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2022_07_25_board7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/3 Monday, July 25, 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 JULY 25, 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.) 7/21/22, 4:23 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 June 14, 2022 3. Approve the Board of Directors Regular Meeting Minutes of June 27, 2022 4. Adopt Warrant Resolution No. CMSD 2023-01 Approving District Warrant Registers 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Approve Payroll Transparency Disclosure for June 2022 7. Approve the preparation of a warrant to CR Transfer in the amount of $212,253.04 for June 2022 recycling and disposal services in the July 2022 warrant register 8. Accept the occupancy count as presented as 23,088 and direct staff to prepare a warrant to CR&R Environmental Services for $239,272.49 for June 2022 collection 9. Receive and File the June 2022 Organics Tonnage Report 10. Receive and File the June 2022 Solid Waste Diversion Report 11. Receive and File June 2022 Contracts Signed by the General Manager 12. Consider Appropriating $84,000 from the Capital Asset Replacement Fund to Purchase and Procure One Forklift and One Chevrolet Bolt D. PUBLIC HEARINGS 1. Adoption of Solid Waste and Wastewater Annual Charges for FY 2022-2023 to be Collected with the General Taxes E. GENERAL MANAGER'S REPORTS 1. Receive and File CMSD Fats Oil Grease (FOG) Annual Assessment 2. Consider Approving 2.8% Rate Adjustment to CR&R Environmental Services 3. Receive and File the Preliminary Fourth Quarter Budget Review of FY 2021-22 4. Receive and File 2022 Annual Performance Measurement Report - 2nd Quarter, Calendar Year 5. Receive and File 2020-25 Strategic Plan Progress Report - FY 2021-22 Fourth Quarter 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/3 6. Consider Changing the Date or Cancelling the August 22, 2022 regular Board meeting due to the Board of Directors Attendance of the California Special Districts Association Annual Conference on August 22 - 25, 2022 F. ENGINEER'S REPORTS 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status 2. Budget Adjustment to transfer $65,000 from Project 340 15th Street Interconnection Relocation to Project 330 Westbluff PS Rehab and Increase the RBH Engineering Design Fee G. TREASURER'S REPORTS 1. Approve the Investment Report for the Month of June 2022 H. ATTORNEY'S REPORTS 1. Consider Adopting Resolution No. 2022-969 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 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/60 Monday, July 25, 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 JULY 25, 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 Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#2/60 A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ooten Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/60 A. OPENING ITEMS Subject 3. Invocation - Vice President Scheafer Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#4/60 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 Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#5/60 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 Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#6/60 A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#7/60 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 Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Procedural 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#8/60 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 Jul 25, 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#9/60 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: July 25, 2022 Subject: Approve the Board of Directors Study Session Minutes of June 14, 2022 Summary The recorded minutes of the June 14, 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 June 14, 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 July 25, 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 June 14, 2022 Meeting Jul 25, 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 Jun 14, 2022 - Board of Directors Study Session 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#10/60 minutes_2022_6_14_ss.pdf (258 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#11/60 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: July 25, 2022 Subject: Approve the Board of Directors Regular Meeting Minutes of June 27, 2022 Summary The recorded minutes of the June 27, 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 June 27, 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 July 25, 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 June 27, 2022 Meeting Jul 25, 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 Jun 27, 2022 - Board of Directors Regular Meeting 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#12/60 minutes_2022_6_27_rm.pdf (236 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#13/60 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: July 25, 2022 Subject: Adopt Warrant Resolution No. CMSD 2023-01 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 July 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. Subject 4. Adopt Warrant Resolution No. CMSD 2023-01 Approving District Warrant Registers Meeting Jul 25, 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 2023-01 approving District warrants for the month of June in the amount of $500,650.36 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#14/60 File Attachments WARRANT RESO 2023-01.pdf (496 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#15/60 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: July 25, 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 July 25, 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 board_compensation_2022-06.pdf (1,108 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Jul 25, 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#16/60 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#17/60 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: July 25, 2022 Subject: Approve Payroll Transparency Disclosure for June 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 July 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 6. Approve Payroll Transparency Disclosure for June 2022 Meeting Jul 25, 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#18/60 Payroll Transparency Disclosure June 2022.pdf (1,154 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#19/60 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 7. Approve the preparation of a warrant to CR Transfer in the amount of $212,253.04 for June 2022 recycling and disposal services in the July 2022 warrant register Meeting Jul 25, 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 $212,253.04 for June 2022 recycling and disposal services to be ratified in the July 2022 warrant register. 88.78 912.29 To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: July 25, 2022 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $212,253.04 for June 2022 recycling and disposal services in the July 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 $212,253.04 for June 2022 recycling and disposal services to be ratified in the July 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 43588 $54.98 $4,881.14* Residential Waste - Costa Mesa 43587 2,516.50 $54.98 $138,357.15* Total Residential Waste 2,605.28 $143,238.29 Organics Recycling Waste 43622 $75.65 $69,014.75* Total Organics 912.29 $69,014.75 Grand Total 3,517.57 $212,253.04 Legal Review Not Applicable Environmental Review 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#20/60 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 July 25, 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 instruction 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#21/60 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 23,088 and direct staff to prepare a warrant to CR&R Environmental Services for $239,272.49 for June 2022 collection Meeting Jul 25, 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 23,088 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for June 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $239,272.49 to be ratified in the July 2022 warrant list To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: July 25, 2022 Subject: Accept the occupancy count as presented as 23,088 and direct staff to prepare a warrant to CR&R Environmental Services for $239,272.49 for June 2022 collection. Summary Accept the occupancy count as presented using 23,088 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for June 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $239,272.49 to be ratified in the July 2022 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 23,088 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for June 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $239,272.49 to be ratified in the July 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 June 30, 2022, total District occupancy was at 23,088 with two (2) new accounts added and zero (0) accounts removed since the last billing period. District staff will continue to track the number of new service addresses. The payment calculation is based on the following: District's Current Rate for June 2022: 23,088 x $10.3635 =$239,272.49 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 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#22/60 File Attachments Copy of Occupancy Report Official- June .2022.pdf (83 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 July 25, 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#23/60 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: July 25, 2022 Subject: Receive and File the June 2022 Organics Tonnage Report Summary A total of 912.29 tons of organic waste were collected in June 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 June 2022 Organics Tonnage Report Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#24/60 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 July 25, 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 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#25/60 1. Direct staff to report back with more information File Attachments Organics.png (9 KB) Tonnage.png (41 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#26/60 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: July 25, 2022 Subject: Receive and File the June 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 June 2022 Solid Waste Diversion Report Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#27/60 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 July 25, 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 (41 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#28/60 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 11. Receive and File June 2022 Contracts Signed by the General Manager Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. To: Board of Directors From: Scott Carroll, General Manager Date: July 25, 2022 Subject: Receive and File June 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 June 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 June 2022: Contracts 1. Manhole Adjusting, Inc: Project #311, Phase VIII Manhole Resurfacing Cost: $36,020.00 2. Robin B. Hamers: Project #311, Phase VIII Manhole Resurfacing Design & Contract Administration Cost: $8,100.00 3. GCI Construction: Remove/Install Godwin Unit (by-pass pump) for Xylem to Repair Elden Pump Station Cost: $22,000.00 Purchase Orders 1. MFE Inspection Solutions: Drone demonstration at Elden Pump Station Cost: $1,077.50 2. Docusign, Inc: Software License & Consulting Support FY22-23 Cost: $4,057.00 3. Acorn Technology Services: Wastewater Crew field laptops & Set-up Cost: $20,634.44 4. Acorn Technology Services: HPE SFF Storage, Updates, Tech Care Cost: $2,780.70 5. Sancon Technologies: Project #327 Removal of Test Chain Flail Sewer Pipe Calcium Cost: $14,000.00 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 July 25, 2022 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#29/60 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#30/60 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: July 25, 2022 Subject: Consider Appropriating $84,000 from the Capital Asset Replacement Fund to Purchase and Procure One Forklift and One Chevrolet Bolt Summary A forklift is used at the Yard to lift heavy objects. The existing forklift is no longer operational because it's over 20 years old. The District's code enforcement officer drives a Chevrolet Volt to enforce solid waste operations codes. The Volt is eleven years old and past it's replacement schedule of ten years. In addition, the Volt was recently involved in a traffic accident that has resulted in the vehicle being inoperable for the past two months. The code enforcement officer has been temporary driving the Engineer's Department pickup truck to enforce solid waste codes. Recommendation That the Board of Directors consider appropriating $84,000 from the Capital Asset Replacement Fund to Purchase and Procure One Forklift and One Chevrolet Bolt. Staff recommends: 1. Approve to transfer $40,000 from the Fixed Asset Replacement Fund to the Solid Waste Fund. 2. Appropriate $40,000 to the Solid Waste Capital Outlay account to purchase the Bolt EV. 3. Approve to transfer $44,000 from the Fixed Asset Replacement Fund to the Wastewater Fund. 4. Appropriate $44,000 to the Wastewater Capital Outlay account to purchase the forklift. Analysis Staff solicited bid proposals for a new forklift where bids ranged from $40,425 to $68,441. Staff selected the low bid from Komatsu Forklift USA, LLC in the amount of $40,425. The total cost, including tax and delivery is $43,557.94. Subject 12. Consider Appropriating $84,000 from the Capital Asset Replacement Fund to Purchase and Procure One Forklift and One Chevrolet Bolt Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors consider appropriating $84,000 from the Capital Asset Replacement Fund to Purchase and Procure One Forklift and One Chevrolet Bolt. Staff recommends: 1. Approve to transfer $40,000 from the Fixed Asset Replacement Fund to the Solid Waste Fund. 2. Appropriate $40,000 to the Solid Waste Capital Outlay account to purchase the Bolt EV. 3. Approve to transfer $44,000 from the Fixed Asset Replacement Fund to the Wastewater Fund. 4. Appropriate $44,000 to the Wastewater Capital Outlay account to purchase the forklift. Goals 1.0 Sewer Infrastructure 2.0 Solid Waste 2.9 Solid Waste - Enhance Code Enforcement presence 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#31/60 Account Description Increase/(Decrease) 40-400000-4995 Fixed Asset Replacement Fund- Transfer Out $84,000 40-000000-1001 Fixed Asset Replacement Fund- Cash ($84,000) 10-000000-1001 Solid Waste Fund - Cash $40,000 10-000000-3995 Solid Waste Fund - Transfer In ($40,000) 10-100000-4795 Solid Waste Fund - Capital Outlay $40,000 10-000000-2990 Solid Waste Fund - Fund Balance ($40,000) 20-000000-1001 Wastewater Fund - Cash $40,000 20-000000-3995 Wastewater Fund- Transfer In ($44,000) 20-200001-4795 Sewer Maint Wastewater Fund- Capital Outlay $44,000 20-000000-2990 Wastewater Fund- Fund Balance ($44,000) Chevrolet no longer manufactures Volts, which is a hybrid vehicle that uses gasoline and electricity. The Volt has been replaced with the Bolt, which is an EV vehicle that is operated solely on electricity. Procuring the Bolt to replace the Volt will adhere to the District's mission of "Protect public health and the environment for current and future generations" because the Bolt does not emit carbon emissions into the atmosphere and there is an existing charging station at HQ. In accordance with CMSD Operations Code Section 4.04.120(b), staff may use alternative purchasing procedures if competitive bidding has already been completed by another public agency. In April 2022, the City of Santa Ana solicited bids for one Chevrolet Bolt EV (see attachment). Bids were due on May 5, 2022 in which Winner Chevrolet, of Elk Grove, California, submitted the low bid of $32,645.44 (see attachment). In an attempt to keep business local, staff reached out to Connell Chevrolet in Costa Mesa to inquire their interest to provide CMSD the same vehicle at the same price Winner Chevrolet submitted in Santa Ana's bid. Staff was informed that Connell Chevrolet is not making any deals on the Bolt because they are selling the vehicle $3,500 over sticker price. Winner Chevrolet has agreed to sell one Bolt to CMSD at the same price in Santa Ana's bid. Attached is their bid, which is slightly less than Santa Ana's bid because Costa Mesa sale tax is less. Costa Mesa sales tax is 7.75% compared to Santa Ana sales tax of 9.25%. The bid submitted from Winner Chevrolet is $32,288.90. The Bolt will take approximately six months to be manufactured and delivered to CMSD. 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 total cost for the forklift is $43,557.94. The total cost for the Bolt EV is $32,288.90. However, staff is requesting $44,000 for the forklift and $40,000 to be appropriated for the Bolt because there will be additional expenses incurred such as installing safety bar lights and reflectors. There are adequate funds in the Fixed Asset Replacement Fund to transfer out $84,000 to replace the forklift and the Chevrolet Volt. Staff recommends the Board of Directors: 1. Approve to transfer $40,000 from the Fixed Asset Replacement Fund to the Solid Waste Fund. 2. Appropriate $40,000 to the Solid Waste Capital Outlay account to purchase the Bolt EV. 3. Approve to transfer $44,000 from the Fixed Asset Replacement Fund to the Wastewater Fund. 4. Appropriate $44,000 to the Wastewater Capital Outlay account to purchase the forklift. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#32/60 SDRMA has determined the Volt is a total loss from the accident and has estimated the appraisal to be $7,830. Staff has not accepted SDRMA's appraisal because staff is waiting to receive the appraisal estimate from Kemper Insurance, the insurance company representing the driver that caused the accident. Money received from the insurance company will be deposited in the District's Capital Asset Replacement Fund. The Volt will be auctioned. Money received from the auction will be deposited in the District's Capital Asset Replacement Fund. The District auctioned and received approximately $6,300 in February 2022 for the forklift. The auction money from the forklift was added back to the Capital Asset Replacement Fund. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 2022 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Refer the matter back to staff. File Attachments IFB22-069 Chevrolet Bolt_Final.pdf (327 KB) Santa Ana Bids - Chev Bolt EV.pdf (32 KB) Winner Chevrolet Bid - Bolt EV.pdf (188 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. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#33/60 D. PUBLIC HEARINGS To: Board of Directors From: Scott Carroll, General Manager Date: July 25, 2022 Subject: Adoption of Solid Waste and Wastewater Annual Charges for FY 2022-2023 to be Collected with the General Taxes Summary The District has conducted protest hearings for its solid waste and wastewater charges and now needs to confirm the annual charges for FY 2022-2023 to be collected with the general taxes. The District adopted the procedures authorized by Health & Safety Code Section 5470 that allows solid waste and wastewater charges to be collected on the assessment roll. To do so we must adopt a report assessing the charges against the parcels every year. The Solid Waste Report and Wastewater Report can be found on the District's website. Staff Recommendation That the Board of Directors: 1. Adopt Resolution No. 2022-967 confirming the solid waste annual charges for FY 2022-2023 to be collected with the general taxes and direct the District Clerk to file with the County Auditor; and 2. Adopt Resolution No. 2022-968 confirming the wastewater annual charges for FY 2022-2023 to be collected with the general taxes and direct the District Clerk to file with County Auditor. 3. Execute the Certification of Assessment Analysis The District has adopted procedures provided in Health and Safety Code Section 5470 et seq. to allow our solid waste and wastewater collection charges to be collected with other taxes on the County assessment roll. To be able to do so, the District went through a mailed notice proceeding and the process was implemented. Proposition 218 was thereafter passed (Article XIIID of the California Constitution) which required that fees must be justified as proportional and in other ways proper whenever a new fee or increase is needed. The solid waste and wastewater collection charges will increase as follows: Current Rates Proposed Solid Waste Rates FY 2018/19 FY 2019/20 FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 Subject 1. Adoption of Solid Waste and Wastewater Annual Charges for FY 2022-2023 to be Collected with the General Taxes Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Budget Source Wastewater and Solid Waste Recommended Action That the Board of Directors: 1.Adopt Resolution No. 2022-967 confirming the solid waste annual charges for FY 2022- 2023 to be collected with the general taxes and direct the District Clerk to file with the County Auditor. 2. Adopt Resolution No. 2022-968 confirming the wastewater annual charges for FY 2022- 2023 to be collected with the general taxes and direct the District Clerk to file with County Auditor. 2. Execute the Certification of Assessment. Goals 1.0 Sewer Infrastructure 2.0 Solid Waste 8.0 Finance 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#34/60 $216.00 $224.88 $240.60 $257.40 $272.88 $289.20 Wastewater Rates Customer Class Current Rates FY 2022-2023 FY 2023-2024 FY 2024-25 FY 2025-26 FY 2026-27 Single-Family Residential 92.38 101.22 118.43 118.43 118.43 118.43 Multi-Family Residential 54.21 76.83 89.89 89.89 89.89 89.89 Commercial - Ave Strength 41.09 44.13 51.63 51.63 51.63 51.63 Commercial - High Strength 44.81 49.14 57.49 57.49 57.49 57.49 Industrial 105.48 113.64 132.96 132.96 132.96 132.96 Trailer 54.21 71.35 83.48 83.48 83.48 83.48 ADU 0.00 37.21 43.54 43.54 43.54 43.54 The District followed the Proposition 218 procedures in considering the increase in solid waste and wastewater charges and a protest hearing has been held and the protest failed. In accordance with Government Code Section 54756, the District will be required to give notice at least 30 days before each increase goes into effect. However, we are still required to annually assess both the solid waste and wastewater charges by parcel for the Assessor. The procedure to assess parcels must be adopted after a noticed public hearing, which is published two weeks before in an appropriate newspaper. Said notice was published. The District will provide the County with an electronic version of a report which contains a description of each property receiving services and the charges. The real property may be described by reference to the assessor’s parcel map description. The hearing should be held to consider objections or protests to the assessments. Upon conclusion of the hearing, the Board may adopt the resolutions approving the assessments to be filed with the Auditor. The District Clerk must then file the assessments with the Auditor before August 10. She must confirm that the charges were adopted by the Board. The Auditor must then enter the charges against the parcels on the assessment roll. The charges are then collected by the Assessor and if the charges are not paid, there are procedures for liens, penalties and collections. Legal Review District Counsel reviewed this staff report along with the resolutions and ordinance attached hereto. 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 solid waste and wastewater rates will be imposed pursuant to the adopted schedule. Public Notice Process The Proposition 218 protest hearing for increases to wastewater charges for future years based on the proposed schedule were conducted on February 28, 2022 and the protest failed. The Proposition 218 protest hearing for increases to solid waste charges for future years based on the proposed schedule were conducted on May 23, 2019 and the protest failed. This matter was noticed for a public hearing on the adoption of the charges and the imposition of the charges on the properties for both solid waste and wastewater pursuant to the Health and Safety Code Section 5470 et seq. Alternatives Action 1. Direct staff to report back with more information. File Attachments A. Resolution No. 2022-967.pdf (21 KB) B. Resolution No. 2022-968.pdf (29 KB) C. Proof 7869169 CM Sanitary Wastewater Rates.pdf (117 KB) D. Proof 7869321 Solid Waste Rates.pdf (105 KB) E. Certification of Assessment.docx (20 KB) 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#35/60 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: July 25, 2022 Subject: Receive and File CMSD Fats Oil Grease (FOG) Annual Assessment Summary The District's Fats, Oils and Grease (FOG) control program was developed to comply with the State of California’s 2006 General Waste Discharge Requirements for Sanitary Sewer Systems (WDR). The program seeks to minimize the discharge of FOG into the District's sewer system and avoid sanitary sewer overflows (SSOs), which are deemed a potential health hazard to the public. To avoid these health risks, the District uses an extensive outreach program to inform residents, businesses and others that do work in the District of the potential for SSOs if FOG is allowed to accumulate in sewer lines. Recommendation That the Board of Directors receives presentation from Joe Jenkins, of EEC Environmental, regarding the District's FOG Control Program and provide input to staff. Analysis FOG regulations are codified within the District's Operation Code Title 6 Chapter 6.07 Any person(s) in violation of this or any other ordinance is subject to enforcement as specified within the Operations Code. Significant FOG contributors within the District are restaurants or Food Service Establishments (FSE). FSE's established after 2006 are required to install grease interceptors or grease traps, which are plumbing devices designed to intercept grease and solids before they enter the sewer system. FSE's are required to keep accurate maintenance records of their grease collection device and perform Best Management Practices (BMP) for preventing FOG from entering the sewer system. The District retained EEC Environmental to enforce the District's FOG Control Program by periodically visiting FSE's to inspect their maintenance records and BMPs. Violators are given written warning from the District and if violations persist the FSE could face fines and/or have their sewer service discontinued. The District decided FSE's established before 2006 were not required to install grease interceptors or grease traps at their establishments and were issued conditional waiver permits. However, terms of the conditional waiver permits require FSE's to practice BMPs and if FOG related SSOs are occurring at an FSE, the conditional waiver could be revoked and the District can mandate the installation of a grease interceptor or grease trap. Joe Jenkins, of EEC Environmental, will give a presentation to the Board about the District's FOG Control Program and their enforcement activities of FSEs from the past years. Enforcing the FOG Control Program on residents is challenging because it is difficult to determine the source, especially from multi-family units. The District encourages residents to pour their used grease in compostable bags, which can then be disposed of in their organics cart. Another option for residents is to drop off their grease at Orange Coast College Recycling Center where the grease is collected by a vendor and recycled into reusable products such as candles. This option has proven to be very convenient after the holidays when many people use fryers to cook turkeys. Legal Review Not applicable. Environmental Review Receiving a presentation about the District's FOG Control Program 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 cost to fund the District's FOG Control Program is $103,000 annually. There is no cost to the District or to Orange Coast College for the FOG Recycling Drop Off Program. The vendor that collects and recycles the grease does so at no cost to both agencies. Subject 1. Receive and File CMSD Fats Oil Grease (FOG) Annual Assessment Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 1.0 Sewer Infrastructure 1.8 Sewer Infrastructure - Enforce the District's Fats, Oils & Grease (FOG) Program 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#36/60 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 2022 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Action 1. Direct staff to report back with more information. File Attachments FOG Presentation.pdf (1,349 KB) Annual Assessment Report 2022.pdf (373 KB) 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#37/60 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: July 25, 2022 Subject: Consider Approving 2.8% Rate Adjustment to CR&R Environmental Services Summary CR&R Environmental Services is requesting CMSD approve a rate adjustment to offset inflation expenditures. This item was discussed by the Board on July 12, 2022 in which the Board directed staff to bring this item back to tonight's meeting for approval consideration. Recommendation That the Board of Directors consider approving 2.8% rate adjustment to CR&R Environmental Services. Analysis The recommended rate of adjustment of 2.8% is not a reflection of CR&R's current service level as the community is continuing to have service delays to emptying organics and mixed waste carts, as well as delays for collecting large items. In addition, residents are experiencing inadequate service levels at CR&R's Customer Service Center where residents complained about being on hold for nearly an hour and/or being disconnected from the phone line. The service delays is contributed to staffing shortages, equipment breakdowns, and delays receiving parts and supplies. The proposed rate adjustment will help offset costs that are beyond CR&R's control such as inflation. The following 12-month to 12-month inflation for the past six months are as follows. See attachment. 2022 January:7.5% February:7.4% March:8.5% April:7.9% May:8.0% June:8.6% If the rate adjustment is approved by the Board of Directors, the additional costs can be absorbed in the District's existing solid waste FY 2022-23 Budget. Residential rates will not have to increase to accommodate the 2.8% rate adjustment. On July 13, 2022 the Citizens Advisory Committee discussed this item and is recommending the Board of Directors approve CR&R's request for a rate adjustment of 2.8%.. Legal Review Not applicable Environmental Review Consideration of a consumer price index increase to hauler rates 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. Subject 2. Consider Approving 2.8% Rate Adjustment to CR&R Environmental Services Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors consider approving 2.8% rate adjustment to CR&R Environmental Services. Goals 2.0 Solid Waste 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#38/60 Financial Review The District is currently paying CR&R $10.3635 per occupancy for trash hauler, $54.98 per ton for recycling disposal and $75.65 per ton for organics disposal. If the Board of Directors approves the 2.8% cost of living adjustment, the new rates will be as follows: The Board of Directors adopted the following budgets for FY 2022-23: Based on the last two fiscal years’ tonnage trends, staff projects the trash hauler occupancy accounts and the organics tonnage to remain the same as the adopted budget projections. If the 2.8% COLA is approved, it may cost the District an additional $80,600 in the trash hauler account and $25,400 in the organics disposal account, totaling $106,000. However, staff projects the recycling disposal tonnage will slightly decrease. In the event, the recycling disposal tonnage does decrease the District could save $134,600. Therefore, staff believes the increased expenditure may be absorbed in the existing Solid Waste FY 2022-23 Budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 25, 2022 regular Board of Directors Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Consider approving a rate adjustment that's less than 2.8%. 2. Do not approve a rate adjustment for CR&R Environmental Services. File Attachments CPI.pdf (49 KB) 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#39/60 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: July 25, 2022 Subject: Receive and File the Preliminary Fourth Quarter Budget Review of FY 2021-22. Summary This report serves as a summary of the District’s revenues and expenditures through June 30, 2022, with the understanding the fiscal year numbers won't be final until the annual audit is complete later this calendar year. Recommendation That the Board of Directors Receive and File the Preliminary Fourth Quarter Budget Review of FY 2021-22. Analysis Solid Waste Fund The fiscal year (FY) 2021-22 Solid Waste fund adopted budget has a deficit budget of $244,500 and the Wastewater fund adopted budget has a deficit of $431,600. This analysis report uses the “Amended Budget”, consisting of the adopted budget plus any approved prior year carryover appropriations, as well as budget adjustments through June 30, 2022. The total General Fund and Solid Waste revenue budgets for FY 2021-22 is $6,579,600. As of June 30, 2022, the District received $6,780,567 in total revenue. The District received more revenue than budgeted from property taxes, investment earnings, additional container charges, charges for services, and other non-operating (grants) revenue accounts. As of June 30, 2022, a total of 91.4% of the Solid Waste budget for the 2021-22 FY was expended. At this time, staff anticipates a budgetary savings of $237,400, mainly due to savings in Maintenance and Operations. Wastewater Fund The total Wastewater revenue budget for FY 2021-22, excluding transfers-in, is $5,963,800. As of June 30, 2022, the District received $6,056,475 in total revenue. The District received more revenue than budgeted from charges for services, and other non-operating (grants) revenue accounts. Investment Earnings and Inspection Fees revenue accounts did not meet the anticipated adopted budget amount. As of June 30, 2022, a total of 83.5% of the Wastewater Fund’s operating budget has been expended as of June 30, 2022. Staff anticipates a budgetary savings of $446,200 at fiscal year-end. The Capital Improvement Projects (CIP) are projected to be within budget. Please see the attached report for a more detailed analysis. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which Subject 3. Receive and File the Preliminary Fourth Quarter Budget Review of FY 2021-22 Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 8.0 Finance 8.3 Finance - Forecast revenues and expenditures 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#40/60 fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 2022 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff for additional information. File Attachments A-FY 2021-22 Preliminary 4th Quarter Budget Analysis.pdf (488 KB) B -FY 2021-22 Preliminary Fourth Quarter Expenditure Analysis.pdf (131 KB) 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#41/60 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: July 25, 2022 Subject: Receive and File 2022 Annual Performance Measurement Report - 2nd Quarter, Calendar Year Summary On November 29, 2018, the Board of Directors adopted Administrative Regulations No. 70.00, Performance Measurement Program, which established methods and procedures for gathering and analyzing organizational performance while at the same time collaborating towards continuous improvement of performance in an open and transparent manner. Recommendation That the Board of Directors receive and file this report. Analysis A Performance Measurement Program has been developed to determine how well the District is performing in areas of efficiency, effective workforce, customer satisfaction, cost effectiveness, citizen engagement and transparency. The purpose of the program is to continually look at ways to improve and/or enhance the level of service that is being provided internally to staff and externally to the public. The outcome data reflected in the attached report is for six months (January to June 2022). Legal Review Not applicable Environmental Review A Performance Measurement Program is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There are no financial impacts to the District for implementing a Performance Measurement Program Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 2022 regular Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. File Attachments 2022 2nd Qtr Outcome and Performance Measurement Program.pdf (907 KB) Subject 4. Receive and File 2022 Annual Performance Measurement Report - 2nd Quarter, Calendar Year Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report Goals 6.0 Administrative Management 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#42/60 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: July 25, 2022 Subject: Receive and File 2020-25 Strategic Plan Progress Report - FY 2021-22 Fourth Quarter Summary On June 22, 2020, the Board of Directors adopted the 2020-2025 Strategic Plan, which is a plan that establishes goals, objectives, strategies and work plans for the next five years and will help move the organization in a direction toward achieving its mission and vision. Attached is the quarterly update of the Plan that demonstrates the progress staff is making toward achieving the strategic goals. The next quarterly report from this Plan will be presented to the Board on October 24, 2022. Recommendation That the Board of Directors receive and file this report. Analysis The 2020-25 Strategic Plan is the most ambitious Plan in the history of the District. The Plan has 104 Strategic Goals to achieve and/or implement in the next five years compared to 48 strategic goals in the FY 2015-20 Strategic Plan. Legal Review Not applicable Environmental Review The District’s Strategic Plan is a planning document and preparation and adoption of the plan itself is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. The environmental review of each of the efforts or projects outlined in the Strategic Plan will occur when the Board of Directors specifically considers each of the items since that is when the full scope of work of each effort or project will be described Financial Review Activities described in the strategic goals are funded in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 2022 Board of Directors regular meeting at CMSD headquarters and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. Subject 5. Receive and File 2020-25 Strategic Plan Progress Report - FY 2021-22 Fourth Quarter Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report Goals 1.0 Sewer Infrastructure 2.0 Solid Waste 3.0 Emergency Preparedness 4.0 Partnerships 5.0 Community Outreach & Communications 6.0 Administrative Management 7.0 Human Resources Management 8.0 Finance 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#43/60 File Attachments Strategic Plan Qtly Update 2021-22 4th Qtr .xlsx (84 KB) 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#44/60 E. GENERAL MANAGER'S REPORTS Subject 6. Consider Changing the Date or Cancelling the August 22, 2022 regular Board meeting due to the Board of Directors Attendance of the California Special Districts Association Annual Conference on August 22 - 25, 2022 Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors direct staff to change the date or cancel the April 9, 2019 Study Session. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#45/60 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: July 25, 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-June to mid-July. 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 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 July 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. Subject 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action, Discussion, Receive and File Preferred Date Jul 25, 2022 Absolute Date Aug 22, 2022 Fiscal Impact No Budgeted Yes Budget Source 22/23 FY Operating Budget Recommended Action The Board of Directors receive and file the Capital Improvement Status Report 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#46/60 File Attachments 2022 07 Monthly Engineers Report CMSD Memorandum.pdf (202 KB) 2022 07 CIP Updates for July Board Meeting.pdf (1,170 KB) 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#47/60 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: July 25, 2022 Subject: Budget Adjustment to transfer $65,000 from Project 340 15th Street Interconnection Relocation to Project 330 Westbluff PS Rehab and Increase RBH Design Fee by $40,500 for a total Design Fee of $53,500 Summary The District is working on a pump station rehab project, Project 330 Westbluff Pump Station Rehab. The project consists of refurbishing the mechanical equipment and installing new pumps with associated piping assemblies. In January, the district engineer estimated that the project would require an additional $200,000 to address unanticipated/required electrical upgrades to comply with OSHA and NFPA requirements. The unanticipated work was not budgeted and the District transferred funds for the extra work. A Board agenda item was taken to the April Board for approval to adjust the Project budget. In May, the district engineer restarted the Project and received proposals for designing the required electrical upgrades. As part of the proposal process, the district engineer requested a detail breakdown of construction costs. In addition to the design proposals being slightly higher than expected, the construction estimate indicates that the electrical upgrades are $60,000 higher than the initial $120,000 electrical work estimated. In addition to increasing the project budget, the District must also consider approving an increase to the project design fee. District policy restricts change orders to a 10% increase over contract amount or $15,000, whichever is greater. As a result of more than doubling the project scope, the design fee increases associated with designing the added items are more than a 10% increase. District staff is requesting a design fee increase of $40,500, for a total design fee of $53,500. Recommendation That the Board of Directors: 1. Consider approving a budget adjustment to transfer $65,000 from the 340 15th Street Interconnection Relocation Project to the 330 Westbluff Pump Station Rehab Project and; 2. Authorize the general manager to increase the RBH Engineering design fee by $40,500 for a total design fee of $53,500. Analysis Subject 2. Budget Adjustment to transfer $65,000 from Project 340 15th Street Interconnection Relocation to Project 330 Westbluff PS Rehab and Increase the RBH Engineering Design Fee Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action, Discussion, Presentation Preferred Date Jul 25, 2022 Absolute Date Aug 22, 2022 Fiscal Impact No Dollar Amount $65,000.00 Budgeted No Budget Source Transfer $65,000 of available 340 15th Street Interconnection Relocation Project Funds Recommended Action That the Board of Directors consider approving a budget adjustment to transfer $65,000 from the 340 15th Street Interconnection Relocation Project to the 330 Westbluff Pump Station Rehab Project and Authorize the general manager to increase the RBH Engineering Design Fee by $40,500 for a total design fee of $53,500. 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#48/60 The 330 Westbluff project is generally replacing the mechanical equipment at the station. As a result of the minor electrical work associated with replacing the pumps and the addition of a reversing pump controller, the electrical cabinet must be upgraded to comply with the National Fire Protection Association (NFPA) standards. Also required by NFPS standards, an arc-flash and short-circuit coordination study must also be conducted in order to determine if an explosion-potential exists within the station electrical system. This hazardous-energy and arc-flash (electrical-explosion) information will be placed on labels and applied to the station electrical equipment. Staff will use the labeling to determine the appropriate personal protective equipment required to perform electrical work and/or opening and closing electrical breakers. The anticipated cost of the electrical work was higher than initially estimated because the district engineer performed the work estimate about 5 month earlier and did not have the advantage of having additional the detail developed by RBH. The RBH Engineering construction estimate is $60,000 higher than initially estimated by the district engineer. Once the budget adjustments were approved this past April, the district engineer requested proposal to proceed with additional designs. The fee proposals received were slightly higher than anticipated but they included $4,080 in surveying fees that were not considered during the initial estimate. Additional budget adjustments and design fee increases must be approved prior to the project proceeding. The proposed electrical work must be undertaken by the District whether as part of this project, or not, because Arc-Flash labeling must be installed to comply with NFPA and CalOSHA standards. Performing the electrical improvements with this project will preclude paying an additional $10,000 for a second arc-flash study when the required work is finally undertaken. In addition, design fees for the proposed work will only increase over time as the District does not have electrical engineering firms nor survey firms on retainer to perform design services. It is anticipated that design services will increase between 5 and 12% within the next year. The RBH Engineering fees are currently locked in for another two years. Leal Review Legal review is not required at this time. The additional safety, electrical, and structural work will not increase the station capacity or functionality. The additional work is required to comply with relatively new safety requirements and for the protection of property. Environmental Review Installing replacement piping and appurtenance with the same capacity as the existing facility 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 330 Westbluff project requires $65,000 for the additional work. The 340 15th Street Interconnection project has $95,742.77 of available funds, as of June 30, 2022. Staff is recommending the Board of Directors approve the carryover re-appropriation of fund in the amount of $65,000, from FY 2021-22 to FY 2022-23, Project 340 15th Street Interconnection project to the 330 Project Westbluff PS Rehab. Project Account No.Available Balance Increase/(Decrease)Ending Balance 340 15th Interconnection Relocation 20-201340-4300 $95,743 ($65,000)$30,743 330 Westbluff PS Rehab 20-201330-4300 $324,800 $65,000 $389,800 Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 25, 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 District staff for consideration of project alternatives and return to a future Board meeting. File Attachments CMSD 330 Westbluff P.S. Addendum No. 01.pdf (126 KB) 2022 06 330 Westbluff Scope Change RBH Request PresentationRev 1.pdf (1,753 KB) Administrative File Attachments 2022 06 330 Westbluff Scope Change RBH Request PresentationRev 1.pptx (16,876 KB) 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#49/60 G. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: July 25, 2022 Subject: Approve the Investment Report for the Month of June 2022 Summary Attached is the Investment Report for the month of June 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 June 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 June 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 June 30, 2022, was 0.910%. The yield to maturity of the portfolio was 0.911%. The District’s weighted average interest rate was 5 basis points (0.049%) above the LAIF average monthly rate for May of 0.861%. The weighted average number of days to maturity for the District’s total portfolio was 831 days (2.28 years). The duration of the underlying securities in LAIF as of June 30, 2022 was 311 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 June 30, 2022 was 34.71%. 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. The revenue dry period is from June through October. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Subject 1. Approve the Investment Report for the Month of June 2022 Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the Investment Report for the month of June 2022. Goals 8.0 Finance 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#50/60 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 June 30, 2022, the portfolio has earned a weighted average interest rate of 0.702%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 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 - June 2022.pdf (634 KB) 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#51/60 H. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: July 25, 2022 Subject: Consider Adopting Resolution No. 2022-969 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. 2022-969 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. 2022-969. 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. 2022-969 Authorizing Remote Meetings Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Resolution No. 2022-969 authorizing remote meetings. Goals 6.0 Administrative Management 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#52/60 There are no financial impacts to the District for adopting Resolution No. 2022-969. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 2022 regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Do not adopt Resolution No. 2022-969 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. 2022-969 and direct staff to report back with more information. File Attachments reso_2022-969_remote_meetings.pdf (116 KB) 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#53/60 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 Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#54/60 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 Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#55/60 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 Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#56/60 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 Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#57/60 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 Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#58/60 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 Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#59/60 L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Discussion 7/21/22, 4:23 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#60/60 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, August 29, 2022, unless determined otherwise, in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626. Subject 1. Adjourn Meeting Jul 25, 2022 - Board of Directors Regular Meeting Access Public Type Procedural