 20, 2021 4:27 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:08 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 29/61 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Scott Carroll, General Manager Date: January 25, 2021 Subject: Receive and File Contracts Signed by the General Manager - December 2020 Summary At the January 24, 2019 Board of Directors meeting, the Board directed the General Manager to submit a list of contracts he signed during the previous month. Below are the contracts he signed in the months of December 2020. Recommendation That the Board of Directors receive and file this report. Analysis Below are the contracts signed by the General Manager in the month of December 2020: Contracts 1. JIMNI Systems, Inc. – Providing one technician and vehicle unit to support staff performing preventive maintenance on pump stations. Cost: $260/hr. 2. Gentry General Engineering, Inc. #311 Phase 7 – Repairing 38 manhole covers, and surfaces. Cost: 29,999.86 3. Ayala Engineering, Inc. - #324 Sewer Manhole Rehabilitation Phase 2 – Relining 12 brick manholes with cured in place liner. Cost: $73,353.00 Purchase Orders 4. Solid Surface Care, Inc. – Disinfecting the fleet to protect employees from COVI-19. Cost: $499.00 Legal Review All contracts are reviewed and approved by District Counsel before contracts are executed. Environmental Review Providing the Board of Directors a monthly list of contracts signed by the General Manager is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There is adequate funding in the budget for the expenses referenced above. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 25, 2021 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. Subject 12. Receive and File Contracts Signed by the General Manager December 2020 Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Goals 6.0 Administrative Management 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 30/61 Workflow Workflow Jan 21, 2021 1:44 PM :: Submitted by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:08 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 31/61 E. GENERAL MANAGER'S REPORTS Subject 1. Introduction of District Engineer, Mark Esquer Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Presentation 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 32/61 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: January 25, 2021 Subject: Receive and File the Fiscal Year 2020-21 Mid-Year Budget Review Summary This report serves as a summary of the District’s spending through December 31, 2020 as well as staff’s best estimate of projected balances for the year-ended June 30, 2021. Recommendation That the Board of Directors receive and file the Fiscal Year 2020-21 Mid-Year Budget Review. Analysis Based on the spending trends through December 31, 2020, staff is projecting a minimal savings in the Solid Waste Fund and the Wastewater Fund. As of December 31, 2020, a total of 48.3% of the Solid Waste budget for the 2020-21 fiscal year has been expended. At this time, staff anticipates a budgetary savings of $2,800 at fiscal year-end. A total of 43.4% of the Wastewater Fund’s operating budget has been expended as of December 31, 2020. At this time, staff anticipates a budgetary savings of $213,000 at fiscal year-end. Please see the attached report for a more detailed analysis. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 25, 2021 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff for additional information. File Attachments A-FY2020-21 Mid-Year Quarterly Budget Analysis .pdf (294 KB) B- Expenditure and Revenue Analysis 12312020.pdf (92 KB) Subject 2. Receive and File the Fiscal Year 2020-21 Mid-Year Budget Review Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action, Receive and File Recommended Action That the Board of Directors receive and file the Fiscal Year 2020-21 Mid-Year Budget Review. Goals 8.3 Finance - Forecast revenues and expenditures 8.0 Finance 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 33/61 Workflow Workflow Jan 21, 2021 1:11 PM :: Submitted by Kaitlin Tran. Routed to Scott Carroll for approval. Jan 21, 2021 1:23 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:53 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 34/61 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: January 25, 2021 Subject: Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2020 Summary The Government Finance Officers Association (GFOA) established the Popular Annual Financial Reporting Program (PAFR) to encourage governments to take information from their Comprehensive Annual Financial Report (CAFR) and condense it into a smaller, easily understandable document that the general public can read without having a background in finance. The GFOA then recognizes governments for their achievement. The District met these requirements and received an award for the 2019 PAFR, the fifth consecutive year for this achievement. The PAFR for the year ending June 30, 2020 has been completed and submitted to the GFOA. It is attached for your review. Recommendation That the Board of Directors receive and file the Popular Annual Financial Report for the year ended June 30, 2020. Analysis According to GFOA's website, the GFOA established the Popular Annual Financial Reporting Awards Program (PAFR Program) in 1991 to encourage and assist state and local governments to extract information from their CAFR to produce high quality popular annual financial reports specifically designed to be readily accessible and easily understandable to the general public and other interested parties without needing a background in public finance, and then to recognize individual governments that are successful in achieving that goal. The PAFR is another tool to demonstrate an agency's transparency efforts because it takes a large comprehensive finance report, the CAFR, and condenses it to several pages using graphs and charts so that the public can easily understand the spending trend of their local government. The PAFR for year-ended June 30, 2019 award winners data are not available GFOA website. However, the 2018 data showed only 58 agencies in California received the PARF award. Of those agencies, only 17 were Special Districts and Enterprise Funds. Five of those Special Districts and Enterprise Funds were from Orange County. Legal Review Not applicable. Environmental Review The preparation of financial statements is an administrative action that is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review The only financial impact is the application cost of $250, which was included in the District’s budget. Public Notice Process Subject 3. Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2020 Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action, Receive and File Recommended Action That the Board of Directors receive and file the Popular Annual Financial Report for the year ended June 30, 2020 Goals 8.0 Finance 8.1 Finance - Achieve financial excellence awards 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 35/61 Copies of this report are on file and will be included with the entire agenda packet for the January 25, 2021 Board of Directors regular meeting at District Headquarters and on District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments PAFR June 30, 2020.pdf (9,037 KB) Workflow Workflow Jan 6, 2021 6:15 PM :: Submitted by Kaitlin Tran. Routed to Scott Carroll for approval. Jan 20, 2021 4:23 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:53 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 36/61 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: January 25, 2021 Subject: Discuss Preliminary Budget Calendar for the 2021-2023 Biennial Budget Summary The schedule below represents the outline for creating and adopting the District’s Fiscal Year 2021-22 and 2022-23 budgets. Staff will be working on different aspects of the budget from now until the May Study Session and will update the Board as necessary. Recommendation That the Board of Directors discuss the proposed target dates for adopting the Fiscal Year 2021-22 and 2022-23 Budgets Analysis Staff recommends the following target dates: Action Item Target Date Department Budgets due from Staff 02/22/21 Monday Finance Review with departments 03/08/21 Week of February 2020-21 Consumer Price Index released 03/29/21 Monday General Manager review 03/30/21 Tuesday Study Session meeting to review preliminary budget 04/13/21 Tuesday Study Session meeting to review preliminary budget*05/11/21 Tuesday CAC Meeting to review preliminary budget 05/12/21 Wednesday Special meeting to review preliminary budget*05/24/21 Week of Study Session meeting to finalize budget*06/08/21 Tuesday Budget adoption at regular Board meeting 06/28/21 Monday Transmit assessments to OC Treasurer-Tax Collector 08/10/21 Tuesday *If necessary Legal Review None Required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review None Required. Public Notice Process Subject 4. Discuss Preliminary Budget Calendar for the 2021-2023 Biennial Budget Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action Recommended Action That the Board of Directors discuss the proposed target dates for adopting the Fiscal Year 2021-22 and 2022-23 Budgets Goals 8.0 Finance 8.2 Finance - Adopt a balanced budget 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 37/61 Copies of this report are on file and will be included with the entire agenda packet for the January 25, 2021 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff for additional information. File Attachments Prelim Budget Calendar 2021-23.pdf (182 KB) Workflow Workflow Jan 10, 2021 4:35 PM :: Submitted by Kaitlin Tran. Routed to Scott Carroll for approval. Jan 20, 2021 4:20 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:53 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 38/61 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 25, 2021 Subject: Consider Adopting the Sewer System Management Plan and Approving Recertification of the Plan Summary On May 2, 2006, the State Water Regional Control Board (SWRCB) adopted Order No. 2006-0003 (Order), Statewide General Waste Discharge Requirements (WDR) for Sanitary Sewer Systems. This Order requires that owners of wastewater collection systems with more than a mile of pipeline have in place a Sewer System Management Program (SSMP) to comply with the terms of this Order, which is to reduce the number and severity of Sanitary Sewer Overflows (SSOs), to audit the program every two years, and revise the SSMP every five years. Recommendation That the Board of Directors considers adopting the Sewer System Management Plan and approving recertification of the Plan Analysis Last significant amendments and certification of the SSMP occurred on December 17, 2015. In the fall of 2020 significant amendments were made to the Plan to reflect changes in operations and procedures that occurred in the last five years. On September 9, 2020, a draft amended SSMP was submitted to the Citizens Advisory Committee for review and comments. There were no comments and/or suggestions by CAC members regarding the proposed amendments. After soliciting and receiving proposals from qualified firms to perform an SSMP audit, the District hired EEC Environmental because their cost was the lowest and the firm has demonstrated past experience performing SSMP audits. From November through December 2020 EEC performed its audit and presented their findings at tonight's meeting. Since the draft amended SSMP was presented to the CAC, staff has made additional amendments to the Plan in response to the audit's corrective action and recommended enhancements. The additional amendments include: 1. Measurable goals to quantify the effectiveness of the SSMP. The additional goals that were added to the SSMP include: Number of SSO's per 100 miles is below the number of SSO's per 100 miles statewide Percent of sewage gallons spilled reached surface water is below percent of sewage gallons spilled reached surface water statewide SSO response time is within one hour Complete 140 training hours annually for the entire wastewater staff. 2. Reevaluate the system-wide cleaning frequency to meet the District's sewer system cleaning commitment. 3. Identified additional training opportunities for District staff. 4. Standardized the term for Hot Spots as "Enhanced Maintenance Areas" throughout the SSMP. 5. Accurately reflect the Sewer Master Plan status and capacity assurance studies. 6. The Organization Chart will accurately represent District staffing after the District Engineer is on board, which should occur at the end of January. 7. The Emergency Response Plan for the four pump stations are currently being developed. On January 12, 2021, proposed amendments to the SSMP were presented to the Board of Directors for review and comments. The Board of Directors directed staff to bring back the amended SSMP to tonight's meeting for approval and recertification consideration. On January 13, 2021, the additional amendments to the SSMP were presented to the Citizens Advisory Committee (CAC). The CAC directed staff to revise Page 3 of the SSMP to reflect current awards received by the District, and then they unanimously approved Subject 5. Consider Adopting the Sewer System Management Plan and Approving Recertification of the Plan Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action Recommended Action That the Board of Directors considers adopting the Sewer System Management Plan and approving recertification of the Plan Goals 1.0 Sewer Infrastructure 1.4 Sewer Infrastructure - Audit and update the Sewer System Management Plan (SSMP) 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 39/61 recommending the Board adopt and recertify the document. Staff amended Page 3 of the SSMP to include the District receiving the Community Engagement & Outreach award from the Santa Ana River Basin Section (SARBS) of the California Water Environment Association (CWEA). Legal Review Not applicable Environmental Review Preparing revisions of the District’s Sewer System Management Plan (SSMP) is an administrative matter, and administrative matters are exempt under CEQA and the District’s CEQA Guidelines. The SSMP assists the District in providing comprehensive sewer system management, including protection of the environment by eliminating sanitary sewer overflows. Financial Review The District did not incur any cost for revising the SSMP because all revisions were performed internally by staff. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 25, 2021 regular Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments SSMP 2021 Final.pdf (1,474 KB) SSMP Appendix 1.pdf (2,494 KB) Workflow Workflow Jan 19, 2021 7:24 PM :: Submitted by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:53 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 40/61 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 25, 2021 Subject: Receive and File 2020 Annual Performance Measurement Report Summary On November 29, 2018, the Board of Directors adopted Administrative Regulations No. 70.00, Performance Measurement Program, which established methods and procedures for gathering and analyzing organizational performance while at the same time collaborating towards continuous improvement of performance in an open and transparent manner. Recommendation That the Board of Directors receive and file this report. Analysis A Performance Measurement Program has been developed to determine how well the District is performing in areas of efficiency, effective workforce, customer satisfaction, cost effectiveness, citizen engagement and transparency. The purpose of the program is to continually look at ways to improve and/or enhance the level of service that is being provided internally to staff and externally to the public. The attached report is for performance during the entire 2020 calendar year. One measurement is temporarily being discontinued until staff believes the data is reliable. The measurement that is temporarily being discontinued is: Diverting 75% of the solid waste stream away from landfills. The following measures could not obtain data due to the COVID-19 pandemic: Number of Citizens Environmental Protection Academy (CEPA) attendees. Average rating of residents attending the Citizens Environmental Protection Academy (CEPA) indicated the program is Satisfactory. Number of days CMSD participated in community events and hosted District events. Number of attendees at CMSD State of the District event. Notable measures to report. The District was able to recover 97% of wastewater from sanitary sewer overflows. The District continues to be superior when it comes to openness and transparency. It's taking less than a day to upload Board of Directors meeting videos on CMSD's website. The average number of business days it takes staff to respond to Public Records Request with requested documents is two days. State law gives public agencies 10 days to respond to public records requests. 88% of the entire wastewater system was cleaned. 55% of business transactions were performed using e-commerce. Only 63% of residents corresponding on the District's app indicated the effectiveness of staff is good or superior. However, the data from this measure is not a true reflection of staff because the low percentage is attributed to missed trash collections. Staff responds immediately to residents and notifications go directly to CR&R from the app when trash carts are missed and staff ensures carts are emptied either the same day or the following day. Staff will also correspond with CR&R to prevent recurring missed pickups. Social media followers and engagement have increased significantly due to the District's new Strategic Communications & Outreach Plan that staff collaboration with consultant, Tripepi Smith. Legal Review Subject 6. Receive and File 2020 Annual Performance Measurement Report Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action Recommended Action That the Board of Directors receive and file this report. Goals 6.0 Administrative Management 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 41/61 Not applicable Environmental Review A Performance Measurement Program is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There are no financial impacts to the District for implementing a Performance Measurement Program Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 25, 2021 regular Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. File Attachments 2020 Annual Outcome and Performance Measurement Program.pdf (1,058 KB) Workflow Workflow Jan 21, 2021 3:05 PM :: Submitted by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:53 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 42/61 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 25, 2021 Subject: Receive and File 2020-25 Strategic Plan Quarterly Update - FY 2020-21 2nd Quarter Summary On June 22, 2020, the Board of Directors adopted the 2020-2025 Strategic Plan, which is a plan that establishes goals, objectives, strategies and work plans for the next five years and will help move the organization in a direction toward achieving its mission and vision. Attached is the quarterly update of the new Plan that demonstrates the progress staff is making toward achieving the strategic goals. The next quarterly report from this Plan will be presented to the Board on April 26, 2021. Recommendation That the Board of Directors receive and file this report. Analysis The 2020-25 Strategic Plan is the most ambitious Plan in the history of the District. The Plan has 104 Strategic Goals to achieve and/or implement in the next five years compared to 48 strategic goals in the FY 2015-20 Strategic Plan. By the second quarter of FY 2020-21, staff has completed 24 strategic goals, 61 strategic goals are in progress, 8 strategic goals are delayed due to COVID-19 and 11 strategic goals have not started. Legal Review Not applicable Environmental Review The District’s Strategic Plan is a planning document and preparation and adoption of the plan itself is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. The environmental review of each of the efforts or projects outlined in the Strategic Plan will occur when the Board of Directors specifically considers each of the items since that is when the full scope of work of each effort or project will be described Financial Review Activities described in the strategic goals are funded in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 25, 2021 Board of Directors regular meeting at CMSD headquarters and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. Subject 7. Receive and File 2020-25 Strategic Plan Quarterly Update - FY 2020-21 2nd Quarter Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action Recommended Action That the Board of Directors receive and file this report. Goals 1.0 Sewer Infrastructure 2.00 Solid Waste 3.00 Partnerships 4.0 Community Outreach & Communications 5.0 Administrative Management 6.0 Personnel/Organizational Management 7.0 Finance 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 43/61 File Attachments Strategic Plan excel layout.xlsx (78 KB) Workflow Workflow Jan 21, 2021 3:23 PM :: Submitted by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:53 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 44/61 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: January 25, 2021 Subject: Review the 2020 Year End Report Summary Each year, the District produces a document highlighting the accomplishments achieved during the previous year. The 2020 Year End Report is now complete and available for review. Recommendation That the Board of Directors receive and file this report. Analysis Thanks to the dedicated and professional staff of the Costa Mesa Sanitary District, the key input and recommendations of the Citizens Advisory Committee and the leadership and vision of the Board of Directors, CMSD achieved exceptional results during a very challenging year. Below are some of the highlights of 2020 and attached is the full report for the Board's review: Adoption of the District's most ambitious Strategic Plan to date, featuring 131 strategic goals Launch of a Strategic Communications & Outreach Plan to increase program awareness and public engagement Launch of a new online sewer permitting & plan submission system Receipt of the Certificate of Excellence in Financial Reporting for the Comprehensive Annual Financial Report (CAFR) from the Government Finance Officers Association (GFOA) for the 9th consecutive year Receipt of the Award for Outstanding Achievement in Popular Annual Financial Reporting (PAFR) from the GFOA for the 5th consecutive year Renaming the CMSD Corporate Yard the "Robin Hamers Yard" after the late District Engineer Completion of the following Capital Improvement Projects: Project #311 Manhole Surface Repair Program: 64 manhole covers were repaired at a cost of $67,500 Project #324 Sewer Manhole Rehabilitation Phase 1: 10 existing brick manholes were rehabilitated with a cured-in-place pipe (CIPP) liner at a cost of $94,504 Project #332 Bristol Sewer Siphon Repair at a cost of $745,300 General Manager visiting Laos and Cambodia through the International City/County Management Association's (ICMA) exchange program to share best practices in solid waste and wastewater collection systems Drive-by parade in celebration of Board President, Jim Ferryman, for his 31 years of service to the District Legal Review Not applicable. Environmental Review A document describing the District's 2020 year end accomplishments is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project." Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 25, 2021 Board of Directors meeting held via teleconference and on the District's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. Subject 8. Review and File the 2020 Year End Report Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Discussion, Receive and File 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 45/61 File Attachments 2020 Year End Report.pdf (14,965 KB) Workflow Workflow Jan 20, 2021 6:19 PM :: Submitted by Gina Terraneo. Routed to Scott Carroll for approval. Jan 21, 2021 1:07 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:45 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 46/61 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 25, 2021 Subject: Receive and File General Manager's 2020 Performance Goals Summary Annually, the Board reviews the General Manager’s performance goals for the past year and then establishes new goals for the upcoming year. Recommendation That the Board of Directors receive and file the General Manager's 2020 Performance Goals and prepare a list of Performance Goals for 2021. Analysis In 2020, the Board of Directors assigned the General Manager ten goals to achieve. Of the ten goals, five are complete, two are partially complete while three goals are not complete. Attached is a list of the General Manager’s goals along with a brief description of the status for each goal. Legal Review Not applicable Environmental Review Consideration by the Board of Directors of the compensation paid to the District’s General Manager is an administrative matter and not a disturbance of the environment similar to grading or construction and not a project under CEQA or the District’s CEQA Guidelines. Financial Review The financial impacts are unknown until the Board approves 2021 performance goals and work can begin to achieve said goals. Goals that have a financial impact to the District will be brought back to the Board for review and if need be, consideration for budget appropriations. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 25, 2021 Board of Directors regular meeting at District headquarters (290 Paularino Avenue) and on District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments 2020 Goals.pdf (151 KB) Workflow Subject 9. Receive and File General Manager's 2020 Performance Goals Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action Recommended Action That the Board of Directors receive and file the General Manager's 2020 Performance Goals and prepare a list of Performance Goals for 2021. Goals 7.0 Human Resources Management Workflow Jan 21, 2021 10:43 AM :: Submitted by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:31 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 47/61 F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Michael Benesh, District Engineer Date: January 25, 2021 Subject: Capital Improvement Projects Status Report Summary Attached is a summary of the Capital Improvement Project activities during the month. Recommendation That the Board of Directors receive and file the report. Analysis Attached are fifteen capital improvement projects that are in progress, will soon begin, or completed. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 25, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Alternative Actions 1. Refer item back to staff with further instructions. File Attachments CIP Updates Jan 2021 Meeting.pdf (711 KB) Workflow Subject 1. Receive and File the Monthly Capital Improvements Project Status Report Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Receive and File Goals 1.0 Sewer Infrastructure 1.1 Sewer Infrastructure - Prevent Sanitary Sewer Overflows (SSOs) 1.4 Sewer Infrastructure - Audit and update the Sewer System Management Plan (SSMP) 1.10 Sewer Infrastructure - Monitor inflow after significant weather events 7.2 Human Resources Management - Continue succession strategies 4.7 Demonstrate outstanding efforts in transparency 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 48/61 Workflow Jan 20, 2021 10:16 AM :: Submitted by Lieu Tran. Routed to Kaitlin Tran for approval. Jan 20, 2021 3:09 PM :: Approved by Kaitlin Tran. Routed to Michael Benesh for approval. Jan 21, 2021 12:00 PM :: Approved by Michael Benesh. Routed to Scott Carroll for approval. Jan 21, 2021 1:06 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jan 21, 2021 5:30 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 49/61 G. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: January 25, 2021 Subject: Approve the Investment Report for the Month of December 2020 Summary Attached is the Investment Report for the month of December 2020. As required by the District’s Statement of Investment Policy, the Investment Report delineates all investment activity during the month. Recommendation That the Board of Directors approve the Investment Report for the month of December 2020. Analysis This report lists the types of securities held in the District’s portfolio, the institutions from which the securities were purchased, maturity dates and interest rates as of December 31, 2020. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 22, 2020 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party custodian, Pershing, LLC, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer’s Office. It does not represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw. This reporting practice is consistent with industry standard practices for similar funds. The weighted average stated rate of return (current yield) for the District’s investment portfolio as of December 31, 2020, was 0.699%. The yield to maturity of the portfolio was 0.701%. The District’s weighted average interest rate was 16 basis points (0.159%) above the LAIF average monthly rate for December 2020 of 0.540%. The weighted average number of days to maturity for the District’s total portfolio was 805 days (2.20 years). The duration of the underlying securities in LAIF as of December 31, 2020 was 165 days. The District’s investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in one year or less as of December 31, 2020 was 44.16%. The District has adequate cash reserves necessary to meet its obligations for the next six months. The rating on one of the District's investments, Wells Fargo medium term note, is BBB+ by Standard & Poor's. Moody's continues to rate the security as A2. The California Government Code requires that the security be rated in the top three ratings by a nationally recognized rating agency, which the security is. The security was placed on the District's watch list and the ratings will continue to be monitored. The District's Investment Policy allows for a security to continue to be held if it falls out of compliance. A majority of the District’s cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District’s cash and investments are as follows: Solid Waste Fund: Operating Reserve - Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Subject 1. Approve the Investment Report for the Month of December 2020 Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Action Recommended Action That the Board of Directors approve the Investment Report for the month of December 2020. 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 50/61 Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. Undesignated - Remaining available cash, which is available to be appropriated by the Board. Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund - Accumulation of funds in accordance with the asset management model for long-term replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not include….C. Continuing administrative or maintenance activities.” Financial Review The portfolio was budgeted to earn an average rate of 1.392% for the year ending June 30, 2021. Through December 31, 2020, the portfolio has earned a weighted average interest rate of 0.848%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 25, 2021 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and on the District’s website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff. File Attachments Investment Report - December 2020.pdf (484 KB) Workflow Workflow Jan 19, 2021 7:23 PM :: Submitted by Marc Davis. Routed to Noelani Middenway for approval. Jan 21, 2021 5:28 PM :: Final approval by Noelani Middenway 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 51/61 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 1. Orange County Sanitation District (OCSD) - (President Ooten) Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Information 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 52/61 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Information 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 53/61 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Information 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 54/61 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer) Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Information 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 55/61 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 5. Special District Risk Management Authority (SDRMA) - (Vice President Scheafer) Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Information 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 56/61 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Information 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 57/61 L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Discussion 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 58/61 M. ADJOURN TO CLOSED SESSION Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager Subject 1. Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Discussion 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 59/61 M. ADJOURN TO CLOSED SESSION Subject 2. Conference with Legal Counsel – Existing Litigation Paragraph (1) of subdivision (d) Section 54956.9 California River Watch v. Costa Mesa Sanitary District, USDC No.: 8:20-cv-01702 Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 60/61 N. RECONVENE TO OPEN SESSION Subject 1. Report Out of Closed Session Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type 1/25/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 61/61 O. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON FEBRUARY 22, 2021 VIA TELECONFERENCE. Subject 1. Adjourn Meeting Jan 25, 2021 - Board of Directors Regular Meeting Type Procedural