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Tuesday, November 9, 2021
Board of Directors Study Session
Time: 8:00 A.M.
IMPORTANT NOTICE REGARDING NOVEMBER 9, 2021 STUDY SESSION MEETING
This hybrid in-person and teleconferenced meeting will utilize electronic means consistent with
State of California Assembly Bill 361 (Gov. Code § 54953(b)(3)).
***
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.
***
To participate in the meeting by computer:
1. Copy and past the following into your browser - https://us02web.zoom.us/join
2. Enter the Meeting ID number - 899 0194 1368
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 899 0194 1368#
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 real time during the meeting
or prior to the meeting 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. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the
absence – such determination shall be the permission required by law.)
B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items
within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda.
Members of the public will have the opportunity to address the Board of Directors about all other items on
this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of
Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a
subsequent meeting. The Board of Directors will respond after public comment has been received. Please
state your name. Each speaker will be limited to four (4) continuous minutes.
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1. Public Comments
C. ITEMS OF STUDY
1. Receive and File October 2021 Code Enforcement Officer Report
2. Review and Comment on Proposed Senate Bill 1383 Ordinance - Mandatory Organic Waste Disposal Reduction
3. Receive and File CR&R's Benchmark Measures Progress Report
4. Review and Comment on the September 2021 Cart-to-Cart Outreach Results
5. Provide Staff Direction Regarding 2021 Wastewater Rate Study
D. CLOSING ITEMS
1. Oral Communications and Director Comments
2. Adjournment
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Tuesday, November 9, 2021
Board of Directors Study Session
Time: 8:00 A.M.
IMPORTANT NOTICE REGARDING NOVEMBER 9, 2021 STUDY SESSION MEETING
This hybrid in-person and teleconferenced meeting will utilize electronic means consistent with
State of California Assembly Bill 361 (Gov. Code § 54953(b)(3)).
***
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.
***
To participate in the meeting by computer:
1. Copy and past the following into your browser - https://us02web.zoom.us/join
2. Enter the Meeting ID number - 899 0194 1368
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 899 0194 1368#
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 real time during the meeting
or prior to the meeting 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. 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 Nov 9, 2021 - Board of Directors Study Session
Access Public
Type Procedural
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Robert Ooten, President
Michael Scheafer, Vice President
Arlene Schafer, Secretary
Arthur Perry, Director
Brett Eckles, Director
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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 Nov 9, 2021 - Board of Directors Study Session
Access Public
Type Procedural
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C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: David Griffin, Interim Code Enforcement Officer
Date: November 9, 2021
Subject: Receive and File October 2021 Code Enforcement Officer Report
Summary
This report summarizes major points for three ordinance enforcement topics covering scavenging, graffiti on trash carts, and trash
container enforcement. For the month of October, the CMSD Interim Code Enforcement Officer focused his efforts on patrols in various
parts of the community. The goal is to identify and deter instances of scavenging and residential trash carts left within the public view.
Recommendation
That the Board of Directors receives and files this report.
Analysis
In the month of October, Interim Code Enforcement Officer (CEO) Griffin approached six (6) individuals after observing them scavenging
from CMSD trash carts. In the same month he issued 22 warning notices to residents storing their trash carts in public view. Interim
Officer Griffin found no graffiti on trash carts in the month of October.
Interim Officer Griffin's enforcement activities are described in more detail in the attached report.
Legal Review
Not applicable.
Environmental Review
Code enforcement activities and reporting are not a disturbance of the environment similar to grading or construction and do not
constitute a project under CEQA or the District’s CEQA Guidelines.
Financial Review
Officer Griffins' activities are funded in the adopted budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the November 9, 2021 Board of Directors Study
Session meeting at District Headquarters and posted on the District’s website.
Alternative Actions
1. Direct staff to report back with more information.
File Attachments
November 2021 CEO Report.pdf (601 KB)
Subject 1. Receive and File October 2021 Code Enforcement Officer Report
Meeting Nov 9, 2021 - Board of Directors Study Session
Access Public
Type Action
Recommended Action That the Board of Directors receives and files this report
Goals 2.0 Solid Waste
2.9 Solid Waste - Enhance Code Enforcement presence
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C. ITEMS OF STUDY
To: Board of Directors
From: Scott Carroll, General Manager
Date: November 9, 2021
Subject: Review and Comment on Proposed Senate Bill 1383 - Mandatory Organic Waste Disposal Reduction
Summary
In September 2016, Governor Edmund Brown Jr. set methane emissions reduction targets for California (Senate Bill 1383 Lara, Chapter
395, Statutes of 2016) in a state-wide effort to reduce emissions of short-lived climate pollutants (SLCP). Senate Bill 1383 (SB1383),
otherwise known as the Short-lived Climate Pollutant Reduction Act of 2016, directs the Department of Resources Recycling & Recovery
(CalRecycle) to adopt regulations and requirements to achieve state-wide goals including a goal to reduce organic waste disposal into
landfills by 50 percent by 2020 and 75 percent by 2025 and increase edible food recovery by 20 percent by 2025.
Recommendation
That the Board of Directors review and comment on the proposed ordinance and direct staff to bring back the ordinance on November 22,
2021 for adoption consideration.
Analysis
On January 1, 2022, municipalities and county agencies will be responsible for implementing SB 1383. Per the regulations, municipalities
and county agencies must:
Provide organic waste collection to all residents and businesses.
Establish a food recovery program to recover edible food from the waste stream and redistribute it for consumption.
Conduct outreach and education to all affected parties, including waste generators, haulers, facilities, edible food recovery
organizations and City departments.
Conduct Capacity Planning: Evaluate the City’s readiness to implement SB 1383 including organics collection, recycling and
edible food recovery capacity.
Procure recycled organic waste products like compost, mulch, and renewable natural gas (RNG) and electricity.
Inspect and enforce compliance with SB 1383.
Maintain accurate and timely records of SB 1383 compliance
Even though the main burdens for complying with the new law fall on cities and counties, the law does apply to special districts. Special
districts are specifically called out in Regulations 18982, (a)(36). (“Jurisdiction” includes a special district that provides solid waste
collection services.). CMSD will need to coordinate our efforts with the Cities of Costa Mesa, Newport Beach, the County of Orange and
CR&R Environmental Services to ensure everyone is in compliance with the new law, or we could face fines from CalRecycle for being
non-compliant that could be as high as $10,000 per day. CMSD efforts to assist with compliance will include, but not limited to the
following:
1. Provide curbside organic waste collection services to all CMSD solid waste rate payers.
2. Transport organic waste material to a facility that recovers organic waste.
3. Conduct public outreach regarding the Short-lived Climate Pollutant Reduction Act by providing educational materials to CMSD solid
waste rate payers.
4. Inspect and investigate curbside containers, collection vehicle loads, and/or processing facilities to confirm compliance.
Subject 2. Review and Comment on Proposed Senate Bill 1383 Ordinance - Mandatory
Organic Waste Disposal Reduction
Meeting Nov 9, 2021 - Board of Directors Study Session
Access Public
Type Action
Fiscal Impact Yes
Recommended Action That the Board of Directors review and comment on the proposed ordinance and direct staff
to bring back the ordinance on November 22, 2021 for adoption consideration
Goals 2.0 Solid Waste
2.8 Solid Waste - Recycle green waste and food scraps
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5. Receive anonymous complaints about potential non-compliant with SB 1383.
6. Enforcement by issuing Notice of Violations and potentially issuing administrative citations.
In order to provide the services mentioned above, CMSD will need to adopt a mandatory organic waste disposal reduction ordinance that
will amend the District's Operations Code so that the Code is consistent with new state regulations. Attached is the first draft ordinance
for adopting a mandatory organic waste disposal reduction program. On October 5, 2021, the City of Costa Mesa City Council
received their first reading of the City's SB 1383 ordinance, and they officially adopted the ordinance on October 19, 2021. Click here to
read the City's staff report and ordinance. The City of Newport Beach and the County of Orange are is expected to adopt similar
ordinances later this year.
On October 22, 2021, CMSD's Solid Waste Ad Hoc Committee reviewed and commented on the proposed ordinance. Suggestions made
during the committee meeting are identified in the attached second draft version of the ordinance. The draft ordinance is currently being
reviewed by CR&R, and they will provide their comments by November 22, 2021.
Legal Review
District Counsel has not reviewed and/or commented on the proposed ordinance; however, District Counsel will review and edit the draft
ordinance prior to Board adoption consideration on November 22.
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
Staff believes the District will incur costs for implementing the ordinance. Specifically, costs for providing public outreach, inspections and
investigations and possibly enforcement (the District is still in discussion Cities of Newport Beach and Costa Mesa on who will be
responsible for enforcing violations from residential rate payers). Staff is negotiating with CR&R Environmental Services on providing
public outreach, inspection and investigation services and staff believes CR&R can commit twenty hours a week to SB 1383 because
Section 9.3.A of their existing contract with CMSD states:
"HAULER's Sustainability Coordinator will dedicate approximately 20 hours a week promoting Solid Waste diversion programs in CMSD."
The exact dollar amount CMSD will spend for implementing the attached ordinance is still being determined.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the November 9, 2021 Board of Directors study
session meeting at District Headquarters and posted on the District’s website.
Alternative Actions
1. Direct staff to report back with more information.
File Attachments
Proposed CMSD Ordinance Second Draft.docx (57 KB)
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C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Nabila Guzman, Management Analyst I
Date: November 9, 2021
Subject: Receive and File CR&R's Benchmark Measures Progress Report
Summary
On July 13, 2021, the Board of Directors approved a list of benchmark measures to engage on their performance level for the next six
months (July - December 2021). The Board directed staff to report back CR&R's progress on a monthly basis.
Recommendation
That the Board of Directors receive and file this report.
Analysis
The following is CR&R's progress for achieving the benchmark measures approved by the Board on July 13, 2021.
1. The average vehicle age in CMSD's fleet is five years. CR&R was scheduling to put in service four new refuse units in October
2021. However, the global microchip shortage that's impacting the production of personal vehicles is also having an impact on the
manufacturing of refuse truck. CR&R believes the new refuse units will be in service by February 2022.
2. Reduce public complaints regarding mixed waste and organic carts not being emptied during their regular scheduled day by
50% to 174 or less complaints. This benchmark has not been achieved, staff received 16 complaints in the month of October. The total
complaints received in the past four months is 181. Some streets missed in October include Congress St, Orange Ave, Meyer Place,
23rd St, Santa Clara Circle, Plumer St, Lassen Ln.
Subject 3. Receive and File CR&R's Benchmark Measures Progress Report
Meeting Nov 9, 2021 - Board of Directors Study Session
Access Public
Type Action
Recommended Action That the Board of Directors receive and file this report.
Goals 2.0 Solid Waste
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3. CMSD staff receives notification from CR&R staff about operational delays (truck breakdowns, unfinished routes, excess
trash, etc.) that result in missed mixed waste or organic cart collection. Of the total number of accounts missed, CR&R notified
staff for 95% of those accounts. This measure remains at 97.2%.
4. Reduce the number of missed Christmas tree collections by 95% from 2020. CR&R has begun the planning for Christmas tree
collections in 2021. The plan will be presented to the Board at the November 22 regular board meeting.
5. Approved CMSD signage has been placed on all CMSD collection vehicles and is placed according to rendering provided and
as stated in the contract. This benchmark is achieved.
6. Adjust Friday Organics #3 route and Monday (#3, #5 and #7) and Wednesday (#3) mixed waste route to reduce weight load.
Staff reviewed daily route data from July through October 2021, below are staff's findings.
Route MBC Findings FY 2019-2020 CMSD July - October 2021 Findings
Monday T3 19.80% Over 12 tons 0% Over 12 tons
Monday T5 24.49 % Over 12 tons 15% Over 12 tons
Monday T7 31.37% Over 12 tons 24% Over 12 tons
Wednesday T3 27.47% Over 12 tons 6% Over 12 tons
Friday O3 17.91% Over 12 tons 5% Over 12 tons
7. Give CMSD staff an update and a timeline for utilizing the City of Newport Beach transfer station. Nothing new to report on this
measure. No timeline has been given to staff.
8. CR&R staff attends 95% of all in-person operational update staff meetings scheduled by CMSD. CR&R staff have attended
100% of all in-person operational update staff meetings scheduled by CMSD.
Legal Review
Not applicable
Environmental Review
Providing a progress report regarding benchmark measures 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.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the November 9, 2021 Board of Directors
regular meeting at District Headquarters and on District website at www.cmsdca.gov
Alternative Actions
1. Direct staff to report back with more information.
File Attachments
Missed Collections.png (6 KB)
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C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Nabila Guzman, Management Analyst I
Date: November 9, 2021
Subject: Review and Comment on the September 2021 Cart-to-Cart Outreach Results
Summary
During the month of September, CR&R's Senior Sustainability Coordinator and CMSD's Management Analyst I conducted a cart-to-cart
outreach effort focused on providing feedback to each home on their use of the Organics Recycling Cart.
Recommendation
That the Board of Directors receive and file this report.
Analysis
For three weeks during the month of September, CMSD and CR&R staff conducted a cart-to-cart outreach for the Wednesday Organics
Route. A total of 180 homes were visited over the three-week effort and only 7 homes (3.88%) had food waste in their Organics Recycling
Cart. Staff visited three different neighborhoods, East Costa Mesa, College Park and a single-family neighborhood near CMSD
Headquarters. Below is a breakdown of what was observed:
Date Oops Tags Awesome Tags Uh-Oh Tags Homes Visited
9/15/2021 3 Oops Tags 41 Awesome Tags 16 Uh-Oh Tags 60 Homes
9/22/2021 5 Oops Tags 45 Awesome Tags 10 Uh-Oh Tags 60 Homes
9/29/2021 5 Oops Tags 25 Awesome Tags 30 Uh-Oh Tags 60 Homes
In total, 13 homes (7.22%) received an Oops Tag for not placing their Organics Recycling Cart out for collection. 112 homes
(62.22%) received an Awesome Tag for having yard waste in their cart, and 56 Uh-Oh Tags (31.11%) were issued to homes that had
trash/recyclables in their Organics Recycling Cart. On week 3 of the outreach, one resident received a $25 gift card for having her
Organics Recycling Cart out for collection in the neighborhood with the lowest participation.
Staff is requesting outreach ideas from the Board of Directors on how to encourage residents to place their Organics Recycling Cart out
for collection and to help encourage the placement of food waste in the cart. Earlier this month, CMSD staff received an outreach and
three-cart proposal from CR&R. After reviewing the proposal and based on the outreach findings above, CMSD staff is
recommending the existing two-cart system remain in place at least through June 2022. During this time, CMSD would like CR&R to use
the dedicated 20 hours a week for SB 1383 compliance outreach along with the completion of quarterly waste characterization studies to
see if the outreach is having an effect on our resident's behavior. The use of the existing allocated 20 hours a week by CR&R ensures
that outreach is completed at no added cost to CMSD. Under SB 1383, local jurisdictions have a two-year period to focus on education
before having to fine residents for non-compliance and cross contamination with their curbside cart system. Conducting SB 1383
outreach through CR&R for the rest of the fiscal year will allow CMSD to gather more data on our residents disposal behaviors in order to
make a more informed decision on a three-cart system and how that outreach should be formulated.
On October 22, 2021, CMSD's Solid Waste Ad Hoc Committee discussed this item. Comments and suggestions made by the Committee
included school outreach efforts, reduce confusion and clarify organic materials, disseminate videos on Facebook, Mesa Water bill
inserts, outreach at the Costa Mesa Senior Center.
Legal Review
Not Applicable
Subject 4. Review and Comment on the September 2021 Cart-to-Cart Outreach Results
Meeting Nov 9, 2021 - Board of Directors Study Session
Access Public
Type Discussion
Goals 2.0 Solid Waste
2.8 Solid Waste - Recycle green waste and food scraps
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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 is sufficient fund in the budget to cover for the $25 incentive gift card and staff time to conduct the cart-to-cart outreach program.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the November 9, 2021 Board of Directors study
session meeting at District Headquarters and posted on the District’s website.
Alternative Actions
Refer item back to staff with further instructions.
File Attachments
AWESOME-CartHanger.pdf (3,715 KB)
OOPS-CartHanger.pdf (3,281 KB)
Uh-Oh Tag.pdf (2,534 KB)
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C. ITEMS OF STUDY
To: Board of Directors
From: Scott Carroll, General Manager
Date: November 9, 2021
Subject: Provide Staff Direction Regarding 2021 Wastewater Rate Study
Summary
Approximately 97.4% of the District's wastewater revenues are from assessment rates that are applied to the property tax roll.
Periodically, the District will evaluate the rates to ensure revenues are covering expenditures. The last wastewater rate study was done
in 2012 and the last wastewater rate increase was in 2017.
On July 1, 2021 the District solicited proposals from qualified professional consultants to prepare a wastewater rate study that describes
the justification and calculations for annual wastewater charges. When proposals were due on August 5, the District received three
proposals that ranged in cost from $29,500 to $67,569. The consulting firm, Robert D. Niehaus, Inc. (RDN), submitted a proposal that is
considered "Best Value" to the District and was awarded a contract for $29,500.
Recommendation
That the Board of Directors provide direction to staff regarding the 2021 wastewater rate study
Analysis
The District is responsible for providing a wastewater collection system to residents and businesses throughout Costa Mesa and a portion
of Newport Beach and the County of Orange. Proper maintenance and capital improvements of the system is necessary to ensure good
operations and avoid sanitary sewer overflows (SSOs). The last time the District adjusted the wastewater rates was in 2017. In the past
four and a half years, expenditures have steadily increased while revenues remained constant. In fact, wastewater reserve funds were
used to balance the FY 2021-22 & 2022-23 Budget because expenditures are exceeding revenues. Current revenues are not
sustainable to District operations, so adjustments are required, but how much of the adjustments is determined by the study.
Wastewater rates pay for District operations, which include personnel (salaries & benefits), maintenance (pipe cleaning, pump stations,
fleet, buildings), and capital improvements (pipe replacement/rehabilitation, pump station improvements/rehabilitation). The wastewater
rate study takes into account existing expenditures as well as future expenses. Attached is a list of future expenditures staff is requesting
to perform in the next five years. The attached expenditures are included in the rate study.
Wastewater rates are applied to the following property classes:
Single Family Residential
Multi-Family Residential (e.g. apartments, condominiums)
Commercial Average Strength (businesses without on-site food preparation)
Commercial High Strength (businesses with on site food preparation)
Industrial (e.g. manufacturing)
Trailer
Accessory Dwelling Units (ADUs)
Subject 5. Provide Staff Direction Regarding 2021 Wastewater Rate Study
Meeting Nov 9, 2021 - Board of Directors Study Session
Access Public
Type Action
Recommended Action That the Board of Directors provide direction to staff regarding the 2021 wastewater rate
study
Goals 1.0 Sewer Infrastructure
2.0 Solid Waste
8.0 Finance
8.4 Finance - Maintain appropriate reserve levels
8.7 Finance - Ensure rates are not among the highest in the County
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File Attachments
Wastewater Rate Study Presentation.pdf (1,068 KB)
Future Wastewater Expenditures.xlsx (12 KB)
Accessory Dwelling Units (ADUs)
Below are the proposed annual rates for all the property class for the next five years. RDN will give a presentation to the Board of
Directors describing the methodology and justification for the proposed rate adjustments.
Customer Class Current Rate FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 202
Single Family Residential 92.38 95.18 104.60 114.96 126.34 138.8
Multi-Family Residential 54.21 72.04 79.17 87.01 95.62 105.0
Commercial - Ave Strength 41.09 41.50 45.61 50.12 55.09 60.5
Commercial - High Strength 44.81 46.21 50.78 55.81 61.34 67.4
Industrial 105.48 106.87 117.45 129.08 141.86 155.9
Trailer 54.21 67.18 73.83 81.14 89.17 98.0
ADU 0.00 34.99 38.45 42.26 46.44 51.0
Commercial and Industrial classes are charged per 1,000 square feet of building
Staff believes the proposed rate adjustments will ensure adequate revenues are available for expenditures and help the District
achieve zero sanitary sewer overflows on a consistent basis. Experiencing zero SSOs on a consistent basis will avoid potential fines from
regulatory agencies and/or potential legal costs from non-governmental agencies who file lawsuits for violating the federal Clean Water
Act. Staff is seeking feedback and direction from the Board regarding the proposed five-year rate structure. If the Board believes the
proposed rates are too high, then staff is seeking direction from the Board on items to cut from the list of future expenditures.
The Citizens Advisory Committee will be reviewing and discussing the proposed rates the following day on November 10, 2021.
Legal Review
Not applicable at this time. District Counsel will assist with the Proposition 218 hearing, which is required by state law before
implementing utility rate adjustments.
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
Currently, the District receives $5,668,987 annually from wastewater rate charges. The proposed rates mentioned above would adjust
annual revenues as follows:
Revenue FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 TOTAL
With Adjustment 6,265,570 6,916,438 7,635,007 8,427,725 9,302,871
Without Adjustment 5,701,155 5,726,472 5,751,967 5,777,229 5,802,679
Difference 564,414 1,189,967 1,883,040 2,650,496 3,500,192 9,788,109
The District would receive additional revenues in the amount of $9,788,109 over the course of five years. If the District does not adopt the
rate adjustments for the next five years, the District will have to continue to use the wastewater reserve funds to balance the budget and
by FY 2026-27 the reserve funds will be depleted.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the November 9, 2021 Board of Directors study
session meeting at District Headquarters and on District website at www.cmsdca.gov
Alternative Actions
1. Do not give direction to staff and wait to receive recommendations from the Citizens Advisory Committee.
2. Direct staff to report back with more information.
11/5/21, 7:57 AM BoardDocs® Pro
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D. CLOSING ITEMS
Subject 1. Oral Communications and Director Comments
Meeting Nov 9, 2021 - Board of Directors Study Session
Access Public
Type
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D. CLOSING ITEMS
THE NEXT STUDY SESSION OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON
TUESDAY, DECEMBER 14, 2021 AT 8:00 A.M. IN THE DISTRICT'S BOARDROOM, LOCATED AT 290 PAULARINO AVENUE,
COSTA MESA.
Subject 2. Adjournment
Meeting Nov 9, 2021 - Board of Directors Study Session
Access Public
Type Procedural