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2023_10_23_boardMonday, October 23, 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Scheafer Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Schafer Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Michael Scheafer, PresidentArlene Schafer, Vice PresidentArthur Perry, SecretaryRobert Ooten, Vice SecretaryBrett 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Consent Calendar as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 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: October 23, 2023 Subject: Approve the Board of Directors Study Session Minutes of September 12, 2023 SummaryThe recorded minutes of the September 12, 2023 Board of Directors Study Session are hereby submitted to the Board ofDirectors for review and approval. AnalysisAttached to the staff report are the minutes for the Board of Directors Study Session on September 12, 2023. Staff RecommendationThat the Board of Directors approve the meeting minutes as presented. Legal ReviewNot applicable. Environmental ReviewConsideration of public meeting minutes is an administrative matter and is exempt from the requirements of the CaliforniaEnvironmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows anagency 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 notinclude …. C. Continuing administrative or maintenance activities.” Financial ReviewNot applicable. Public Notice ProcessCopies of this report are on file and will be included in the complete agenda packet for the October 23, 2023 Board ofDirectors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions1. Do not approve the meeting minutes as presented.2. Direct staff to report back with more information. File Attachments minutes_2023_09_12_ss.pdf (192 KB) Subject 2. Approve the Board of Directors Study Session Minutes of September 12, 2023 Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent),Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. 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. 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: October 23, 2023 Subject: Approve the Board of Directors Regular Meeting Minutes of September 25, 2023 SummaryThe recorded minutes of the September 25, 2023 Board of Directors Regular Meeting are hereby submitted to the Board ofDirectors for review and approval. Staff RecommendationThat the Board of Directors approve the meeting minutes as presented. AnalysisAttached to the staff report are the minutes for the Board of Directors Regular Meeting on September 25, 2023. Legal ReviewNot applicable. Environmental ReviewConsideration of public meeting minutes is an administrative matter and is exempt from the requirements of the CaliforniaEnvironmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows anagency 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 notinclude …. C. Continuing administrative or maintenance activities.” Financial ReviewNot applicable. Public Notice ProcessCopies of this report are on file and will be included in the complete agenda packet for the October 23, 2023 Board ofDirectors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions1. Do not approve the meeting minutes as presented.2. Direct staff to report back with more information. File Attachments minutes_2023_09_25_rm.pdf (217 KB) Subject 3. Approve the Board of Directors Regular Meeting Minutes of September 25, 2023 Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent),Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. 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. 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: October 23, 2023 Subject: Adopt Warrant Resolution No. CMSD 2024-04 Approving District Warrant Registers SummaryAttached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds fromwhich they were paid. RecommendationThat the Board of Directors adopt Warrant Resolution No. CMSD 2024-04 approving District warrants for the month ofSeptember in the amount of $706,674.74. AnalysisAttached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds fromwhich they were paid. Legal ReviewNot Applicable. Environmental ReviewSubject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public ResourcesCode Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to listthose specific activities which fall within each of the exempt classes", and the District has adopted "CEQA Guidelines andImplementing Procedures" that state on page 6 "Projects" does not include .... C. Continuing administrative or maintenanceactivities." Financial ReviewSufficient funds are available in the adopted budget. Public Notice ProcessCopies of this report are on file and will be included with the complete agenda packet for the October 23, 2023 Board ofDirectors Regular meeting at District Headquarters and posted on the District's website www.cmsdca.gov. Alternative ActionsRefer item back to staff with further instructions. Subject 4. Adopt Warrant Resolution No. CMSD 2024-04 Approving District Warrant Registers Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2024-04 approving District warrants for the month of September in the amount of $706,674.74. File Attachments WARRANT RESO 2024-04.pdf (208 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. 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: October 23, 2023 Subject: Directors' Compensation and Reimbursement of Expenses SummaryThe Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for reviewand approval. AnalysisAttached to the staff report are the Directors' Compensation and Reimbursement of Expenses. Staff RecommendationThat the Board of Directors approve the compensation and reimbursement of expenses as presented. Legal ReviewNot applicable. Environmental ReviewConsideration of public meeting minutes is an administrative matter and is exempt from the requirements of the CaliforniaEnvironmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows anagency 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 notinclude...C. Continuing administrative or maintenance activities. Financial ReviewNot applicable. Public Notice ProcessCopies of this report are on file and will be included with the complete agenda packet for the October 23, 2023 Board ofDirectors Regular meeting at District Headquarters and posted on the District's website. Alternative Actions1. Do not approve the compensation and reimbursement of expenses as presented.2. Direct staff to report back with more information. File Attachments BOARD PR.pdf (355 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as presented. 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. 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: October 23, 2023 Subject: Approve Payroll Transparency Disclosure for September 2023 SummaryAttached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. RecommendationThat the Board of Directors approve and file the report. AnalysisAttached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Legal ReviewNot Applicable. Environmental ReviewSubject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public ResourcesCode Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to listthose specific activities which fall within each of the exempt classes", and the District has adopted "CEQA Guidelines andImplementing Procedures" that state on page 6 "Projects" does not include .... C. Continuing administrative or maintenanceactivities." Financial ReviewSufficient funds are available in the adopted budget. Public Notice ProcessCopies of this report are on file and will be included with the complete agenda packet for the October 23, 2023 Board ofDirectors Regular meeting at District Headquarters and posted on the District's website www.cmsdca.gov. Alternative ActionsRefer item back to staff with further instructions. Subject 6. Approve Payroll Transparency Disclosure for September 2023 Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Fiscal Impact Yes Budgeted Yes Recommended Action That the Board of Directors approve and file the report. Goals 8.0 Finance File Attachments Payroll Transparency Disclosure September 2023.pdf (278 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. 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: Marissa Pereyda, Management Analyst II Date: October 23, 2023 Subject: Approve the Occupancy Count of 23,097 and Direct Staff to Prepare a Warrant to CR&R EnvironmentalServices for $258,372.28 for September 2023 Solid Waste Collection Services. SummaryThe District's monthly payment to CR&R Environmental Services (CR&R) for solid waste collection services is calculatedby multiplying the set occupancy rate by the occupancy count, approved each month by the Board of Directors. The currentoccupancy rate is $11.1864 and the September 2023 occupancy count presented to the Board of Directors is 23,097, for atotal payment of $258,372.28. RecommendationThat the Board of Directors:1. Approve the Occupancy Count of 23,097; and2. Direct staff to prepare a warrant to CR&R Environmental Services for $258,372.28 for September 2023 solid wastecollection services to be ratified with the October 2023 warrant register. AnalysisThe occupancy count is the number of living units in the District's jurisdiction receiving solid waste collection services. Theoccupancy rate approved by the Board of Directors on August 21, 2023, effective July 1, 2023, is $11.1864. The Districtpays CR&R $11.1864 per occupant, per month for solid waste collection services. The occupancy count is increased ordecreased monthly for new residential developments and demolitions. As of September 30, 2023, the District's occupancy count was 23,097 with zero (0) new accounts added since the lastbilling period. The occupancy count approved by the Board of Director's for August 2023 was 23,097. District staff willcontinue to track the number of new service addresses. The District's payment to CR&R is calculated by multiplying the occupancy count by the occupancy rate. For September2023, the payment is calculated as follows. Occupancy Count Occupancy Rate District's Payment to CR&R 23,097 X $11.1864 = $258,372.28 Legal Review Subject 7. Approve the Occupancy Count of 23,097 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $258,372.28 for September 2023 Solid Waste Collection Services Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors: 1. Approve the Occupancy Count of 23,097; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $258,372.28 for September 2023 solid waste collection services to be ratified with the October 2023 warrant register. Not applicable. Environmental ReviewConsideration of the occupancy count is an administrative matter and not a disturbance of the environment such asgrading or construction, and is not a project under CEQA or the District's CEQA Guidelines. Financial ReviewSufficient funds are available in the adopted FY 2023-24 budget. Public Notice ProcessCopies of this report are on file and will be included in the complete agenda packet for the October 23, 2023, Board ofDirectors Regular Meeting at District Headquarters and posted on the District's website. Alternative ActionsRefer item back to staff with further instructions. File Attachments September_2023_Occupancy_Report.pdf (60 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. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 8. Receive and File September 2023 Contracts Signed by the General Manager Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Fiscal Impact No Budgeted Yes Recommended Action That the Board of Directors receive and file this report Goals 6.0 Administrative Management To: Board of Directors From: Scott Carroll, General Manager Date: October 23, 2023 Subject: Receive and File September 2023 Contracts Signed by the General Manager SummaryAt the January 24, 2019 Board of Directors meeting, the Board directed the General Manager to submit a list of contracts hesigned during the previous month. Below are the contracts he signed in the months of September 2023. RecommendationThat the Board of Directors receive and file this report. AnalysisThe following contracts were signed by the general manager in September 2023. Contract:1. NeoGov HR Management Suite - SkillCheck Integration Subscription. Provides specific job requirement testing forapplicants who are applying to district jobs. Cost: $1,986.43 2. Aztec Systems, LLC - Cityworks - Upgrade to Computerized Maintenance Management System (CMMS)/GIS publicasset management. Cost: Year 1: $8,205.00, Year 2: $45,030.00, Year 3: $50,500.00 Purchase Order:1. EJ USA, Inc. Acquired 29 composite manhole covers. Cost: $29,238.63 2. United Pumping Services, Inc. - Contracting services for operating combination sewer cleaning unit for inspecting thetechite pipe as part of Project #341, Elden Forcemain Redundancy. Cost: $1,653.00 3. Performance Pipeline Technologies - CCTV inspection of 12" and18" pressure pipe as part of Project #341, EldenForcemain Redundancy. Cost: $5,700.00 4. Mattucci Plumbing - CCTV inspection using lateral launcher to determine cause of sinkhole on Wilson Street. Cost:$3,000.00 5. K2 Calibrations - Purchased an additional gas monitor with battery pack. Cost: $2,575.23 Legal ReviewNot applicable Environmental ReviewProviding the Board of Directors a monthly list of contracts signed by the General Manager is an administrative matter thatwill not result in direct or indirect physical changes in the environment and is not considered a "project". Financial ReviewThere is adequate funding in the budget to perform the contract services mentioned above. Public Notice ProcessCopies of this report are on file and will be included with the entire agenda packet for the October 23, 2023 Board ofDirectors regular meeting at District Headquarters and on District website at . www.cmsdca.gov Alternative Actions1. 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. 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: October 23, 2023 Subject: Receive and File Annual Report of Expenses- Fiscal Year 2022-23 SummaryCalifornia Government Code requires special districts to disclose, at least annually, any reimbursement paid by the Districtof at least $100 for each individual charge for services or products received by a Board Member or Staff. The AnnualReport of Expenses for Fiscal Year 2022-23 is provided as Attachment A of this report. RecommendationStaff recommends that the Board of Directors receive and file the Annual Report of Expenses for the Fiscal Year 2022-23. AnalysisSection 53065.5 of the California Government Code states that “Each special district, as defined by subdivision (a) ofSection 56036, shall, at least annually, disclose any reimbursement paid by the district within the immediately precedingfiscal year of at least one hundred dollars ($100) for each individual charge for services or product received. "Individualcharge" includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee paid to anyemployee or member of the governing body of the district. The disclosure requirement shall be fulfilled by including thereimbursement information in a document published or printed at least annually by a date determined by that district andshall be made available for public inspection.” Attached is the Annual Report of Expenses for the Fiscal Year 2022-23which will be published on the District's website under the Transparency tab. Legal ReviewNot Applicable. Environmental ReviewSubject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public ResourcesCode Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to listthose specific activities which fall within each of the exempt classes", and the District has adopted "CEQA Guidelines andImplementing Procedures" that state on page 6 "Projects" does not include .... C. Continuing administrative or maintenanceactivities." Financial ReviewIt is the policy of the District to encourage and promote training and educational opportunities for all District employees sothat the services they render to the District may be made more effective. Attendance at educational seminars, conferencesand meetings by Board Members and/or Staff are also encouraged to monitor new legal requirements and technologicaladvancements in the solid and wastewater industries. The reimbursement of approved training, travel and other workrelated expenses are dictated by the CMSD Employee Handbook, Policy 2.4 and the Operations Code, Section 3.01.090; Subject 9. Receive and File Annual Report of Expenses- Fiscal Year 2022-23 Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action Staff recommends that the Board of Directors receive and file the Annual Report of Expenses for the Fiscal Year 2022-23. Conferences, Travel and Expenses. The $17,220.64 of reimbursements reported on Attachment A have met therequirements outlined above. The Annual Report of Expenses are included on the District's website under theTransparency tab. Public Notice ProcessCopies of this report are on file and will be included with the complete agenda packet for the October 23,2023 Board ofDirectors Regular meeting at District Headquarters and posted on the District's website www.cmsdca.gov. Alternative ActionsRefer item back to staff with further instructions. File Attachments Annual Report of Expenses FY22-23 Attachment A.pdf (167 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. 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: October 23, 2023 Subject: Approve the Investment Report for the Month of August 2023 SummaryAttached is the Investment Report for the month of August 2023. As required by the District's Statement of InvestmentPolicy, the Investment Report delineates all investment activity during the month. RecommendationThat the Board of Directors approve the Investment Report for the month of August 2023. AnalysisThis report lists the types of securities held in the District's portfolio, the institutions from which the securities werepurchased, maturity dates and interest rates as of August 31, 2023. The District's investments are in compliance with theStatement of Investment Policy adopted by the Board at the June 26, 2023 regular meeting, as well as the CaliforniaGovernment Code. The market values in this report were provided by our third party custodian, Pershing, LLC, except forthe Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer's Office. It doesnot represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amountthe 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 August 31, 2023, was2.016%. The yield to maturity of the portfolio was 2.016%. The District's weighted average interest rate was 142 basispoints (1.418%) below the LAIF average rate of 3.434% for the month of August 31, 2023. The weighted average numberof days to maturity for the District's total portfolio was 664 days (1.82 years). The duration of the underlying securities inLAIF as of August 31, 2023 was 237 days. The District's investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% ofthe portfolio must mature within one year. The percentage of the portfolio maturing in one year or less as of August 31,2023 was 29.09%. 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 variousclassifications 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 CodeSection 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year tocover the cash deficit during the period in which the District does not receive any of its annual charges fromthe County of Orange. The revenue dry period is from June through October. Subject 10. Approve the Investment Report for the Month of August 2023 Meeting Oct 23, 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 August 2023. Goals 8.0 Finance Undesignated - Remaining available cash, which is currently used for rate stabilization and payment oforganics recycling costs. Wastewater Fund:Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations CodeSection 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 theBoard, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year tocover the cash deficit during the period in which the District does not receive any of its annual charges fromthe 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 fornew 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-termreplacement of sewer pipes and related infrastructure. Legal ReviewLegal review is not required. Environmental ReviewSubject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public ResourcesCode Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to listthose specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines andImplementing Procedures" that state on page 6, "Projects" does not include...C. Continuing administrative or maintenanceactivities. Financial ReviewThe portfolio was budgeted to earn an average rate of 1.577% for the year ending June 30, 2023. Through August 31,2023, the portfolio has earned a weighted average interest rate of 1.991%. Public Notice ProcessCopies of this report are on file and will be included with the entire agenda packet for the October 23, 2023 Board ofDirectors regular meeting at District Headquarters (290 Paularino Avenue) and on the District's website atwww.cmsdca.gov. Alternative ActionsRefer the matter back to staff. File Attachments Investment Report - August 2023.pdf (664 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. E. GENERAL MANAGER'S REPORTS To: The Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: October 23, 2023 Subject: Receive and File Fiscal Year 2022-23 Annual Compliance Report for Requirements of Government CodeSection 66013 (d) for Capacity Charges. SummaryStaff is providing the Board with the Annual Compliance Report to fulfill the information and reporting requirements ofGovernment Code Section 66013(d) for Capacity Charges. RecommendationStaff recommends the Board receive and file this report. AnalysisOn May 27, 2010 the Board adopted Ordinance No. 76, revising the charges collected by the District and establishing thatfixture fees are capacity charges and making related clarifying changes. (CMSD § 6.04.040) Fixture fees are capacitycharges for public facilities in existence at the time a charge is imposed or charges for new public facilities to be acquiredor constructed in the future that are of proportional benefit to the person or property being charged, including supply orcapacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local agencyinvolving capital expense relating to its use of existing or new public facilities. Upon payment of the fees, the money shall be deposited in a separate capital facilities account maintained in accordancewith Government Code Section 66013(d). For each such separate account, the District shall, within one hundred eighty(180) days of the close of the fiscal year, make available to the public the following information: (1) A description of the charges deposited in the fund.(2) The beginning and ending fund balance of the fund and the interest earned from investment of moneys in the fund.(3) The amount of charges collected in that fiscal year.(4) An identification of all of the following:(A) Each public improvement on which charges were expended and the amount of the expenditure for eachimprovement, including the percentage of the total cost of the public improvement that was funded with thosecharges if more than one source of funding was used.(B) Each public improvement on which charges were expended that was completed during that fiscal year.(C) Each public improvement that is anticipated to be undertaken in the following fiscal year.(5) A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in thecase of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be,expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and therate of interest that the fund will receive on the loan. Subject 1. Receive and File Fiscal Year 2022-23 Annual Compliance Report for Requirements of Government Code Section 66013 (d) for Capacity Charges. Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action (Consent),Receive and File Fiscal Impact Yes Budgeted Yes Recommended Action Staff recommends the Board receive and file this report. Goals 8.0 Finance Legal ReviewDistrict Counsel has reviewed this report. The report complies with Gov. Code § 66013 and CMSD Operations Code6.04.040. Environmental ReviewPreparing the yearly compliance report is categorically exempt under the California Environmental Quality Act (CEQA)(Public Resources Code Section 21000 et. seq.) Section 15300.4 of CEQA allows an agency while establishing its ownprocedures “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. Continuingadministrative or maintenance activities.” Financial ReviewFinance staff confirms that the Annual Compliance Report presents fairly the financial activity of the Facilities RevolvingFund for the fiscal year ending June 30, 2023. During the fiscal year 2022-23, the Facilities Revolving Fund received$56,494 in capacity charges, and interest earnings of $4,525 for the fiscal year. Due to cancellation and refund of twoprojects by the contractors there were refunds issued for a total of $581. The Board approved to transfer $164,2000 toWastewater Fund for the Drought Tolerant Landscape project at headquarters during the fiscal year. As of June 30, 2023,the funds available in the Facilities Revolving Fund were $252,157. In comparison, the year-end capacity charges balance for fiscal year 2021-22 was $355,918. The capacity chargescollected for FY 2021-22 was $138,384. The decrease of $81,890 in capacity charges collected over the prior fiscal yearwas the result of the timing of payments received and an decrease in new development construction. The Headquarters and Costa Mesa Sanitary District’s Robin Hamers Yard have been identified as serving the needs of allresidents; the amounts collected are related to a facility that is of benefit to the person who contributed the money. In thepast, 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. On June 26, 2023, the Board ofDirectors approved to transfer $200,000 from the Facilities Revolving Fund to the Wastewater Fund to demolish the oldHitch Crafter Building at the Costa Mesa Sanitary District’s Robin Hamers Yard in FY 2023-24. Public Notice ProcessCopies of this report are on file and will be included with the entire agenda packet for the October 23, 2023 regular Boardof Directors meeting at District Headquarters and on District’s website www.cmsdca.gov Alternative ActionsRefer the matter back to staff. File Attachments Annual Compliance Report for Capacity Charges FY2022-23.pdf (115 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. E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: October 23, 2023 Subject: Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2022-23 to Fiscal Year 2023-24 SummaryAll appropriations lapse at the end of each fiscal year; therefore, it is necessary to request that certain unspentappropriations and encumbrances for goods and/or services that have yet to be completed by fiscal year end be carriedover into the subsequent fiscal year. After the close of the prior fiscal year, the Board of Directors reviews and approves alist of appropriations and encumbrances that are requested to be carryover in to the new fiscal year. RecommendationThat the Board of Directors approve the re-appropriation of funds in the Fiscal Year 2023-24 for the carryover items fromthe prior fiscal year as detailed in Attachments A and B, and summarized as follows: 10 Solid Waste Fund: Carryover Appropriations $40,000, Encumbrances $5,209.2020 Wastewater Fund: Carryover Appropriations $2,0886,077.91, Encumbrances $1,005,403.13 AnalysisAll appropriations lapse at the end of each fiscal year; therefore, it is necessary to request that certain unspentappropriations for goods and/or services be carried over into the subsequent fiscal year. The carryover appropriationsrepresent budgeted Fiscal Year 2022-23 appropriations for goods and/or services that were not expended as of June 30,2023, but are expected to be expended in the Fiscal Year 2023-24. Generally, allowable carryovers are limited to certaintypes of goods or services, such as professional service contracts, capital outlay or capital improvement projects (CIP). Due to their scope and size, CIP is inherently precluded from being completed within the fiscal year in which funding wasinitially appropriated. The carryover of operating transfers represents the use of specific resources to fund specific carryover appropriations. Thecarryover of revenues typically relates to grants where the money has been received but not earned. Encumbrances represent purchase orders (POs) issued for goods and/or services which were not received or completedduring the prior fiscal year by June 30, 2023. A PO is a commitment created to reserve a portion of the appropriation’savailable balance but does not represent an expenditure or liability for budgetary or accounting purposes. The budgetappropriations associated with encumbrance’s lapse at fiscal year-end unless the Board re-appropriates the funds in thesubsequent fiscal year as requested in this report. Subject 2. Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2022-23 to Fiscal Year 2023-24 Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Recommended Action That the Board of Directors approve the re-appropriation of funds in the Fiscal Year 2023-24 for the carryover items from the prior fiscal year as detailed in Attachments A and B, and summarized as follows: 10 Solid Waste Fund: Carryover Appropriations $40,000, Encumbrances $5,209.20 20 Wastewater Fund: Carryover Appropriations $2,0886,077.91, Encumbrances $1,005,403.13 Goals 8.0 Finance After all payments are made for goods and services received by June 30, 2023, staff analyzes the remaining appropriationbalances and open encumbrances to determine their validity. If the proposed continuing appropriations and encumbranceswere not carried over into Fiscal Year 2023-24, there would not be sufficient appropriations in the current year budget tofund existing and the current year adopted projects. Legal ReviewNot applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “Projects” does not include......C. Continuing administrative or maintenance activities.” Financial Review The total amount to be carried over for the Solid Waste Fund is $45,209.20. The total amount to be carried over for the Wastewater Fund is $3,091,481.04 Public Notice ProcessCopies of this report are on file and will be included with the entire agenda packet for the October 23, 2023, Board ofDirectors regular meeting at District Headquarters and on District’s website. Alternative ActionsRefer the matter back to staff File Attachments Attachement A -CO Appropriations FY22-23 to FY23-24.pdf (70 KB) Attachement B -CO Encumbrances FY22-23 to FY23-24.pdf (85 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: October 23, 2023 Subject: Receive and File the First Quarter Budget Review for FY 2023-24 SummaryThis report serves as a summary of the District’s spending through September 30, 2023 as well as staff’s best estimate ofprojected balances for the year-ended June 30, 2024. RecommendationThat the Board of Directors receive and file this report. AnalysisBased on the limited spending trends through September 30, 2023, staff is projecting the Solid Waste Fund to be overbudget by $47,000 and the Wastewater Fund is projecting to meet the budgeted amounts on June 30, 2024. Please note,however, that projections with only three months or less of activity as the basis should not be relied upon. As the yearprogresses, these projections become more precise. As of September 30, 2023, a total of 14% of the Solid Waste budget and a total of 18% of the Wastewater Fund’s operatingbudget for the 2023-24 fiscal year has been expended. As of September 30, 2023, the District has not received any apportionments from the annual assessments and is expectingto receive apportionments in November 2023. Please see the attached report for a more detailed analysis. Legal ReviewNot applicable. Environmental ReviewSubject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public ResourcesCode Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to listthose specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines andImplementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative ormaintenance activities.” Financial ReviewSee attached report. Public Notice ProcessCopies of this report are on file and will be included with the entire agenda packet for the October 23, 2023 Board ofDirectors regular meeting at District Headquarters and on District website. Subject 3. Receive and File the First Quarter Budget Review for Fiscal Year 2023-24 Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action,Receive and File Fiscal Impact Yes Budgeted Yes Recommended Action That the Board of Directors receive and file this report. Goals Alternative ActionsRefer the matter back to staff for additional information. File Attachments A-FY2023-24 First Quarter Budget Analysis.pdf (325 KB) B - Expenditure Analysis 09302023.pdf (158 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: October 23, 2023 Subject: Receive and File 2023 Performance Measurement Report - 2nd Quarter, (January - September) CalendarYear SummaryOn November 29, 2018, the Board of Directors adopted Administrative Regulations No. 70.00, Performance MeasurementProgram, which established methods and procedures for gathering and analyzing organizational performance while at thesame time collaborating towards continuous improvement of performance in an open and transparent manner. RecommendationThat the Board of Directors receive and file this report. AnalysisA Performance Measurement Program has been developed to determine how well the District is performing in areas ofefficiency, effective workforce, customer satisfaction, cost effectiveness, citizen engagement and transparency. Thepurpose of the program is to continually look at ways to improve and/or enhance the level of service that is being providedinternally to staff and externally to the public. The outcome data reflected in the attached report is for nine months (Januaryto September 2023). Legal ReviewNot applicable Environmental ReviewA Performance Measurement Program is an administrative matter that will not result in direct or indirect physical changesin the environment and is not considered a "project". Financial ReviewThere are no financial impacts to the District for implementing a Performance Measurement Program Public Notice ProcessCopies of this report are on file and will be included with the entire agenda packet for the October 23, 2023 regular Boardof Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions1. Direct staff to report back with more information. File Attachments 2023 3rd Qtr (Jan-Sept).pdf (785 KB) Subject 4. Receive and File 2023 Performance Measurement Report - 2nd Quarter, (January - September) Calendar Year Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: October 23, 2023 Subject: Receive and File 2020-25 Strategic Plan Progress Report - FY 2023-24 First Quarter SummaryOn June 22, 2020, the Board of Directors adopted the 2020-2025 Strategic Plan, which is a plan that establishes goals,objectives, strategies and work plans for the next five years and will help move the organization in a direction towardachieving its mission and vision. Attached is the quarterly update of the Plan that demonstrates the progress staff is makingtoward achieving the strategic goals. The next quarterly report from this Plan will be presented to the Board on January 22,2024. RecommendationThat the Board of Directors receive and file this report. AnalysisThe 2020-25 Strategic Plan is the most ambitious Plan in the history of the District. The Plan has 125 Strategic Goals toachieve and/or implement in the next five years compared to 48 strategic goals in the FY 2015-20 Strategic Plan. Legal ReviewNot applicable Environmental ReviewThe District's Strategic Plan is a planning document and preparation and adoption of the plan itself is an administrativematter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or theDistrict's CEQA Guidelines. The environmental review of each of the efforts or projects outlined in the Strategic Plan willoccur when the Board of Directors specifically considers each of the items since that is when the full scope of work of eacheffort or project will be described Financial ReviewActivities described in the strategic goals are funded in the budget. Public Notice ProcessCopies of this report are on file and will be included with the entire agenda packet for the October 23, 2023 Board ofDirectors regular meeting at CMSD headquarters and on CMSD's website at www.cmsdca.gov. Alternative Actions1. Direct staff to report back with more information. File Attachments Strategic Plan Qtly Update 2023-24 1st Qtr.xlsx (98 KB) Subject 5. Receive and File 2020-25 Strategic Plan Progress Report - Fiscal Year 2023-24 First Quarter Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report Goals F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: October 23, 2023 Subject: Receive and File the District Engineer's Report and Capital Improvement Projects Status SummaryThe District Engineer has provided a memorandum with a brief summary of major capital or other engineering activities forthe period of mid-September to mid-October. The District Engineer's memorandum and Monthly CIP Financial Report isattached. RecommendationThe Board of Directors receive and file the Engineer's Report. AnalysisAttached is information regarding project or technical sewer activities for the Board of Directors' use and information. Legal ReviewNot Applicable Environmental ReviewSubject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public ResourcesCode Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to listthose specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines andImplementing Procedures" that state on page 6 "Projects" does not include...C. Continuing administrative or maintenanceactivities. Financial ReviewThe cost of preparing this report is contained within the operating budget. There are sufficient funds available in theadopted budget. Public Notice ProcessCopies of this report are on file and will be included with the complete agenda packet for the October 23, 2023, Board ofDirectors Regular meeting at District Headquarters and posted on the District's website www.cmsdca.gov. Alternative ActionsRefer item back to staff with further instructions. File Attachments 2023 10 Monthly Engineers Report CMSD Memorandum.pdf (214 KB) 2023-10 Financial Section for CIP Updates.pdf (203 KB) Subject 1. Receive and File the District Engineer's Report and Capital Improvement Projects Status Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Discussion G. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: October 23, 2023 Subject: Approve the Investment Report for the Month of September 2023 SummaryAttached is the Investment Report for the month of September 2023. As required by the District's Statement of InvestmentPolicy, the Investment Report delineates all investment activity during the month. RecommendationThat the Board of Directors approve the Investment Report for the month of September 2023. AnalysisThis report lists the types of securities held in the District's portfolio, the institutions from which the securities werepurchased, maturity dates and interest rates as of September 30, 2023. The District's investments are in compliance withthe Statement of Investment Policy adopted by the Board at the June 26, 2023 regular meeting, as well as the CaliforniaGovernment Code. The market values in this report were provided by our third party custodian, Pershing, LLC, except forthe Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer's Office. It doesnot represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amountthe 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 September 30, 2023,was 2.044%. The yield to maturity of the portfolio was 2.044%. The District's weighted average interest rate was 149 basispoints (1.490%) below the LAIF average rate of 3.534% for the month of September 30, 2023. The weighted averagenumber of days to maturity for the District's total portfolio was 668 days (1.83 years). The duration of the underlyingsecurities in LAIF as of September 30, 2023 was 256 days. The District's investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% ofthe portfolio must mature within one year. The percentage of the portfolio maturing in one year or less as of September 30,2023 was 26.49%. 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 variousclassifications 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 CodeSection 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year tocover the cash deficit during the period in which the District does not receive any of its annual charges fromthe 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 oforganics recycling costs. Wastewater Fund:Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations CodeSection 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Subject 1. Approve the Investment Report for the Month of September 2023 Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the Investment Report for the month of September 2023. Goals 8.0 Finance Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by theBoard, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year tocover the cash deficit during the period in which the District does not receive any of its annual charges fromthe 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 fornew 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-termreplacement of sewer pipes and related infrastructure. Legal ReviewLegal review is not required. Environmental ReviewSubject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public ResourcesCode Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to listthose specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines andImplementing Procedures" that state on page 6, "Projects" does not include...C. Continuing administrative or maintenanceactivities. Financial ReviewThe portfolio was budgeted to earn an average rate of 1.577% for the year ending June 30, 2023. Through September 30,2023, the portfolio has earned a weighted average interest rate of 2.008%. Public Notice ProcessCopies of this report are on file and will be included with the entire agenda packet for the October 23, 2023 Board ofDirectors regular meeting at District Headquarters (290 Paularino Avenue) and on the District's website atwww.cmsdca.gov. Alternative ActionsRefer the matter back to staff. File Attachments Investment Report - September 2023.pdf (418 KB) 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type 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 Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Discussion 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,November 27, 2023 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626. Subject 1. Adjourn Meeting Oct 23, 2023 - Board of Directors Regular Meeting Access Public Type Procedural