Loading...
2024_05_28_boardTuesday, May 28, 2024 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 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Procedural A. OPENING ITEMS Subject :2. Pledge of Allegiance - President Scheafer Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Procedural A. OPENING ITEMS Subject :3. Invocation - Vice President Schafer Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Procedural A. OPENING ITEMS 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 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Procedural Public Content Michael Scheafer, President Arlene Schafer, Vice President Arthur Perry, Secretary Robert Ooten, Vice Secretary Brett Eckles, Director 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 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Procedural A. OPENING ITEMS Subject :6. Ceremonial Matters and Presentations Meeting :May 28, 2024 - 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 :May 28, 2024 - 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 :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Recommended Action :That the Board of Directors approve the Consent Calendar as presented. Consent 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 :2. Approve the Board of Directors Study Session Minutes of April 9, 2024 Meeting :May 28, 2024 - 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 9, 2024 - Board of Directors Study Session Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: May 28, 2024 Subject: Approve the Board of Directors Study Session Minutes of April 9, 2024 Summary The recorded minutes of theApril 9, 2024 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 onApril 9, 2024. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutesis 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 28, 2024Board of Directors Regular Meeting at District Headquarters and posted on the Districts website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2024_04_09_ss.pdf (194 KB) Consent 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 :3. Approve the Board of Directors Special Meeting Minutes of April 16, 2024 Meeting :May 28, 2024 - 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 16, 2024 - Special Board of Directors Meeting Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: May 28, 2024 Subject:Approve the Board of Directors Special Meeting Minutes ofApril 16, 2024 Summary The recorded minutes of the April 16, 2024 Board of Directors Special Meetingare 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 Special Meeting onApril 16, 2024. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutesis 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 28, 2024 Board of Directors Regular Meeting at District Headquarters and posted on the Districts website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2024_04_16_sm.pdf (187 KB) Consent 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 :4. Approve the Board of Directors Regular Meeting Minutes of April 22, 2024 Meeting :May 28, 2024 - 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 22, 2024 - Board of Directors Regular Meeting Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: May 28, 2024 Subject: Approve the Board of Directors Regular Meeting Minutes ofApril 22, 2024 Summary The recorded minutes of the April 22, 2024 Board of Directors Regular Meetingare 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 onApril 22, 2024. Legal Review Not applicable. Environmental Review Consideration of public meeting minutesis 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 28, 2024Board of Directors Regular Meeting at District Headquarters and posted on the Districts website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2024_04_22_rm.pdf (130 KB) Consent 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 :5. Adopt Warrant Resolution No. CMSD 2024-11 Approving District Warrant Registers Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Budgeted :Yes Recommended Action :That the Board of Directors adopt Warrant Resolution No. CMSD 2024-11 approving District warrants for the month of April in the amount of $1,062,183.96. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Sean Phan, Associate Accountant Date: May 28, 2024 Subject: Adopt Warrant Resolution No. CMSD 2024-11 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 adopt Warrant Resolution No. CMSD 2024-11 approving District warrants for the month of April in the amount of $1,062,183.96. Analysis Attached is theWarrant 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 whichfall within each of the exempt classes", and the District has adopted "CEQA Guidelines and Implementing Procedures" that state onpage 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 28, 2024 Board of Directors Regular meeting at District Headquarters and posted on the District's websitewww.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments WARRANT RESO 2024-11.pdf (213 KB) Consent 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 :6. Approve the Directors' Compensation and Reimbursement of Expenses Meeting :May 28, 2024 - 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. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk/Public Information Officer Date: May 28, 2024 Subject:Directors' Compensation and Reimbursement of Expenses Summary The Directors' Compensation and Reimbursement of Expensesare 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 expensesis 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 28, 2024 Board of Directors Regular Meeting at District Headquarters and posted on the Districts 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 payroll.pdf (200 KB) board-ap.pdf (48 KB) Consent 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 :7. Approve Payroll Transparency Disclosure for April 2024 Meeting :May 28, 2024 - 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. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Sean Phan, Associate Accountant Date: May 28, 2024 Subject: Approve Payroll Transparency Disclosure for April 2024 Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Recommendation That the Board of Directors approve and file the report. Analysis Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities whichfall within each of the exempt classes", and the District has adopted "CEQA Guidelines and Implementing Procedures" that state onpage 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 28, 2024 Board of Directors Regular meeting at District Headquarters and posted on the District's website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Payroll Transparency Disclosure April 2024.pdf (195 KB) Consent 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. Approve the Occupancy Count of 23,122 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $258,651.94 in the May 2024 Warrant Register for April 2024 Solid Waste Collection Services Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Recommended Action :That the Board of Directors: 1. Approve the occupancy count of 23,122: and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $258,651.94 in the May 2024 warrant register for April 2024 solid waste collection services. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Marissa Pereyda, Management Analyst II Date: May 28, 2024 Subject: Approve the Occupancy Count of 23,122 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $258,651.94 in the May 2024 Warrant Register for April 2024 Solid Waste Collection Services Summary The District's monthly payment to CR&R Environmental Services (CR&R) for solid waste collection services is calculated by multiplying the set occupancy rate by the occupancy count, approved each month by the Board of Directors. The current occupancy rate is $11.1864 and the April 2024 occupancy count presented to the Board of Directors is 23,122, for a total payment of $258,651.94. Recommendation That the Board of Directors: 1. Approve the Occupancy Count of 23,122; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $258,651.94 in the May 2024 warrant register for April 2024 solid waste collection services. Analysis The occupancy count is the number of active units in the District's jurisdiction receiving solid waste collection services. The occupancy rate approved by the Board of Directors on August 21, 2023, effective July 1, 2023, is $11.1864. The District pays CR&R $11.1864 per occupant, per month for solid waste collection services. The occupancy count is increased or decreased monthly for new residential developments and demolitions. As of April 30, 2024, the District's occupancy count was 23,122 with nine (9) new accounts added since the last billing period. The occupancy count approved by the Board of Directors for March 2024 was 23,113. The District's payment to CR&R is calculated by multiplying the occupancy count by the occupancy rate. The payment calculation for April 2024 is included below. Occupancy Count X Occupancy Rate =Payment to CR&R 23,122 $11.1864 $258,651.94 District staff will continue to track the number of new and removed service addresses. Legal Review Not applicable. Environmental Review Consideration of the occupancy count 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 in 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 administration or maintenance activities. Financial Review Sufficient funds are available in the adopted FY 2023-24 budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 28, 2024, Board of Directors Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Occupancy_Report_April_2024.pdf (131 KB) Consent 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 :9. Approve the Preparation of a Warrant to CR Transfer for $211,736.80 in the May 2024 Warrant Register for April 2024 Recycling and Disposal Services Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Recommended Action :That the Board of Directors approve the preparation of a warrant to CR Transfer for $211,736.80 in the May 2024 warrant register for April 2024 recycling and disposal services. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Marissa Pereyda, Management Analyst II Date: May 28, 2024 Subject: Approve the Preparation of a Warrant to CR Transfer for $211,736.80 in the May 2024 Warrant Register for April 2024 Recycling and Disposal Services Summary The District pays CR Transfer monthly for the sorting of recyclables from mixed waste and landfill disposal of the remaining waste. With the implementation of the Organics Recycling Program adopted by the Board, this payment also includes the diversion of organic waste to an anaerobic digestion facility to be recycled into renewable natural gas to fuel the solid waste collection trucks or to be processed into compost. Recommendation That the Board of Directors approve the preparation of a warrant to CR Transfer for $211,736.80 in the May 2024 warrant register for April 2024 recycling and disposal services. Analysis The following chart outlines the total tonnage and payments due for residential and organic waste collection in Costa Mesa and Newport Beach during April 2024. The tonnage rates approved by the Board of Directors on August 21, 2023, effective July 1, 2023, is $59.35 per ton for mixed waste recycling and disposal and $81.66 per ton for organics recycling. Type of Waste Invoice No.Tonnage Rate Amount Billed Residential Waste - Newport Beach 45587 64.00 $59.35 $3,798.41* Residential Waste - Costa Mesa 45586 2,287.83 $59.35 $135,782.75* Total Residential Waste 2,351.83 $139,581.16 Organics Recycling 45621 883.61 $81.66 $72,155.64* Total Organics 883.61 $72,155.64 Grand Total 3,235.44 $211,736.80 *Due to weight ticket calculation rounding, some invoice totals may be off by a few cents. Legal Review Not applicable. Environmental Review Consideration of the CR Transfer warrant 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 Sufficient funds are available in the adopted FY 2023-24 budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 28, 2024, Board of Directors Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. Consent 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 :10. Receive and File April 2024 Organics Tonnage Report Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Recommended Action :That the Board of Directors receive and file this report. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Marissa Pereyda, Management Analyst II Date: May 28, 2024 Subject: Receive and File April 2024 Organics Tonnage Report Summary In April 2024, CR&R collected 883.61 tons of organic waste and recycled 842.92 tons of organic waste. Recommendation That the Board of Directors receive and file this report. Analysis The chart below outlines the total organic waste tonnage collected from the organics program and the tons recycled and landfilled. A graph depicting the total tonnage of organic waste collected during each month of the last five fiscal years is attached to this report. Fiscal Year 2023-24 Organics Month Recycled Landfilled Total Collected July 748.19 36.11 784.30 August 1003.96 48.46 1052.42 September 849.10 40.98 890.08 October 687.75 33.20 720.95 November 705.95 34.07 740.02 December 633.52 30.58 664.10 January 682.03 32.92 714.95 February 642.96 31.03 673.99 March 760.76 36.72 797.48 April 842.92 40.69 883.61 May June Legal Review Not applicable. Environmental Review Consideration of the Organics Tonnage Report is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6 "Projects" does not include... C. Continuing administrative or maintenance activities. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 28, 2024, Board of Directors Regular Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Organics_Tonnage_April_2024.pdf (84 KB) Consent 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 :11. Investment Report for the Month of March 2024 Meeting :May 28, 2024 - 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 March 2024. Goals :8.0 Finance Public Content To: Board of Directors From: Marc Davis, District Treasurer Date: May 28, 2024 Subject: Approve the Investment Report for the Month of March 2024 Summary Attached is the Investment Report for the month of March 2024. 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 March 2024. 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 March 31, 2024. The District's investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 26, 2023 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 March 31, 2024, was 2.637%. The yield to maturity of the portfolio was 2.637%. The District's weighted average interest rate was 160 basis points (1.595%) below the LAIF average monthly rate of 4.232% for the month of March 31, 2024. The weighted average number of days to maturity for the District's total portfolio was 480 days (1.37 years). The duration of the underlying securities in LAIF as of March 31, 2024 was 225 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 March 31, 2024 was 36.30%. 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 - Equal to 30% of the operations budget of the Solid Waste Fund per Operations CodeOperating Reserve Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. - Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period 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. - Remaining available cash, which is currently used for rate stabilization and payment of organicsUndesignated recycling costs. :Wastewater Fund - Equal to 25% of the operations budget of the Wastewater Fund per Operations CodeOperating Reserve Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. - Set aside for capital improvement projects approved and budgeted by the Board,Reserved for Capital Outlay but which have not yet been completed. - Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period 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. - Remaining available cash, which is available to be appropriated by the Board.Undesignated - Collection of fixture fees which is a restricted revenue source and can only be used for newFacilities Revolving Fund sewer facilities. - Accumulation of funds for replacement of vehicles, equipment and computers.Asset Replacement Fund - Accumulation of funds in accordance with the asset management model for long-termAsset Management Fund 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 1.577% for the year ending June 30, 2024. Through March 31, 2024, the portfolio has earned a weighted average interest rate of 2.311%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 28, 2024 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 - March 2024.pdf (436 KB) Consent 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 :12. Receive and File April 2024 Solid Waste Diversion Report Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Recommended Action :That the Board of Directors receive and file this report. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Marissa Pereyda, Management Analyst II Date: May 28, 2024 Subject: Receive and File April 2024 Solid Waste Diversion Report Summary In April 2024, CR&R collected 3,235.44 tons of solid waste and recycled 2,021.34 tons of solid waste. Recommendation That the Board of Directors receive and file this report. Analysis For the current fiscal year to date, the District's diversion rate is 61.34%. A tonnage summary for the past nineteen fiscal years is attached to this report. Legal Review Not applicable. Environmental Review Consideration of the Solid Waste Diversion Report is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6 "Projects" does not include... C. Continuing administrative or maintenance activities. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 28, 2024, Board of Directors meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Tonnage_Summary_April_2024.pdf (136 KB) Consent 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 :13. Receive and File April 2024 Contracts Signed by the General Manager Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Public Content To: Board of Directors From: Scott Carroll, General Manager Date: May 28, 2024 Subject:Receive and File April 2024 Contracts Signed by the General Manager Summary At the January 24, 2019Board 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 monthsof April 2024. Recommendation That the Board of Directors receive and file this report 1. 1. 2. 3. Analysis The following contracts/agreements were signed by the general manager in April 2024. Contracts/Agreements Annual Subscription to SB 1383 compliance software, CityGreeen Connect.CityGreen Consulting, LLC Cost: $5,000 sPurchase Order Minuteman Press Printing and Mailing Solid Waste Rate Prop 218 Notice.Cost: $9,859.53 John Dickens Project 342, Install footing and concrete base for HQ landscape dedication plaque.Cost: $930 Jamison Engineering Fabricate and install 6 of removable handrail on the topmezzanine at the District Yard for safety purpose.Cost: $2,300 Legal Review Not Applicable. Environmental Review Providing the Board of Directors a monthly list of contracts signed by the General Manager is anadministrative matterthat will not result in direct or indirect physical changes in the environment and isnot considered a "project". 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 28, 2024 Board of Directors regular meetingat District Headquarters and on District website at.www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. Consent 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 Subject :1. Receive and File the Fiscal Year 2023-24 Third Quarter Budget Review Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Receive and File Goals :8.3 Finance - Forecast revenues and expenditures 8.0 Finance Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Lieu Tran, Sr. Accountant Date: May 28, 2024 Subject:Receive and File the Fiscal Year 2023-24 Third Quarter Budget Review Summary This report serves as a summary of the Districts spending through March 31, 2024 as well as staffs best estimate of projected balances for the year-ended June 30, 2024. Recommendation That the Board of Directors receive and file the Fiscal Year 2023-24 Third Quarter Budget Review. Analysis This analysis report uses the Amended Budget, consisting of the adopted budget plus any approved prior year carryover appropriations, as well as budget adjustments through March 31, 2024. Solid Waste Fund Expenditure- The Solid Waste fund has an amended budget of $7,418,109.As of March 31, 2024, a total of 64% of the Solid Waste budget was expended. At this time, staff anticipates a budgetary savings of $138,000 for the fiscal year, mainly due to savings in Personnel and Maintenance/Operations. Solid Waste & General Funds Revenue-The total Solid Waste and General Funds revenue budget for FY 2023-24 is $7,372,900. As of March 31, 2024, the District received $4,886,335. Wastewater Fund Expenditure- The Wastewater fund has an amended budget of $6,103,978 (excluding capital improvement projects).As of March 31, 2024, atotal of 59% of the Wastewater Funds operating budget has been expended. Staff anticipates a budgetary savings of $433,000 due to Personnel and Maintenance/Operations. Wastewater Fund Revenue-The total Wastewater Fund revenue budget for FY 2023-24 is $8,066,100. As of March 31, 2024, the total Wastewater Fund revenue the District received is $5,288,902. Capital Improvement Projects (CIP) The Capital Improvement Projects are expected to stay within the allocated budget. Please refer to the attached report for a more comprehensive analysis. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District has adopted CEQA Guidelines and Implementing Procedures that state on page 6 Projects does not include . C. Continuing administrative or maintenance activities. Financial Review See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 28, 2024 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff for additional information. File Attachments A-FY2023-24 Third Quarter Budget Analysis.pdf (317 KB) B - Expenditure Analysis.pdf (420 KB) E. GENERAL MANAGER'S REPORTS Subject :2. Approve Auditor Engagement Letter for Fiscal Year 2023-24 Audit Meeting :May 28, 2024 - 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 2023-24 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 Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: May 28, 2024 Subject:Consider Approving the Auditor Engagement Letter for Fiscal Year 2023-24 Audit. Summary In preparation of the start of the June 30, 2024 audit, the auditors have issued an Auditor Engagement Letter (Attachment A) disclosing their responsibilities under the U.S.andGenerally Accepted Auditing Standards Government Auditing Standards, and . The preliminary audit will be scheduled by the the State Controller's Minimum Audit Requirements for California Special Districts end of June and the final audit will be scheduled for early October 2024. 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 2023-24 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 auditors 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 andU.S. Generally Accepted Auditing Standards Government Auditing The audit of our financial Standards, and the State Controller's Minimum Audit Requirements for California Special Districts. ed May 1, 2024 (statements does not relieve you or management of your responsibilities as stated in our engagement letter dat 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 2023-24 audit per the contract is which was included in the budget.$15,000 Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 28, 2024 Board of Directors Regular meeting at District Headquarters and posted on the Districts website www.cmsdca.gov Alternative Actions Refer the matter back to staff for additional information. File Attachments Attachment A - 2024 Engagement Letter - N&N, PC.pdf (312 KB) E. GENERAL MANAGER'S REPORTS Subject :3. Provide Comments on CR&R Incorporated Request for CPI Rate Adjustment Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action (Consent), Discussion Recommended Action :That the Board of Directors provide comments and direct staff to bring this item back to the June 11, 2024, Board of Directors Study Session to consider approving a 3.10% adjustment to CR&R rates. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Marissa Pereyda, Management Analyst II Date: May 28, 2024 Subject: Provide Comments on CR&R Incorporated Request for CPI Rate Adjustment Summary P eement Between Costa Mesa Sanitary District and CR&R Incorporated (CR&R), approveder theFirst Amendment to the Agr January 27, 2023, CR&R may request a Consumer Price Index (CPI) adjustment annually by submitting a written request no later than April 1 of each year. On March 28, 2024, CR&R submitted a request for a 3.10% CPI adjustment (see attached). Recommendation That the Board of Directors provide comments and direct staff to bring this item back to the June 11, 2024, Board of Directors Study Session to consider approving a 3.10% adjustment to CR&R rates. Analysis P eement Between Costa Mesa Sanitary District and CR&R Incorporated, approved Januaryer theFirst Amendment to the Agr 27, 2023, CR&R may propose a rate adjustment annually. The proposed adjustment is calculated by multiplying each rate by the percentage change in the CPI for All Urban Consumers in the Los Angeles Area, not seasonally adjusted (CPI-U) - Los Angeles- Long Beach-Anaheim for the twelve (12) month period ending in February, with the request capped at five percent (5%) each year.Per the Amendment, the District shall have discretion to deny the CPI adjustment request based on its reasonable judgement with substantial evidence, but the denial of the increase shall not be based on poor performance, as the assessment of liquidated damages are intended to address performance. The change in the CPI for the aforementioned twelve (12) month period ending in February 2024 is 3.10%. For March 2023 through February 2024, the monthly CPI increases were: 3.7%, 3.8%, 3.2%, 2.5%, 2.7%, 3.3%, 3.2%, 2.4%, 2.8%, 3.5%, 2.5%, and 3.4%. The District currently pays CR&R monthly for the following three (3) items: 1. The is charged per active account andHauler (Occupancy) Fee includes costs associated with providing weekly collection for trash, recycling, and organics. These costs are comprised of driver wages (salary/benefits), equipment costs (truck/carts), maintenance costs, and administrative costs (customer service, dispatch, route manager, sustainability specialist). 2. The is charged per ton for theProcessing Fee (Recycling/Disposal) sorting of recyclables from mixed waste and landfill disposal of the remaining waste. 3. The is charged per ton for the delivery and processing of organic materials at the Conversion Technology Fee (Organics) Anaerobic Digestion (AD) Facilityinto renewable natural gas to fuel the solid waste collection trucks or compost. The current rates and proposed rates with a 3.10% increase are included below. If approved, the new rates would be effective July 1, 2024. FY 2022/23 Rate Proposed FY 2024/25 Rate Hauler Fee (Per Account)$11.1864 $11.5331 Processing Fee (Per Ton)$59.35 $61.19 Organics Fee (Per Ton)$81.66 $84.19 The proposed CPI adjustment is for CR&R's current rate structure, which includes the Hauler Fee, Recycling/Disposal Processing Fee, and Organics Fee. Per Exhibit B of the 2023 First Amendment, the rates will be adjusted before implementing the three-cart system to account for theadditional cost of collecting a third cart for recyclables. The new rate structure will include (1) Hauler (Occupancy) Fee, (2) Recycling Fee, (3) Landfill Fee, and 4) Organics Fee. Staff will present an agreement amendment with the new proposed rate structure for Board approval at a future meeting. Legal Review Legal review is not required. Environmental Review Consideration of CR&R's request for rate adjustment 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 in 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 administration or maintenance activities. Financial Review The FY 2024/25 budget includes a 5% CPI adjustment to CR&R's rates. The tables below outline the FY 2024/25 adopted budget with 5% CPI adjustment, the FY 2024/25 proposed budget with 3.10% CPI adjustment, and the estimated cost savings of $104,056 if the 3.10% adjustment is approved. Adopted - FY 2024-25 (5%) Rates Adopted Budget Acct/Ton Hauler $11.7457 $3,122,400 22,153 Processing $62.32 $1,789,300 28,713 Organics $85.74 $838,800 9,783 $159.81 $5,750,500 Proposed - FY 2024-25 (3.10%) Rates Proposed Budget Acct/Ton Hauler $11.5332 $3,065,900 22,153 Processing $61.19 $1,756,922 28,713 Organics $84.19 $823,622 9,783 $156.91 $5,646,444 Proposed - FY 2024-25 Cost Savings Cost Savings Hauler $56,500 Processing $32,378 Organics $15,178 $104,056 The FY 2024/25 budget savings of $104,056 applies to the adopted FY 2024/25 budget and current CR&R rate structure and is calculated assuming the current rate structure will be in place for the entirety of FY 2024/25. With the implementation of the three- cart system in October 2024, changes are proposed to CR&R's rate structure to include the collection and processing costs for the third cart. The new rate structure along with the proposed new customer rates identified in the Solid Waste Rate Study are based on the three-cart rate structure, and will change both revenue and expenses for solid waste collection services. The proposed new customer rates are pending approval at the Public Hearing on June 24, 2024. Staff will present an agreement amendment with the new proposed rate structure for Board approval at a future meeting. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 28, 2024, Board of Directors Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Alternative Actions 1. Approve CR&R's request for a 3.10% adjustment. 2. Deny CR&R's request for a 3.10% adjustment. File Attachments CR&R_CPI_Rate_Adjustment_Request _March_28_2024.pdf (58 KB) Consumer_Price_Index.pdf (268 KB) Consent 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 Subject :4. California Special Districts Association (CSDA) Board of Directors Elections - Seat A Southern Network Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action Recommended Action :That the Board of Directors approve selecting one of the three candidates to serve on CSDA Board Directors, Seat A and direct the general manager to cast the district's vote Public Content To: Board of Directors From: Scott Carroll, General Manager Date: May 28, 2024 Subject:California Special Districts Association (CSDA) Board of Directors Elections - Seat A Southern Network Summary Voting for CSDA Board of Directors, Seat A is now open. The deadline to cast votes is on July 26, 2024 at 5:00 pm. Recommendation That the Board of Directors approve selecting one of the three candidates to serve on CSDA Board Directors, Seat A and direct the general manager to cast the district's vote Analysis In February, nomination information and forms were mailed to every CSDA voting member agency. The leadership of CSDA is elected from its six geographical networks. Each of the six networks have three seats on the board with staggered three-year terms. Candidates must be affiliated with an independent special district that is a CSDA Regular Member in good standing located within thegeographic networkthey seek to represent. The CSDA Board of Directors is the governing body responsible for all policy decisions related to CSDAs member services, legislative advocacy, education and resources. The Board of Directors is crucial to the operation of the association and to the representation of the common interests of all Californias special districts before the Legislature and the state administration. Candidates Jo MacKenzie, Director, Vista Irrigation District* RossLeja, Director, Jurupa Area Recreation & Park District Jason Dafforn, General Manager, Valley Sanitary District * = Incumbent CSDA will begin electronic voting on June 10, 2024. All votes must be received through the system no later than 5:00 p.m. July 26, 2024. Legal Review Not applicable Environmental Review Casting a vote for CSDA Board of Directors elections is anadministrative matter and not a disturbance of the environment similar to grading or construction and the discussion is not a project under CEQA or the Districts CEQA Guideline Financial Review There are no financial impacts to the District. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 28, 2024 Board of Directors regular meeting at District Headquarters and on the District's website Alternative Actions 1. Do not select anyone. File Attachments Jo MacKenzie.pdf (119 KB) Ross Leja.pdf (1,297 KB) Jason Dafforn.pdf (1,111 KB) E. GENERAL MANAGER'S REPORTS Subject :5. Consider Casting Vote to Appoint Regular Special District Member Seat to OC LAFCO Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action Recommended Action :That the Board of Directors: 1. Consider approving James Fisler for the regular special district member seat of OC LAFCO; and 2. Approve authorizing President Schaefer to cast the vote on CMSD's behalf; and 3. Approve designating Vice President Schafer to serve as the alternate voting member. Public Content To: Board of Directors From: Scott Carroll, General Manager Date: May 28, 2024 Subject:Consider Casting Vote to Appoint Regular Special District Member Seat to OC LAFCO Summary The Orange County Local Agency Formation Commission (OC LAFCO) was formed in 1963 to ensure the delivery of effective and efficient public services are being provided by local governments in Orange County. The governance of OC LAFCO is comprised of seven members and four alternates from thecounty, cities, special districts and at-large public members. Commissioners are appointed to four-year terms that expire on June 30 in the year in which the term of the member expires. The term for the regular special district member seat is expiring in 2024. Recommendation That the Board of Directors: 1. Consider approving James Fisler for the regular special district member seat of OC LAFCO; and 2. Approve authorizing President Schaefer to cast the vote on CMSD's behalf; and 3. Approve designating Vice President Schafer to serve as the alternate voting member. Analysis The deadline for submitting nomination and declaration forms was April 15, 2024. OC LAFCO received two nominations for the regular special district member seat. JamesFisler, Director, Mesa Water District* Joe Muller, Director, South Coast Water District * = Incumbent Director Muller withdrew his nomination for consideration, which leaves Director Fisler as the only nomination for the open seat. Ballots will be emailed to special district presiding officers on May 6, 2024. Ballots are due to OC LAFCO by 4:00 pm on June 10, 2024. Legal Review Not applicable Environmental Review the regular special district member seat of OC LAFCOCasting a vote to appoint is anadministrative matter and not a disturbance of the environment similar to grading or construction and the discussion is not a project under CEQA or the Districts CEQA Guideline Financial Review There are not financial impacts to the District. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 28, 2024 Board of Directors regular meeting at District Headquarters and on the District's website Alternative Actions 1. Do not cast a vote File Attachments 2024 Nomination & Appointment Process.pdf (366 KB) James Fisler.pdf (180 KB) 2024 05 13 Letter to OC LAFCO J Muller withdrawal.pdf (340 KB) F. ENGINEER'S REPORTS Subject :1. Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Discussion, Receive and File Public Content To: Board of Directors From: Mark Esquer, District Engineer Date: May 28, 2024 Subject: Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status Summary The District Engineer has provided a memorandum with a brief summary of major capital or other engineering activitiesfor the period of mid-March to mid-April. The District Engineer's memorandum is attached. Also attached isa detailed summary of the Capital Improvement Project activities andassociated project cost expenses for the previous calendar month. Recommendation The Board of Directors receive and file the Capital Improvement Status 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 aresufficient 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 28, 2024,Board of Directors Regular meeting at District Headquarters and posted on the Districts website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments 2024-04 Financial Section for CIP Updates.pdf (91 KB) 2024 05 Monthly Engineers Report CMSD Memorandum.pdf (227 KB) F. ENGINEER'S REPORTS Subject :2. Award Contract to Vicon Enterprise, Inc. for Project 330 West Bluff Pump Station Rehabilitation, Re-Bid Adopt CEQA Determination, Award a Contract, and Approve a Contingency Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action, Discussion Preferred Date :May 28, 2024 Fiscal Impact :No Budgeted :Yes Budget Source :Project #330 Budget Recommended Action :1. Adopt Project 330 West Bluff Pump Station Rehabilitation Rebid project as Categorically Exempt per the California Environmental Quality Act (CEQA) Section 15302, Class 2; and 2. Award a contract to the lowest responsive and responsible bidder, Vicon Enterprise, Inc., in the amount of $338,820; and 3. Approve a 10% contingency in the amount of $33,882. Public Content To: Board of Directors From: Mark Esquer, District Engineer Date: May 28, 2024 Subject: Project 330 WestBluff PS Rehab ReBid- Adopt CEQA Determination, Award a Contract, and Approve a Contingency Summary The project work generally consists of rehabilitating theWest Bluff Pump Station mechanical equipment, relocating the existing electrical panel for compliance with the National Fire Protection Agency 70 and National Electrical Code(s), and related project and site work. Fivebids were received on April 24, 2024, and ranged from $338,820 to $399,424. Vicon Enterprise, Inc. was the low bid.$325,000.The Engineer's estimate for this project is . Recommendation That the Board of Directors: 1. Adopt Project #330 West Bluff Pump Station Rehab Rebid project as Categorically Exempt per the California Environmental Quality Act (CEQA) Section 15302, Class 2; and 2. Award a contract to the lowest responsive and responsible bidder, Vicon Enterprise, Inc., in the amount of $338,820; and 3. Approve a 10% contingency in the amount of $ 33,882. Analysis This proposed award is a rebid from last September, when the Board rejected a recommendation to award a negotiated bid to GCI Construction Inc. in the amout of $296,300. As directed, staff rebid the project after updating the plans, specifications, electrical design, and bidding documents to reflect the revised scope of work. The District's Westbluff PS was last remodeled in 1982 and has mechanically reached the end of useful life and must be rehabilitated. New pumps and pump appurtenance was purchased and will be turned over to the contractor for installation. As part of the rehabilitation, the electrical panel must be relocated or replaced because its location is adjacent to the wetwell and a nearby sewer manhole. The electrical panel location within 10 feet of a wastewater source, does not comply with fire and electrical codes. Electrical and fire code required an spark or ignition source, including electrical panels, be at least 10 feet from a wastewater source. The project work includes relocation of the existing panel for compliance with the latest codes. Legal Review District Counsel has reviewed the contracts and approved to form. Environmental Review The Project does not increase the capacity of the affected pump stations, forcemain, nor sewers. It provides for increased reliability and decreases the likelihood of an Sanitary Sewer Overflow. Performing this project work does not change the capacity and 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 project construction activities will require $445,000, including construction contract, a 10% contingency, construction administration costs, and miscellaneous construction services. The available 330 Project funds, with encumbrance and after the budget adjustment, is $462,148 as of April 30, 2024. The proposed construction cost falls within the budgeted amount. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 28, 2024 Board of Directors meeting at District Headquarters and posted on the District's website at www.cmsdca.gov Alternative Actions 1.Reject all bids and direct staff to solicit bids again. 2. Refer the matter back to staff for additional information. File Attachments Complete_with_DocuSign_20240513_CMSD-_330_W.pdf (12,177 KB) Bid Register - Westbluff.pdf (106 KB) F. ENGINEER'S REPORTS Subject :3. Approve Project 343 Elden Forcemain Bypass Improvement Project Change Order #3 Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action, Discussion Preferred Date :May 28, 2024 Fiscal Impact :No Dollar Amount :$13,956.00 Budgeted :No Budget Source :Project 343 Budget Recommended Action :Approve Change Order #3 in the amount of $13,956, for a 14% total project change order. Public Content To: Board of Directors From: Mark Esquer, District Engineer Date: May 28, 2024 Subject: Approve Project 343 Elden Forcemain Bypass Improvement Project Change Order #3 Summary The project work generally consists of replacing the emergency bypass on the Elden forcemain to accommodate two (2) 12-inch emergency lay-flat bypass hoses and replacing one wetwell hatch. During the project work, three unknown condition created the need for three change orders. The first two change orders at a cost of $14,466.03 were within the $20,400 (10%) approved by the Board of Directors. Change Order #3 in the amount of $13,956 exceeded the Board approved amount by $8,079. As required by District Ordinance, staff is requesting Board approval for Change Order #3. Recommendation Approve Project 343 Elden Forcemain Bypass Improvement Project Change Order #3 in the amount of $13,956. Analysis Three unknown conditions created the need for three (3) project change orders. Change Order #1 resulted from the 18-inch forcemain taking an angled path from the pump station to the Bypass Pump Building rather than the straight path shown on the record drawings. This angled path was closer to the existing SCE power pole, so the District had to move one connection to the north side of the bypass pump building, as to not dig too close to the power pole. Change Order #1 included installing a hot-tap connection and all the associated work, material, labor, equipment in the amout of $13,323.02. Change Order #2 resulted when the existing 18-inch X 12-inch fitting appeared to show excessive corrosion. District staff had the fitting tested to determine if the corrosion had caused the fitting to fail. Testing determined that the fitting was acceptable for use but it needed to be coated with corrosion-resistant paint (coating) for a cost of $1,143.81. Change Order #3 resulted when the contractor was excavating in the roadway to install the new connection near the pump station. Unknown to the District, the contractor found buried concrete around an old pipe that was to be removed by contract; the old pipe was in the way of the new connection. It took the contractor almost three (3) work days to remove the concrete. This concrete removal was conducted via time and materials basis because no one knew the volume of concrete required to make room for the new pipe connection. Change Order #3 also included the cost for extra paving associated with making the excavation larger to removed the unknown amount of concrete. Change Order #3 is in the amount of $13,956. Legal Review Not applicable Environmental Review The Elden pump station improvement change orders do not increase the capacity of the existing pump station or forcemain. Installing piping and appurtenance with the same capacity as the existing facility 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 total of all change orders is $28,422.83; $8,022.83 above the Board authorized amount. This extra $8,022.83 falls within the available Project 343 budget of $34,916.84 (as of May 20, 2024). Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 28, 2024 Board of Directors meeting at District Headquarters and posted on the District's website at www.cmsdca.gov Alternative Actions Do not approve Change Order #3 or send back to District staff for further consideration. G. TREASURER'S REPORTS Subject :1. Investment Report for the Month of April 2024 Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Action Recommended Action :That the Board of Directors approve the Investment Report for the month of April 2024. Goals :8.0 Finance Public Content To: Board of Directors From: Marc Davis, District Treasurer Date: May 28, 2024 Subject: Approve the Investment Report for the Month of April 2024 Summary Attached is the Investment Report for the month of April 2024. 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 2024. 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, 2024. The District's investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 26, 2023 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, 2024, was 2.913%. The yield to maturity of the portfolio was 2.913%. The District's weighted average interest rate was 136 basis points (1.359%) below the LAIF average monthly rate of 4.272% for the month of April 30, 2024. The weighted average number of days to maturity for the District's total portfolio was 396 days (1.08 years). The duration of the underlying securities in LAIF as of April 30, 2024 was 227 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, 2024 was 45.97%. 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 - Equal to 30% of the operations budget of the Solid Waste Fund per Operations CodeOperating Reserve Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. - Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period 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. - Remaining available cash, which is currently used for rate stabilization and payment of organicsUndesignated recycling costs. :Wastewater Fund - Equal to 25% of the operations budget of the Wastewater Fund per Operations CodeOperating Reserve Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. - Set aside for capital improvement projects approved and budgeted by the Board,Reserved for Capital Outlay but which have not yet been completed. - Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period 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. - Remaining available cash, which is available to be appropriated by the Board.Undesignated - Collection of fixture fees which is a restricted revenue source and can only be used for newFacilities Revolving Fund sewer facilities. - Accumulation of funds for replacement of vehicles, equipment and computers.Asset Replacement Fund - Accumulation of funds in accordance with the asset management model for long-termAsset Management Fund 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 1.577% for the year ending June 30, 2024. Through April 30, 2024, the portfolio has earned a weighted average interest rate of 2.387%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 28, 2024 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 2024.pdf (457 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 days 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 28, 2024 - 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 days 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 28, 2024 - 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 days 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 28, 2024 - 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 days 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 28, 2024 - 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 days 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 28, 2024 - 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 days 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 28, 2024 - Board of Directors Regular Meeting Access :Public Type : L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject :1. Oral Communications and Director Comments Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Discussion O. CLOSING ITEMS Subject :1. Adjourn Meeting :May 28, 2024 - Board of Directors Regular Meeting Access :Public Type :Procedural Public Content The next regular meeting of the Costa Mesa Sanitary District Board of Directors will be held at 4:30 p.m. on Monday, June 24, 2024 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626.