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2021_05_24_boardMonday, May 24, 2021 Board of Directors Regular Meeting Time: 4:30 P.M. IMPORTANT NOTICE REGARDING MAY 24, 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 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. 6. Ceremonial Matters and Presentations B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. 1. Public Comments C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1. Approve Consent Calendar 2. Approve the Board of Directors Study Session Minutes of April 13, 2021 3. Approve the Board of Directors Regular Meeting Minutes of April 26, 2021 4. Adopt Warrant Resolution No. CMSD 2021-11 Approving District Warrant Registers 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Approve Payroll Transparency Disclosure for April 2021 7. Approve the preparation of a warrant to CR Transfer in the amount of $222,042.81 for April 2021 recycling and disposal services in the May 2021 warrant register 8. Accept the occupancy count as presented as 23,014 and direct staff to prepare a warrant to CR&R Environmental Services for $238,505.59 for April 2021 collection 9. Receive and File the April 2021 Organics Tonnage Report 10. Receive and File the April 2021 Solid Waste Diversion Report 11. Approve the Investment Report for the Month of April 2021 12. Receive and File the April 2021 Contracts Signed by the General Manager D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Award Tanisha Tingling, Administrative Assistant I, $150.00 for her Idea to Improve the District's Sewer Manhole Management System 2. Preliminary Biennial Budget Review for FY 2021-22 & FY 2022-23 3. Receive and File Government Investing 101 Report 4. Approve Auditor Engagement Letter for Fiscal Year 2020-21 Audit F. ENGINEER'S REPORTS 1. Receive and File the Capital Improvement Projects Status Report G. TREASURER'S REPORTS H. ATTORNEY'S REPORTS I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (President 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 N. RECONVENE TO OPEN SESSION O. CLOSING ITEMS 1. Adjourn Monday, May 24, 2021 Board of Directors Regular Meeting Time: 4:30 P.M. IMPORTANT NOTICE REGARDING MAY 24, 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 May 24, 2021 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ooten Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Scheafer Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Robert Ooten, President Michael Scheafer, Vice President Arlene Schafer, Secretary Arthur Perry, Director Brett Eckles, 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 May 24, 2021 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Procedural B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject 1. Public Comments Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Procedural C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 1. Approve Consent Calendar Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Consent Calendar as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: May 24, 2021 Subject: Approve the Board of Directors Study Session Minutes of April 13, 2021 Summary The recorded minutes of the April 13, 2021 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 April 13, 2021. 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 Subject 2. Approve the Board of Directors Study Session Minutes of April 13, 2021 Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. Minutes View Minutes for Apr 13, 2021 - Board of Directors Study Session Copies of this report are on file and will be included in the complete agenda packet for the May 24, 2021 Board of Directors Regular Meeting hosted 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_2021_04_13_ss.pdf (119 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: May 24, 2021 Subject: Approve the Board of Directors Regular Meeting Minutes of April 26, 2021 Summary The recorded minutes of the April 26, 2021 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 April 26, 2021. 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 Subject 3. Approve the Board of Directors Regular Meeting Minutes of April 26, 2021 Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. Minutes View Minutes for Apr 26, 2021 - Board of Directors Regular Meeting Copies of this report are on file and will be included in the complete agenda packet for the May 24, 2021 Board of Directors Regular Meeting hosted 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_2021_04_26_rm.pdf (160 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Autumn Alvarez, Accounting Clerk Date: May 24, 2021 Subject: Adopt Warrant Resolution No. CMSD 2021-11 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 Subject 4. Adopt Warrant Resolution No. CMSD 2021-11 Approving District Warrant Registers Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2021-11 approving District warrants for the month of April in the amount of $791,199.86. 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 May 24, 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 WARRANT RESO 2021-11.pdf (496 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk & Public Information Officer Date: May 24, 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 May 24, 2021 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as presented. 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_compensation.pdf (753 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Autumn Alvarez, Accounting Clerk Date: May 24, 2021 Subject: Approve Payroll Transparency Disclosure for April 2021 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 May 24, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Subject 6. Approve Payroll Transparency Disclosure for April 2021 Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors approve and file the report. Alternative Actions Refer item back to staff with further instructions. File Attachments Payroll Transparency Disclosure Apr 2021.pdf (1,176 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: May 24, 2021 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $222,042.81 for April 2021 recycling and disposal services in the May 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 $222,042.81 for April 2021 recycling and disposal services to be ratified in the May 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 40742 1,364.15 $54.98$75,000.99* Residential Waste - Costa Mesa 40786 1,266.76 $54.98$69,646.49* Residential Waste - Newport Beach40743 37.84 $54.98$2,080.45* Residential Waste - Newport Beach40787 39.71 $54.98$2,183.26 Total Residential Waste 2,708.46 $148,911.19 Organics 40778 490.87 $75.65$37,134.32 Subject 7. Approve the preparation of a warrant to CR Transfer in the amount of $222,042.81 for April 2021 recycling and disposal services in the May 2021 warrant register Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $222,042.81 for April 2021 recycling and disposal services to be ratified in the May 2021 warrant register. Organics 40824 475.84 $75.65$35,997.30 Total Organics 966.71 $73,131.62 Grand Total 3,675.17 $222,042.81 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 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 May 24, 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. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: May 24, 2021 Subject: Accept the occupancy count as presented as 23,014 and direct staff to prepare a warrant to CR&R Environmental Services for $238,505.59 for April 2021 collection. Summary Accept the occupancy count as presented using 23,014 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for April 2021 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,505.59 to be ratified in the May 2021 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 23,014 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for April 2021 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,505.59 to be ratified in the May 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 April 30, 2021, total District occupancy was at 23,014 with six (6) new accounts added and zero (0) accounts removed 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 April 2021: Subject 8. Accept the occupancy count as presented as 23,014 and direct staff to prepare a warrant to CR&R Environmental Services for $238,505.59 for April 2021 collection Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $238,505.59 for April 2021 recycling and disposal services to be ratified in the May 2021 warrant register. 23,014 x $10.3635 =$238,505.59 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 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 May 24, 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 2021-04-G CMSD Occupancy Report.pdf (333 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: May 24, 2021 Subject: Receive and File the April 2021 Organics Tonnage Report Summary A total of 966.71 tons of organic waste were collected in March 2021. 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 9. Receive and File the April 2021 Organics Tonnage Report Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 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 May 24, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. File Attachments Organics.png (9 KB) Organics Graph.png (16 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: May 24, 2021 Subject: Receive and File the April 2021 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. 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 10. Receive and File the April 2021 Solid Waste Diversion Report Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. File Attachments Tonnage.png (36 KB) 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 May 24, 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. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Marc Davis, District Treasurer Date: May 24, 2021 Subject: Approve the Investment Report for the Month of April 2021 Summary Attached is the Investment Report for the month of April 2021. 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 April 2021. 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 April 30, 2021. 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 April 30, 2021, was 0.572%. The yield to maturity of the portfolio was 0.574%. The District’s weighted average interest rate was 23 basis points (0.233%) above the LAIF average monthly rate for April 2021 of 0.339%. The weighted average number of days to maturity for the District’s total portfolio was 797 days (2.18 years). The duration of the underlying securities in LAIF as of April 30, 2021 was 256 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 April 30, 2021 was 43.27%. 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 Subject 11. Approve the Investment Report for the Month of April 2021 Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Investment Report for the month of April 2021. 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. 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 April 30, 2021, the portfolio has earned a weighted average interest rate of 0.752%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 24, 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 - April 2021.pdf (489 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Scott Carroll, General Manager Date: May 24, 2021 Subject: Receive and File the April 2021 Contracts Signed by the General Manager Summary At the January 24, 2019 Board of Directors meeting, the Board directed the General Manager to submit a list of contracts he signed during the previous month. Below are the contracts he signed in the months of April 2021. 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 April 2021: Contracts 1. Occupational Technical Services – temporary workers for the Wastewater Maintenance Department. Cost: 62.00 an hour. Up to $57,600.00 Purchase Orders 2. Interpreters Unlimited – Agreement to provide online translation services. Cost: Less than $234.50 3. Golden Bell Products – Spray manholes with Insecta to mitigate roaches in the sewer system. Cost: $24,978.00 4. BC Traffic Specialist – Traffic lane closure supplies. Cost: $263.19 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". Subject 12. Receive and File the April 2021 Contracts Signed by the General Manager Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. Goals 6.0 Administrative Management 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 May 24, 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. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: May 24, 2021 Subject: Award Tanisha Tingling, Administrative Assistant I, $150.00 for her Idea to Improve the District's Sewer Manhole Management System Summary The Rewarding Ideas Program is designed to encourage employees to generate ideas for organizational improvements and provide a system for answering and recognizing adopted ideas. Tanisha Tingling, Administrative Assistant I, submitted an idea to improve the District's sewer manhole management system Recommendation That the Board of Directors approve rewarding Tanisha Tingling, Administrative Assistant I, $150.00 for idea to improving the District's sewer manhole management system. Analysis The District uses a specific website that was created for managing the surface condition of sewer manhole covers. The website is populated to track manhole covers that have been recorded for the artificial intelligence model. The model is used to determined surface condition of sewer manhole covers. Unfortunately, the website is time- consuming for the user when trying to determine what areas/streets have not been recorded. Often, the user wil have to check multiple pages on the website to verify area that have and have not been recorded. Tanisha's suggestion is to use an app called "My Tracks" that allows users to plan their route, record their driving and share information via email. By tracking the code enforcement vehicle during its recording of sewer manhole covers, the information from the app will inform the user which area/streets have and have not been recorded. The app will eliminate the possibility of re-recording an area that has already been recorded, and it will eliminate the user checkig multiple pages on the website. The app is free to download and used by staff. Legal Review Not applicable Environmental Review Subject 1. Award Tanisha Tingling, Administrative Assistant I, $150.00 for her Idea to Improve the District's Sewer Manhole Management System Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve rewarding Tanisha Tingling, Administrative Assistant I, $150.00 for idea to improve the District's sewer manhole management system. Goals 1.0 Sewer Infrastructure 7.0 Human Resources Management 7.1 Human Resources Management - Value and appreciate employees 7.10 Human Resources Management - Utilize technology to streamline processes The consideration of monetary rewards for employees for improving maintenance efficiencies is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review There is sufficient money in the budget to award for this suggestion. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 24, 2021 Board of Directors meeting at District Headquarters (290 Paularino Avenue) and posted on the District’s website at www.cmsdca.gov. Alternative Actions 1. Approve increasing or decreasing the Rewarding Idea amount to Tanisha Tingling. 2. Do not approve this suggestion made by Tanisha Tingling. 3. Direct staff to report back with more information. File Attachments Tanisha Tingling Rewarding Idea.pdf (1,521 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: May 24, 2021 Subject: Preliminary Biennial Budget Review for FY 2021-22 & FY 2022-23 Summary On April 13 and May 6, 2021, the Board of Directors reviewed and discussed the preliminary biennial budget for FY 2021-22 and FY 2022-23. On May 12, 2021, the Citizens Advisory Committee reviewed and discussed the preliminary biennial budget. Tonight, the Board of Directors was going to review and comment on the preliminary biennial budget before the final document is presented the Board for adoption on June 28, 2021. Recommendation That the Board of Directors receive and file this report. Analysis The preliminary biennial budget is not ready to be presented to the Board for discussion and comments. Staff is still analyzing potential budget cuts and programs before an updated version can be presented to the Board. Staff will be presenting the FY 2021-22 & FY 2022-23 Budget at the Board's June 8, 2021 study session meeting followed by June 28, 2021 for adoption consideration. Legal Review Not applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review There are no financial impacts to the District for continuing this item to the June 8, 2021 study session meeting. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 24, 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. Subject 2. Preliminary Biennial Budget Review for FY 2021-22 & FY 2022-23 Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 8.0 Finance E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: May 24, 2021 Subject: Receive and File Government Investing 101 Report Summary To ensure prudent and responsible management of public funds, the District has a policy to invest in its idle funds. Idle funds are money in an account that does not earn interest. Common examples include uninvested cash and checking accounts. Idle funds are typically used for everyday expenses. Many financial experts advise against keeping too much cash idle in order to get the maximum rate of return on assets. It is also important not to invest too much idle cash, as it can be costly to tie up excessive capital only to need to sell those investments. Recommendation That the Board of Directors receive and file this report. Analysis The responsibility for placing investments rests with the Board of Directors. California Government Code Section 53607 allows the Board to delegate the investment function to the District Treasurer for a period of one year. Marc Davis is the Board appointed District Treasurer. Mr. Davis has more than thirty years of experience in governmental auditing, accounting and finance management. He is a Certified Public Accountant (CPA) and has previously served as Acting Finance Director at both the City of Costa Mesa and the City of Buena Park. Mr. Davis successfully prepared auditing services for many local , state and federal agencies, including the Department of Justice. Mr. Davis is one of the founding partners of Davis Farr LLP, a full service CPA firm located in Irvine, California. Davis Farr LLP is listed in the Orange County Business Journal as one of the top 25 CPA firms in Orange County and the firm was named by the Orange County Business Journal as one the Best Places to Work in Orange County for three of the past four years. Tonight, Mr. Davis will be giving a presentation to the Board of Directors about public investing. Legal Review Not applicable Environmental Review Reviewing the investment policy is not a "project" under the CEQA definition, so it is exempt from the provisions of CEQA. Financial Review There are financial impacts to the District for presenting the Investment Policy to the Board of Directors. The District pays hourly rate for Mr. Davis time to prepare and present this report. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 24, 2021 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at Subject 3. Receive and File Government Investing 101 Report Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Discussion www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with additional information. File Attachments Investments 101.pptx (266 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: May 24, 2021 Subject: Approve Auditor Engagement Letter for Fiscal Year 2020-21 Audit Summary On May 24, 2018, the Board approved the professional services agreement for independent audit services to Teaman, Ramirez & Smith, Inc. (TRS) for the fiscal years ending June 30, 2018, 2019 and 2020 with the option of performing an annual audit for the years ending June 30, 2021 and 2022. The District extended the contract with TRS to audit the next two fiscal years. In preparation of the start of the June 30, 2021 audit, the auditors have issued an Auditor Engagement Letter (Attachment A) disclosing their responsibilities under the U.S. Generally Accepted Auditing Standards and Government Auditing Standards, and the State Controller's Minimum Audit Requirements for California Special Districts. The audit is schedule to begin on October 4, 2021 and the report will be issued towards the end of the calendar year. Recommendation The Board of Directors approve and file this report. Analysis The purpose of the Auditor Engagement Letter is to define the auditor’s responsibility, as described by professional standards, which is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with the U.S. Generally Accepted Auditing Standards and Government Auditing Standards, and the State Controller's Minimum Audit Requirements for California Special Districts. The audit of our financial statements does not relieve you or management of your responsibilities as stated in our engagement letter dated April 27, 2021 (Attachment A). 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 Subject 4. Approve Auditor Engagement Letter for Fiscal Year 2020-21 Audit Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Budgeted Yes Recommended Action The Board of Directors approve and file this report. Goals 8.1 Finance - Achieve financial excellence awards 8.0 Finance “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review The cost for the fiscal year 2020-21 audit per the contract is $10,000 which was included in the budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 24, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions Refer the matter back to staff for additional information. File Attachments A. Auditor Engagement Letter FY 2020-21.pdf (648 KB) F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Mark Esquer, District Engineer Date: May 24, 2021 Subject: Capital Improvement Projects Status Report Summary The District Engineer has provided a memorandum with a brief summary of major activities for the period of mid-April to mid-May. The District Engineer's memorandum is attached. Also attached is a detailed summary of the Capital Improvement Project activities and associated project cost expenses for the previous calendar month. Recommendation That the Board of Directors receive and file the report. Analysis Attached is information regarding project or technical sewer activities for the Boards use and information. 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 Subject 1. Receive and File the Capital Improvement Projects Status Report Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Action Preferred Date May 24, 2021 Fiscal Impact No Budgeted Yes Budget Source N/A Recommended Action That the Board of Directors Receive and File the Report Copies of this report are on file and will be included with the complete agenda packet for the May 24, 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 2021 05 Monthly Engineers Report CMSD Memorandum.pdf (179 KB) 2021 05 CIP Updates May 2021 Meeting.pdf (19 KB) 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 May 24, 2021 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer) Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 5. Special District Risk Management Authority (SDRMA) - (Vice President Scheafer) Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Information L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Discussion O. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON JUNE 28, 2021 VIA ZOOM TELECONFERENCE. Subject 1. Adjourn Meeting May 24, 2021 - Board of Directors Regular Meeting Access Public Type Procedural