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Wednesday, May 10, 2023
Citizens Advisory Committee
Time: 6:00 p.m.
Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626
***
The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be
made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary.
***
To participate in the meeting by computer:
1. Copy and past the following into your browser - https://us02web.zoom.us/join
2. Enter the Meeting ID number - 885 8027 5211
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 885 8027 5211#
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
2. Roll Call
3. Public Comments - Speakers will be limited to three minutes. The three minutes per speaker time allotted may be
extended for good cause by a majority vote of the committee).
B. ITEM
1. Appoint Chair and Vice Chair
2. Approve the Citizens Advisory Committee Meeting Minutes of March 8, 2023
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3. Receive and File Waste Composition Studies #5 from Michael Balliet Consulting
4. Preliminary Biennial Budget Review for Fiscal Years 2023-24 and 2024-25
C. CLOSING ITEMS
1. Committee Member Comments
2. Board/Staff Comments
3. Adjournment
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Wednesday, May 10, 2023
Citizens Advisory Committee
Time: 6:00 p.m.
Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626
***
The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be
made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary.
***
To participate in the meeting by computer:
1. Copy and past the following into your browser - https://us02web.zoom.us/join
2. Enter the Meeting ID number - 885 8027 5211
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 885 8027 5211#
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
Meeting May 10, 2023 - Citizens Advisory Committee
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Type
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A. OPENING ITEMS
Member Position Term
Elodie Katz Chair 2021-23
Sue Lester Vice Chair 2021-23
Annette Watson Member 2022-24
Cindy Brenneman Member 2021-23
Daniel Baume Member 2022-24
Dean Fisher Member 2022-24
Dickie Fernandez Member 2022-24
Jeff Arbour Member 2021-23
Judith Gielow Member 2021-23
Michael Tou Member 2022-24
Rosemarie Chora Member 2022-24
Subject 2. Roll Call
Meeting May 10, 2023 - Citizens Advisory Committee
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Type
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A. OPENING ITEMS
Subject 3. Public Comments - Speakers will be limited to three minutes. The three minutes
per speaker time allotted may be extended for good cause by a majority vote of
the committee).
Meeting May 10, 2023 - Citizens Advisory Committee
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Type Procedural
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B. ITEM
Subject 1. Appoint Chair and Vice Chair
Meeting May 10, 2023 - Citizens Advisory Committee
Access Public
Type Action
Recommended
Action
That the Citizens Advisory Committee appoint a Chair and Vice Chair to serve for a term of
two years ending March 2025
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B. ITEM
To: Citizens Advisory Committee
Via: Scott Carroll, General Manager
From: Gina Terraneo, Management Analyst II
Date: May 10, 2023
Subject: Approve the Citizens Advisory Committee Meeting Minutes of March 8, 2023
Summary
The recorded minutes of the March 8, 2023 Citizens Advisory Committee Meeting are hereby submitted to the Citizens Advisory Committee for
review and approval.
Analysis
Attached to the staff report are the minutes for the Citizens Advisory Committee Meeting on March 8, 2023.
Staff Recommendation
That the Citizens Advisory Committee approves the meeting minutes as presented.
Legal Review
Not applicable.
Environmental Review
Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality
Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures
“to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing
Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.”
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the May 10, 2023 Citizens Advisory Committee 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
minutes_2023_03_08_cac.pdf (73 KB)
Subject 2. Approve the Citizens Advisory Committee Meeting Minutes of March 8, 2023
Meeting May 10, 2023 - Citizens Advisory Committee
Access Public
Type Action, Minutes
Recommended
Action
That the Citizens Advisory Committee approves the meeting minutes as presented.
Minutes View Minutes for Mar 8, 2023 - Citizens Advisory Committee
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B. ITEM
To: Citizens Advisory Committee
From: Scott Carroll, General Manager
Date: May 10, 2023
Subject: Receive and File Waste Composition Studies #5 from Michael Balliet Consulting
Summary
On April 3, 2023, Michael Balliet Consulting (MBC) performed two waste composition studies to determine the amount of organic waste
contamination in mixed-waste collection routes. This report, along with the attachments, describes MBC findings.
Recommendation
That the Citizens Advisory Committee provide comments regarding the results of the Solid Waste Characterization Studies conducted on April 3,
2023.
Analysis
The focus area for the first study included a mixed waste route collecting on Placentia Avenue to the west, Harbor Boulevard to the east, 19
Street to the south, and Hamilton to the north. The material was transported to CR&R's transfer station in Stanton and dumped onto a clean
sorting area in order for the material to be sorted. A total of 247.64 pounds of mixed waste was sorted into six material type categories, the
categories and their respective weights are included below:
CATEGORY TOTAL POUNDS PERCENTAGE
Green Waste 21.10 8.52%
Food Waste 39.90 16.11%
Paper and Cardboard 41.30 16.68%
Recyclable Containers 14.50 5.86%
Other Recyclables 18.60 7.51%
Trash 112.24 45.32%
The second study was focused on a route collecting in the Republic Homes development, bounded by Canyon Drive to the west, Placentia
Avenue to the east, 19 Street to the south, and Wilson Street to the north. A total of 326.74 pounds of mixed waste was sorted into six material
type categories, the categories and their respective weights are included below:
CATEGORY TOTAL POUNDS PERCENTAGE
Green Waste 53.30 16.31%
Food Waste 36.50 11.17%
Paper and Cardboard 48.24 14.76%
Recyclable Containers 26.50 8.11%
Other Recyclables 27.70 8.48%
Trash 134.50 41.16%
Subject 3. Receive and File Waste Composition Studies #5 from Michael Balliet Consulting
Meeting May 10, 2023 - Citizens Advisory Committee
Access Public
Type Discussion
Goals 2.0 Solid Waste
2.8 Solid Waste - Recycle green waste and food scraps
th
th
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Under SB 1383, Green Waste and Food Waste are considered "prohibited container contaminants" and it is what CMSD and CR&R will be
looking for starting in July 2023. The presence of these contaminants could result in fines to residents if the behavior is not corrected after
receiving notice from CMSD/CR&R. These waste characterization studies will result in education and outreach from CMSD staff to help minimize
contamination before SB 1383 notices and fines are officially issued in 2023. Based upon the April 3, 2023 sampling, in the first study, 24.63% of
the load was prohibited materials, and 27.48% in the second. However, MBC believes the large contamination is due to a skewed green waste
sample containing plant roots mixed with dirt. He believes this route is more likely in the 15% to 20% contamination range. The contaminant level
from the previous four studies were as follows:
24.26% Santa Ana Heights neighborhood (Completed on 12/8/2021)
14.31% Killybrook neighborhood (Completed on 5/19/2022)
19.88% Wilson and Santa Isabel St neighborhood (Completed on 7/13/2022)
10.18% Eastside neighborhood 19th to 15th Street and from Orange to Irvine Avenue (Completed on 11/15/2022)
14.41% Westside neighborhood 19th to W 15th Street and from Whittier Avenue and Tustin Avenue (Completed on 11/15/2022)
The acceptable contaminant level under SB 1383 is 10%. Residents along the route in part two of the study will be receiving education material
from CMSD in the coming weeks.
Legal Review
Not applicable
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et.
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of
the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not
include …. C. Continuing administrative or maintenance activities.”
Financial Review
The cost for MBC to perform each waste composition study was $3,500. This cost was budgeted in the FY 2022-23 Budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 10, 2023 Citizens Advisory Committee meeting
held at 290 Paularino Avenue, Costa Mesa and posted on the District’s website.
Alternative Actions
1. Direct staff to report back with more information.
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B. ITEM
To: Citizens Advisory Committee
Via: Scott Carroll, General Manager
From: Kaitlin Tran, Finance Manager
Date: May 10, 2023
Subject: Preliminary Biennial Budget Review for Fiscal Years 2023-24 and 2024-25
Summary
The following represents Staff’s proposed preliminary Biennial Budget for the Fiscal Years (FY) 2023-24 and 2024-25. Staff presented the first
draft of the preliminary budget at the April 11, 2023, Board of Directors Study Session meeting and received comments and questions from the
Board. At the Special Meeting on May 9, 2023, Staff responded to the comments and questions from the Board. Staff are seeking comments and
suggestions from Citizen Advisory Committee (CAC) members on the attached preliminary budget. Staff will share your comments and
suggestions with the Board of Directors at the June Study Session. Staff will be requesting adoption of the two-year budget on June 26, 2023.
Recommendation
That the Citizens Advisory Committee provides comments and/or suggestions regarding the proposed preliminary Biennial Budget for the Fiscal
Years 2023-24 and 2024-25.
Analysis
The following are highlights of the proposed preliminary Biennial Budget for the FYs 2023-24 and 2024-25:
General Fund Revenue:
At the beginning of FY 2019-20 budget, the District created a General Fund to account for the unrestricted financial resources of the general
government. These unrestricted resources consist primarily of general property taxes and investment earnings. Staff is assuming a 2% increase
in property tax revenue each year. The proposed preliminary property tax revenues are $348,000 and $355,000 for FY 2023-24 and 2024-25,
respectively. Property tax revenues are unrestricted revenues previously recorded in the Solid Waste Fund for rate stabilization. Staff are
proposing the Board continue to transfer this revenue to the Solid Waste Fund through this budgetary process. If more revenue is received than
the budgeted amount at fiscal year-end, staff will make a recommendation to the Board of Directors to transfer the revenue to either the Solid
Waste or the Wastewater Fund.
Preliminary Budget FY 2023-24 (Attachment A):
The total preliminary budget for FY 2023-24 is $15,386,200. The Solid Waste Fund preliminary budget reflects a balanced budget of
$7,024,900 which includes the final 6% rate increase from the 2019 Solid Waste Rate Study adopted by the Board.
The Wastewater Fund reflects a balanced budget of $8,013,300 which includes the rates increase from the 2022 Sewer Rate Study adopted by
the Board.
The fiscal year 2023-24 preliminary personnel total budget is $3,785,800. This is a 13% increase from the FY 2022-23 adopted personnel
budget due to the following:
1. The February-to-February Consumer Price Index (CPI) for the Orange-Los Angeles-Riverside Counties is 5.1%. Last fiscal year, the
CPI was 7.4%, however, staff received a 5% Cost of Living Adjustment (COLA). To reduce the impact of not receiving the full cost-of-
Subject 4. Preliminary Biennial Budget Review for Fiscal Years 2023-24 and 2024-25
Meeting May 10, 2023 - Citizens Advisory Committee
Access Public
Type Discussion
Goals 8.3 Finance - Forecast revenues and expenditures
8.2 Finance - Adopt a balanced budget
8.0 Finance
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living adjustment, staff are requesting a 6% increase for the 2023-24 fiscal year. If a 5.1% Cost of Living Adjustment (COLA) is
approved by the Board, it will cost the District $127,900. A 6% COLA would add an additional $20,800, totaling $148,700.
2. Reclassification of the Code Enforcement Officer from part-time to a full-time position.
3. Five percent merit increase to employees who are eligible. There will be five employees that will not be eligible because they have
reached their maximum salary range in this fiscal year.
4. A new full-time Administrative Assistant position to assist the Engineering Department. The salary and benefits costs to add this
position for FY 23-24 and 24-25 are $85,000 and $91,000, respectively. These costs will be charged 100% to the administrative
wastewater fund salary and benefits. The new position will provide support to the District Engineer and the Engineering Technician.
The tasks include managing permit files for destruction, assisting with managing construction invoices, preparing written
correspondences, coordinating with other departments and primary sewer-related interface with the public.
5. A new part-time (PT) Accounting Clerk position to assist the Finance Department. The part-time position is not eligible for benefits.
The recruitment for this position will begin in January 2024, the half-year salary cost for this position is $15,000 and the FY 24-25 cost
is $32,000. The request for this part-time position is due to the following:
Over the last few years, in person audits have become remote audits. As a result, it requires all documents to be scanned and
uploaded to a portal to be audited. It is time consuming to scan, organize, label and file invoices, cash receipts, payroll
records, journal entries bank reconciliations, and all financial records.
Increase in payroll processing time due to policy changes and additional staffing over the years.
Increase in back-billing, requires time to research, gather billing information, and follow up on invoices and payment plans.
Increase in request for purchase orders. Finance staff are now generating purchase orders for all capital improvement project
agreements and change orders.
Finance is now overseeing assessments.
Budget Award Submission – The District is a Triple Crown Winner.
Future goals- Staff is currently tracking fixed assets on an Excel Spreadsheet. The goal is to track fixed assets in software.
The fiscal year 2023-24 preliminary Operations and Maintenance total budget is $9,837,400, excluding transfers out, programs and capital
improvement projects. This is a 7% increase from the FY 2022-23 adopted O&M budget due to the following significant new or increase in
projects or events:
Description Cost
Citizen Wide Survey $45,000
Classification and Compensation Study $50,000
Bilingual Translation Services $5,000
Comprehensive Parcel and Levy Audit (County Assessments)$21,500
Springbrook Cloud Migration Upgrade $20,000
Permit & Fixture Fee Study $25,000
New IT Projects $18,700
On-site IT Manager $44,400
Solid Waste Rate Study $55,000
Contractual Engineering, Plan Check and Inspection Services $147,000
CR&R 5% Cost of Living Adjustment Increase $270,400
Three-cart System Communications Campaign & Consulting $150,000
Solid Waste Rate Study Town Hall Meeting Postcards, Prop 218 Notices $33,000
Pump Station - Irvine & Harbor ArcFlash Electrical Repair $25,000
ArcFlash Study (4 Pump Stations)$52,500
777 Pump Station voltage monitor and display (10)$25,000
Pump Overhauls (3)$36,000
Liability Insurance $345,000
Asset Replacement $404,000
AV Project: Additional Mics & Optimize Equipment $20,400
IT Project: Server Replacement $13,500
Signage for HQ $8,000
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Crane Truck Replacement $191,000
Demolish District Yard Old Hitch Crafter Building $200,000
CR&R has submitted an annual solid waste rate adjustment request of 7.1% for the FY 2023-24. As stated in Section 3.4 of the First Amendment
to the Agreement dated January 27, 2023, the Hauler may propose an adjustment to the maximum the rates by multiplying each rate by the
percentage change in the CPI for All Urban Consumers in the Los Angeles Area, not seasonally adjusted ( CPI- U) — Los Angeles - Long Beach-
Anaheim for the twelve (12) month period ending in February. For the term of the agreement, the CPI request is capped at five percent (5%) per
year. The February-to-February 2023 CPI for Los Angeles-Long Beach-Anaheim area is 5.1%.
The FY 2023-24 preliminary budget includes 5% adjustment for the hauler, recycling, and organics rates. FY 2024-25 preliminary budget
includes 0.5% (half of a percent) COLA. A budget deficit will be created if a higher COLA percentage is applied for CR&R’s rates for FY 2024-25;
expenses will exceed revenues. Therefore, staff could only apply half of a percent COLA. The three-cart system will begin in the fiscal Year
2024-25 and there will be a new rate structure charged by CR&R. A Solid Waste Rate study is required and included in FY 2023-24. Below is a
table to compare the current rates to the 5% and 0.5% rate adjustments.
Staff estimates the FY 2022-23 year-end account to be 23,092 and increase 0.1% for FYs 2023-24 and 2024-25, 23,118 and 23,141,
respectively. Based on the previous data, the recycling tonnage has decreased over the years and has remained at 30,000 since FY 21-22. Staff
projects recycling tonnage will remain around 30,000. On the other hand, organics tonnage has fluctuated since the pandemic. Due to the
increase in the SB 1383 advertisement and education, staff projects a 3% and 5% increase in tonnage for FYs 203-24 and 2024-25 budget,
respectively.
The FY 2023-24 preliminary budget includes the 5% COLA, hauler cost of $3,103,200, recycling cost of $1,780,800 and organics costs of
$794,900. A 5% rate increase will cost the District $270,400.
The FY 2024-25 preliminary budget includes the 0.5% COLA, hauler cost of $3,122,400, recycling cost of $1,789,300 and organics costs of
$838,800. A 0.5% rate increase will cost the District $ 29,100.
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Preliminary Budget FY 2024-25 (Attachment B):
The total preliminary budget for FY 2024-25 is $15,484,800. This budget year does not include rate increases; however, 0.1% of new accounts
for services are added. The Solid Waste Fund preliminary budget reflects a balanced budget of $7,028,600 and it does not include a rate
increase. A Solid Waste Rate study in FY 2023-24 will determine if a rate adjustment is needed in FY 24-25. Staff will propose a budget
amendment to the Board of directors if a rate adjustment is needed. The Wastewater Fund reflects a balanced budget of $8,101,200.
The fiscal year 2024-25 preliminary personnel total budget is $4,061,800. This is a 7% increase from the FY 2023-24 preliminary budget. The
FY 2024-25 preliminary budget does not include any new positions or changes in personnel that were not requested in the prior fiscal year.
There is an estimated Cost of Living Adjustment (COLA) of 5% included and a 5% merit increase for employees who are eligible. There will be
six employees that will not be eligible because they have reached their maximum salary range in this fiscal year.
The fiscal year 2024-25 preliminary Operations and Maintenance total budget is $9,799,000 excluding transfers out, programs and capital
improvement projects. This is less than 1% increase from the FY 2023-24 preliminary O&M budget because there were less studies required to
be conducted. The most significant events in FY 2024-25 will be the new three-cart system and the new rate structure set by CR&R.
Capital Outlay
The preliminary budget for FY 2023-34 includes a request of $46,400 for the Administration Capital Outlay budget to replace a rooftop air
conditioning curb unit, update AV project, replace IT server, and add signage for headquarters. The District Yard Capital Outlay budget requests
a total of $391,000 to demolish the old hitch crafter building at the District Yard and to replace the crane truck. The budget request to replace the
crane truck is $191,000. The District has set aside $170,000 in the Asset Replacement Fund over the years to replace the crane truck. Staff is
requesting to transfer $170,000 from the Asset Replacement Fund to the Wastewater Fund to help cover the cost.
The preliminary budget for FY 2024-25 includes a request of $50,000 for the Administration Capital Outlay budget to start the second phase of
the HQ Landscape project. Staff is requesting to transfer $50,000 from the Facilities Revolving Fund to support the second phase of the HQ
Landscape project. The Board had approved the use of the Facilities Revolving Fund in the first phase of the HQ Landscape project. The District
Yard Capital Outlay budget requests a total of $500,000 to replace the 10-year-old combo cleaning truck. The District has set aside $400,000 in
the Asset Replacement Fund over the last 10 years to replace the truck. Staff are requesting to transfer $400,000 from the Asset Replacement
Fund to the Wastewater Fund to help cover the cost.
Programs
Staff is requesting to continue the Battery Recycling Program with the budget of $20,000 for each budget year
Capital Improvement Projects (CIP)
The total budget of the preliminary Capital Improvement Projects (CIP) for fiscal years 2023-24 and 2024-25 are $1,433,000 and $1,911,000,
respectively. At the March 23, 2023 Board Meeting, the Board of Directors approved to transfer $622,300 from the Asset Management Fund, into
the Wastewater fund and appropriate $622,300 to CIP # 341, Elden Force Main Redundancy. This action caused the level of Reserves in the
Asset Management Fund to fall below $5 million. Therefore, during this budget cycle, staff is requesting to transfer $480,000 and $143,000, in
FYs 2023-24 and 2024-25, respectively, from the Wastewater fund to the Asset Management Fund.
Capital Improvement Projects ( * New Projects)FY 2023-24 FY 2024-25
City MH Adjustment Program #309 $20,000 $45,000
Manhole Cover Repairs #311 50,000 25,000
President PS Rehab #318 53,000 -
Brick Manhole Rehab Ph 2 #324 164,000 81,000
Calcium Removal Ph 1 #327 125,000 100,000
Aviemore Force Main Repl #329 85,000 -
Westbluff PS Rehab #330 50,000 -
Gisler Force Main Repl #334 480,000 -
Sewer Siphon Lining #335 50,000 -
Grade 4 Sewer Repairs #336 25,000 300,000
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Air-Vac Rehab and Removal #337 65,000 -
21st Street FM Rehab #339 21,000 220,000
* Sea Bluff PS 46,000 355,000
* Harbor Generator Project 104,000 420,000
* Elden Odor Project 95,000 -
* California Force Main Rehab -200,000
* Mendoza FM Rehab & Redundancy -165,000
Total $1,433,000 $1,911,000
At the April 11, 2023 Study Session, the Board asked Staff to provide additional information on the following items:
1. Long-Term CalPERS employer contribution costs
The District contracts with California Public Employees’ Retirement System (CalPERS) for District employees to become members of
the CalPERS retirement system. CalPERS retirement is governed by the Public Employees’ Retirement Law (PERL). Employees hired
on or before July 1, 2011 are enrolled in the Classic plan, 2% at 55. Employees hired between July 1, 2011 to December 31, 2012 are
enrolled in the Classic Tier 2 plan, 2% at 60. Employees hired after January 1, 2013 are enrolled in the Public Employees’ Pension
Reform Act (PEPRA) plan, 2% at 62. Employees pay the employee contribution, and the District pays the employer contribution. The
employer’s contribution rates are different for each plan and could vary from year to year. Over the last ten years, the employer’s
contribution rates fluctuated between 9.3% and 13.26% for the Classic plan, 7.5% and 10.87% for the Classic Tier 2 plan and 6.7% and
8% for the PEPRA plan. Staff projects the employer’s contribution rates will continue to increase approximately 2% to 3.17% for each
plan in the next ten years. In addition, staff assumes each position will get a 5% annual merit and a 5% COLA increase each year. The
employer’s contribution rates multiplied by the employees' annual salaries equal the annual employer contribution costs.
The estimated year-end employer contribution cost for FY 2022-23 for current staff is $256,600. Staff estimates the employer
contribution for all current staff and two new positions, the Administrative Assistant, and the Office Specialist, will be $295,500 in FY
2023-24 and will increase to $604,900 by FY 2032-33.
2. Classification and Compensation Study Cost
Staff has contacted the City of Costa Mesa Human Resources Department to inquire on the City’s classification and compensation study.
The City has not completed a classification and compensation study in recent years. However, in 2021, the Mesa Water District hired Koff
and Associates firm to conduct a District-wide classification and compensation study of fifty-five budgeted positions (31 classifications) for
$65,000.
3. Special District Risk Management Authority (SDRMA) Experience Modification Factor (EMOD) and Workers Compensation Costs
The Experience Modification Factor for FY 2022-23 was 165% and has decreased to 146% in FY 2023-23. However, the estimated
workers compensation costs have increased from $91,700 to $109,800 for FY 2022-23 and 2023-24, respectively, mainly due to
increases in salaries. Staff budgeted $110,000 per year for workers’ compensation for FYs 2023-24 and 2024-25.
4. Manufacture for the 777 Pump Station
The voltage monitor relay is a model 777 with a monitor display model RM1000. The unit is manufactured by Littlefuse (formerly known
as Symcom). Model 777 is a fully programmable electronic overload relay designed to monitor three phase systems. It can be used as a
standalone product, or the communication port can be used to form a network and monitor the motors from a laptop or desktop computer.
5. Funding for the demolition of the old hitch crafter building at the District Yard
Staff has discussed with the District Counsel to use the Facilities Revolving Fund to support the demolition of the District Yard Old Hitch
Crafter Building. The Headquarters and District Yard have been identified as serving the needs of all residents, so amounts collected are
related to a facility that is of benefit to the person who contributed the money. In the past, the District has used the Facilities Revolving
Fund to support the purchase and installation of the Solar Panels, purchase of the 290 Paularino building and the Drought Tolerant
Landscape project. Staff has updated the budget and requested to transfer $200,000 from the Facilities Revolving Fund to support the
demolition of the District Yard Old Hitch Crafter Building.
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6. Additional Updates
Robin B. Hamers & Associates (RBH) submitted a request to increase the Civil Engineering rates by 10% and Inspection rates by
14.35%. The Inspection rates are based on the current prevailing wage increases, which have increased 14.35% over the last 18
months. Staff will bring this item to the Board at a later Board meeting for Board approval. For budgeting purposes, staff has increased
the budget for the contractual Engineering and Inspection services to reflect the rate increase request. It will cost the District an additional
$24,500 and $20,800 for FY 2023-24 and 2024-25, respectively. Staff has reviewed the budgets and made some adjustments to maintain
balanced budgets.
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 report attachments include details for the following:
Attachment A - Preliminary Budget FY 2023-24
Attachment B- Preliminary Budget FY 2024-25
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the May 10, 2023 at the Citizens Advisory Committee
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
Attachment A - 2023-24 Preliminary Budget.pdf (2,483 KB)
Attachment B - 2024-25 Preliminary Budget.pdf (1,679 KB)
CRR Rates.jpg (29 KB)
CRR Historical Data.jpg (51 KB)
23-24 CRR.jpg (42 KB)
24-25 CRR.jpg (34 KB)
Est CalPERS Employer Costs.jpg (168 KB)
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C. CLOSING ITEMS
Subject 1. Committee Member Comments
Meeting May 10, 2023 - Citizens Advisory Committee
Access Public
Type Presentation
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C. CLOSING ITEMS
Subject 2. Board/Staff Comments
Meeting May 10, 2023 - Citizens Advisory Committee
Access Public
Type Presentation
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C. CLOSING ITEMS
The next Citizens Advisory Committee meeting will be held at 6:00 p.m. on Wednesday, July 12, 2023 in the District's Boardroom, located at 290
Paularino Avenue, Costa Mesa, CA 92626.
Subject 3. Adjournment
Meeting May 10, 2023 - Citizens Advisory Committee
Access Public
Type Procedural