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2022_05_23_board5/20/22, 2:08 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/3 Monday, May 23, 2022 Board of Directors Regular Meeting Time: 4:30 p.m. Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626 *** IMPORTANT NOTICE REGARDING THE MAY 23, 2022 REGULAR BOARD 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 paste the following into your browser - https://us02web.zoom.us/join 2. Enter the Meeting ID number - 817 1601 6634 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 817 1601 6634# 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. 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.) 5/20/22, 2:08 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#2/3 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 12, 2022 3. Approve the Board of Directors Regular Meeting Minutes of April 25, 2022 4. Adopt Warrant Resolution No. CMSD 2022-11 Approving District Warrant Registers 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Approve Payroll Transparency Disclosure for April 2022 7. Approve the preparation of a warrant to CR Transfer in the amount of $197,408.23 for April 2022 recycling and disposal services in the May 2022 warrant register 8. Accept the occupancy count as presented as 23,079 and direct staff to prepare a warrant to CR&R Environmental Services for $239,179.22 for April 2022 collection 9. Receive and File the April 2022 Organics Tonnage Report 10. Receive and File the April 2022 Solid Waste Diversion Report 11. Approve the Investment Report for the Month of April 2022 12. Adopt Resolution No. 2022-959 Ordering that Publication of Ordinance No. 133 has Occurred 13. Adopt Resolution No. 2022-960 Ordering that Publication of Ordinance No. 134 has Occurred 14. Receive and File April 2022 Contracts Signed by the General Manager D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Determine Whether the Owner is Responsible for Solid Waste and Wastewater Services at 1815 1/2 Tustin Ave, Costa Mesa; Whether the Owner Should Pay the Annual Charges for FY 18-19, FY 19-20, and FY 20-21 Even Though the Charges Were Not Placed on Their Assessment. 2. Consider Approving New Job Classification and Hiring Two New Employees in the Wastewater Collections Department, and Ordering One New Combination Sewer Cleaning Unit and One Pickup Truck 3. Consider Approving Five Percent (5%) Cost of Living Adjustment for CMSD Employees 4. Consider Approving Agreement for Independent Audit Services 5/20/22, 2:08 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/3 5. Approve Auditor Engagement Letter for Fiscal Year 2021-22 Audit 6. Consider Approving sending Mark Esquer, District Engineer, Steve Cano, Wastewater Maintenance Superintendent and Alex Arreola, Wastewater Maintenance Worker II to the 37th Annual Tri-State Seminar in Las Vegas, Nevada 7. Consider Approving Contribution Program Application for Concerts in the Park F. ENGINEER'S REPORTS 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status 2. Consider Approving a Budget Adjustment to 335 Sewer Siphon Lining Project from Budget 322 Iowa Forcemain, Awarding a Contract to Insituform Technologies, LLC. in the Amount of $226,843, and Approving a 10% Contingency in the Amount of $22,684. 3. Project 318 Presidents Pump Station Replacement: Accept Improvements as Completed, File Notice of Completion, Exonerate Labor and Materials Bond, and Exonerate Faithful Performance Bond G. TREASURER'S REPORTS H. ATTORNEY'S REPORTS 1. Consider Adopting Resolution No. 2022-961 Authorizing Remote Meetings 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 5/20/22, 2:08 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/65 Monday, May 23, 2022 Board of Directors Regular Meeting Time: 4:30 p.m. Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626 *** IMPORTANT NOTICE REGARDING THE MAY 23, 2022 REGULAR BOARD 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 paste the following into your browser - https://us02web.zoom.us/join 2. Enter the Meeting ID number - 817 1601 6634 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 817 1601 6634# 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. Call to Order - President Ooten Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#2/65 A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ooten Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/65 A. OPENING ITEMS Subject 3. Invocation - Vice President Scheafer Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#4/65 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 23, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#5/65 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 23, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#6/65 A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#7/65 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 23, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#8/65 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 23, 2022 - 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#9/65 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 23, 2022 Subject: Approve the Board of Directors Study Session Minutes of April 12, 2022 Summary The recorded minutes of the April 12, 2022 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 12, 2022. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the May 23, 2022 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments Subject 2. Approve the Board of Directors Study Session Minutes of April 12, 2022 Meeting May 23, 2022 - 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 12, 2022 - Board of Directors Study Session 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#10/65 minutes_2022_4_12_ss.pdf (207 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#11/65 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 23, 2022 Subject: Approve the Board of Directors Regular Meeting Minutes of April 25, 2022 Summary The recorded minutes of the April 25, 2022 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 25, 2022. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the May 23, 2022 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments Subject 3. Approve the Board of Directors Regular Meeting Minutes of April 25, 2022 Meeting May 23, 2022 - 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 25, 2022 - Board of Directors Regular Meeting 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#12/65 minutes_2022_4_25_rm.pdf (250 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#13/65 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 23, 2022 Subject: Adopt Warrant Resolution No. CMSD 2022-11 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 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 23, 2022 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. Subject 4. Adopt Warrant Resolution No. CMSD 2022-11 Approving District Warrant Registers Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2022-11 approving District warrants for the month of April in the amount of $448,990.52 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#14/65 File Attachments WARRANT RESO 2022-11.pdf (429 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#15/65 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 23, 2022 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 23, 2022 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the compensation and reimbursement of expenses as presented. 2. Direct staff to report back with more information. File Attachments directors_comp_expense_04-2022.pdf (1,347 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting May 23, 2022 - 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#16/65 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#17/65 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 23, 2022 Subject: Approve Payroll Transparency Disclosure for April 2022 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 23, 2022 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Subject 6. Approve Payroll Transparency Disclosure for April 2022 Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Fiscal Impact Yes Budgeted Yes Recommended Action That the Board of Directors approve and file the report. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#18/65 Payroll Transparency Disclosure Apr2022.pdf (2,191 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#19/65 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 23, 2022 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $197,408.23 for April 2022 recycling and disposal services in the May 2022 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 $197,408.23 for April 2022 recycling and disposal services to be ratified in the May 2022 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 Invoice Tonnage Rate Amount Billed Residential Waste - Newport Beach 43281 30.16 $54.98 $1,658.20 Residential Waste - Costa Mesa 43280 2,369.11 $54.98 $130,253.74* Total Residential Waste 2,399.27 $131,911.94 Organics Recycling Waste 43321 865.78 $75.65 $65,496.29* Total Organics 865.78 $65,496.29 Grand Total 3,265.05 $197,408.23 Legal Review Not Applicable Environmental Review Subject 7. Approve the preparation of a warrant to CR Transfer in the amount of $197,408.23 for April 2022 recycling and disposal services in the May 2022 warrant register Meeting May 23, 2022 - 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 $197,408.23 for April 2022 recycling and disposal services to be ratified in the May 2022 warrant register. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#20/65 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 23, 2022 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#21/65 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 8. Accept the occupancy count as presented as 23,079 and direct staff to prepare a warrant to CR&R Environmental Services for $239,179.22 for April 2022 collection Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 23,079 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for April 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $239,179.22 to be ratified in the May 2022 warrant list. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: May 23, 2022 Subject: Accept the occupancy count as presented as 23,079 and direct staff to prepare a warrant to CR&R Environmental Services for $239,179.22 for April 2022 collection. Summary Accept the occupancy count as presented using 23,079 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for April 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $239,179.22 to be ratified in the May 2022 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 23,079 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for April 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $239,179.22 to be ratified in the May 2022 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, 2022, total District occupancy was at 23,079 with six (6) new accounts added and four (4) 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 2022: 23,079 x $10.3635 =$239,179.22 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 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#22/65 File Attachments 2022-04-G CMSD Occupancy Report.pdf (114 KB) 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 23, 2022 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#23/65 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 23, 2022 Subject: Receive and File the April 2022 Organics Tonnage Report Summary A total of 865.78 tons of organic waste were collected in April 2022. 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 2022 Organics Tonnage Report Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#24/65 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 23, 2022 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. Alternative Action 1. Direct staff to report back with more information File Attachments Organics.png (9 KB) Organics Tonnage.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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#25/65 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 23, 2022 Subject: Receive and File the April 2022 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 2022 Solid Waste Diversion Report Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#26/65 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 23, 2022 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. Alternative Action 1. Direct staff to report back with more information File Attachments Tonnage.png (42 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#27/65 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 23, 2022 Subject: Approve the Investment Report for the Month of April 2022 Summary Attached is the Investment Report for the month of April 2022. 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 2022. 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, 2022. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 28, 2021 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, 2022, was 0.801%. The yield to maturity of the portfolio was 0.801%. The District’s weighted average interest rate was 28 basis points (0.278%) above the LAIF average monthly rate for March of 0.523%. The weighted average number of days to maturity for the District’s total portfolio was 814 days (2.23 years). The duration of the underlying securities in LAIF as of April 30, 2022 was 315 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, 2022 was 39.34%. The District has adequate cash reserves necessary to meet its obligations for the next six months. 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. Subject 11. Approve the Investment Report for the Month of April 2022 Meeting May 23, 2022 - 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 2022. Goals 8.0 Finance 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#28/65 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 0.700% for the year ending June 30, 2022. Through April 30, 2022, the portfolio has earned a weighted average interest rate of 0.661%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 23, 2022 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 2022.pdf (607 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#29/65 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. File Attachments resolution_959.pdf (62 KB) Proof 7825752 Costa Mesa Sanitary Ord 133.pdf (87 KB) Subject 12. Adopt Resolution No. 2022-959 Ordering that Publication of Ordinance No. 133 has Occurred Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors Adopt Resolution No. 2022-959 Ordering that Publication of Ordinance No. 133 has Occurred. 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#30/65 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. File Attachments resolution_2022-960.pdf (62 KB) proof_ 7857551 Ord 134.pdf (76 KB) Subject 13. Adopt Resolution No. 2022-960 Ordering that Publication of Ordinance No. 134 has Occurred Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors Adopt Resolution No. 2022-960 Ordering that Publication of Ordinance No. 134 has Occurred. 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#31/65 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 23, 2022 Subject: Receive and File April 2022 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 2022. 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 2022: Contracts Haven Air Conditioning: Purchased and installed three rooftop air condition units at HQ. $32,050.00 Azteca Systems, LLC – Cityworks: CA License Agreement. $27,000.00 Purchase Orders Hi-Way Safety: Engineering Pickup Truck, Unit 1050: Acquired LED Light Bar, Controllers, and Headache Rack $3,502.46 CBS Field Services: Sewer Lift Station Remote Switch Operator, Actuator, and Circuit Breaker Mechanism $21,846.31 GCI Construction: 1967 Newport Blvd Emergency Repairs – Edison Pipe Break $30,000 Cattron North America: Adams Lift Station Supervisory Control and Data Acquisition (SCADA) Card Repairs $375.00 Legal Review All contracts are reviewed and approved by District Counsel before contracts are executed. Environmental Review Providing the Board of Directors a monthly list of contracts signed by the General Manager is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There is adequate funding in the budget for the expenses referenced above. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 23, 2022 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Subject 14. Receive and File April 2022 Contracts Signed by the General Manager Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Director receive and file this report. Goals 6.0 Administrative Management 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#32/65 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. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#33/65 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Autumn Alvarez, Accounting Clerk Date: May 23, 2022 Subject: Determine Whether the Owner is Responsible for Solid Waste and Wastewater Services at 1815 1/2 Tustin Ave, Costa Mesa; Whether the Owner Should Pay the Annual Charges for FY 18-19, FY 19-20, and FY 20-21 Even Though the Charges Were Not Assessed on the Property Tax Roll. Summary In June of 2021 CR&R reached out to the District to verify if we had an existing account for a 1/2 address. They provided staff with the following address: 1815 1/2 Tustin Avenue. Staff identified 1815 Tustin Avenue was listed in the District's system and the property owner was being charged as a single family residence. On June 8, 2021, staff performed a site check at 1815 and 1815 1/2 Tustin Ave to confirm the units in question and discovered there are two (2) units on the property, 1815 Tustin Ave and 1815 1/2 Tustin Ave. Staff updated the newly acquired information on the County Assessment in time for Fiscal Year 2021-22 billing. Prior to FY 2021-22 the annual charges for this property were only applied to one (1) unit. Staff reached out to the property owner regarding the years in which services were performed but not billed. According to the statute of limitations the District was allowed to bill the past 3 years and the current year. Being that the current year had made it onto the Assessment the District invoiced the property owner for the past three (3) fiscal years, (2018-19, 2019-20, 2020-21). On May 2, 2022, the property owner is requesting this item be placed on the Board of Directors agenda for discussion and consideration for waiving the fees totaling to $729.60 Recommendation That the Board of Directors deny the property owner's request to waive fees totaling $729.60 for services already rendered. Analysis 1815 Tustin Ave is a residential multi-unit property with two (2) units. Prior to the current FY 2021-22 the annual charges for this property were only applied to one (1) unit. On November 11, 2021, staff contacted to the property owner about the additional charges for the second unit. This communication included a letter explaining the charges, an invoice, and copies of property tax bills to show that the charges for the second unit were not collected and or charged. The total for the invoice was $729.60, a payment plan was offered to the property owner with a due date of April 15, 2022. A second notice was mailed on February 3, 2022 containing a copy of the original invoice mailed on November 11, 2021. On February 11, 2022 an email was received from the property owner. The property owner explained his confusion of the charges and his wishes for the District to waive them. The property owner stated he has been the owner for the past seven (7) years and has had the Subject 1. Determine Whether the Owner is Responsible for Solid Waste and Wastewater Services at 1815 1/2 Tustin Ave, Costa Mesa; Whether the Owner Should Pay the Annual Charges for FY 18-19, FY 19-20, and FY 20-21 Even Though the Charges Were Not Placed on Their Assessment. Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Recommended Action That the Board of Directors deny the property owner's request to waive fees totaling $729.60 for services already rendered. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#34/65 same number of trash carts that came with the house. He also explained that due to the last two years of the COVID-19 pandemic his budget is limited. To accommodate the property owner, staff offered an interest free payment plan. On April 19, 2022 the District mailed a final notice letter and invoice with the same charges as the original invoice. On April 27, 2022, the property owner contacted the Finance Department to discuss the final notice, and again, the property owner requested the District waive all charges, but he agreed to pay for both units moving forward. The property owner believes he is not responsible for what he considers negligence by the District to bill him for the two (2) units on his property. The property owner declined staff's offer of a payment plan and reiterated his budget is limited. However, he agreed to pay for both units for services rendered in FY 2021-22 and beyond. The property owner is requesting the Board of Directors waive the fees totaling to $729.60. If the Board denies the property owner's request to waive the fees and the property owner refuses to pay the owed amount, then staff will schedule a public hearing on the June 27, 2022 to consider filing a lien and seeking recovery on the property owner tax roll. Legal Review The receipt of service without payment provided a windfall to the owner. The assessments are obligations based on statute, and the statute of limitations for an action based on statute, including an assessment, is three years. (CCP §338; Swamp-Land Dist. No. 307 v. Glide 112 Cal. 85 (1896).) The District does not have to file a complaint to recover this money, but can file a lien and seek recovery on the tax rolls with other charges. (H & S C §§5473.11, 6523.3.) Environmental Review Consideration of placing charges on the property tax roll 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 District invoiced the property owner for the past three (3) fiscal years, FY 18-19, FY 19-20, FY 20-21, a total of $729.60. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the May 23, 2022 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions 1. Grant the property owner's request to waive the fees totaling to $729.60. 2. Grant the property owner's request to waive half the fees totaling $364.80 File Attachments First Notice.pdf (67 KB) FY 18-19 Property Tax Bill.pdf (398 KB) FY 19-20 Property Tax Bill.pdf (394 KB) FY 20-21 Property Tax Bill.pdf (390 KB) Second Notice.pdf (65 KB) Final Notice.pdf (66 KB) First Notice Letter.pdf (900 KB) Final Notice Letter.pdf (826 KB) SW & WW Charges Breakdown.jpg (67 KB) 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#35/65 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: May 23, 2022 Subject: Consider Approving New Job Classification and Hiring Two New Employees in the Wastewater Collections Department, and Ordering One New Combination Sewer Cleaning Unit and One Pickup Truck Summary On March 9, 2021, staff presented an analysis of wastewater maintenance staffing levels and our current cleaning practice to determine the feasibility of achieving zero SSOs on a more consistent basis. In addition, staff analysis was an attempt to determine if the following objectives can be achieved: 1. Protect waterways and the environment from untreated wastewater. 2. Achieve zero SSOs during a 12-month period. 3. Number of Sanitary Sewer Overflows (SSOs) per 100 miles of Sewer is below Region 8 (Santa Ana) of the California Regional Water Quality Control Board. 4. Provide additional staff coverage for after hours call-out assignments to prevent staff burn out. 5. Expand the number of cleaning hours per week. 6. Increase CCTV footage on the condition of wastewater pipeline. 7. Provide additional management/leadership support in the Wastewater Department. On April 26, 2021, the Board of Directors discussed the analysis again and directed staff to take the following action: Include two additional wastewater worker positions and additional wastewater equipment (one combination sewer cleaning unit and one pickup truck) in the 2022 Sewer Rate Study. On February 28, 2022, the Board of Directors held a Proposition 218 hearing to consider annual wastewater collection charges that included two additional wastewater worker positions and additional wastewater equipment. A protest to the proposed charges failed and the Board adopted the schedule of charges in Resolution No. 2022-954 for wastewater collections services for the years 2022-2027. On May 10, 2022, the Board of Directors discussed this item and directed staff to report back with more information. Subject 2. Consider Approving New Job Classification and Hiring Two New Employees in the Wastewater Collections Department, and Ordering One New Combination Sewer Cleaning Unit and One Pickup Truck Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $902,000.00 Budgeted No Budget Source Wastewater Fund Recommended Action That the Board of Directors: 1. Approve the job description and salary range for the Electrical Instrumentation Technician position; 2. Approve Hiring two new employees that include one Electrical Instrumentation Technician and one Wastewater Maintenance Worker II; 3. Direct staff to place the order for one new combination sewer cleaning unit and one pickup truck; and 4. Approve appropriating $878,500 to the salaries and benefits accounts and capital outlay accounts in the FY 2022-23. Goals 1.0 Sewer Infrastructure 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#36/65 Recommendation That the Board of Directors: 1. Approve the job description and salary range for the Electrical Instrumentation Technician position; 2. Approve Hiring two new employees that include one Electrical Instrumentation Technician and one Wastewater Maintenance Worker II; 3. Direct staff to place the order for one new combination sewer cleaning unit and one pickup truck; and 4. Approve appropriating $878,500 to the salaries and benefits accounts and capital outlay accounts in the FY 2022-23. Analysis To achieve the objectives mentioned above, staff is recommending the Board approve two full-time employees in the Wastewater Collections Department that include one Electrical Instrumentation Technician and one Wastewater Maintenance Worker II. The Electrical Instrumentation Technician is a new classified position that will be assigned to maintaining the District's twenty sewer lift stations. The District already has one, two person crew assigned to lift stations, which include a SCADA Technician/Industrial Electrician. However, another electrical technician is recommended for safety concerns at lift stations. Lift stations have high voltages that require someone with expertise in electrical systems. The new position will also provide coverage when the SCADA Technician/Industrial Electrician is on leave and the position will provide after hour standby duties as well as responding to sanitary sewer overflows (SSOs). This is a new position that needs Board approval. Attached is the job description for Electrical Instrumentation Technician. The hiring of an additional wastewater maintenance worker will give the District three cleaning crews. One employee assigned to the lift station crew will be reassigned to the cleaning crew. Staff believes having a third cleaning crew will allow the District to clean the entire system within twelve months, thus reducing the likelihood of SSOs. In addition, a third crew will give the department enough staff to work 4-10 schedules, which will increase cleaning hours as demonstrated in the attachment. Having a third cleaning crew will require the procurement of a new combination sewer cleaning unit. Attached is a quote from Haaker Equipment Company after submitting a bid to Sourcewell, a cooperative purchasing government organization. Due to manufacturing delays as a result of COVID-19, a new combo unit would not be delivered to the District for 11 to 15 months, which is why it's important to place the order as soon as possible. While waiting for delivery of the unit, the third cleaning crew can perform a variety of duties such as: Inspecting pipeline using CCTV Inspecting the condition of manholes. The eight million gallon SSO that recently occurred in the City of Carson was caused by a collapsed manhole that deteriorated overtime from corrosion. The District has over 5,000 manholes. Plug and seal manhole covers to prevent inflow water entering the system. Training Cleaning lift station wet wells One pickup truck is required to provide additional visibility and protection of employees while cleaning the system in the street. The truck will supply tools and can provide as an additional resource for towing generators and/or by-pass pumps in the event of an emergency. Last year, the District acquired a 2022 Ford Maverick hybrid pickup truck for $27,000. Hiring two additional employees for the Wastewater Collection Department will provide additional coverage for after hours call-out (standby) assignments. For the past ten years, a private contractor, CR Drains, has provided after hour phone service as well as responding to after hour emergencies. CR Drains submitted notice they will no longer be the District's after hour call center and emergency responder effective July 1, 2022. Staff from the Wastewater Collections Department will have to provide this service. Staff analyzed the number and type of after hour calls CR Drains received in the past three years. Below are staff findings: Average after hour phone calls received per year - 26 Average after hour phone calls received per year that were unrelated to wastewater - 14 Average response in the field per year - 8 27% of all after hour phone calls in the past three years were trash related. 28% of all after hour phone calls in the past three years required response in the field The earliest phone call received 3:43 am. The latest phone call received was 11:00 pm. Staff will acquire a dedicated cell phone for the standby person. The phone will have a dedicated phone number to call during after hours and weekends. Currently, there are five employee that are assigned to standby duties on a rotational basis. Adding two more employees to the rotation will greatly improve morale and help avoid staff burnout for consistently being on standby assignment. On May 10, The Board inquired how much CMSD spent on contractors and rental units when CMSD's fleet is down for long-term repairs and/or when employees are on extended leave, which requires CMSD hiring contractors to clean the system and/or renting units to ensure the cleaning program does not fall behind schedule. Below is the information requested by the Board. Pipeline Cleaning by Contractor 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#37/65 Year Company Linear Feet Cost Dec-19 National Plant 100,000 $ 66,368 Jun-20 Houston & Harris 50,000 $ 25,450 Jan-21 Houston & Harris 50,000 $ 26,850 Feb-21 Houston & Harris 100,000 $ 48,758 TOTAL: 300,000 $ 167,426 Combination Sewer Cleaning Unit Rental Year Company Rental Days Cost Nov-18 Environmental Rental Services 6 $ 2,825.68 Dec-18 Environmental Rental Services 12 $ 7,654.78 Mar-19 Environmental Rental Services 14 $ 7,647.50 Apr-19 Environmental Rental Services 11 $ 6,555.00 Apr-19 Haaker Equipment 31 $ 13,140.00 May-19 Haaker Equipment 30 $ 13,140.00 Jun-19 Haaker Equipment 31 $ 13,140.00 Jul-19 Haaker Equipment 30 $ 13,140.00 TOTAL:165 $ 77,242.96 GRAND TOTAL: $ 244,668.96 As per the Board of Directors request, attached is the preliminary amended Wastewater Budget for FY 2022-23. The amended budget include hiring two new employees (Electrical Instrumentation Technician and Wastewater Maintenance Worker II), acquiring one new combination sewer cleaning unit and one pickup truck, and a 5% Costa of Living Adjustment (COLA) for employees that will be discussed later tonight. After making some adjustments to the CIP budget, the FY 2022-23 Preliminary Amended Wastewater Budget is a balance budget. Legal Review Not applicable. Environmental Review Considering hiring two additional wastewater worker positions and additional wastewater equipment 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 Staff surveyed the salary range for similar electrical technician positions from wastewater agencies in Orange County and determined Range 44 of CMSD's salary schedule is appropriate for Electrical Instrumentation Technician position. The annual salary range for this position would be $77,162.18 - $104,127.30. The fully burden cost for the Electrical Instrumentation Technician position is $140,571.85 The salary range for the Wastewater Maintenance Worker II position has been adopted by the Board in years past. The fully burden cost for the Wastewater Maintenance Worker II position is $104,564.59 The cost to acquire one combination sewer cleaning unit is $583,363.88, which include tax and delivery costs. The cost to acquire one pickup truck is $50,000, which include costs for outfitting the truck (e.g. bed liner, took box, warning lights). The additional annual cost for staffing after hour call center and responding to emergencies is $23,370. This cost includes having a secondary standby person, cell phone services, paying standby person for phone advice, and responding to emergencies. Staff projects 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#38/65 the FY 2022-23 adopted budget for overtime will be sufficient to cover for this cost provided no major emergency events. Total costs to hire two new employees in the Wastewater Collections Department, and ordering one new combination sewer cleaning unit and one pickup truck is $878,500.32. If the Board of Directors approves staff recommendation, then $878,500 will need to be appropriated to the salaries and benefits accounts and capital outlay accounts in the FY 2022-23. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 23, 2022 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve staff's recommendation. 2. Direct staff to report back with more information. File Attachments CMSD Electrical Instrumentation Techncian.pdf (90 KB) Electrical Technician Salary Survey.pdf (10 KB) 9-80 vs 4-10 Analysis.pdf (100 KB) Quote - Combination Sewer Cleaning Unit.pdf (188 KB) FY 2022-23 Preliminary Amended Budget.pdf (104 KB) 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#39/65 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: May 23, 2022 Subject: Consider Approving Five Percent (5.0%) Cost of Living Adjustment for CMSD Employees Summary On May 10, 2022, the Board discussed staff's recommendation to consider approving a five-percent (5%) Costa Of Living Adjustment (COLA) for CMSD employees. The Board received the U.S. Bureau of Labor Statistics February to February Consumer Price Index (CPI) for the past ten years. The Board requested to see the CPI prior to 2012, which is provided below. 2004 is the year when CMSD separated its partnership with the City of Costa Mesa and hired its own employees. 2005 is the first year CMSD employees received a COLA. Year COLA 2005 3.8 2006 5.1 2007 3.5 2008 3.1 2009 0.0 2010 1.4 2011 2.3 2012 2.1 2013 2.2 2014 0.5 2015 0.1 2016 2.4 2017 2.7 Subject 3. Consider Approving Five Percent (5%) Cost of Living Adjustment for CMSD Employees Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $127,000.00 Budgeted No Recommended Action That the Board of Directors: 1. Approve a five-percent (5%) Cost of Living Adjustment for all CMSD employees, except the general manager; and 2. Approve appropriating $127,000 to the salaries and benefits accounts in the FY 2022-23 Goals 7.0 Human Resources Management 7.1 Human Resources Management - Value and appreciate employees 7.5 Human Resources Management - Maintain high level of employee satisfaction 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#40/65 2018 3.6 2019 2.5 2020 3.4 2021 1.0 Recommendation That the Board of Directors: 1. Approve a five-percent (5%) Cost of Living Adjustment for all CMSD employees, except the general manager; and 2. Approve appropriating $127,000 to the salaries and benefits accounts in the FY 2022-23 Analysis As you can see in the attachments, the 2022 February to February Los Angeles-Long Beach-Anaheim CPI is 7.4%. Inflation rose again the following month to 8.5%. The Los Angeles-Long Beach-Anaheim area is experiencing the highest inflation rate in the past forty-one years. According to U.S. Bureau of Labor Statistics, the following goods and services have increased. Year-Over-Year Inflation, by Expenditure Food 8.6% At Home Food 11.7% Electricity 17.7% Natural Gas 22.7% Auto Gasoline 49.1% There are no COLA budgeted in the FY 2022-23 Budget. Staff did not anticipate nor foresaw inflation reaching 8.5% because in the past ten years, the average CPI is 2%. While approving a 5% COLA would be the highest COLA received by staff, it would still not be enough to help offset inflation costs. However, approving staff's recommendation will provide a way to at least partially offset inflation and help achieve the following strategic goals that were adopted by the Board of Directors. 7.1 - Value and appreciate employees 7.5 - Maintain high level of employee satisfaction In accordance, with Policy No. 2.2 of the District's Employee Handbook, employees are eligible for merit adjustments ranging from two to five percent depending on their performance evaluation and standing within their position salary range. Employees who are at the top of their salary range can no longer receive merit adjustments and depend on COLA's to earn more money. Currently, three employees are at the top of their salary range and two employees are near the top (less than 5%). The General Manager does not receive COLA adjustments. His compensation is negotiated with the Board of Directors after completing his annual performance evaluation. On May 10, 2022, the Board of Directors directed staff to bring back a compensation comparison survey between CMSD employees and other nearby public agencies. The following data is obtained from the California State Controller website for government compensation. The total compensation include regular pay, overtime, and one-time pay such as bonuses, vacation and/or sick leave payout, etc. The compensation is from 2020 because data for 2021 is not yet available. Because the General Manager does not receive annual COLA , General Managers/City Managers compensation from all the agencies in the table below were deleted; however, the District Engineer’s total annual compensation is included in CMSD's average annual compensation. Average Total Annual Compensation Per Employee 2020 OC Sanitation District 104,490 Mesa Water District 99,861 OC Water District 98,685 Irvine Ranch Water District 95,914 City of Fountain Valley 90,711 Laguna Beach County WD 88,488 City of Newport Beach 82,740 City of Costa Mesa 82,355 City of Santa Ana 82,196 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#41/65 Yorba Linda Water District 80,132 City of Huntington Beach 76,597 Costa Mesa Sanitary District 64,557 City of Laguna Beach 64,228 Midway City Sanitary District 60,548 From the table above, the median annual compensation per employee is $82,548. CMSD annual wages per employee is 28% below the median. If the Board approves staff's recommendation for a 5% COLA, CMSD employees would still be below the median wages earned by other OC agencies. Legal Review Not applicable Environmental Review The consideration of a five percent COLA adjustment for employees 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 The total cost to approve a five percent COLA for all employees, except the General Manager, is $127,000. Fiscal Year 2022-23 Solid Waste Fund Wastewater Fund Salaries $24,000 $89,000 Benefits*$2,000 $12,000 Total $26,000 $101,000 *Employer's Medicare portion, Employer's CalPERS portion. If the Board of Directors approve the five percent COLA then, $26,000 will need to be appropriated to the Solid Waste Fund salaries and benefits accounts and $101,000 to the Wastewater Fund salaries and benefits accounts in the FY 2022-23. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 23, 2022 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Approve a 3% COLA adjustment. The total cost will be $87,000 2. Approve a 7.4% COLA adjustment. The total cost will be $179,000 3. Do not approve a COLA adjustment File Attachments 2005-2022 CPI .pdf (81 KB) 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#42/65 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: May 23, 2022 Subject: Consider Approving Agreement with for Independent Audit Services Summary The District is required to undergo an audit of its financial statements on an annual basis. The existing agreement for audit services expired with the completion of the annual audit for the year ended June 30, 2021. Staff has solicited proposals for audit services from qualified certified public accounting firms. Recommendation That the Board of Directors approves awarding a contract to Nigro & Nigro, PC for independent audit services in the amount of $45,000 for the fiscal years (FYs) ending June 30, 2022, 2023 and 2024 and directs the General Manager to sign the Agreement. Analysis The contract for audit services expired with the completion of the annual audit for the year ended June 30, 2021. Given the economic climate and the competitive nature of audit services, staff prepared and issued a Request for Proposals (RFP) for Independent Audit Services and posted the availability of the RFP on the District’s and California Society of Municipal Finance Officers’ (CSMFO) websites. The RFP requests firms to propose an annual financial audit of the District for the fiscal years ending June 30, 2022, 2023 and 2024, plus an option to extend the term for two additional one-year periods at the sole discretion of the District. Also included in the scope of the RFP is the request for the performance of 40 hours per year of specialized reviews of the various internal controls of the District. These specialized reviews would generally be performed as agreed-upon procedures with separate reports issued. The District received proposals from three firms. An evaluation committee of three District staff and the District Treasurer evaluated the proposals and utilized the District’s “Best Value” evaluation method. Best value means the best value to the District based on the following factors: Independence License to Practice in the State of California Cost Firm Qualifications and Experience, including Partner, Supervisor and staff Specific Audit Approach Similar Engagements with other Government Entities Identification of Anticipated Audit Problems Timelines for Completing audit Subject 4. Consider Approving Agreement for Independent Audit Services Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Fiscal Impact Yes Budgeted Yes Recommended Action That the Board of Directors approves awarding a contract to Nigro & Nigro, PC for independent audit services in the amount of $45,000 for the fiscal years (FYs) ending June 30, 2022, 2023 and 2024 and directs the General Manager to sign the Agreement. Goals 8.1 Finance - Achieve financial excellence awards 8.0 Finance 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#43/65 The evaluation committee also conducted interviews via Zoom with all three firms. Based upon the committee’s evaluation, the firm of Nigro & Nigro, PC presented the best overall proposal. Legal Review The Agreement for independent audit services has been reviewed by District Counsel and approved as to form. 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 FY 2022-23 fiscal services accounts have a budget of $40,500 which includes budgeted items for the annual audit and treasury services. The audit fee for the fiscal year ending June 30, 2022, is $15,000. Nigro & Nigro, PC proposed a total cost of $45,000 for the fiscal years ending June 30, 2022, 2023 and 2024. The audit fees for the optional fiscal years ending June 30, 2025, and 2026 were proposed at $15,000 for each year. Adequate funding for each year of the Agreement will be provided in the applicable year’s budget of the District. Fiscal Year 2021-22 2022-23 2023-24 Total 3 Years 2025-26 2026-27 Total 5 Years Moss, Levy & Hartzheim, LLP $12,495 $12,670 $12,845 $38,010 $13,020 $13,195 $64,225 Nigro & Nigro, PC $15,000 $15,000 $15,000 $45,000 $15,000 $15,000 $75,000 Rogers, Anderson, Malody & Scott, LLP $21,600 $21,600 $24,850 $68,050 $25,700 $25,700 $119,450 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 23, 2022 Board of Directors regular meeting at District Headquarters on the District’s website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff 2. Reject all proposals and issue a new RFP File Attachments Audit Services Contract 2022.docx (26 KB) Nigro & Nigro -Costa Mesa Sanitary Proposal for Audit Services.pdf (1,646 KB) 2022 Audit RFP.pdf (970 KB) Best Value Evaluation Criteria Audit Services.pdf (105 KB) 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#44/65 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: May 23, 2022 Subject: Consider Approving the Auditor Engagement Letter for Fiscal Year 2021-22 Audit. Summary In preparation of the start of the June 30, 2022 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 preliminary audit is scheduled for May 31, 2022 and the final audit will be schedule for early October 2022. The financial statements will be issued towards the end of the calendar year. Recommendation That the Board of Directors Accept the Auditor Engagement Letter for Fiscal Year 2021-22 Audit and Authorize President Ooten to Sign the Engagement Letter on behalf of CMSD. 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 “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 2021-22 audit per the contract is $15,000 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 23, 2022 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. Subject 5. Approve Auditor Engagement Letter for Fiscal Year 2021-22 Audit Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Budgeted Yes Recommended Action That the Board of Directors Accept the Auditor Engagement Letter for Fiscal Year 2021-22 Audit and Authorize President Ooten to Sign the Engagement Letter on behalf of CMSD. Goals 8.1 Finance - Achieve financial excellence awards 8.0 Finance 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#45/65 File Attachments Attachment A - Auditor Engagement Letter FY 2021-22.pdf (230 KB) 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#46/65 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: May 23, 2022 Subject: Consider Approving sending Mark Esquer, District Engineer, Steve Cano, Wastewater Maintenance Superintendent and Alex Arreola, Wastewater Maintenance Worker II to the 37th Annual Tri-State Seminar in Las Vegas, Nevada Summary Tri-State Seminar is a group of water and wastewater professionals from Arizona, Nevada and California that meet once a year to share the latest information and technology in the industry. The conference is supported by the California Water Environment Association (CWEA), Nevada Water Environment Association (NWEA) and Arizona Water Association (AWA). Recommendation That the Board of Directors approve sending Mark Esquer, District Engineer, Steve Cano, Wastewater Superintendent and Alex Arreola, Wastewater Maintenance Worker II to the 37th Annual Tri-State Seminar in Las Vegas, Nevada on August 8-11, 2022. Analysis This four day conference focuses on the water and wastewater industry. For wastewater collections, some of the topics that will be discussed include the following: Odor Control Using Acoustic Inspections Asset Management Root Control Confine Space Rescue Reducing Corrosion, Infiltration, Inflow and Odors in Manholes In addition, there will be 300 exhibitors showcasing the latest technologies in the wastewater industry. Board approval is needed because this conference is being held out of California. Mr. Cano will provide the Board a summary of his experience and lessons learned at the seminar upon his return. Legal Review Not applicable Environmental Review Attendance at a seminar 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 Subject 6. Consider Approving sending Mark Esquer, District Engineer, Steve Cano, Wastewater Maintenance Superintendent and Alex Arreola, Wastewater Maintenance Worker II to the 37th Annual Tri-State Seminar in Las Vegas, Nevada Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Budgeted Yes Recommended Action That the Board of Directors approve sending Mark Esquer District Engineer, Steve Cano, Wastewater Superintendent and Alex Arreola, Wastewater Maintenance Worker II to the 37th Annual Tri-State Seminar in Las Vegas, Nevada on August 8-11, 2022. Goals 7.0 Human Resources Management 7.4 Human Resources Management - Provide opportunities to improve individual skills, knowledge, and leadership through professional development 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#47/65 The total cost for three employees to attend the seminar is $3,375, which includes transportation, hotel, registration and food. There is sufficient funding for this conference available in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 23, 2022 Board of Directors regular meeting at District Headquarters and on District’s website at www.cmsdca.gov. Alternative Actions 1. Do not approve sending Steve Cano and/or Alex Arreola to the seminar. 2. Refer the matter back to staff for additional information. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#48/65 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: May 23, 2022 Subject: Consider Approving Contribution Program Application for Concerts in the Park Summary On July 31, 2013, the Board of Directors approved implementing new procedures for sponsoring organizations and/or events. Staff is presenting the Board of Directors with a Contribution Program Eligibility Application to provide a Gold level sponsorship of $2,500 for the Costa Mesa Foundation's Concerts in the Park series on July 12, 19, and 26, 2022. Recommendation That the Board of Directors: 1. Approve the Costa Mesa Foundation's contribution application requesting a $2,500 sponsorship for the Concerts in the Park series of events; and 2. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling, source separation, and wastewater collection through educational information and activities provided at the District's event booth. Analysis Subject 7. Consider Approving Contribution Program Application for Concerts in the Park Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action Preferred Date May 23, 2022 Absolute Date May 23, 2022 Fiscal Impact Yes Dollar Amount $2,500.00 Budgeted Yes Budget Source 10-100100-4420 & 20-100100-4420 (Public Information/Education/Community Promotions Sponsorships) Recommended Action That the Board of Directors: 1. Approve the Costa Mesa Foundation's contribution application requesting a $2,500 sponsorship for the Concerts in the Park series of events; and 2. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling, source separation, and wastewater collection through educational information and activities provided at the District's event booth. Goals 5.7 Community Outreach & Communications - Provide workshops, educational events and special events 5.2 Community Outreach & Communications - Offer sustainable promotional products 4.7 Partnerships - Participate in community events to increase visibility 4.1 Partnerships - Build relationships with local agencies, small businesses, and non-profit agencies to promote sustainable practices 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#49/65 According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes include solid waste collection, recycling, source separation, wastewater collection, and preventing sanitary sewer overflows (SSOs). Describe how the contribution will advance the District's purpose. In regards to these criteria, the Concerts in the Park sponsorship may serve the purpose of increasing District visibility by providing a community booth where District staff can promote and educate the public about the importance of recycling, source separation, and wastewater collection. At each concert in the series, District staff can host various educational activities, including a waste sorting game and an interactive wastewater collection system demonstration. These activities will promote District programs, such as the Organics Recycling Program, Household Hazardous Waste Collection Program, FOG Prevention, and the Sewer Inspection Rebate Program. Additionally, District staff can use this opportunity to distribute sustainability tools, such as kitchen pails, reusable grocery bags, reusable water bottles, and FOG funnels. As stated in the attached documents, the Gold level sponsorship of $2,500 includes the following: CMSD Logo on all promotional materials, including the Daily Pilot ad, Costa Mesa Foundation website, social media, stage banners, concert poster, and concert program MC recognition at all concerts 10' x 10' community booth with table and 2 chairs at all concerts 1 preferred onsite parking pass for all concerts Additionally, the Costa Mesa Foundation will make recycling containers available at the event. The District has sponsored the Concerts in the Park event series at the Gold level from 2014-2019. Due to the pandemic, the event series was not held in 2020. In 2021, the event was held as a single concert and the District was unable to participate due to receiving late notice about the event. Legal Review Not applicable. Environmental Review The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting the District 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 are sufficient funds in the FY 22-23 Solid Waste and Wastewater Public Info/Education/Community Promotions accounts for this sponsorship. A total of $8,000 is budgeted for sponsorships during FY 22-23 and the full amount is currently available for contributions. If approved, the sponsorship will be paid after July 1, 2022 (the start of FY 22-23). Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 23, 2022 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Determine that no purpose exists for providing a sponsorship for the Concerts in the Park events. 2. Approve an alternative sponsorship level of $100, $500, $1500, or $5000. (Note: Sponsorship levels under $2500 do not include an event booth. A $5000 sponsorship includes more prominent display of sponsor logos and an additional preferred parking space.) File Attachments Contribution Application - Costa Mesa Foundation - 2022-04-28.pdf (433 KB) 2022 Sponsorship Options.pdf (311 KB) 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#50/65 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: May 23, 2022 Subject: Receive and File the District Engineer's Report and Capital Improvement Projects Status Summary The District Engineer has provided a memorandum with a brief summary of major capital or other engineering 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 The Board of Directors receive and file the Capital Improvement Status Report. Analysis Attached is information regarding project or technical sewer activities for the Board of Directors' 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 The cost of preparing this report is contained within the operating budget. There are 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 April 25, 2022, Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Subject 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action, Discussion Preferred Date May 23, 2022 Absolute Date May 23, 2022 Fiscal Impact No Budgeted Yes Budget Source 2021/22 FY Operating Budget Recommended Action The Board of Directors receive and file the Capital Improvement Status Report. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#51/65 2022 05 Monthly Engineers Report CMSD Memorandum.pdf (200 KB) CIP Updates for May Board Meeting.pdf (1,144 KB) 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#52/65 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: May 23, 2022 Subject: Consider Approving a Budget Adjustment to 335 Sewer Siphon Lining Project from Budget 322 Iowa Forcemain, Awarding a Contract to Insituform Technologies, LLC. in the Amount of $226,843, and Approving a 10% Contingency in the Amount of $22,684. Summary The project work generally consists of rejuvenating the inside of six (6) existing pipes associated with three (3) inverted-siphon facilities (Siphons) and lining them with a cured-in-place pipe (CIPP). The contract work includes cleaning the siphons, repairing and/or grouting holes, and installing the liners. The project work is being conducted because the siphons have defects, cracks, and breaks that must be repairs and the pipe rejuvenated prior to failure. Bids, received from two contractors, were opened on April 21, 2022, and ranged from $226,843 to $284,800. The Bid Register showing bidder details is attached to this report. The Engineer's estimate for this project is $157,000 and was based on unit prices from the 328 DIP Phase II project bids and the Project 331 Siphon Evaluation project. The 335 Sewer Siphon project contains significantly more risk than the DIP and Siphon Evaluation projects because the pipes leak and are under the ground water table. In addition, construction prices have increased 11% over the past 4 months. Recommendation That the Board of Directors: 1. Approve a Budget Adjustment to Transfer $51,000 from 322 Iowa Forcemain Replacement Project to the 335 Phase I Siphon Lining Project; and 2. Award a contract to the lowest responsive and responsible bidder, Insituform Technologies, LLC. in the amount of $226,843; and 3. Approve a 10% contingency in the amount of $22,684. Analysis The District commissioned the Project 331 Sewer Siphon Evaluation during the Fall of 2020 that evaluated eight (8) District siphons. This Phase I Siphon project will rejuvenate 3 of the worst-damaged siphons (Siphons #5, #8, and #9). These three siphons comprise 6 of 14 siphon pipes; all have defects with groundwater infiltrating the siphons. In order to ensure continuity of service and convey sewage across the storm channel or obstruction,these pipelines must be rehabilitated. Subject 2. Consider Approving a Budget Adjustment to 335 Sewer Siphon Lining Project from Budget 322 Iowa Forcemain, Awarding a Contract to Insituform Technologies, LLC. in the Amount of $226,843, and Approving a 10% Contingency in the Amount of $22,684. Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action, Discussion, Presentation Preferred Date May 23, 2022 Absolute Date Jun 27, 2022 Fiscal Impact No Dollar Amount $249,527.00 Budgeted Yes Budget Source Project 322 & 335 Budgets Recommended Action 1. Approve a Budget Adjustment to Transfer $51,000 from 322 Iowa Forcemain Replacement Project to the 335 Phase I Siphon Lining Project; and 2. Award a contract to the lowest responsive and responsible bidder, Insituform Technologies, LLC. in the amount of $226,843; and 3. Approve a 10% contingency in the amount of $22,684. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#53/65 the storm channel or obstruction, these pipelines must be rehabilitated. Legal Review District Counsel has reviewed the contracts and approved to form. Environmental Review Rehabilitating existing sewer pipeline is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c) “Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity“. Financial Review The District staff has a budget adjustment to transfer $51,000 from the Project 322 Iowa Forcemain Replacement budget to the 335 Sewer Siphon Rehab project for providing funds to proceed with construction. The available 335 Project funds, with encumbrance and after the budget adjustment, is $271,973, as of April 30, 2022. The total construction cost for this project phase is $270,000, including a contingency and construction administration costs. There is adequate funding for this project. Account Description Account No. Balance Before Adjustment Increase/(Decrease)Total Ending Ba Iowa FM Replacement 20-201322-4300 $54,994.44 ($51,000)$3,994.44 Sewer Siphon Lining 20-201335-4300 $220,973.30 $51,000 $271,973.30 Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 23, 2022 Board of Directors meeting at District Headquarters and posted on the District's website at www.cmsdca.gov Alternative Actions 1. Reject all bids and direct staff to solicit bids again. 2. Refer the matter back to staff for additional information. File Attachments 2022 05 Award Phase I Sewer Siphon.pdf (8,838 KB) CMSD 335 Insituform Contract 2022.pdf (296 KB) Faithful Performance CMSD Project.docx (115 KB) Labor and Material bond CMSD Project.doc (32 KB) CMSD331 - Siphon Date and Report - Final 2020-11-09.pdf (77 KB) 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#54/65 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: May 23, 2022 Subject: Project No. 318 Presidents Pump Station Replacement - Accept Improvements as Completed, File Notice of Completion, Exonerate Labor and Materials Bond, and Exonerate Faithful Performance Bond Summary Construction of the improvements were completed on or around May 5, 2022, therefore, it is appropriate for the District to accept the improvements and file a notice of completion. Recommendation That the Board of Directors: 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Analysis The project included replacing the existing pump station with a new pump station and converting the old pump station structure into an overflow vault. Legal Review The District Legal Counsel reviewed, and approved to form, the construction contract for the project. Environmental Review The new pump station is the same capacity as the old station and similar in layout. The replacement of the existing pump station as shown on the plans for Project #318 involving negligible or no expansion of use beyond that existing is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” “minor alteration of existing public or private structures”, as further described in Section (b) as “Existing facilities of both investor and publicly- owned utilities used to provide .... sewerage ...”. Financial Review The approved budget for Project #318, Presidents PS Replacement, was $2,358,000 in FY 20-21. The outlay (paid expenses) and encumbrances (costs to be paid) through May 2022 is anticipated at total $2,280,530. This amount includes $137,967.75 for a change Subject 3. Project 318 Presidents Pump Station Replacement: Accept Improvements as Completed, File Notice of Completion, Exonerate Labor and Materials Bond, and Exonerate Faithful Performance Bond Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action, Discussion Preferred Date May 23, 2022 Absolute Date Jun 27, 2022 Fiscal Impact No Dollar Amount $88,204.00 Budgeted Yes Budget Source 318 Presidents PS Replacement Capital Improvement Recommended Action That the Board of Directors: 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#55/65 order and retainer paid and/or owed to the general contractor. The amount retained during the monthly invoicing is included in the encumbered project budget. The remaining available budget is $77,470. The remaining budget will be used to pay for record drawings, training, or other project closeout expenses. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 23, 2022, Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not to accept the improvements. 2. Direct staff to report back with more information. File Attachments 318 Presidents PS Notice of Completion 2022 05.pdf (69 KB) 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#56/65 H. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: May 23, 2022 Subject: Consider Adopting Resolution No. 2022-961 Authorizing Remote Meetings Summary The Governor has now signed AB 361 which continues the authority to have remote meetings, provided certain findings are made. The Board will need to determine if it desires to continue with remote meetings, or at least have the option of remote meetings, and if so, adopt a resolution making findings. Recommendation That the Board of Directors adopt Resolution No. 2022-961 authorizing remote meetings. Analysis The Brown Act authorized teleconferenced meetings provided all locations involved in the call were accessible to the public and a public agenda was posted outside the location. With the COVID 19 pandemic, the Governor issued an Executive Order (N-25-20) on March 4, 2020, which authorized remote meetings provided the meetings are accessible to the public, that agendas are prepared in advance, and the public has a right to comment on meeting items. N-25-20 was set to expire on September 30, 2021. The Legislature just passed AB 361 which revises the Brown Act to allow remote meetings to continue, subject to the making of certain findings. The passage of this law created confusion since it was effective immediately, but public agencies were relying on the older Executive Order to be able to conduct their meetings through September 30, 2021. The Governor just issued Executive Order (N-15-21) which will authorize public agencies to rely on the prior Executive Order until Sep 30, 2021, at which time it expires. AB 361 is now in effect as an urgency statute. It authorizes a public agency to use remote conferencing provided a State of Emergency exists and the local agency has imposed or recommended social distancing. Findings must be made, as discussed below. We are required to notice the meeting and post agendas, allow the public to address the body in a meaningful manner, and by call-in or internet- based service option. In the event of a disruption of the teleconferencing, the meeting must stop. Public comments are not allowed to be required in advance of the meeting. If a state of emergency exists and social distancing is recommended, the Board must adopt a resolution at its first meeting, and every 30 days thereafter, making at least one of the following findings: that the state of emergency continues to exist, that the state of emergency continues to directly impact the ability of persons to meet safely in person, or that state or local officials continue to impose or recommend social distancing. Legal Review District Counsel has prepared this staff report and Resolution No. 2022-961. 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 1. Consider Adopting Resolution No. 2022-961 Authorizing Remote Meetings Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Resolution No. 2022-961 authorizing remote meetings. Goals 6.0 Administrative Management 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#57/65 There are no financial impacts to the District for adopting Resolution No. 2022-961. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 23, 2022 regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Do not adopt Resolution No. 2022-961 and conduct meetings under standard Brown Act provisions (i.e., meeting in-person or teleconferencing and adhering to the requirements of subdivision (b) of California Government Code section 54953, because all Executive Orders related to the Brown Act are expired after that date), 2. Do not adopt Resolution No. 2022-961 and direct staff to report back with more information. File Attachments resolution_2022-961_remote meeting extension.pdf (117 KB) 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#58/65 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 23, 2022 - Board of Directors Regular Meeting Access Public Type 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#59/65 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 23, 2022 - Board of Directors Regular Meeting Access Public Type 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#60/65 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 23, 2022 - Board of Directors Regular Meeting Access Public Type 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#61/65 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 23, 2022 - Board of Directors Regular Meeting Access Public Type 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#62/65 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 23, 2022 - Board of Directors Regular Meeting Access Public Type 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#63/65 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 23, 2022 - Board of Directors Regular Meeting Access Public Type 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#64/65 L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Discussion 5/20/22, 2:09 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#65/65 O. CLOSING ITEMS The next regular meeting of the Costa Mesa Sanitary District Board of Directors will be held at 4:30 p.m. on Monday, June 27, 2022 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626. Subject 1. Adjourn Meeting May 23, 2022 - Board of Directors Regular Meeting Access Public Type Procedural