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Monday, May 22, 2023
Board of Directors Regular Meeting
Time: 4:30 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 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.)
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.
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6. Ceremonial Matters and Presentations
B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items
within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda.
Members of the public will have the opportunity to address the Board of Directors about all other items on this
agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is
prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The
Board of Directors will respond after public comment has been received. Please state your name. Each speaker
will be limited to four (4) continuous minutes.
1. Public Comments
C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be
acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for
discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in
the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4)
continuous minutes of comment on the consent calendar as a whole.
1. Approve Consent Calendar
2. Approve the Board of Directors Study Session Minutes of April 11, 2023
3. Approve the Board of Directors Regular Meeting Minutes of April 24, 2023
4. Adopt Warrant Resolution No. CMSD 2023-11 Approving District Warrant Registers
5. Approve Payroll Transparency Disclosure for April 2023
6. Receive and File the April 2023 Organics Tonnage Report
7. Approve the Directors' Compensation and Reimbursement of Expenses
8. Accept the occupancy count as presented as 23,095 and direct staff to prepare a warrant to CR&R Environmental Services
for $246,047.20 for April 2023 collection.
9. Receive and File April 2023 Contracts Signed by the General Manager
10. Receive and File the April 2023 Solid Waste Diversion Report
11. Approve the preparation of a warrant to CR Transfer in the amount of $184,678.94 for April 2023 in the May 2023
warrant register
12. Approve the Investment Report for the Month of April 2023
D. PUBLIC HEARINGS
E. GENERAL MANAGER'S REPORTS
1. Preliminary Biennial Budget 3rd Review for Fiscal Years 2023-24 and 2024-25
2. Consider Approving District Counsel's Request for Compensation Increase
3. Consider Approving sending Mark Esquer, District Engineer, Steve Cano, Wastewater Maintenance Superintendent and
Alex Arreola, Wastewater Maintenance Worker II and Tony Gomez, SCADA Technician/Industrial Electrician to the 38th
Annual Tri-State Seminar in Las Vegas, Nevada
4. Consider Approving Contribution Program Application for Save Our Youth (SOY) 30th Anniversary Gala
5. Receive and File Government Investing 101 Report
6. Approve Auditor Engagement Letter for Fiscal Year 2022-23 Audit
F. ENGINEER'S REPORTS
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1. Receive and File the District Engineer's Report and Capital Improvement Projects Status
2. Consider Approving New Rates with Robin B. Hamers & Associates for Engineering, Inspection, and Contract
Administration Services
3. Ratify the GCI Agreement for the P335 Sewer Siphon Phase 2 Emergency Pipeline Failure
G. TREASURER'S REPORTS
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. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030
J. OLD BUSINESS
K. NEW BUSINESS
L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
1. Oral Communications and Director Comments
M. ADJOURN TO CLOSED SESSION
N. RECONVENE TO OPEN SESSION
O. CLOSING ITEMS
1. Adjourn
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Monday, May 22, 2023
Board of Directors Regular Meeting
Time: 4:30 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 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 May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Procedural
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A. OPENING ITEMS
Subject 2. Pledge of Allegiance - President Scheafer
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Procedural
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A. OPENING ITEMS
Subject 3. Invocation - Vice President Schafer
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Procedural
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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 May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Procedural
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A. OPENING ITEMS
Subject 5. Announcement of Late Communications - Unless directed otherwise by the
Board of Directors, all actions shall be based on/memorialized by the latest
document submitted as a late communication.
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Procedural
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A. OPENING ITEMS
Subject 6. Ceremonial Matters and Presentations
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Procedural
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B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to
make comments on items within the subject matter jurisdiction of the Costa Mesa
Sanitary District that are not listed on this agenda. Members of the public will have
the opportunity to address the Board of Directors about all other items on this
agenda at the time those items are considered. Under the provisions of the Brown
Act, the Board of Directors is prohibited from taking action on oral requests but may
refer the matter to staff or to a subsequent meeting. The Board of Directors will
respond after public comment has been received. Please state your name. Each
speaker will be limited to four (4) continuous minutes.
Subject 1. Public Comments
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Procedural
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to
be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
Subject 1. Approve Consent Calendar
Meeting May 22, 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.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to
be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Gina Terraneo, Management Analyst II
Date: May 22, 2023
Subject: Approve the Board of Directors Study Session Minutes of April 11, 2023
Summary
The recorded minutes of the April 11, 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 April 11, 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 May 22, 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 2. Approve the Board of Directors Study Session Minutes of April 11, 2023
Meeting May 22, 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 Apr 11, 2023 - Board of Directors Study Session
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File Attachments
minutes_2023_04_11_ss.pdf (183 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.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to
be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Gina Terraneo, Management Analyst II
Date: May 22, 2023
Subject: Approve the Board of Directors Regular Meeting Minutes of April 24, 2023
Summary
The recorded minutes of the April 24, 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 April 24, 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 May 22, 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 3. Approve the Board of Directors Regular Meeting Minutes of April 24, 2023
Meeting May 22, 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 Apr 24, 2023 - Board of Directors Regular Meeting
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File Attachments
minutes_2023_04_24_rm.pdf (225 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.
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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: Sean Phan, Associate Accountant
Date: May 22, 2023
Subject: Adopt Warrant Resolution No. CMSD 2023-11 Approving District Warrant Registers
Summary
Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were
paid.
Recommendation
That the Board of Directors approve and file the report.
Analysis
Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were
paid.
Legal Review
Not Applicable.
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et.
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of
the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not
include .... C. Continuing administrative or maintenance activities."
Financial Review
Sufficient funds are available in the adopted budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 22, 2023 Board of Directors Regular meeting
at District Headquarters and posted on the District’s website www.cmsdca.gov.
Alternative Actions
Subject 4. Adopt Warrant Resolution No. CMSD 2023-11 Approving District Warrant
Registers
Meeting May 22, 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 2023-11 approving District
warrants for the month of April in the amount of $883,951.41.
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Refer item back to staff with further instructions.
File Attachments
WARRANT RESO 2023-11.pdf (237 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.
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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: Sean Phan, Associate Accountant
Date: May 22, 2023
Subject: Approve Payroll Transparency Disclosure for April 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 Section21000 et.
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of
the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not
include .... C. Continuing administrative or maintenance activities."
Financial Review
Sufficient funds are available in the adopted budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 22, 2023 Board of Directors Regular meeting
at District Headquarters and posted on the District’s website www.cmsdca.gov.
Subject 5. Approve Payroll Transparency Disclosure for April 2023
Meeting May 22, 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 8.0 Finance
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Alternative Actions
Refer item back to staff with further instructions.
File Attachments
Payroll Transparency Disclosure April 2023.pdf (171 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.
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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 Caroll, General Manager
From: Evan Schneider, Solid Waste Intern
Date: May 22, 2023
Subject: Receive and File the April 2023 Organics Tonnage Report
Summary
A total of 846.33 tons of organic waste were collected in April 2023.
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 6. Receive and File the April 2023 Organics Tonnage Report
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Recommended
Action
That the Board of Directors receive and file this report.
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Legal Review
Not applicable.
Environmental Review
Consideration of the Organics Tonnage Report is an administrative matter and not a disturbance of the environment similar to grading or
construction and not a project under CEQA or the District’s CEQA Guidelines.
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the May 22, 2023 Board of Directors Regular meeting at
District Headquarters and posted on the District’s website.
Alternative Action
1. Direct staff to report back with more information.
File Attachments
Orangics.png (9 KB)
Organics Tonnage.png (14 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.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to
be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Noelani Middenway, District Clerk & Public Information Officer
Date: May 22, 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 May 22, 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
Subject 7. Approve the Directors' Compensation and Reimbursement of Expenses
Meeting May 22, 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.
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board_pr.pdf (497 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.
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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: Evan Schneider, Solid Waste Intern
Date: May 22, 2023
Subject: Accept the occupancy count as presented as 23,095 and direct staff to prepare a warrant to CR&R Environmental Services for
$246,047.20 for April 2023 collection.
Summary
Accept the occupancy count as presented using 23,095 as the correct number of active units and direct staff to prepare a warrant to
CR&R Environmental Services for April 2023 collection based on this occupancy report so long as the contractor fulfills the obligations of the
agreement in the amount of $246,047.20 to be ratified in the May 2023 warrant list.
Recommendation
That the Board of Directors accept the occupancy count as presented using 23,095 as the correct number of active units and direct staff to
prepare a warrant to CR&R Environmental Services for April 2023 collection based on this occupancy report so long as the contractor fulfills the
obligations of the agreement in the amount of $246,047.20 to be ratified in the May 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 April 30, 2023, total District occupancy was at 23,095 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 April 2023:
23,095 x $10.6537 =$246,047.20
Subject 8. Accept the occupancy count as presented as 23,095 and direct staff to prepare
a warrant to CR&R Environmental Services for $246,047.20 for April 2023
collection.
Meeting May 22, 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 23,095 as the
correct number of active units and direct staff to prepare a warrant to CR&R Environmental
Services for April 2023 collection based on this occupancy report so long as the contractor
fulfills the obligations of the agreement in the amount of $246,047.20 to be ratified in the
May 2023 warrant list.
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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.
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 the May 22, 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
2023-04-G Occupancy Report.pdf (63 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.
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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.
No contracts signed in the month of April 2023.
Purchase Order:
1. GCI Construction, Inc. – Project 342, Install new HQ sewer lateral connection and stub out for HQ building on public sewer.
Cost: $4,500.00
2. EJ USA, Inc, - Project 309, Purchase 36” composite manhole frame and cover
Cost: $2,430.25
3. John Dickens Inc. – Project 342, Provide 12’x 8’ concrete slab for the construction of a storage shed.
Cost: $4,500.00
4. Minuteman Press – Prepare and mail postcards (19,651) for publicly noticing FY 2023-24 Solid Waste Rate increase.
Cost: $8,398.38
5. Infosend, Inc. – Prepare and mail postcards (26,410) for publicly noticing FY 2023-24 Wastewater Rate increase.
Cost: $11,500.56
Subject 9. Receive and File April 2023 Contracts Signed by the General Manager
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Recommended
Action
That the Board of Directors receive and file this report
Goals 6.0 Administrative Management
To: Board of Directors
From: Scott Carroll, General Manager
Date: May 22, 2023
Subject: Receive and File April 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 April 2023.
Recommendation
That the Board of Directors receive and file this report.
Analysis
The following contracts were signed by the general manager in April 2023.
Contract:
Legal Review
Not applicable
Environmental Review
Providing the Board of Directors a monthly list of contracts signed by the General Manager is an administrative matter that will not result in direct
or indirect physical changes in the environment and is not considered a "project".
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Financial Review
There is adequate funding in the budget to perform the contract services mentioned above.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the May 22, 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.
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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: Evan Schneider, Solid Waste Intern
Date: May 22, 2023
Subject: Receive and File the April 2023 Solid Waste Diversion Report
Summary
A total of 1,861.35 tons of solid waste was collected and recycled in April 2023.
Recommendation
That the Board of Directors receive and file this report.
Analysis
A total of 1,861.35 of solid waste was collected and recycled in April 2023.
For the current fiscal year to date, a total of 19,207.20 tons of solid waste have been recycled and the District diversion rate is 61%.
Subject 10. Receive and File the April 2023 Solid Waste Diversion Report
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Recommended
Action
That the Board of Directors receive and file this report.
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Legal Review
Not applicable.
Environmental Review
Consideration of the Solid Waste Report is an administrative matter and not a disturbance of the environment similar to grading or construction
and not a project under CEQA or the District’s CEQA Guidelines.
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the May 22, 2023 Board of Directors Regular meeting at
District Headquarters and posted on the District’s website.
Alternative Action
File Attachments
Tonnage Table.png (48 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.
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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: Evan Schneider, Solid Waste Intern
Date: May 22, 2023
Subject: Approve the preparation of a warrant to CR Transfer in the amount of $184,678.94 for April 2023 in the May 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 $184,678.94 for April 2023 recycling and
disposal services in the May 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 44563 70.21 $56.52 $3,968.26
Residential Waste - Costa Mesa 44562 2032.76 $56.52 $114,891.58*
Total Residential Waste 2,102.97 $118,859.84
Subject 11. Approve the preparation of a warrant to CR Transfer in the amount of
$184,678.94 for April 2023 in the May 2023 warrant register
Meeting May 22, 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 $184,678.94 for April 2023 recycling and disposal services in the May 2023
warrant register.
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Organics Recycling Waste 44598 846.33 $77.77 $65,819.10*
Total Organics 846.33 $65,819.10
Grand Total 2,949.30 $184,678.94
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 May 22, 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.
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C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to
be routine and may be acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for discussion. Reading of
resolutions is waived and they will be adopted and numbered. Now is the time for
those in the audience who wish to speak to items listed on the consent calendar.
Each speaker will be limited to four (4) continuous minutes of comment on the
consent calendar as a whole.
To: Board of Directors
From: Marc Davis, District Treasurer
Date: May 22, 2023
Subject: Approve the Investment Report for the Month of April 2023
Summary
Attached is the Investment Report for the month of April 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 April 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 April 30, 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 April 30, 2023, was 2.054%. The yield to
maturity of the portfolio was 2.053%. The District’s weighted average interest rate was 84 basis points (0.836%) below the LAIF rate of 2.890%
as of April 30, 2023. The weighted average number of days to maturity for the District’s total portfolio was 621 days (1.70 years). The duration of
the underlying securities in LAIF as of April 30, 2023 was 269 days.
The District’s investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must
mature within one year. The percentage of the portfolio maturing in one year or less as of April 30, 2023 was 42.08%. 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.
Subject 12. Approve the Investment Report for the Month of April 2023
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action (Consent)
Recommended
Action
That the Board of Directors approve the Investment Report for the month of April 2023.
Goals 8.0 Finance
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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.
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 April 30, 2023, the portfolio has
earned a weighted average interest rate of 1.452%.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the May 22, 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 - April 2023.pdf (679 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.
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E. GENERAL MANAGER'S REPORTS
To: Board of Directors
Via: Scott Carroll, General Manager
From: Kaitlin Tran, Finance Manager
Date: May 22, 2023
Subject: Preliminary Biennial Budget 3 Review for Fiscal Years 2023-24 and 2024-25
Summary
The attached Proposed Preliminary Biennial Budget for the Fiscal Years (FY) 2023-24 and 2024-25 was submitted to the Board of Directors for
review at the April and May 2023 Study Sessions. Staff were directed to provide additional information regarding the following areas:
1. Classification and Compensation Study Cost
2. Robin B. Hamers & Associates (RBH) Rate Adjustments Request
3. Crane Truck Usage and Condition
After further discussion during this meeting, the two-year budget will be brought back with the Board's recommendations incorporated to the
June 2023 Study Session, if necessary. Staff will be requesting adoption of the two-year budget on June 26, 2023.
Recommendation
That the Board of Directors provide feedback to staff regarding the proposed preliminary Biennial Budget for the Fiscal Years 2023-24 and 2024-
25.
Analysis
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 and a 0.1% increase in new accounts for
services. Property tax revenues are unrestricted revenues previously recorded in the Solid Waste Fund for rates stabilization. Staff are proposing
the Board continue to transfer this revenue to the Solid Waste Fund through this budgetary process. The proposed preliminary property tax
revenues are $348,000 and $355,000 for FY 2023-24 and 2024-25, respectively. 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 and a 0.1% increase in new accounts for
services.
Capital Outlay FY 2023-34
The preliminary budget for FY 2023-34 includes a request of $46,400 from the Administration Capital Outlay budget to replace a rooftop air
conditioning curb unit, update AV project, replace IT server, and add signage for headquarters. Staff has discussed with the District Counsel
using the Facilities Revolving Fund to support the request for demolition of the old Hitch Crafter building located at the District Yard. The
Headquarters and District Yard have been identified as serving the needs of all residents. Amounts collected in the Facilities Revolving Fund are
Subject 1. Preliminary Biennial Budget 3rd Review for Fiscal Years 2023-24 and 2024-25
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Discussion
Goals 8.6 Finance - Develop a long-term Capital Improvement Plan (CIP)
8.4 Finance - Maintain appropriate reserve levels
8.3 Finance - Forecast revenues and expenditures
8.2 Finance - Adopt a balanced budget
8.0 Finance
rd
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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 are requesting to transfer $200,000 from the Facilities Revolving Fund to the Wastewater Fund to support the District Yard Capital Outlay
budget request for demolition of the DY old hitch crafter building.
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 for the Solid Waste and the
Wastewater Funds; however, 0.1% of new accounts for services are added. The Solid Waste Fund preliminary budget reflects a balanced
budget of $7,028,600. The most significant events in FY 2024-25 will be the new three-cart system and the new rate structure set by CR&R. 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.
Capital Outlay FY 2024-25
The preliminary budget for FY 2024-25 includes a request for $50,000 for the Administration Capital Outlay budget to start the second phase of
the HQ Landscape project. Staff are requesting to transfer $50,000 from the Facilities Revolving Fund to the Wastewater 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 the transfer of
$400,000 from the Asset Replacement Fund to the Wastewater Fund to help cover the cost.
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 are requesting to transfer $2,000,000 and $2,054,000,
in FYs 2023-24 and 2024-25, respectively, from the Wastewater fund to the Asset Management Fund.
At the May 9, 2023 Study Session, the Board asked Staff to provide additional information on the following items:
1. Classification and Compensation Study Cost
A classification and compensation study is an investment an organization makes in its employees. It is important that job descriptions are
more reflective of the actual work being done by employees. The purpose is to ensure that jobs with comparable minimum qualifications,
job responsibilities, supervisory expectations, working conditions and environments are grouped closely in a compensation plan and to
ensure salary ranges are competitive within the identified market. Staff has reviewed the request for proposal and contacted consulting
firms for a precise cost estimate. To complete a study similar to the 2019 scope, the cost would be approximately $30,000, depending on
on-site visits required. Costs will be less if the District conducts the study remotely. Staff has reduced the classification and
compensation study from $50,000 to $30,000 in the Professional Services account.
2. Robin B. Hamers & Associates (RBH) Rate Adjustments Request
On April 19, 2023, Robin B. Hamers & Associates (RBH) submitted a request to increase the Civil Engineering rate by 10% and
Inspection rate by 14.35% to be effective on July 1, 2023. Staff has countered RBH firm with a 12% rate increase for inspection and an
8% rate increase in Civil Engineering and Administrative. Robin B. Hamers & Associates countered staff an 11% rate increase for
inspection for a 12-month period (FY 2023-24) and will submit a separate rate increase for the inspector position in FY 2024-25. The
future inspection rate increase will be based on the State Prevailing wage increase. For the Civil Engineering and Administrative rates,
RBH is asking for an 8% rate increase FY 2023-24 and a 2% rate increase FY2024-25. Staff will bring this item to the Board at the June
Board meeting for Board approval. For budgeting purposes, staff has increased the budget for the contractual Engineering and
Inspection services to reflect the rate increases requested. It will cost the District an additional $24,500 and $20,800 for FY 2023-24 and
2024-25, respectively.
3. Crane Truck Usage and Condition
After the May Study Session, staff reviewed the condition of the crane truck and decided the replacement could be delayed for two years.
The District purchased the 2013 crane truck in October of 2013 for $169,114. The crane truck is being used 2-5 times a month to pull the
pumps for inspections. The crane truck gets BIT inspection every 3 months and preventative maintenance every 6 months. Staff has
removed the replacement of the crane truck from the FY 2023-24 Preliminary Budget.
On May 10, 2023, the Citizens Advisory Committee (CAC) reviewed the Preliminary Biennial Budget for the Fiscal Years (FY) 2023-24 and 2024-
25. The CAC had no recommended changes to the proposed budget.
Legal Review
Not applicable.
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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
Please see the attached reports for more detailed information.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the May 22, 2023 Board Meeting at District Headquarters
and on District website at www.cmsdca.gov.
Alternative Actions
1. Direct staff to bring back the Preliminary Biennial Budget for the Fiscal Years 2023-24 and 2024-25 to the June 13, 2023 Study Session
for further discussion.
File Attachments
Attachment A - 2023-24 Preliminary Budget.pdf (1,303 KB)
Attachment B - 2024-25 Preliminary Budget.pdf (1,707 KB)
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E. GENERAL MANAGER'S REPORTS
To: Board of Directors
From: Scott Carroll, General Manager
Date: May 22, 2023
Subject: Consider Approving District Counsel's Request for Compensation Increase
Summary
The last compensation increase the Board approved for District Counsel was in 2019. District Counsel is requesting an hourly rate increase to
compensate rising expenses due to inflation.
Recommendation
That the Board of Directors approves District Counsel's request for compensation increase.
Analysis
District Counsel is requesting Board approval to increase his hourly rate from $214.00 to $235.00 an hour, a 10% increase since 2019. The
consumer price index for the Los Angeles-Long Beach-Anaheim-Riverside areas is 1.6% (2020), 3.8% (2021) and 8% (2022) for a total of 13.4%
for the combined three years.
District Counsel's proposed hourly rate is less than the average hourly rate for government lawyers in California, according to Clio. The average
hourly rate for government lawyers in California is $328.00 an hour. See attachment.
If approved by the Board, the new hourly rate will go into effect on July 1, 2023.
Legal Consultant Current
Rates
New Rates (Effective July 1,
2023)
Partner & Senior
Attorney $ 214 $ 235
Associate Attorney $ 157 $ 173
Law Clerk $ 97 $ 107
Paralegal $ 89 $ 98
Legal Review
Not applicable
Environmental Review
Considering a compensation increase for District Counsel 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
District Counsel's proposed rate is taken into account in the FY 2023-24 & 2024-25 preliminary budget, so the budget will not be impacted if the
Board chooses to approve the request.
Subject 2. Consider Approving District Counsel's Request for Compensation Increase
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action
Recommended
Action
That the Board of Directors approves District Counsel's request for compensation increase.
Goals 6.0 Administrative Management
8.0 Finance
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Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 22, 2023 Board of Directors Regular
Meeting at District Headquarters and posted on the District’s website.
Alternative Actions
1. Approve an hour rate that's less than $235.00 an hour
2. Do not approve District Counsel's request for compensation increase.
3. Direct staff to report back with more information.
File Attachments
Clio.pdf (193 KB)
20230509 CMSD -Director Increases 2023. final.pdf (138 KB)
20230509 CMSD- Amendment to Agreement for Legal Services final.pdf (9 KB)
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E. GENERAL MANAGER'S REPORTS
To: Board of Directors
From: Scott Carroll, General Manager
Date: May 22, 2023
Subject: Consider Approving sending Mark Esquer, District Engineer, Steve Cano, Wastewater Maintenance Superintendent and
Alex Arreola, Wastewater Maintenance Worker II and Tony Gomez, SCADA Technician/Industrial Electrician to the 38th Annual Tri-State
Seminar in Las Vegas, Nevada
Summary
The Tristate Seminar is a group of water and wastewater professionals from Arizona, Nevada and California that meet once a year to share the
latest information and technology in the industry. The conference is supported by the California Water Environment Association (CWEA),
Nevada Water Environment Association (NWEA) and Arizona Water Association (AWA).
Recommendation
That the Board of Directors approve sending Mark Esquer, District Engineer, Steve Cano, Wastewater Superintendent and Alex Arreola,
Wastewater Maintenance Worker II, and Tony Gomez, SCADA Technician/Industrial Electrician to the 38th Annual Tri-State Seminar in Las
Vegas, Nevada on August 7-10, 2023.
Analysis
This four day conference focuses on the water and wastewater industry. For wastewater collections, some of the topics that will be discussed
include the following:
Odor Control
Using Acoustic Inspections
Asset Management
Root Control
Confine Space Rescue
Reducing Corrosion, Infiltration, Inflow and Odors in Manholes
In addition, there will be 300 exhibitors showcasing the latest technologies in the wastewater industry. Board approval is needed because this
conference is being held out of California. Mr. Cano will provide the Board a summary of his experience and lessons learned at the seminar
upon his return.
Legal Review
Not applicable
Environmental Review
Subject 3. Consider Approving sending Mark Esquer, District Engineer, Steve Cano,
Wastewater Maintenance Superintendent and Alex Arreola, Wastewater
Maintenance Worker II and Tony Gomez, SCADA Technician/Industrial Electrician
to the 38th Annual Tri-State Seminar in Las Vegas, Nevada
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action
Recommended
Action
That the Board of Directors approve sending Mark Esquer, District Engineer, Steve Cano,
Wastewater Superintendent and Alex Arreola, Wastewater Maintenance Worker II, and Tony
Gomez, SCADA Technician/Industrial Electrician to the 38th Annual Tri-State Seminar in Las
Vegas, Nevada on August 7-10, 2023.
Goals 1.0 Sewer Infrastructure
7.0 Human Resources Management
7.4 Human Resources Management - Provide opportunities to improve individual skills,
knowledge, and leadership through professional development
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Attendance at a seminar is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a
project under CEQA or the District’s CEQA Guidelines.
Financial Review
The costs for staff to attend the Annual Tri-State Seminar is included in the FY 2023-24 preliminary budget. The FY 2023-24 proposed budget
will be presented to the Board of Directors for approval at the June 2023 meeting. The total cost for four employees to attend the
seminar is $4,600, which includes transportation, hotel, registration and food.
Registration $ 400
Lodging $ 1,950
Transportation $ 1,450
Meals $ 800
Total (4 attendees) $ 4,600
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the May 22, 2023 Board of Directors regular meeting at
District Headquarters and on District’s website at www.cmsdca.gov.
Alternative Actions
1. Do not approve sending any employee to the seminar.
2. Refer the matter back to staff for additional information.
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E. GENERAL MANAGER'S REPORTS
To: Board of Directors
Via: Scott Carroll, General Manager
From: Noelani Middenway, CMC, District Clerk/Public Information Officer
Date: May 22, 2023
Subject: Consider Approving Contribution Program Application for the Save Our Youth (SOY) 30th Anniversary Gala
Summary
On July 31, 2013, the Board of Directors approved implementing new procedures for sponsoring organizations and/or events. Staff is presenting
the Board of Directors with a Contribution Program Eligibility Application to provide a sponsorship of $2,500 for the Save Our Youth (SOY) 30th
Anniversary Gala to be held on Friday, June 16, 2023.
Recommendation
That the Board of Directors:
1. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling, source separation, and
wastewater collection through educational information and activities; and
Subject 4. Consider Approving Contribution Program Application for Save Our Youth (SOY)
30th Anniversary Gala
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action
Preferred Date May 22, 2023
Absolute Date May 22, 2023
Fiscal Impact Yes
Dollar Amount $2,500.00
Budgeted Yes
Budget Source 10-100100-4420 & 20-100100-4420 (Public Information/Education/Community Promotions
Sponsorships)
Recommended
Action
That the Board of Directors:
1. Approve the Costa Mesa Foundation's contribution application requesting a $2,500
sponsorship for the Concerts in the Park series of events; and
2. Make a finding that this contribution will increase District visibility and promote the
District's purposes of recycling, source separation, and wastewater collection through
educational information and activities provided at the District's event booth.
Goals 5.7 Community Outreach & Communications - Provide workshops, educational events
and special events
5.2 Community Outreach & Communications - Offer sustainable promotional products
4.7 Partnerships - Participate in community events to increase visibility
4.1 Partnerships - Build relationships with local agencies, small businesses, and non-
profit agencies to promote sustainable practices
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2. Consider approving the SOY contribution request of a $2,500 sponsorship.
Analysis
According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution
should be made:
Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory
powers or a power that would be incidental to those purposes. For example, District purposes include solid waste collection, recycling,
source separation, wastewater collection, and preventing sanitary sewer overflows (SSOs).
Describe how the contribution will advance the District's purpose.
In regards to these criteria, staff did contact the applicant, Outreach and Program Manager, Mr. Manuel Chavez, for additional details on how the
sponsorship would satisfy the the required criteria. Mr. Chavez's response was as follows:
"This is our 30th anniversary of serving and empowering Westside Costa Mesa NMUSD youth. This event is the annual SOY fundraiser with
over 200 participants that raises money for our center’s programs. SOY serves over 400 Costa Mesa students each year to provide them with
free academic tutoring, arts, music, dance, health & fitness programs. Being a fundraiser this event is geared to our donors, a majority of whom
live in the Newport Mesa area. We send out email blast to over 2,000 who live in Costa Mesa. All of the donors look at who sponsors and it
encourages them to utilize your services."
As stated in the attached documents, the $2,500 includes the following:
CMSD, and all SOY Gala sponsors to be listed in promotional materials, including the event program, emails, and social media (facebook
and instagram).
Legal Review
Not applicable.
Environmental Review
The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting the District is an administrative
matter and is not a disturbance of the environment, similar to grading or construction, and is not a project under CEQA or the District’s CEQA
Guidelines.
Financial Review
There are insufficient funds in the FY 22-23 Solid Waste and Wastewater Public Info/Education/Community Promotions accounts for this
sponsorship. A total of $725.00 remains in the Solid Waste fund, and $2,125.00 remains in the Wastewater fund. If this sponsorship is approved
as a "General Sponsorship", the fund split would be 50/50 between both solid waste ($362.50) and wastewater ($1062.50), allowing for a total
contribution of $1,425.00.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 22, 2023 Board of Directors Regular
Meeting at District Headquarters and posted on the District’s website.
Alternative Actions
1. Determine that no purpose exists for providing a sponsorship for the SOY 30th Anniversary Gala.
2. Approve an alternative sponsorship level of sponsorship.
File Attachments
30th Anniversary Gala - Save Our Youth.pdf (521 KB)
Costa Mesa Sanitary District Contribution Form.pdf (404 KB)
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E. GENERAL MANAGER'S REPORTS
To: Board of Directors
From: Scott Carroll, General Manager
Date: May 22, 2023
Subject: Receive and File Government Investing 101 Report
Summary
To ensure prudent and responsible management of public funds, the District has a policy to invest in its idle funds. Idle funds are money in an
account that does not earn interest. Common examples include uninvested cash and checking accounts. Idle funds are typically used for
everyday expenses. Many financial experts advise against keeping too much cash idle in order to get the maximum rate of return on assets. It is
also important not to invest too much idle cash, as it can be costly to tie up excessive capital only to need to sell those investments.
Recommendation
That the Board of Directors receive and file this report.
Analysis
The responsibility for placing investments rests with the Board of Directors. California Government Code Section 53607 allows the Board to
delegate the investment function to the District Treasurer for a period of one year. Marc Davis is the Board appointed District Treasurer. Mr.
Davis has more than thirty years of experience in governmental auditing, accounting and finance management. He is a Certified Public
Accountant (CPA) and has previously served as Acting Finance Director at both the City of Costa Mesa and the City of Buena Park. Mr. Davis
successfully prepared auditing services for many local , state and federal agencies, including the Department of Justice.
Mr. Davis is one of the founding partners of Davis Farr LLP, a full service CPA firm located in Irvine, California. Davis Farr LLP is listed in the
Orange County Business Journal as one of the top 25 CPA firms in Orange County and the firm was named by the Orange County Business
Journal as one the Best Places to Work in Orange County for three of the past four years.
Tonight, Mr. Davis will be giving a presentation to the Board of Directors about public investing.
Legal Review
Not applicable
Environmental Review
Reviewing the investment policy is not a "project" under the CEQA definition, so it is exempt from the provisions of CEQA.
Financial Review
There are financial impacts to the District for presenting the Investment Policy to the Board of Directors. The District pays hourly rate for Mr.
Davis time to prepare and present this report.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 22, 2023 Board of Directors regular meeting at
District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov.
Alternative Actions
1. Direct staff to report back with additional information.
Subject 5. Receive and File Government Investing 101 Report
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Discussion
Goals 8.0 Finance
8.5 Finance - Evaluate the District's Investment policy annually
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File Attachments
Investing Public Funds.pptx (320 KB)
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E. GENERAL MANAGER'S REPORTS
To: Board of Directors
Via: Scott Carroll, General Manager
From: Kaitlin Tran, Finance Manager
Date: May 22, 2023
Subject: Consider Approving the Auditor Engagement Letter for Fiscal Year 2022-23 Audit.
Summary
In preparation of the start of the June 30, 2023 audit, the auditors have issued an Auditor Engagement Letter (Attachment A) disclosing their
responsibilities under the U.S. Generally Accepted Auditing Standards and Government Auditing Standards, and the State Controller's Minimum
Audit Requirements for California Special Districts. The preliminary audit is scheduled for May 23, 2023 and the final audit will be scheduled for
early October 2023. The financial statements will be issued towards the end of the calendar year.
Recommendation
That the Board of Directors Accepts the Auditor Engagement Letter for Fiscal Year 2022-23 Audit and Authorize President Scheafer to Sign the
Engagement Letter on behalf of CMSD.
Analysis
The purpose of the Auditor Engagement Letter is to define the auditor’s responsibility, as described by professional standards, which is to
express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material
respects, in conformity with the U.S. Generally Accepted Auditing Standards and Government Auditing Standards, and the State Controller's
Minimum Audit Requirements for California Special Districts. The audit of our financial statements does not relieve you or management of your
responsibilities as stated in our engagement letter dated May 1, 2023 (Attachment A).
Legal Review
Not applicable.
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et.
seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of
the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not
include …. C. Continuing administrative or maintenance activities.”
Financial Review
The cost for the fiscal year 2022-23 audit per the contract is $15,000 which was included in the budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 22, 2023 Board of Directors Regular meeting
at District Headquarters and posted on the District’s website www.cmsdca.gov
Subject 6. Approve Auditor Engagement Letter for Fiscal Year 2022-23 Audit
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action, Receive and File
Budgeted Yes
Recommended
Action
That the Board of Directors Accepts the Auditor Engagement Letter for Fiscal Year 2022-23
Audit and Authorize President Scheafer to Sign the Engagement Letter on behalf of CMSD.
Goals 8.1 Finance - Achieve financial excellence awards
8.0 Finance
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Alternative Actions
Refer the matter back to staff for additional information.
File Attachments
Attachment A - 2023 Engagement Letter - N&N, PC.pdf (311 KB)
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F. ENGINEER'S REPORTS
To: Board of Directors
From: Mark Esquer, District Engineer
Date: May 22, 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-
April to mid-May. The District Engineer's memorandum and Monthly Financial 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 May 22, 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 1. Receive and File the District Engineer's Report and Capital Improvement
Projects Status
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action, Discussion
Preferred Date May 22, 2023
Fiscal Impact No
Budgeted Yes
Budget Source Operating Budget
Recommended
Action
Receive and File the District Engineer's Report and Capital Improvement Projects Status
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File Attachments
2023-05 Financial Section for CIP Updates.pdf (201 KB)
2023 05 Monthly Engineers Report CMSD Memorandum.pdf (194 KB)
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F. ENGINEER'S REPORTS
To: Board of Directors
From: Mark Esquer, District Engineer
Date: May 22, 2022
Subject: Consider Approving Updated Rates with Robin B. Hamers & Associates for Engineering, Inspection, and Contract
Administration Services
Summary
The District Board approved an agreement for engineering consulting services with Robin B. Hamers & Associates, Inc. (RBH) during the August
2021 Board of Directors meeting. Since approval of the rates in August 2021, the economy has experienced greater than 10% inflation and
significant increases in State Prevailing Wage. RBH has requested new rates beginning July 1, 2023; the proposed rate increases vary from 8%
to 11% over the next two year period.
Except for inspection, which is governed by prevailing wage, RBH proposed an 8% increase and an additional 2% increase per year,
respectively, over the next two fiscal year. RBH also is proposing an 11% increase for inspection services for FY 23/24 because State prevailing
wage for inspectors increased by 12% since August 2021. RBH proposes that the second year inspection fee increase be based on the State
Prevailing Wage increase for that position: to be determined in a year.
As a reminder, RBH provides services related to capital improvement projects, sewer permits, or special engineering studies/reports associated
with technical items or problems experienced within the sewer system.
Recommendation
That the Board of Directors approve RBH proposed Rate increases.
Analysis
Since 1981, the District has enjoyed a longstanding relationship with RBH. Because of this longstanding relationship, RBH has in-depth
familiarity and knowledge of District sewer assets, designs, and standards. This in-depth understanding of the District provides them the ability
to quickly provide quality engineering designs and trouble-shooting solutions. In addition, RBH has and continues to provide quality engineering
at lower than industry fees/prices.
The RBH engineering consulting services are primarily related to capital improve projects, but a portion of services are related to inspection or
support of permit-related projects within the service area and for non-capital related engineering services. The engineering consultant services
include, but are not limited to, master planning development, engineering modeling, engineering project design, development of capital plans
and specifications, development of bidding documents, construction administration services, inspection services, and engineering studies,
calculations, and reports, among other engineering related services assigned by the District Engineer.
Subject 2. Consider Approving New Rates with Robin B. Hamers & Associates for
Engineering, Inspection, and Contract Administration Services
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action, Discussion
Preferred Date May 22, 2023
Fiscal Impact No
Budgeted Yes
Budget Source Fiscal Year Budget
Recommended
Action
That the Board of Director Approve Updated Rates with Robin B. Hamers & Associates, Inc.
for Engineering, Inspection, and Contract Administration Services.
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RBH currently charges $65 to $130 per hour, based on position and services rendered, see chart in Financial Review below. The proposed RBH
rates for the 23/24 fiscal year and 24/25 fiscal year range from $70.20 to $140.40 per hour and $71.60 to $143.20 per hour, respectively. These
engineering and administrative unit cost are a 8% and 2% increase, respectively, per year. The proposed RBH inspection rate increase is $105
to $116.50, an 11% increase, for the first year. RBH proposes the second year inspection increase be based on the associated increase in
prevailing wage.
The District estimates the annual cost of services at $380,000, depending on the number of CIP projects implemented and the number of sewer
permits issued/inspected. Non-Capital RBH related cost are budgeted within the annual operating budget. The Capital project RBH consulting
services are budgeted within the annual capital improvement budget and/or permit fees paid by customers. RBH submits invoices monthly for
review and approval to the District Engineer. The invoices are submitted by capital project, by permit services, or other engineering services
rendered.
Legal Review
Not required. No change in contract language, only associated rates.
Environmental Review
The hiring of staff or consulting resources is not a project under CEQA because the action will not impact the environment (14 Cal. Code Regs.
15060).
Financial Review
Based on trends for the current and past two fiscal years, staff estimate the annual engineering costs between $300,000 and $400,000,
depending on number of capital improvement projects and permits issued. For example, the engineering fees/cost associated with a $2,000,000
CIP budget could be $300,000 (15% of capital delivery costs). Typically, capital project budgets contain funds for design, bidding, contract
administration, survey work, soils compaction testing, inspection, in addition to other construction-related work by the District. These
various items range between 10% and 20% of budgeted amounts. In addition, there would be an estimated $50,000 to $100,000 ($70,000
average) for permit-related inspections.
Current rates, within the civil engineering industry, for a principal civil engineer/owner range between $ 240 per hour to over $300 per hour.
Senior engineering principal rates range between $196 per hour for small firms and over $250 per hour for large firms for larger firms. As
comparison, RBH is proposing a $140.40 and $143.20 per hour rate, respectively per year, for the civil engineering principal/owner; substantially
less than market value compared to other engineering firms.
Proposed RBH Rates
Posi on Current Rate FY 2023-24 FY 2024-25
Principal Engineer $130 $140.40 (8%)$143.20 (2%)
Design/Licensed Engineer $115 $124.20 (8%)$126.68 (2%)
Inspector $105 $116.50 (11%)TBD (May be 5 to 6% Increase)
Clerical/Admin $65 $70.20 (8%) $71.60 (2%)
The proposed rates are reflected in the FYs 2023-24 and 2024-25 preliminary CIP project and operational budgets.
Project Notice Process
Copies of this Board item are on file and will be included with the agenda package for the May 22, 2023 regular Board of Directors meeting at
District Headquarters and on the District website.
Alternative Action
1. Approve a one year rate increase and direct staff to bring a future rate increase to the Board for consideration.
2. Send the Item back to staff to negotiate different rates.
3. Do not increase the RBH rates.
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F. ENGINEER'S REPORTS
To: Board of Directors
Subject 3. Ratify the GCI Agreement for the P335 Sewer Siphon Phase 2 Emergency
Pipeline Failure
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Action, Discussion
Preferred Date May 22, 2023
Fiscal Impact Yes
Budgeted No
Budget Source Asset Management Fund and/or Wastewater FUnd
Recommended
Action
Ratify the GCI Agreement for the P335 Sewer Siphon Phase 2 Emergency Pipeline Failure
From: Mark Esquer, District Engineer
Date: May 22, 2023
Subject: Ratify the GCI Agreement for the P335 Sewer Siphon Phase 2 Emergency Pipeline Failure
Summary
Except for incidental work required to close out the emergency activities, restore City and District facilities, and gather costs for the
work, the emergency is over and most work completed. Some minor manhole work and minor paving restoration has yet to becompleted. District contractor was able to place a point liner (patch) over the major defect so that the full-length pipe liner may beinstalled on the Paularino Siphon.
As authorized by the Board of Directors, District staff negotiated a time and materials type agreement and is bringing theAgreement to the May 2023 Board meeting for ratification. The Agreement is based on typical District mark-up and overhead values,see attached GCI agreement. District staff is recommending Board ratification of the GCI Agreement.
The patch and liner pipe work was completed Friday afternoon, May 12, 2023. District staff is working with multiple contractors,subcontractors, and consultants to gather, review, and approve the various time and material tickets/invoices from the past 5-weekperiod. In addition, staff has not completed working with Insituform on the P335 Sewer Siphon Rehab Phase 2 project change order
and will need to bring a change order to the Board for approval/ratification at the June 2023 Board meeting.
Recommendation
That the Board of Directors approve the following:
1. Ratify the Staff negotiated and approved a time-and-materials contract with GCI Construction Inc. to provide emergency construction
services,
including dewatering well installations and related services;
2. Direct staff to bring the Insituform Change Order back before the Board for ratification;
3. Direct staff to provide a final project update and review of expenditures.
Analysis
As described during the April 2023 Board of Directors meeting, District staff reported that the Siphon on Paularino completely failed, had
sand entering the sewer pipe, and requested the Board of Directors ratify the declared emergency. In addition, the Sewer siphon adjacent
to the AutoPlex Center near Bristol Street and the Newport Beach Golf Course, could not be lined due to high groundwater level.
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The Board of Directors ratified the emergency declaration, authorized staff to negotiate a time and material contract with GCI Construction,
Inc. (GCI) for emergency services, and authorized staff to negotiate a change order with Insituform Technologies, LLC. (Insituform), and
bring various items back before the Board in May 2023. In addition, the Board transferred funds from Asset Management to Wastewater
Funds to cover the estimated cost for the emergency activities.
District staff estimated that an additional $375,000 was required for the various emergency activities; $230,000 for GCI
and $145,000 for Insituform. The authorized budget for the 335 Sewer Siphon Rehab Phase 2 work, including emergency
work, is $628,833. The final cost expenditures must be determined and the final project costs will be brought to the Board in June 2023,
along with any required Board action.
The District Engineer directed the following activities as part of the emergency:
1. Insituform to continue sewer bypass pumping operations until the emergency work is completed, conduct various attempts to dewater,
clean, and line the failed Paularino sewer siphon pipe.
2. Insituform install the "activated" 6-inch sewer liner into the Paularino sewer siphon before it perishes (In-scope work)
2. Insituform dewater and clean the third AutoPlex sewer siphon pipe and install one of the "activated" 8-inch sewer liners before it
perished (in scope-work).
3. Directed GCI to install four (4) dewatering wells, then install two (2) additional dewatering wells.
4. Directed GCI to remove the concrete plug from the third AutoPlex sewer siphon pipe.
5. Directed RBH to procured the services of a geotechnical engineer and hydrogeologist to review the well design and obtain an opinion
regarding installation of additional dewatering wells.
6. Directed RBH to observe and inspect the emergency operations along with recording contractor staff, equipment, materials, and
resources to confirm contractor ticket submittals.
The original CIP #335 Phase 2 Sewer Siphon Lining project generally consisted of rejuvenating two (2) inverted siphon facilities (siphons)
and lining them with a cured-in-place pipe (CIPP). Insituform Technologies LLC. (Insituform) was awarded a construction contract in the
amount of $196,762 to rejuvenate the two (2) siphons: the AutoPlex siphon and the Paularino Avenue siphon. The contract work includes
cleaning the siphons, repairing and/or grouting holes, and installing the liners. The project work is being conducted because a 2020
evaluation indicated that all but two siphons required immediate rehabilitation and/or lining work.
The actual emergency work cost could be higher or lower than the estimate provided by District staff. The April estimate was based on
successful dewatering via four (4) wells at the Paularino siphon and removing a concrete plug on the third pipeline at the AutoPlex siphon.
Legal Review
District counsel will review the contracts and approved to form.
Environmental Review
Rehabilitating existing sewer pipeline is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources
Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c) “Replacement or reconstruction of
existing utility systems and/or facilities involving negligible or no expansion of capacity“.
Financial Review
The Board of Directors approved transfer of funds from the Asset management to the Wastewater Fund(s) in the amount of $375,000. Staff
estimated that the total project budget, including emergency work, must be $253,833 for the original project plus $375,000 for the
emergency work, for a total project requirement of $628,833. Two additional wells estimated at $35,000 each had to be installed. Based on
the requirement for additional wells, the cost of the emergency will likely fall between $625,000 and $700,000. Staff is working with the
contractors and consultants to understand the actual costs. Staff will return in June with the final cost and any required Board action.
Approved Board Action during the April 2023 Board meeting:
Account Account Number Increase Decrease
Asset Management Fund 50-500000-4995 $375,000
Wastewater Fund 20-000000-3995 $375,000
Fund Balance 20-000000-2990 $375,000
CIP #335, Sewer Siphon Project 20-201335-4300 375,000
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Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the May 22, 2023 Board of Directors meeting at
District Headquarters (290 Paularino Avenue) and posted on the District’s website at www.cmsdca.gov.
Alternative Actions
Refer the matter back to District staff for consideration of project alternatives and return to a future Board meeting. Emergency/extra work
authorized by the District must be paid, however.
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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 May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type
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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 May 22, 2023 - Board of Directors Regular Meeting
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Type
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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 May 22, 2023 - Board of Directors Regular Meeting
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Type
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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 May 22, 2023 - Board of Directors Regular Meeting
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Type
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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 May 22, 2023 - Board of Directors Regular Meeting
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I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is
required to be given by a Director for any meeting for which expense reimbursement
of any kind is provided. Note: For meetings for which the per diem compensation is
sought, the Operations Code provides that such compensation is authorized for each
day’s service rendered as a Director at the request of the Board (not to exceed six
days in one month), and certain meetings are specified as being eligible as set forth
in District Operations Code § 3.01.030. For meetings not so listed, the Board must
approve the service for it to be eligible for the per day compensation.
Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55,
Operations Code Section 3.01.030
Meeting May 22, 2023 - Board of Directors Regular Meeting
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L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Subject 1. Oral Communications and Director Comments
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Discussion
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O. CLOSING ITEMS
The next regular meeting of the Costa Mesa Sanitary District Board of Directors will be held at 4:30 p.m. on Monday, June 26, 2023 in the
District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626.
Subject 1. Adjourn
Meeting May 22, 2023 - Board of Directors Regular Meeting
Access Public
Type Procedural