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2023_01_23_board1/19/23, 3:39 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/3 Monday, January 23, 2023 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 JANUARY 23, 2023 REGULAR BOARD MEETING This 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 - 850 1825 3471 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 850 1825 3471# 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 Scheafer 2. Pledge of Allegiance - President Scheafer 3. Invocation - Vice President Schafer 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.) 1/19/23, 3:39 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 December 13, 2022 3. Approve the Board of Directors Regular Meeting Minutes of December 19, 2022 4. Approve Payroll Transparency Disclosure for December 2022 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Adopt Warrant Resolution No. CMSD 2023-07 Approving District Warrant Registers 7. Approve the Investment Report for the Month of December 2022 8. Accept the occupancy count as presented as 23,091 and direct staff to prepare a warrant to CR&R Environmental Services for $246,004.59 for December 2022 collection 9. Receive and File December 2022 Contracts Signed by the General Manager 10. Adopt Resolution No. 2023-978 Ordering that Publication of Ordinance No. 135 has Occurred D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. 2022 Self-Audit of CMSD's Sewer System Management Plan performed by EEC Environmental 2. Consider Approving the First Amendment to the 2018 Agreement with CR&R Incorporated 3. Discuss Preliminary Budget Calendar for the 2023-2025 Biennial Budget 4. Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2022. 5. Consider Contribution Program Application for Estancia High School Baseball Boosters 6. Receive and File the Costa Mesa Sanitary District 2022 Year in Review - Oral Report 7. Receive and File 2022 Annual Performance Measurement Report 8. Receive and File 2020-25 Strategic Plan Progress Report - FY 2022-23 Second Quarter 9. Receive and File General Manager's 2022 Performance Goals and Consider Approving his 2023 Performance Goals F. ENGINEER'S REPORTS 1/19/23, 3:39 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/3 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status G. TREASURER'S REPORTS H. ATTORNEY'S REPORTS 1. Consider Adopting Resolution No. 2023-979 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) - (Vice Secretary Ooten) 2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry) 3. Independent Special Districts of Orange County (ISDOC) - (Vice President Schafer) 4. California Special Districts Association (CSDA) - (Vice President Schafer) 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) 6. Copy of 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 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/57 Monday, January 23, 2023 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 JANUARY 23, 2023 REGULAR BOARD MEETING This 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 - 850 1825 3471 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 850 1825 3471# 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 Scheafer Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#2/57 A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Scheafer Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/57 A. OPENING ITEMS Subject 3. Invocation - Vice President Schafer Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#4/57 A. OPENING ITEMS Michael Scheafer, President Arlene Schafer, Vice President Arthur Perry, Secretary Robert Ooten, Vice Secretary 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 Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#5/57 A. OPENING ITEMS Subject 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#6/57 A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#7/57 B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject 1. Public Comments Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#8/57 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 1. Approve Consent Calendar Meeting Jan 23, 2023 - 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#9/57 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: January 23, 2023 Subject: Approve the Board of Directors Study Session Minutes of December 13, 2022 Summary The recorded minutes of the December 13, 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 December 13, 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 January 23, 2023 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 December 13, 2022 Meeting Jan 23, 2023 - 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 Dec 13, 2022 - Board of Directors Study Session 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#10/57 minutes_2022_12_13_ss.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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#11/57 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: January 23, 2023 Subject: Approve the Board of Directors Regular Meeting Minutes of December 19, 2022 Summary The recorded minutes of the December 19, 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 December 19, 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 January 23, 2023 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 December 19, 2022 Meeting Jan 23, 2023 - 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 Dec 19, 2022 - Board of Directors Regular Meeting 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#12/57 minutes_2022_12_19_rm.pdf (235 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#13/57 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: January 23, 2023 Subject: Approve Payroll Transparency Disclosure for December 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 January 23, 2023 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 4. Approve Payroll Transparency Disclosure for December 2022 Meeting Jan 23, 2023 - 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#14/57 Payroll Transparency Disclosure December 2022.pdf (184 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#15/57 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, CMC, District Clerk/PIO Date: January 23, 2023 Subject: Directors' Compensation and Reimbursement of Expenses Summary The Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses. Staff Recommendation That the Board of Directors approve the compensation and reimbursement of expenses as presented. Legal Review Not applicable. Environmental Review Consideration of the compensation and reimbursement of expenses is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6. "Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 23, 2023 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_pr_final.pdf (1,860 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Jan 23, 2023 - 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#16/57 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#17/57 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: January 23, 2023 Subject: Adopt Warrant Resolution No. CMSD 2023-07 Approving District Warrant Registers Summary Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were paid. Recommendation That the Board of Directors approve and file the report. Analysis Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were paid. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include .... C. Continuing administrative or maintenance activities." Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 23, 2023 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 6. Adopt Warrant Resolution No. CMSD 2023-07 Approving District Warrant Registers Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2023-07 approving District warrants for the month of December in the amount of $1,471,216.38 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#18/57 File Attachments WARRANT RESO 2023-07.pdf (660 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#19/57 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Marc Davis, District Treasurer Date: January 23, 2023 Subject: Approve the Investment Report for the Month of December 2022 Summary Attached is the Investment Report for the month of December 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 December 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 December 31, 2022. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 27, 2022 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party custodian, Pershing, LLC, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer’s Office. It does not represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw. This reporting practice is consistent with industry standard practices for similar funds. The weighted average stated rate of return (current yield) for the District’s investment portfolio as of December 31, 2022, was 1.507%. The yield to maturity of the portfolio was 1.508%. The District’s weighted average interest rate was 67 basis points (0.665%) below the LAIF average monthly rate for November of 2.172%. The weighted average number of days to maturity for the District’s total portfolio was 703 days (1.93 years). The duration of the underlying securities in LAIF as of December 31, 2022 was 287 days. The District’s investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in one year or less as of December 31, 2022 was 40.71%. 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. Subject 7. Approve the Investment Report for the Month of December 2022 Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budget Source That the Board of Directors approve the Investment Report for the month of December 2022. Goals 8.0 Finance 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#20/57 The revenue dry period is from June through October. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. Undesignated - Remaining available cash, which is available to be appropriated by the Board. Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund - Accumulation of funds in accordance with the asset management model for long-term replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not include….C. Continuing administrative or maintenance activities.” Financial Review The portfolio was budgeted to earn an average rate of 0.864% for the year ending June 30, 2023. Through December 31, 2022, the portfolio has earned a weighted average interest rate of 1.180%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 23, 2023 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and on the District’s website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff. File Attachments Investment Report - December 2022.pdf (716 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#21/57 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 23,091 and direct staff to prepare a warrant to CR&R Environmental Services for $246,004.59 for December 2022 collection Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 23,091 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $246,004.59 to be ratified in the January 2023 warrant list. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: January 23, 2023 Subject: Accept the occupancy count as presented as 23,091 and direct staff to prepare a warrant to CR&R Environmental Services for $246,004.59 for December 2022 collection. Summary Accept the occupancy count as presented using 23,091 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $246,004.59 to be ratified in the January 2023 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 23,091 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2022 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $246,004.59 to be ratified in the January 2023 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 $10.6537 per occupant, per month. Each month, new residential customers in brand-new developments contact the District to establish new trash service. District staff contacts CR&R to approve the drop-off of carts at the residence, which results in an increase in the occupancy count as shown on the attached list. As of December 31, 2022, total District occupancy was at 23,091 with no new accounts added or deleted since the last billing period. District staff will continue to track the number of new service addresses. The payment calculation is based on the following: District's Current Rate for December 2022: 23,091 x $10.6537 =$246,004.59 Please note that CR&R experienced a problem this month and was unable to provide invoices and weight tickets for the month of December in time for this meeting. The CR Transfer, Organics Tonnage and Solid Waste Diversion Report for the month of December will be presented at the February Board Meeting for review and approval. Legal Review 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#22/57 File Attachments 2022-12-G CMSD Occupancy Report.pdf (63 KB) Not Applicable Environmental Review Consideration of the Occupancy 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 Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this Staff Board report are on file and will be included with the entire agenda packet for January 23, 2023, Regular Board meeting at District Headquarters and on the District 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#23/57 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 9. Receive and File December 2022 Contracts Signed by the General Manager Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) To: Board of Directors From: Scott Carroll, General Manager Date: January 23, 2023 Subject: Receive and File December 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. A report on the contracts he signed in the months of December 2022 could not be created due staffing shortage in the Finance Department. Recommendation That the Board of Directors receive and file this report. Analysis December 2022 contracts signed by the general manager will be available on the February Board agenda along with the contracts he signed in January 2023. Legal Review Not applicable 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 Not applicable Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 23, 2023 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#24/57 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. RESOLUTION NO. 2023-978 Subject 10. Adopt Resolution No. 2023-978 Ordering that Publication of Ordinance No. 135 has Occurred Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Resolution No. 2023-978 ordering that the publication of Ordinance No. 135 has occurred. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#25/57 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 135 AMENDING THE OPERATIONS CODE PERTAINING TO TERM LIMITATIONS FOR TRASH AND RECYCLING CONTRACTS HAS OCCURRED WHEREAS, the Board of Directors on December 19, 2022 adopted Ordinance No. 135 amending the Operations Code pertaining to term limitations for trash and recycling contracts; and WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on January 14, 2023; and WHEREAS, Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE, the Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 135 amending the Operations Code pertaining to term limitations for trash and recycling contracts has occurred. PASSED and ADOPTED on this day of 2023. _______________________________ _______________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#26/57 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, Noelani Middenway, District Clerk/Public Information Officer of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2023-978 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the day of January 2023 by the following votes: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ day of ___________________ 2023. _________________________________ Noelani Middenway, CMC District Clerk/Public Information Officer Costa Mesa Sanitary District File Attachments RESOLUTION NO. 2023-978 ORDERING THAT PUBLICATION OF ORDINANCE NO. 132 HAS OCCURED.doc (29 KB) Proof 7907591 Costa Mesa Sanitary Ord Summary.pdf (75 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. 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#27/57 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 23, 2023 Subject: 2022 Self-Audit of CMSD's Sewer System Management Plan performed by EEC Environmental Summary On May 2, 2006, the State Water Regional Control Board (SWRCB) adopted Order No. 2006-0003 (Order), Statewide General Waste Discharge Requirements (WDR) for Sanitary Sewer Systems. This Order requires that owners of wastewater collection systems with more than a mile of pipeline have in place a Sewer System Management Program (SSMP) to comply with the terms of this Order, which is to reduce the number and severity of Sanitary Sewer Overflows (SSOs), to audit the program every two years, and revise the SSMP every five years. On December 6, 2022, the State Water Resources Control Board adopted a statewide Sanitary Sewer Systems General Order reissuance. The reissued General Order becomes effective on June 5, 2023. The reissuance order now requires audits to be performed every three years and SSMP updates every six years. Recommendation That the Board of Directors receive and file the 2022 SSMP audit findings and direct staff to report back with an implementation schedule. Analysis Per the Statewide General Waste Discharge Requirements (GWDR) for Sanitary Sewer Systems (State Water Resources Control Board No. 2006-003-DWQ), the District developed and implemented a comprehensive Sewer System Management Plan (SSMP), with the primary objective of reducing and preventing Sanitary Sewer Overflows (SSO’s). A key requirement of the SSMP is that every two years routine internal audits be performed to evaluate the effectiveness of the SSMP as well as the District’s compliance with the SSMP elements. The last SSMP audit and update was performed in 2020. In the fall of 2022, CMSD solicited proposals to perform to a self-audit of the District's SSMP. Two proposals were received from qualified firms. They were: 1. EEC Environmental - $14,500 2. Water Systems Consulting - $48,080 CMSD entered into an agreement with EEC Environmental to perform the 2022 self-audit of the District's SSMP and work commenced on October 31, 2022. Attached are the audit findings. EEC Environmental identified only one minor nonconformance issues, which is described below: 1. Update the SSO Emergency Response Plan to reflect current on-call responsibilities for after-hours SSP response Staff will address the minor nonconformance issues to ensure full compliance. The next SSMP self-audit will be performed in 2025 and the next update will be completed in 2026. On January 11, 2023, the Citizens Advisory Committee received the 2022 SSMP audit findings and recommended the Board of Directors accept the 2022 Self-Audit of CMSD's Sewer System Management Plan performed by EEC Environmental Legal Review Subject 1. 2022 Self-Audit of CMSD's Sewer System Management Plan performed by EEC Environmental Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file the 2022 SSMP audit findings and direct staff to report back with an implementation schedule. Goals 1.0 Sewer Infrastructure 1.1 Sewer Infrastructure - Prevent Sanitary Sewer Overflows (SSOs) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#28/57 Not Applicable. Environmental Review Preparation of a self-audit of the District’s Sewer System Management Plan (SSMP) is an administrative matter, and administrative matters are exempt under CEQA and the District’s CEQA Guidelines. The SSMP assists the District in providing comprehensive sewer system management, including protection of the environment by eliminating sanitary sewer overflows. Financial Review The cost to perform the SSMP self-audit by EEC Environmental was $14,500. CMSD budgeted $20,000 in the FY 2022-23 budget for the SSMP self-audit. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 23, 2023 regular Board of Directors 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. File Attachments CMSD SSMP Audit Report - 2022 1 4.pdf (2,323 KB) SSMP Presentation 2022.pdf (632 KB) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#29/57 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: January 23, 2023 Subject: Consider Approving the First Amendment to the 2018 Agreement with CR&R Incorporated Summary Since February 2022, District staff and solid waste consultant, Michael Balliet Consulting (MBC) have been in negotiations with CR&R Incorporated (CR&R) for a new SB 1383 compliant solid waste agreement. On October 13, 2022, the Board reviewed and discussed the agreed upon negotiated bullet points of the proposed amendment. On October 24, November 28, November 13, December 13, 2022 and January 10, 2023, the Board reviewed and discussed the draft amendment. Staff believes this project is categorically exempt under CEQA. Recommendation That the Board of Directors: 1. Make the determination that the first amendment to the Agreement with CR&R Incorporated is categorically exempt from environmental review under the California Environmental Quality Act (CEQA), as described in the Environmental Review section of this report; and 2. Approve the first amendment to the 2018 Agreement with CR&R Incorporated. Analysis Over the last three months, District staff has presented to the Board of Directors the draft first amendment to the CR&R Agreement and made edits as requested. The proposed Amendment includes program efficiency, which will reduce impacts on residents. Further, the first amendment will provide a three-cart system as required by SB 1383. Key features of the proposed amendment are as follows: CR&R will deliver a blue-lid 90-gallon cart to every CMSD trash customer by October 1, 2024. This container will accept mixed recycling. All residents will receive extensive outreach information prior to receiving the recycling cart CR&R will deliver an Organics Recycling Cart to all previously organics-exempt homes. This container will accept green waste and food waste, per State requirements. Residents receiving a new Organics Recycling Cart will receive additional outreach information. The new service will include a mandatory three-cart system, the carts will be available in 35, 65, and 90 gallons, and residents can select the size that fits their needs. The average age of CMSD’s vehicle fleet will not exceed seven years at any time during the term of the agreement. All vehicles will have a GPS system installed and CMSD staff will have access to the system in an effort to reduce the number of missed collections. Annual fee adjustments will be limited to annual CPI inflation, capped at a 5% maximum each year. Existing Large Item and Household Hazardous Waste collection programs will continue. An addition of a free community shredding event for residents has been added. CR&R will provide extensive auditing, monitoring, and reporting of contamination as required by SB 1383. Subject 2. Consider Approving the First Amendment to the 2018 Agreement with CR&R Incorporated Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors: 1. Make the determination that the first amendment to the Agreement with CR&R Incorporated is categorically exempt from environmental review under the California Environmental Quality Act (CEQA), as described in the Environmental Review section of this report; and 2. Approve the first amendment to the 2018 Agreement with CR&R Incorporated. Goals 2.0 Solid Waste 2.6 Solid Waste - Improve waste stream and recycling reporting 2.8 Solid Waste - Recycle green waste and food scraps 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#30/57 Strict compliance language was included in the first amendment to further ensure contracted service levels, state requirements, and District expectations are met. Liquidated damages (Exhibit A) were added for 36 specific instances of hauler non-performance. The list of categories for potential liquidated damages includes collection reliability, collection quality, responsiveness to CMSD residents, timeliness of submissions to CMSD, the accuracy of billing, personnel, vehicles, and equipment, compliance reporting, and public education and outreach. To implement the state-mandated SB 1383, District staff has broken down the costs into five categories over a five-year period. Below is a graph of the estimated costs: Below is a breakdown of each category: CR&R Incorporated Compliance will require a mandatory three-cart collection system for all CMSD trash customers that will be provided through our agreement with CR&R. Year 1 – Current fees were used to calculate costs for July to September 2024. Three cart system fee's were used to calculate costs from October to June 2025. Year 2 to 5 – Proposed fees with CPI were used to calculate the cost for three different waste streams and occupancy. Years 1 to 5 – Staff included tonnage increase plus a 5% CPI increase to rates. Professional Services SB 1383 also requires monitoring and reporting of contamination and staff is recommending continuing its partnership with Michael Balliet Consulting to complete waste studies and assist with State reporting. Years 2 to 5 – 3% CPI increase applied. Additional funds are needed by staff to mail compliance letters to residents and notify residents who have received multiple notices of contamination and may be approaching a fine. Years 2 to 5 – 5% CPI increase applied. Solid Waste Employees The day-to-day responsibilities and duties of implementing new SB 1383 services will require the reorganization of the Solid Waste Department to better serve the community. As presented by the General Manager on November 8, 2022, the reorganization of the department includes two promotions (Management Analyst I and Code Enforcement Officer) and one new full-time Office Specialist. Years 2 to 5 – 5% CPI increase applied. Education and Outreach The introduction of a new cart and transition from a two-cart to the standard three-cart system will require extensive education and outreach. Staff is proposing to continue its partnership with Tripepi Smith to assist with designing and producing outreach material for residents. The first year will require communicating the logistics of the program as well as preparing residents for the 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#31/57 delivery and use of the carts. Year two will include outreach materials that re-enforce proper source separation. Years 3-5 are maintaining the outreach and education on how to properly use their carts. Years 3 to 5 – will consist of two mailers and $10,000 for boosting. Added $1,000 every year for possible postage increase. Hearing Officer A Hearing Officer will be needed for residents who receive administrative contamination fines. District staff researched the City of Costa Mesa Hearing Officer contract and found they currently have an annual budget not to exceed $15,000 a year. Years 2 to 5 – 5% CPI increase applied. It is estimated that the three-cart collection system will be implemented by October 1, 2024. Staff recommends completing a solid waste rate study by March 2024 so the new rates can go into effect on July 1, 2024. The three cart system fees have not been included in this amendment and will be determined at a later time. Proposed rates from CR&R to provide the service from 2021 will used plus applicable CPI. Solid Waste Fund Reserve The Operating Reserve Policy for the Solid Waste Fund stated, “The District will maintain a minimum designated Reserve for Working Capital equal to 30% of its operating budget within its Solid Waste Fund (Ord. 108, 2015). The Reserve generates investment income aiding with rate stabilization and funds to cover expenses during the five month delay in revenue from the County. The reserve balance runs low by November; however, the District receives revenue from the County by December. As rates increase annually, revenue and reserves will also increase. The current policy to maintain a minimum designated Reserve for Working Capital equal to 30% of its operating budget is sufficient. Increasing the District reserve percentage would help generate additional investment income. Additional Carts number The Board requested the number of properties that have additional carts. Unfortunately, the data was not available at the time this report was being prepared. The data will be made available at tonight's meeting. Diversion Rate Diversion Data is calculated by taking the total tonnage collected and dividing it by the total tonnage recycled (through MRF and AD Facility). Last Fiscal year, 2021-2022, a total of 39,992.91 tons of waste was collected through our curbside program and 24,218.93 tons of waste were recycled. Our diversion rate for the fiscal year was 60.56%. Unfortunately, we do not have December 2022 tonnage data available yet but for this fiscal year our current diversion rate is 61.30%. CMSD has not included recycling data from the OCC Recycling Center since February 2020. Legal Review District Counsel has reviewed and approved this staff report, along with the amendment attached and the Environmental Review section below. Environmental Review The approval of the Amendment to the CR&R Agreement should be found to be exempt under CEQA under the following exemptions: 1. Categorical exemption- Actions by Regulatory Agencies to Protect the Environment (Guidelines 15308). Under this exemption, actions by the District to protect the environment can be found to be exempt. In adopting the contract and related procedures, the District is complying with the new Organics Processing law and regulations (SB 1383). Even though additional refuse trucks will be added to the route for implementing a source separation program, the additional trucks will not impact the environment because they will be fueled by Renewable Natural Gas that is produced from green waste and food scraps collected from district households. Furthermore, the use of additional vehicles is almost compelled by the aggressive legislative goal of organics processing, requiring source-separated materials and the transport of those materials to locations to treat the organics. The reduction of solid waste materials to the landfill will reduce methane gas emissions, which is a contributing factor to greenhouse gases and global warming and the conversion of organics to other products obviously helps the environment and has been California’s showcase environmental law. 2. Categorical exemption- regulatory enforcement by Government Agencies (Guidelines 15321). To the extent this contract amendment causes the district or its hauler to take enforcement action against those not in compliance with SB 1383, this activity is regulatory enforcement of those laws, including enforcement of the prohibitions of what can be placed in each of the specified containers, and enforcement action to be taken for repeat offenses. 3. The activity should also be exempt as falling within the “common sense” exemption. (Guidelines 15061(h)(3)) Here there is no possibility that the activity in question may have a significant effect on the environment. Financial Review District expenditures could possibly increase to $9.5 million by FY 2027-28 as result of implementing SB 1383, which is an increase of 44% from current budget. Expenditures will exceed revenues, which means solid waste rates will have to be adjusted by July 1, 2024. How much the rates will need to be adjusted is unknown at this time. Staff will perform a solid waste rate study in November/December 2023 and will present findings and recommendations to the Board in January 2024. Public Notice Process 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#32/57 Copies of this report are on file and will be included with the complete agenda packet for the January 23, 2023, Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments SB 1383 Costs.png (42 KB) FINAL Amendment to Agreement.docx (85 KB) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#33/57 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: January 23, 2023 Subject: Discuss Preliminary Budget Calendar for the 2023-2025 Biennial Budget. Summary The schedule below represents the outline for creating and adopting the District’s Fiscal Year 2023-24 and 2024-25 budgets. Staff will be working on different aspects of the budget from now until the May Study Session and will update the Board as necessary. Recommendation That the Board of Directors discuss the proposed target dates for adopting the Fiscal Year 2023-24 and 2024-25 Budgets. Analysis Staff recommends the following target dates: Action Item Target Date Departments meeting 02/01/23 Week of Department Budgets due from Staff 02/24/23 Friday General Manager 1st review with departments 02/28/23 Week of General Manager 2 review with departments 03/21/23 Week of February 2023-24 Consumer Price Index released 04/03/23 Week of Study Session meeting 1 review preliminary budget 04/11/23 Tuesday Study Session meeting 2 review preliminary budget 05/09/23 Tuesday Citizen Advisory Committee to review preliminary budget 05/10/23 Wednesday Study Session meeting (if necessary) to finalize budget 06/13/23 Tuesday Notice of public hearing (postcard mail out)06/06/23 Tuesday Budget adoption at regular Board meeting 06/26/23 Monday Public hearing to adopt sewer and trash charges 07/24/23 Monday Transmit assessments to OC Treasurer-Tax Collector 08/10/23 Thursday Legal Review None Required. Environmental Review Subject 3. Discuss Preliminary Budget Calendar for the 2023-2025 Biennial Budget Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Board of Directors discuss the proposed target dates for adopting the Fiscal Year 2023-24 and 2024-25 Budgets. Goals 8.2 Finance - Adopt a balanced budget 8.0 Finance nd st nd 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#34/57 Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review None Required. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 23, 2023 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff for additional information File Attachments Preliminary Budget Calendar 2023-25.pdf (131 KB) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#35/57 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: January 23, 2023 Subject: Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2022. Summary Government Finance Officers Association (GFOA) established the Popular Annual Financial Reporting Program (PAFR) to encourage governments to take information from their Annual Comprehensive Financial Report (ACFR) and condense it into a smaller easily understandable document that the general public can read without a background in finance. The GFOA then recognizes governments for their achievement. The District has won this prestigious award for the last seven years. The PAFR for the year ending June 30, 2022 has been completed and submitted to the GFOA. It is attached for your review. Recommendation That the Board of Directors receive and file the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2022. Analysis According to GFOA's website, the GFOA established the Popular Annual Financial Reporting Awards Program (PAFR Program) in 1991 to encourage and assist state and local governments to extract information from their annual comprehensive financial report to produce high quality popular annual financial reports specifically designed to be readily accessible and easily understandable to the general public and other interested parties without a background in public finance and then to recognize individual governments that are successful in achieving that goal. The PAFR is another tool to demonstrate an agency's transparency efforts because it takes a large comprehensive finance report, the ACFR, and condenses it to several pages using graphs and charts so that the public can easily understand the spending trend of their local government. Surprisingly, not many public agencies in California received the PAFR award from GFOA. In 2021, only two municipalities in Orange County received the PAFR award (County of Orange and Yorba Linda Water District). Special recognition goes to CMSD's Finance Department (Kaitlin Tran, Lieu Tran and Autumn Alvarez) for completing the audit and creating another outstanding PAFR! Legal Review Not applicable. Environmental Review The preparation of financial statements is an administrative action that is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review The only financial impact is the application cost of $250, which was included in the District’s budget. Subject 4. Receive and File the Popular Annual Financial Report (PAFR) for the Year Ended June 30, 2022. Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file the Popular Annual Financial Report for the year ended June 30, 2022. Goals 8.1 Finance - Achieve financial excellence awards 8.0 Finance 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#36/57 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 23, 2023 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments PAFR FY2021-22 FINAL.pdf (6,540 KB) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#37/57 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: January 23, 2023 Subject: Consider Contribution Program Application for Estancia High School Baseball Boosters Summary CMSD received a Contribution Program Application from the Estancia High School Baseball Boosters requesting a contribution of $400 for a 7'x12' outfield fence banner, social media advertising, and website advertising. Recommendation That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High School Baseball Boosters; and 2. Describe how the expenditure will advance CMSD’s purpose; and 3. Consider contributing $400 for a 7'x12' outfield fence banner, social media and website advertisements. Analysis Contribution Application Procedures: According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose CMSD is trying to serve by contributing. This purpose must be established as one of CMSD’s statutory powers or a power that would be incidental to those purposes. For example, purposes include properly treating sewage, preventing SSOs, and recycling. Describe how the contribution will advance CMSD's purpose. Subject 5. Consider Contribution Program Application for Estancia High School Baseball Boosters Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $400.00 Budgeted Yes Budget Source Solid Waste Public Info/Ed/Promo (10-100100-4420) Recommended Action That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High School Baseball Boosters; and 2. Describe how the expenditure will advance CMSD’s purpose; and 3. Consider contributing $400 for a 7'x12' outfield fence banner, social media and website advertisements. Goals 5.5 Community Outreach & Communications - Use clear messaging and education to engage the community in District programs and activities 5.0 Community Outreach & Communications 4.7 Partnerships - Participate in community events to increase visibility 4.6 Partnerships - Educate students enrolled in learning institutions 4.0 Partnerships 2.8 Solid Waste - Recycle green waste and food scraps 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#38/57 Sponsorship Options: As stated on the Contribution Application, the Estancia Baseball Boosters are requesting $400 for a 7'x12' outfield fence banner for their 2023 baseball season. Below are the sponsorship options: Gold Sponsorship - 7'x12' outfield banner, social media advertising, & website advertising (recommended) $550 (new sponsors) $400 (returning 21/22 sponsors) Cardinal Sponsorship - 4'x6' batting cage/outer fence banner, social media advertising, & website advertising $400 (new sponsors) $250 (returning 21/22 sponsors) Eagle Sponsorship - social media & website advertising $225 (new sponsors) $150 (returning 21/22 sponsors) Event Sponsorship sponsor a hit-a-thon, team dinner, or other event (contact Boosters to customize) Proposed Banner Design: Attached is a proposed banner design that focuses on the Organics Recycling Program by encouraging residents to "recycle food waste at home." CMSD staff are proposing this design in light of SB 1383 and the intended focus on increasing diversion of organic waste from landfills. Justification: If the Board of Directors wish to sponsor a banner, a finding can be made that the banner meets CMSD's statutory purpose of recycling through the promotion of the Organics Recycling Program. The language on the proposed banner encourages residents to "recycle food waste at home" using the Organics Cart and to visit CMSD's website for more information about the Organics Recycling Program. The banner will be visible to Estancia Eagles baseball game attendees throughout their season, which may attract more attendees this year since the team were 2022 SoCal State Champions. Sponsorship History: CMSD has sponsored Estancia High School Baseball banners at the Gold level since 2020. In 2020, the sponsorship amount was $525. Due to the COVID-19 pandemic, the banner remained up at no cost in 2021. In 2022, CMSD's sponsorship was $400. Prior to that, CMSD sponsored banners in Jim Scott Football Stadium between 2009-2019. These previous sponsorships were typically $500-$525. Legal Review District Counsel has reviewed the criteria and the law. The determination of whether the expenditure advances a District purpose (and is not a gift of public funds) is a matter within the Board’s discretion as long as it is based on substantial evidence. Environmental Review The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting the District is an administrative matter and is not a disturbance of the environment, similar to grading or construction, and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review There are sufficient funds in the FY 22-23 Solid Waste Public Info/Education/Community Promotions accounts for this sponsorship. A total of $4,000 is budgeted for sponsorships during FY 22-23 and there is currently $2,125.00 available for the remainder of FY 22-23. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 23, 2023 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the contribution of $400. 2. Approve an alternative contribution amount. 3. Refer the matter back to staff. File Attachments Contribution App - 2022-2023 Estancia Baseball Banner.pdf (1,371 KB) 2022-2023 Banner Sponsor Form.pdf (521 KB) Proposed Banner Artwork.pdf (79,365 KB) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#39/57 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Administrative Assistant Date: January 23, 2023 Subject: 2022 Year in Review Summary Every year, staff creates an year-end report to showcase to the Board and the public the significant accomplishments that were achieved during the past year. Staff is pleased to present the District's highlights and accomplishments for 2022. 2022 Year in Review Recommendation That the Board of Directors receives and files this report. Analysis Some of the accomplishments found in the document include: Planning and coordinating two new events: Shredding & Compost Giveaway and Eco Expo Recycled and diverted 13,500 tons of solid waste materials. Completed several capital improvement projects worth more than $3.8 million. Only 1 Sanitary Sewer Overflow. Responded to public records request with documents within 4 days (California law gives agencies 10 days to respond without documents) Developed and implemented an Employee Wellness Program Triple Crown Winner for financial excellence in budgeting and financial reporting. Issued 280 sewer permits Legal Review Not applicable. Environmental Review The 2022 Year in Review report 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 The 2022 Year in Review was prepared internally by staff, so there are not financial impacts to the District for preparing the report. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 23, 2023 Board of Directors study session meeting at District Headquarters and posted on the District’s website. Alternative Actions Subject 6. Receive and File the Costa Mesa Sanitary District 2022 Year in Review - Oral Report Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 5.0 Community Outreach & Communications 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#40/57 1. Direct staff to report back with more information. File Attachments 2022 Year in Review.pdf (24,231 KB) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#41/57 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 23, 2023 Subject: Receive and File 2022 Annual Performance Measurement Report Summary On November 29, 2018, the Board of Directors adopted Administrative Regulations No. 70.00, Performance Measurement Program, which established methods and procedures for gathering and analyzing organizational performance while at the same time collaborating towards continuous improvement of performance in an open and transparent manner. Recommendation That the Board of Directors receive and file this report. Analysis A Performance Measurement Program has been developed to determine how well the District is performing in areas of efficiency, effective workforce, customer satisfaction, cost effectiveness, citizen engagement and transparency. The purpose of the program is to continually look at ways to improve and/or enhance the level of service that is being provided internally to staff and externally to the public. Significant achievements were made in 2022, which are described in more details below. 1. The number of Sanitary Sewer Overflows (SSOs) per 100 miles of sewer is less than the average SSOs per 100 miles of Sewer in California Resource Water Quality Control Board Region 8. Region 8 consist of agencies located in Orange, Riverside and San Bernardino Counties. CMSD had 0.45 SSOs per 100 miles compared to 0.67 in Region 8. 2. The one storm event in 2022 resulted in a rain ingress of less than 2% 3. The average number of business days it took to respond to Public Records Request with requested documents is 4 days 4. 79% of the entire wastewater collection system was cleaned. 5. All twenty wastewater pump stations had their annual preventive maintenance performed 6. 83.3% of employees indicated the District is a better organization than it was compared to one year ago Areas that staff will be focusing improving in 2023 include, but not limited to the following: 1. Experience Modification (EMOD). 2. Percent of SSOs reaching surface water is less than the spills reaching surface water in Region 8. 3. Trash carts being replaced within 7 business days. 4. Residents corresponding in GoCMSD regarding CMSD's customer service. 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". Subject 7. Receive and File 2022 Annual Performance Measurement Report Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Goals 6.0 Administrative Management 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#42/57 Financial Review There are no financial impacts to the District for implementing a Performance Measurement Program Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 23, 2023 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 Year End Report.pdf (787 KB) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#43/57 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 23, 2023 Subject: Receive and File 2020-25 Strategic Plan Progress Report - FY 2022-23 Second 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 April 24, 2023. 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. The Board directed staff to review the Plan and consider combining duplicated tasks/goals. In the attached document you will find certain tasks and objectives were combined and/or removed in its entirely. For instance, Task 2.4.1, Biomass conversion of solid waste material, is being removed from the Plan because CalRecycle does not entirely support this technology for reducing the waste stream. CalRecycle would consider approving a maximum diversion of ten-percent from the use of biomass conversion. The high cost of biomass conversion, which is comparable to anaerobic digestion technology costs, outweighs the benefits of achieving ten percent diversion. 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 Subject 8. Receive and File 2020-25 Strategic Plan Progress Report - FY 2022-23 Second Quarter Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Budget Source 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 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#44/57 Copies of this report are on file and will be included with the entire agenda packet for the January 23, 2023 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. File Attachments Strategic Plan Qtly Update 2022-23 2nd Qtr Revisions.xlsx (93 KB) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#45/57 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 23, 2023 Subject: Receive and File General Manager's 2022 Performance Goals and Consider Approving his 2023 Performance Goals Summary Annually, the Board reviews the General Manager’s performance goals for the past year and then establishes new goals for the upcoming year. Recommendation That the Board of Directors: 1. Receive and file the General Manager's 2022 Performance Goals; and 2. Approve the General Manager's 2023 Performance Goals; and 3. Authorize the President to negotiate a compensation adjustment to the General Manager; and 4. Report back on the tentatively agreed upon adjustment for Board approval consideration. Analysis In 2022, the Board of Directors assigned the General Manager ten goals to achieve. All ten goals have been successfully completed. Attached is a list of the General Manager’s goals along with a brief description of each completed goal. Also attached are the proposed 2023 Performance Goals for discussion tonight and approval consideration. Legal Review Not applicable Environmental Review Consideration by the Board of Directors of the compensation paid to the District’s General Manager is an administrative matter and not a disturbance of the environment similar to grading or construction and not a project under CEQA or the District’s CEQA Guidelines. Financial Review The financial impacts are unknown. Goals that have a financial impact to the District will be brought back to the Board for review and if need be, consideration for budget appropriations. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 23, 2023 Board of Directors regular meeting at District headquarters and on District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. File Attachments 2022 Goals.docx (20 KB) Subject 9. Receive and File General Manager's 2022 Performance Goals and Consider Approving his 2023 Performance Goals Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors: 1. Receive and file the General Manager's 2022 Performance Goals; and 2. Approve the General Manager's 2023 Performance Goals; and 3. Authorize the President to negotiate a compensation adjustment to the General Manager; and 4. Report back on the tentatively agreed upon adjustment for Board approval consideration. Goals 7.0 Human Resources Management 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#46/57 2023 Goals.docx (15 KB) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#47/57 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: January 23, 2022 Subject: Receive and File the District Engineer's Report and Capital Improvement Projects Status Summary The District Engineer has provided a memorandum with a brief summary of major capital or other engineering activities for the period of mid-December to mid-January. The District Engineer's memorandum and Monthly CIP Update Report is attached. Recommendation The Board of Directors receive and file the Engineer's 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 January 23, 2023, 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 2023 01 Monthly Engineers Report CMSD Memorandum.pdf (202 KB) CIP Updates as of December 31 2022.pdf (1,278 KB) Subject 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action, Discussion Preferred Date Jan 23, 2023 Fiscal Impact No Budgeted Yes Budget Source Current Year Operating Budget Recommended Action The Board of Directors Receive and File the District Engineer's Report and Capital Improvement Projects Status 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#48/57 H. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: January 23, 2023 Subject: Consider Adopting Resolution No. 2022-979 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. 2022-979 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. The Governor has announced that the COVID state of emergency declaration will end on February 28, 2023. At that point, we will no longer be able to hold emergency teleconference meetings pursuant to AB 361. AB 2449 will then provide some authority to attend remotely under specified conditions. AB 2449 will remain in effect through 2025. After that, the traditional teleconferencing rules will remain in effect. Legal Review District Counsel has prepared this staff report and Resolution No. 2022-979. 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 Subject 1. Consider Adopting Resolution No. 2023-979 Authorizing Remote Meetings Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Resolution No. 2022-977 authorizing remote meetings. Goals 6.0 Administrative Management 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#49/57 which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include .... C. Continuing administrative or maintenance activities." Financial Review There are no financial impacts to the District for adopting Resolution No. 2022-979 . Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the December 19, 2022 Regular Board Meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Do not adopt Resolution No. 2022-979 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. 2022-979 and direct staff to report back with more information. File Attachments reso_2023-979_remote_meetings.docx (21 KB) 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#50/57 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) - (Vice Secretary Ooten) Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#51/57 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) - (Secretary Perry) Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#52/57 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) - (Vice President Schafer) Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#53/57 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) - (Vice President Schafer) Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#54/57 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) - (President Scheafer) Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#55/57 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. Copy of Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#56/57 L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Discussion 1/19/23, 3:40 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#57/57 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, February 27, 2023 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626. Subject 1. Adjourn Meeting Jan 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural