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2023_02_27_board2/23/23, 1:31 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/3 Monday, February 27, 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 FEBRUARY 27, 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.) 2/23/23, 1:31 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 January 10, 2023 3. Approve the Board of Directors Regular Meeting Minutes of January 23, 2023 4. Approve the City/Districts Liaison Committee Meeting Minutes of January 27, 2023 5. Approve Payroll Transparency Disclosure for January 2023 6. Approve the Directors' Compensation and Reimbursement of Expenses 7. Adopt Warrant Resolution No. CMSD 2023-08 Approving District Warrant Registers 8. Approve the preparation of a warrant to CR Transfer in the amount of $184,664.90 for December 2022 recycling and disposal services in the February 2023 warrant register 9. 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 January 2023 collection 10. Receive and File the December 2022 Organics Tonnage Report 11. Receive and File the December 2022 Solid Waste Diversion Report 12. Receive and File December 2022 and January 2023 Contracts Signed by the General Manager 13. Receive and File 2022 Annual Health Benefits Broker Fees Report D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Receive and File the Fiscal Year 2022-23 Mid-Year Budget Review 2. Communications Plan for 3-Cart Rollout 3. Considers Nominating Vice President Arlene Schafer as a Candidate to Serve on CSDA Board of Directors Seat C - Southern Network F. ENGINEER'S REPORTS 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status G. TREASURER'S REPORTS 2/23/23, 1:31 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/3 1. Approve the Investment Report for the Month of January 2023 H. ATTORNEY'S REPORTS I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request  of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.  For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (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 1. Performance evaluation (Gov. Code §54957) Title: General Manager 2. Conference with labor negotiator (Gov. Code §54957.6) Agency Designated Representative: President Scheafer Unrepresented party: General Manager N. RECONVENE TO OPEN SESSION O. CLOSING ITEMS 1. Adjourn 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/53 Monday, February 27, 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 FEBRUARY 27, 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 Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#2/53 A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Scheafer Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/53 A. OPENING ITEMS Subject 3. Invocation - Vice President Schafer Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#4/53 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 Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#5/53 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 Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#6/53 A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#7/53 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 Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#8/53 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 Feb 27, 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#9/53 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: February 27, 2023 Subject: Approve the Board of Directors Study Session Minutes of January 10, 2023 Summary The recorded minutes of the January 10, 2023 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 January 10, 2023. 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 February 27, 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 January 10, 2023 Meeting Feb 27, 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 Jan 10, 2023 - Board of Directors Study Session 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#10/53 minutes_2023_01_10_ss.pdf (190 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#11/53 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: February 27, 2023 Subject: Approve the Board of Directors Regular Meeting Minutes of January 23, 2023 Summary The recorded minutes of the January 23, 2023 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 January 23, 2023. 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 February 27, 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 January 23, 2023 Meeting Feb 27, 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 Jan 23, 2023 - Board of Directors Regular Meeting 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#12/53 minutes_2023_01_23_rm.pdf (247 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#13/53 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: February 27, 2023 Subject: City/Districts Liaison Committee Meeting Minutes of January 27, 2023 Summary The recorded minutes of the January 27, 2023 City/Districts Liaison Committee Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the City/Districts Liaison Committee Meeting on January 27, 2023. 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 February 27, 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. Subject 4. Approve the City/Districts Liaison Committee Meeting Minutes of January 27, 2023 Meeting Feb 27, 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 Jan 27, 2023 - City/Districts Liaison Committee Meeting 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#14/53 File Attachments minutes_2023_01_27_lc.pdf (131 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#15/53 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: Lieu Tran, Accountant Date: February 27, 2023 Subject: Approve Payroll Transparency Disclosure for January 2023 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 February 27, 2023 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Alternative Actions Subject 5. Approve Payroll Transparency Disclosure for January 2023 Meeting Feb 27, 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. Goals 4.7 Demonstrate outstanding efforts in transparency 7.0 Finance 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#16/53 Refer item back to staff with further instructions. File Attachments Payroll Transparency Disclosure for January 2023.pdf (1,102 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#17/53 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk & Public Information Officer Date: February 27, 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 February 27, 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 2023_02_27_board_comp_expense_report.pdf (1,114 KB) Subject 6. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Feb 27, 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#18/53 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#19/53 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: Lieu Tran, Accountant Date: February 27, 2023 Subject: Adopt Warrant Resolution No. CMSD 2023-08 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 February 27, 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 7. Adopt Warrant Resolution No. CMSD 2023-08 Approving District Warrant Registers Meeting Feb 27, 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 2023-08 approving District warrants for the month of January in the amount of $619,381.32. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#20/53 File Attachments WARRANT RESO 2023-08.pdf (496 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#21/53 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. Approve the preparation of a warrant to CR Transfer in the amount of $184,664.90 for December 2022 recycling and disposal services in the February 2023 warrant register Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $184,664.90 for December 2022 recycling and disposal services to be ratified in the February 2023 warrant register. 638.09 Please note that CR&R was unable to provide invoices and weight tickets for the month of January in time for this meeting. The CR Transfer, Organics Tonnage and Solid Waste Diversion Report for the month of January will be presented at the March Board Meeting for review and approval. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: February 27, 2023 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $184,664.90 for December 2022 recycling and disposal services in the February 2023 warrant register Summary This payment to CR Transfer is for the sorting of recyclables from the mixed waste and disposal of the remaining waste at the landfill. With the implementation of the Organics Recycling Program adopted by the Board, this payment also includes the diverting of the organics waste to the Anaerobic Digestion facility to be recycled into fertilizer or renewable natural gas to fuel the refuse trucks. Recommendation That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $184,664.90 for December 2022 recycling and disposal services to be ratified in the February 2023 warrant register. Analysis Below is a chart depicting the total tonnage and payments due for residential and organic waste collected in Costa Mesa and Newport Beach. *Due to weight ticket calculation rounding, monthly invoices may be slightly off by a few pennies. Invoices that are slightly off are marked by an asterisk below. Type of Waste Invoice Tonnage Rate Amount Billed Residential Waste - Newport Beach 44219 70.04 $56.52 $3,958.66 Residential Waste - Costa Mesa 44218 2,318.86 $56.52 $131,062.01* Total Residential Waste 2,388.90 $135,020.67 Organics Recycling Waste 44254 $77.77 $49,624.23* Total Organics 638.09 $49,624.23 Grand Total 3,026.99 $184,644.90 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#22/53 Legal Review Not Applicable Environmental Review Consideration of the CR Transfer 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 report are on file and will be included with the complete agenda packet for the February 27, 2023 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Action 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#23/53 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: February 27, 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 January 2023 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 January 2023 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 February 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 January 2023 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 February 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 January 31, 2023, 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 January 2023: 23,091 x $10.6537 =$246,004.59 Legal Review 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. Subject 9. 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 January 2023 collection Meeting Feb 27, 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 January 2023 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 February 2023 warrant list. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#24/53 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 February 27, 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. File Attachments 2023-01-G CMSD Occupancy Report.pdf (64 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#25/53 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: February 27, 2023 Subject: Receive and File the December 2022 Organics Tonnage Report Summary A total of 638.09 tons of organic waste were collected in December 2022. Recommendation That the Board of Directors receive and file this report. Analysis Below is a graph depicting the total tonnage of organic waste collected during each month of the last five fiscal years. Additionally, a graph is included breaking down the total tonnage collected and how much material was recycled and landfilled from the organics program. Subject 10. Receive and File the December 2022 Organics Tonnage Report Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#26/53 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#27/53 Legal Review Not applicable. Environmental Review Consideration of the Organics Tonnage Report is an administrative matter and not a disturbance of the environment similar to grading or construction and not a project under CEQA or the District’s CEQA Guidelines. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the February 27, 2023 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. Alternative Action File Attachments Organics.png (14 KB) Organics Tonnage.png (28 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 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#28/53 listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#29/53 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: February 27, 2023 Subject: Receive and File the December 2022 Solid Waste Diversion Report Summary A total of 1,805.79 tons of solid waste were collected and recycled in December 2022. Recommendation That the Board of Directors receive and file this report. Analysis A total of 1,805.79 tons of solid waste were collected and recycled in December 2022. This month, 60% of recyclable products (newspaper, cardboard, glass, aluminum, etc.) and organic waste recycled were diverted away from landfills. For the current fiscal year, a total of 11,756.02 tons of solid waste have been recycled and the District diversion rate is 61.04% for the last six months. Subject 11. Receive and File the December 2022 Solid Waste Diversion Report Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#30/53 Legal Review Not applicable. Environmental Review Consideration of the Solid Waste Report is an administrative matter and not a disturbance of the environment similar to grading or construction and not a project under CEQA or the District’s CEQA Guidelines. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the February 27, 2023 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. Alternative Action File Attachments Tonnage.png (46 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#31/53 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Scott Carroll, General Manager Date: February 27, 2023 Subject: Receive and File December 2022 and January 2023 Contracts Signed by the General Manager Summary At the January 24, 2019 Board of Directors meeting, the Board directed the General Manager to submit a list of contracts he signed during the previous month. Below are the contracts he signed in the months of December 2022 and January 2023. Recommendation That the Board of Directors receive and file this report. Analysis Below are the contracts signed by the General Manager in the month of December 2022 and January 2023: Contracts: 1. Lakewood Alarm: Install LTE cell communication and update firmware to V213 at Headquarters. Cost: $195.00. 24-Hour monitoring service. Cost: $113.50/month 2. Liebert Cassidy Whitmore: Employment relations consortium. Cost: $3,645.00 3. Affordable Generator Services, Inc.: Perform preventive maintenance on the District’s generators. Cost: $13,598.73 Purchase Orders: 1. Golden Bell Products, Inc.: Manhole roach maintenance. Qty: 1,020. Cost: $24,990.00 2. Xylem Water Solutions USA, Inc.: Pump station handle and lifting parts. Qty: 10. Cost: $2,182.00 Legal Review All contracts are reviewed and approved by District Counsel before contracts are executed. Environmental Review Providing the Board of Directors a monthly list of contracts signed by the General Manager is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Subject 12. Receive and File December 2022 and January 2023 Contracts Signed by the General Manager Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Fiscal Impact No Budgeted Yes Recommended Action That the Board of Directors receive and file this report Goals 6.0 Administrative Management 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#32/53 Financial Review There is adequate funding in the budget for the expenses referenced above. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the February 27, 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#33/53 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: Dyana Bojarski, Administrative Services Manager Date: February 27, 2023 Subject: 2022 Annual Health Benefits Broker Fees Report Summary As required by Section 1367.08 of the California Health and Safety Code and Section 10604.5 of the California Insurance Code, the Costa Mesa Sanitary District must disclose any group health insurance premiums, fees, and commissions paid to all agents, providers, and brokers. Recommendation That the Board of Directors receive and file the report. Analysis Section 1367.08 of the Health and Safety Code A health care service plan shall annually disclose to the governing board of a public agency that is the subscriber of a group contract, the name and address of, and amount paid to, any agent, broker, or individual to whom the plan paid fees or commissions related to the public agency's group contract. As part of this disclosure, the health care service plan shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. Section 10604.5 of the Insurance Code An insurer shall annually disclose to the governing board of a public agency that is the policyholder of a group health insurance policy, the name and address of, and amount paid to, any agent, broker, or individual to whom the insurer paid fees or commissions related to the public agency's group health insurance policy. As part of this disclosure, the insurer shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. Summary of Health Benefits Subject 13. Receive and File 2022 Annual Health Benefits Broker Fees Report Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Fiscal Impact Yes Budgeted Yes Recommended Action That the Board of Directors receive and file the report Goals 7.0 Human Resources Management 6.0 Administrative Management 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#34/53 CalPERS (California Public Employee Retirement Services) administers and negotiates rates and coverage for all District medical plans. Services provided by CalPERS includes: plan design, negotiating with medical and pharmaceutical carriers, developing and printing plan summaries, outlines and brochures, billing, claims processing, hosting an online database for enrollments and changes, participant appeals and grievances, website design and maintenance, and free workshops/seminars for employers, employees, and retirees. All non-medical health plans which include dental, vision, life, long-term disability, voluntary AD&D, and other individual plans such as accident, cancer, specified health event, hospital, and short-term disability are administered and/or brokered by SDRMA (Special District Risk Management Authority) or Aflac (American Family Life Assurance Company). Services provided by SDRMA and Aflac include: plan design options, negotiating rates and benefits with carriers, legal and compliance updates and advice, open enrollment support, assistance with claims processing and resolution, and free workshops to staff. Although the District obtains non-medical health plans through SDRMA, the disclosure codes do not apply because the agency administers the non-medical programs through the California State Associations of Counties Excess Insurance Authority (CSAC-EIA Health); it does not contract directly with brokers or insurance carriers of the Health Benefit Programs. Agent, Broker, or Individuals Paid in Calendar Year 2022 Medical Broker/Administrator Medical Broker/Administrator CalPERS 400 Q Street Sacramento, CA 95811 AFLAC 1932 Wynnton Road Columbus, GA 31999 The 2022 CalPERS Total Fees/Commissions amount was $524 and the percentage of premiums was .29%. The 2022 Aflac Total Fees/Commissions amount was $4,147 and the percentage of premiums was 18.45%. Plan Year Broker/Administrator Coverage Premiums Total Fees & Commissions % or Premiums 2022 CalPERS Medical $179,961 $524 .29% 2022 Aflac Non- medical $22,473 $4,147 18.45% Legal Review Not applicable. Environmental Review Disclosure and discussion of group health insurance premiums, fees, and commissions paid to agents or providers are administrative matters and not a disturbance of the environment similar to grading or construction and the discussion is not a project under CEQA or the District’s CEQA Guidelines. Financial Review The District paid a total of $202,434 in premiums for medical and non-medical expenses and $4,671 for fees and commissions in 2022. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the February 27, 2023 Board of Directors regular meeting at District Headquarters and on the District's website. Alternative Actions 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. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#35/53 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: February 27, 2023 Subject: Receive and File the Fiscal Year 2022-23 Mid-Year Budget Review Summary This report serves as a summary of the District’s spending through December 31, 2022 as well as staff’s best estimate of projected balances for the year-ended June 30, 2023. Recommendation That the Board of Directors receive and file the Fiscal Year 2022-23 Mid-Year Budget Review. Analysis This analysis report uses the “Amended Budget”, consisting of the adopted budget plus any approved prior year carryover appropriations, as well as budget adjustments through December 31, 2022. Solid Waste Fund Expenditure- The Solid Waste fund has an amended budget of $7,234,329. As of December 31, 2022, a total of 44.2% of the Solid Waste budget was expended. At this time, staff anticipates a budgetary savings of $$418,900 for the FY, mainly due to savings in Maintenance/Operations. Solid Waste & General Funds Revenue- The total Solid Waste and General Funds revenue budget for FY 2022-23 is $6,983,600. As of December 31, 2022, the District received $3,987,587. Wastewater Fund Expenditure- The Wastewater fund has an amended budget of $5,856,068 (excluding CIP). As of December 31, 2022, a total of 52.4% of the Wastewater Fund’s operating budget has been expended. Staff anticipates a budgetary savings of $47,000 due to reduced costs in Maintenance/Operations. Wastewater Fund Revenue- The total Wastewater Fund revenue budget for FY 2022-23 is $7,041,800. As of December 31, 2022, the total Wastewater Fund revenue the District received, excluding is $4,043,924. The Capital Improvement Projects (CIP) are projected to be within budget. Please see the attached report for a more detailed analysis. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review See attached report. Public Notice Process Subject 1. Receive and File the Fiscal Year 2022-23 Mid-Year Budget Review Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 8.3 Finance - Forecast revenues and expenditures 8.0 Finance 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#36/53 Copies of this report are on file and will be included with the entire agenda packet for the February 27, 2023 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff for additional information. File Attachments A-FY2022-23 Mid-Year Quarterly Budget Analysis .pdf (234 KB) B - Expenditure Analysis.pdf (155 KB) 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#37/53 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: February 27, 2023 Subject: Communications Plan for 3-Cart Roll out Summary The Board of Directors requested a communications plan for the recycling cart roll-out in Fall 2024. Recommendation That the Board of Directors receives and files this report. Analysis Last month, the Board of Directors approved a first amendment with CR&R for SB 1383 compliance services. One of those services is a transition from a two-cart system into a three-part system with a planned roll-out date of Fall 2024. The introduction of a new cart and transition to a 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 customers. The first year will require communicating the logistics of the program as well as preparing customers for the delivery and use of the carts. Attached to this staff report is a fiscal year 2023-2024 communications plan. Legal Review Not applicable. Environmental Review The consideration of a communications plan 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 Total costs for 3-Cart System Communications Plan for fiscal year 2023-24 is $150,000. This has not been approved by the Board of Directors. The Biennial Budget for Fiscal Years 2023-24 & 2024-25 will be presented to the Board for adoption consideration in June 2023. Design, Development & Coordination $75,000 Mailings $60,000 Town Halls $3,000 Video Advertising $4,000 Social Media Advertising $5,000 Printing $3,000 Total $150,000 Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for February 27, 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. Subject 2. Communications Plan for 3-Cart Rollout Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receives and file this report. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#38/53 File Attachments 3-cart system communications plan.pdf (4,872 KB) 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#39/53 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: February 27, 2023 Subject: Considers Nominating Vice President Arlene Schafer as a Candidate to Serve on CSDA Board of Directors Seat C - Southern Network Summary The California Special District Association (CSDA) is seeking board members or general managers who are interested in leading the direction of the agency for the 2024 - 2026 term. Recommendation That the Board of Directors approve nominating and supporting Vice President Arlene Schafer as a candidate for the California Special Districts Association Board of Directors Seat C - Southern Network Analysis The leadership of CSDA is elected from its six geographical networks (see attached map), Each of the six networks has three seats on the Board with staggered three year terms. Candidates must be affiliated with an independent special district that is a CSDA regular member in good standing and located within the geographic network that they seek to represent. The CSDA Board of Directors is the governing body responsible for all policy decisions related to CSDA's member services, legislative advocacy, professional development, and other resources for members. The Board of Directors is vital to the operation of the Association and to the representation of the common interests of all California special districts before the legislature and state administration. Serving on the Board requires one's interest in the issues confronting special districts statewide. The deadline for submitting Board of Directors nominations is April 6, 2023. CSDA will begin electronic voting on June 5, 2023 and the deadline for casting votes is July 14, 2023. Legal Review Not applicable. Environmental Review Nominations for CSDA Board of Directors are administrative matters and not a disturbance of the environment similar to grading or construction and the discussion is not a project under CEQA or the District’s CEQA Guidelines. Financial Review There are no financial impacts to the District. CSDA reimburses the district for traveling related expenses incurred for attending board and committee meetings. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the February 27, 2023 Board of Directors regular meeting at District Headquarters and on the District's website. Alternative Actions Direct staff to report back with more information. Subject 3. Considers Nominating Vice President Arlene Schafer as a Candidate to Serve on CSDA Board of Directors Seat C - Southern Network Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve nominating and supporting Vice President Arlene Schafer as a candidate for the California Special Districts Association Board of Directors Seat C - Southern Network 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#40/53 File Attachments Call for CSDA Board Nominations.pdf (144 KB) District NetWorks Map.pdf (221 KB) 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#41/53 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: February 27, 2023 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-January to mid-February. The District Engineer's memorandum and Monthly CIP Budget 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 February 27, 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 02 Monthly Engineers Report CMSD Memorandum.pdf (203 KB) Financial Section for CIP Updates 2023-02.pdf (194 KB) Subject 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Action, Discussion, Receive and File Preferred Date Feb 27, 2023 Fiscal Impact No Budgeted Yes Budget Source Operating Budget Recommended Action The Board of Directors Receive and File the District Engineer's Report and Capital Improvement Projects Status 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#42/53 G. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: February 27, 2023 Subject: Approve the Investment Report for the Month of January 2023 Summary Attached is the Investment Report for the month of January 2023. 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 January 2023. 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 January 31, 2023. 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 January 31, 2023, was 1.630%. The yield to maturity of the portfolio was 1.631%. The District’s weighted average interest rate was 80 basis points (0.795%) below the LAIF average monthly rate for November of 2.425%. The weighted average number of days to maturity for the District’s total portfolio was 734 days (2.01 years). The duration of the underlying securities in LAIF as of January 31, 2023 was 273 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 January 31, 2023 was 37.17%. The District has adequate cash reserves necessary to meet its obligations for the next six months. A majority of the District’s cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District’s cash and investments are as follows: Solid Waste Fund: Operating Reserve - Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Subject 1. Approve the Investment Report for the Month of January 2023 Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the Investment Report for the month of January 2023. 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#43/53 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 January 31, 2023, the portfolio has earned a weighted average interest rate of 1.251%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the February 27, 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 - January 2023.pdf (690 KB) 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#44/53 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 Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#45/53 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 Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#46/53 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 Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#47/53 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 Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#48/53 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 Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#49/53 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 Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#50/53 L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Discussion 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#51/53 M. ADJOURN TO CLOSED SESSION Performance evaluation (Gov. Code §54957) Title: General Manager Subject 1. Performance evaluation (Gov. Code §54957) Title: General Manager Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Discussion 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#52/53 M. ADJOURN TO CLOSED SESSION Conference with labor negotiator (Gov. Code §54957.6) Agency Designated Representative: President Scheafer Unrepresented party: General Manager Subject 2. Conference with labor negotiator (Gov. Code §54957.6) Agency Designated Representative: President Scheafer Unrepresented party: General Manager Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Discussion 2/23/23, 1:32 PM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#53/53 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, March 27, 2023 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626. Subject 1. Adjourn Meeting Feb 27, 2023 - Board of Directors Regular Meeting Access Public Type Procedural