2024_08_13_ssTuesday, August 13, 2024
Board of Directors Study Session
Time: 8:00 a.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
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To participate in the meeting by computer:
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To join the meeting by phone:
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3. Lastly, you will be asked to enter your Participant ID. Press the # symbol again to bypass this
step.
***
Public Comments: Members of the public can submit any comments in real time during the
meeting or prior to the meeting in writing for the Board of Directors' consideration by sending
them to the District Clerk, Noelani Middenway, at nmiddenway@cmsdca.gov. Those comments will
be made part of the official public record of the meeting.
***
Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part
of the agenda packet. If any document or other writing pertaining to an agenda item is
distributed to all or a majority of the Board after the packet is prepared, a copy of that writing
may be obtained from the District Clerk's Office.
***
In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours
prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II).
A. OPENING ITEMS
1. 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.)
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.
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1. Public Comments
C. ITEMS OF STUDY
1. Receive and File Code Enforcement Officer Report - July 2024
2. Retroactive Budget Adjustment For Fiscal Year 2023-2024.
3. Request for Adjustment to the Adopted Budget for Fiscal Year 2024-2025
4. Consider Approving Amendments to the Alkaline Battery Recycling Program
D. CLOSING ITEMS
1. Oral Communications and Director Comments
2. Adjournment
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Tuesday, August 13, 2024
Board of Directors Study Session
Time: 8:00 a.m.
Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626
***
The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will
be made available at the start of the meeting) or by visiting
www.youtube.com/CostaMesaSanitary.
***
To participate in the meeting by computer:
1. Copy and past the following into your browser - https://us02web.zoom.us/join
2. Enter the Meeting ID number - 825 2896 6090
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 825 2896 6090#
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. 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 Aug 13, 2024 - Board of Directors Study Session
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Type Procedural
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Michael Scheafer, President
Arlene Schafer, Vice President
Arthur Perry, Secretary
Robert Ooten, Vice Secretary
Brett Eckles, Director
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B. PUBLIC COMMENTS - This time has been set aside for persons in the
audience to make comments on items within the subject matter jurisdiction of
the Costa Mesa Sanitary District that are not listed on this agenda. Members of
the public will have the opportunity to address the Board of Directors about all
other items on this agenda at the time those items are considered. Under the
provisions of the Brown Act, the Board of Directors is prohibited from taking
action on oral requests but may refer the matter to staff or to a subsequent
meeting. The Board of Directors will respond after public comment has been
received. Please state your name. Each speaker will be limited to four (4)
continuous minutes.
Subject 1. Public Comments
Meeting Aug 13, 2024 - Board of Directors Study Session
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Type Procedural
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C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: David Griffin, Code Enforcement Officer
Date: August 13, 2024
Subject: Receive and File July 2024 Code Enforcement Officer Report
Summary
This report summarizes major points for three ordinance enforcement topics covering scavenging, graffiti on trash carts, and trash
container enforcement. For the month of July 2024, the CMSD Code Enforcement Officer (CEO) focused his efforts on patrols in
various parts of the community. The goal is to identify and deter instances of scavenging and residential trash carts left within the public
view.
Recommendation
That the Board of Directors receives and files this report.
Analysis
In the month of July, Officer Griffin observed 2 individuals searching in trash carts on 22nd St. and Miner. All individuals were advised of
the district's scavenging law and given verbal warnings before they went on their way.
In the month of July, Officer Griffin issued 6 first warnings notices (yellow tag) to residential properties for having their trash carts in
public view. In the month of July, Officer Griffin focused efforts on recording videos for the District's annual manhole inspection program.
This contributed to the lower number of warning notices issued in July. Officer Griffin will resume normal patrol activities for the month of
August.
Officer Griffin did not observe graffiti on trash carts in the month of July.
To address resident concerns, Officer Griffin is patrolling streets by 6:30 a.m.
Legal Review
Not applicable.
Environmental Review
Code enforcement activities and reporting are not a disturbance of the environment similar to grading or construction and do not
constitute a project under CEQA or the District’s CEQA Guidelines.
Financial Review
Officer Griffins' activities are funded 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 August 13, 2024, Board of Directors Study
Session meeting at District Headquarters and posted on the District’s website.
Alternative Actions
Direct staff to report back with more information.
File Attachments
Code_Enforcement_Officer_Report_July_2024.pdf (344 KB)
Subject 1. Receive and File Code Enforcement Officer Report - July 2024
Meeting Aug 13, 2024 - Board of Directors Study Session
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Type Receive and File
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C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Kaitlin Tran, Finance Manager
Date: August 13, 2024
Subject: Retroactive Budget Adjustment For Fiscal Year 2023-2024
Summary
The Board of Directors approved the Biennial Budget Fiscal Years 2023-24 and 2024-25 on June 26, 2023. The Vactor 2112-18
Combination Sewer Cleaning Unit was budgeted for FY 2024-25. However, the District received the Vactor 2112-18 Combination Sewer
Cleaning Unit earlier than anticipated. The unit was received and paid for in June 2024 (FY 2023-24). A retroactive adjustment to the
budget for the fiscal year 2023-24 is necessary due to the timing of the event.
Recommendation
The Board of Directors should approve the retroactive budget adjustments for FY 2023-24 to transfer $240,000 from the wastewater
Personnel and $400,000 from the wastewater M&O accounts to the wastewater Capital Outlay account to cover for the acquisition of
the Combination Sewer Cleaning Unit.
Analysis
June 26, 2023
The Board approved the acquisition of a new Vactor 2112-18 Combination Sewer Cleaning Unit to replace the 12-year-old
combo cleaning truck in the FY 2024-25 capital outlay budget of $500,000. The District allocated $400,000 in the Asset
Replacement Fund over the last 10 years to replace the truck; therefore, $400,000 was transferred from the Asset Replacement
Fund to the Capital Outlay Wastewater Fund with the remaining $100,000 from fund balance.
FY 2024-25 Budget
Account No.
Account Description
Transfer In/(Out)
40-000000-2990 Fixed Asset Replacement Fund ($400,000)
20-000000-2990 Wastewater Fund Balance ($100,000)
20-200001-4795 Capital Outlay Swr Maint $500,000
August 21, 2023
Subject 2. Retroactive Budget Adjustment For Fiscal Year 2023-2024.
Meeting Aug 13, 2024 - Board of Directors Study Session
Access Public
Type Action, Discussion
Fiscal Impact Yes
Budgeted Yes
Goals 8.3 Finance - Forecast revenues and expenditures
8.2 Finance - Adopt a balanced budget
8.0 Finance
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The cost of the Vactor 2112-18 Combination Sewer Cleaning Unit increased since the previous quote was received, and a
budget adjustment was approved from $500,000 to $640,000. The Board approved the transfer of $140,000 from the Fixed
Asset Replacement Fund to the Capital Outlay Wastewater Fund.
FY 2024-25 Budget Adjustment (Additional Fund)
Account No.
Account Description
Transfer In/(Out)
40-000000-2990 Fixed Asset Replacement Fund ($140,000)
20-200001-4795 Capital Outlay Swr Maint $140,000
The Board also approved to submit the purchase order for the acquisition in August of 2023 because it takes ten to twelve
months to manufacture and deliver the unit.
June 14, 2024
Staff was expecting the Vactor 2112-18 Combination Sewer Cleaning Unit to be delivered in July of 2024 (FY 2024-25).
However, the District received and paid for the Vactor 2112-18 Combination Sewer Cleaning Unit in June of 2024 (FY 2023-
24).
Fiscal Year Approved Budget Swr Truck Paid
2023-24 $0.00 -$640,000
2024-25 $640,000 $0.00
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
Because the District received and paid for the Combination Sewer Cleaning Unit in June of 2024, the expense must be recorded in FY
2023-24. Staff has reviewed the FY 2023-24 wastewater preliminary fourth quarter budget and projected there will be savings of
$299,000 from Personnel (salaries and benefits) and $426,000 from the Maintenance & Operation (M&O) account, a total of $725,000.
Attachment A, FY 2023-24 Wastewater Expenditure Analysis outlines the Wastewater Personnel and M&O expenditures by account as
of June 30, 2024.
Staff is proposing the Board of Directors approve the retroactive budget adjustment to transfer $240,000 from the Wastewater
Personnel accounts, as well as $400,000 from the Wastewater M&O account to the Wastewater Capital Outlay account to cover the
acquisition of the Combination Sewer Cleaning Unit. After the retroactive budget adjustment, the FY 23-24 wastewater fund is projected
to have a remaining unspent budget balance of $85,000. Attachment B, Proposed FY 2023-24 Retro Active Budget Adjustment By
Account outlines the details of the FY 23-24 retroactive budget adjustment by account.
FY 2023-24 Amended
Budget
Preliminary
YTD Exp
Projection
Yr-end
Exp
Projection
Yr-end
Balance
Proposed
Retro Active Adj
Transfer
In/(Out)
Balance
After
Adjustment
Total Personnel $2,858,800 $2,409,456 $2,559,800 $299,000 ($240,0000)$59,000
Total Maintenance &
Operations $3,173,378 $2,277,582 $2,741,377 $426,000 ($400,000)$26,000
Total Capital Outlay $71,800 $662,795 $711,800 ($640,000)$640,000 $-
Total $6,103,978 $5,349,832 $6,018,977 $85,000 $-$85,000
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the August 13, 2024 Board of Directors Study
Session meeting at District Headquarters and on District website at www.cmsdca.gov.
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Alternative Actions
1. Refer the matter back to staff for additional information.
File Attachments
Attachment A FY 2023-24 Wastewater Expenditure Analysis.pdf (83 KB)
Attachment B -Proposed FY 2023-24 Retro Active Budget Adjustment By Account.pdf (48 KB)
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C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Kaitlin Tran, Finance Manager
Date: August 13, 2024
Subject: Request for Adjustment to the Adopted Budget for Fiscal Year 2024-2025.
Summary
The adopted budget for the fiscal year 2024-25 was approved by the Board of Directors on June 26, 2023. There have been several
developments that necessitate adjustments to the budget to ensure that the District can continue to operate effectively and meet its
goals. Staff will bring this item to the August 26, 2024 Board meeting for Board approval.
Recommendation
That the Board of Directors review and provide feedback on the proposed budget adjustment for Fiscal Year 2024-25 to ensure the
continuation of services.
Analysis
The Board of Directors approved the Biennial Budget Fiscal Years 2023-24 and 2024-25 on June 26, 2023. There have been several
developments since the Board adopted the FY 2024-25 budget requiring budget adjustments for FY 2024-25 to ensure the District can
continue to operate effectively and achieve its goals.
Revenue:
1. New Annual Solid Waste Collection Charges
On June 26, 2023, the Board of Directors adopted the FY 2024-25 annual charge revenues budget of $6,578,800. On June
24,2024 the Board of Directors approved new annual solid waste collection charges from $289.20 to $328.92 per unit. As a
result, the FY 2024-25 annual revenue budget will increase approximately $903,200. Staff is proposing a budget adjustment to
the solid waste annual charge revenues budget to $7,482,000.
2. SB 1383 OWR4 Grant Funding
The District received the second SB 1383 OWR4 Grant Funding of $315,300. The funding will be expended by the required
date of April 1, 2026 for the following:
Account Description 1383 Plan Amount
Part-time Salaries Hire a part-time intern $50,300
Staff Development Staff attend SB 1383 training and conferences $4,000
Program Composting Program $42,000
Program School Education Program $30,000
Public Info/Education/Promo Education & Public Outreach $110,000
Rental Kitchen Pails Storage $9,000
Professional Services Record Keeping System & Consulting Services $70,000
Total $315,300
Subject 3. Request for Adjustment to the Adopted Budget for Fiscal Year 2024-2025
Meeting Aug 13, 2024 - Board of Directors Study Session
Access Public
Type Discussion
Goals 8.2 Finance - Adopt a balanced budget
8.0 Finance
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By June 30, 2025 any unspent grant amount will be requested for carryover to FY 2025-26.
Expenditures:
3. Changes in Personnel
After the Board adopted the budget in June 2023, there have been a few factors that occurred which affected the FY2024-25
salary and benefit budgets. First, the February 2024 CPI in Los Angeles-Long Beach-Anaheim came in at 1.6% less than what
was budgeted. Second, there were four employees that have separated from the District. The District has filled three of those
positions and one position remains vacant. When a new incumbent is hired, the base rate and benefits may be less or more
than the former employee affecting the adopted personnel budget.
4. Classification and Compensation Study Board Approved on June 24, 2024
The total adopted salaries and benefits budget for the Solid Waste Fund is $996,000 and Wastewater Fund is $3,084,800.
Staff have recalculated the FY 2024-25 salary and benefit budgets to reflect the changes in personnel and the classification
and compensation study approved by the Board on June 24, 2024. The results of the classification and compensation study
adds an additional $21,000 to the Solid Waste Fund and $29,900 to the Wastewater Fund; a total of $50,900 in the salaries
and benefits accounts for FY 2024-25. Please see Attachment B, Classification and Compensation Costs By Line-item and
Attachment A – Line-item Proposed Budget Adjustment Fiscal Year 2024-25 (Page 1) for details. How the District plans to fund
these additional costs are listed below.
Solid Waste Fund
The FY 2024-25 solid waste adopted budget for part-time salaries is $31,000 for the part-time Accounting Clerk and Internship
position. As stated previously the District received $315,300 for the SB 1383 OWR4 Grant, in which staff will allocate $50,300
to pay for the Internship position. Since the internship position will be funded by the SB 1383 OWR4 Grant, there will be
available funds from the adopted budget Part-time Salaries account. Staff is recommending the Board of Directors to transfer
$21,000 from the Part-time Salaries account to the Regular Salaries, Cafeteria Plan, Retirement – Employer and Deferred
Medical accounts to cover the solid waste costs resulting from the Classification and Compensation Study (reference Tables 1
& 2 below).
Table 1
Solid Waste Part-time Salaries Account Amount
Adopted Budget $ 31,000
Budget Adj. Grant Funding 50,300
Budget Adj. Transfer to Regular Salaries (21,000)
Proposed Solid Waste PT Salaries Budget $ 60,300
Table 2
Class & Comp Study
Solid Waste Adopted Budget Proposed Budget
Account Description Budget Adjust Regular Salaries
Regular Salaries $ 694,000 $ 17,000 $ 711,000
Cafeteria Plan 101,000 2,000 103,000
Retirement - Employer 78,000 1,000 79,000
Deferred Medical (RHS) 7,000 1,000 8,000
Total SW Salaries & Benefits $ 880,000 $ 21,000 $ 901,000
The total proposed budget adjustment for the Solid Waste Fund salaries and benefits is $1,046,300, an increase of $50,300
from $996,000. The adjustment includes the $50,300 budget for the part-time intern position to assist the Solid Waste
Department that will be funded by the grant revenue received (use Figure 1 below for reference).
Figure 1
Adopted Proposed
Solid Waste Solid Waste Solid Waste
Fund Fund Variance
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Total Revenues 7,028,600 8,247,100 1,218,500
Expenses
Salaries and Benefits 996,000 1,046,300 50,300
Operations & Maintenance 6,314,800 7,381,000 1,066,200
Programs 20,000 122,000 102,000
Capital Improvement Projects - - -
Total Expenses 7,330,800 8,549,300 1,218,500
Total Transfers 302,200 302,200 -
Total Budget, Net Of Transfers 7,028,600 8,247,100 1,218,500
Net Revenue $ - $ - $ -
Wastewater Fund
The FY 2024-25 wastewater adopted budget for the Annual Sewer Maintenance account is $155,000. Of this amount,
$35,000 is for manholes and rings and $120,000 is for miscellaneous. The Miscellaneous line-item budget of $120,000 is
for any unexpected sewer repairs or maintenance that may occur during the year. Staff is recommending the Board of
Directors transfer $29,900 from the Annual Sewer Maintenance account to the Regular Salaries, Cafeteria Plan,
Retirement – Employer and overtime accounts to cover the wastewater costs resulting from the Classification and
Compensation Study. After the budget adjustment, the Annual Sewer Maintenance account has a balance of $125,100
(reference Table 3 below). The commercial driver’s license budget is included in the Regular Salaries line-item budget and
standby pay is included in the Overtime line-item budget (reference Table 4 below).
Table 3
Adopted Budget
Annual Sewer
Maintenance
Account
Manhole Rings/Covers $ 35,000
Miscellaneous 120,000
Budget Adj. Transfer to Salaries and Benefits (29,900)
Proposed Annual Sewer Maint. Budget $ 125,100
Table 4
Class & Comp Study
Wastewater (Administrative)Adopted Budget Proposed Budget
Account Description Budget Adjust Regular Salaries
Regular Salaries $ 1,129,000 $ 10,000 $ 1,139,000
Cafeteria Plan 159,000 9,000 168,000
Retirement - Employer 121,000 1,000 122,000
Wastewater Maintenance (Field Staff)
Regular Salaries (Commercial Driver's License) 963,000 1,900 964,900
Overtime (Standby Pay) 59,000 9,000 68,000
Retirement - Employer 108,000 (1,000) 107,000
Total WW Salaries & Benefits $ 2,539,000 $ 29,900 $ 2,568,900
The total proposed budget adjustment for the Wastewater Fund salaries and benefits is $3,114,700, an increase of
$29,900 from $3,084,800 (reference Figure 2 below).
Figure 2
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Adopted Proposed
Wastewater Wastewater Wastewater
Fund Fund Variance
Total Revenues 8,101,200 8,101,200 -
Expenses
Salaries and Benefits 3,084,800 3,114,700 29,900
Operations & Maintenance 3,465,200 3,165,500 (299,700)
Programs - - -
Capital Improvement Projects 1,911,000 1,911,000 -
-
Total Expenses 8,461,000 8,191,200 (269,800)
Total Transfers 359,800 90,000 (269,800)
Total Budget, Net Of Transfers 8,101,200 8,101,200 -
Net Revenue $ - $ - $ -
5. New Three-Cart System & new CR&R rates
The District currently pays CR&R monthly for the following three (3) items:
1. The Hauler (Occupancy) Fee is charged per active account and includes costs associated with providing weekly
collection of 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 Processing Fee (Recycling/Disposal) is charged per ton for the sorting of recyclables from mixed waste and
landfill disposal of the remaining waste.
3. The Conversion Technology Fee (Organics) is charged per ton for the delivery and processing of organic materials at
the Anaerobic Digestion (AD) Facility into renewable natural gas to fuel the solid waste collection trucks or compost.
During the budget process, staff established an estimated consumer price index (CPI) of 5% to apply for CR&R rates. The
adopted budgets for the trash hauler, the recycling tonnage, and the organics disposal tonnage are $3,122,400,
$1,789,300 and $838,800, respectively.
On May 28, 2024 the Board of Directors approved a lower CPI of 3.10%. The FY 2024-25 hauler rate, recycling/disposal
rate, and organics rate are $11.5331 (per account), $ 61.19 (per ton) and $ 84.19 (per ton), respectively. The rate
structure will change when the District implements the three-cart system in October to (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.
Due to the changes in the FY 2024-25 CPI percentage and the rate structure after the first quarter, staff is proposing
budget adjustments for the Trash Hauler, the Recycling, the Landfill and the Organics Disposal accounts as follows:
Account Description Adopted Budget Proposed Adjusted Budget
Trash Hauler $ 3,122,400 $ 4,368,000
Landfill $ 1,789,300 $ 960,000
Recycling $ 0 $ 400,000
Organics Disposal $ 838,800 $ 838,800
6. Professional Services Account (use Figure 3 below to reference 6a, 6b, and 6c)
The Professional Services Account has a budget of $106,700 in the Solid Waste Fund and $163,700 in the Wastewater fund.
Staff is proposing to add an additional $70,000 to the Solid Waste Fund and $65,000 to the Wastewater Fund for the following
items:
a) SB 1383 Record Keeping System & Consulting Services - As mentioned earlier in this report, the District received the
second SB 1383 OWR4 Grant Funding of $315,300. The funding will be expended by the required date of April 1, 2026.
Staff is planning to allocate $70,000 on record keeping system and consulting services for SB 1383.
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b) Permit & Fixture Fee Study- The Permit & Fixture Fee Study was budgeted in FY 2023-24 for $25,000. However, staff
obtained quotes for the study and the cost to conduct the study was higher than the budgeted amount. To conduct the
Permit and Fixture Fee study, it will cost approximately $60,000. Staff will request the Board of Directors carryover the
$25,000 from FY 2023-24 to FY 2024-25 at the October 2024 Board Meeting. In addition, staff is proposing the Board of
Directors appropriate an additional $35,000 to the Permit & Fixture Fee Study. If the Board of Directors approves the
appropriation, the total Permit & Fixture Fee Study budget will be $60,000.
c) Emergency Battery Storage for Solar Photovoltaic System Study - A solar photovoltaic study involves analyzing the
potential and feasibility of installing solar panels in a specific area. This study can encompass several aspects, including
technical, economical, environmental, and social factors. The solar photovoltaic system project included a solar-plus-
storage system that can provide critical load support to keep HQ running in the event of grid outages due to rolling
blackouts, brownouts or severe weather events. Staff is proposing an additional $30,000 in the Wastewater Professional
Services account for the Emergency Battery Storage for Solar Photovoltaic System Study.
Figure 3
Adopted
Solid Waste Wastewater Solid
Description Fund Fund Total Fu
Professional Services
Artificial Intelligent Manhole Support $ - $ 5,000 $ 5,000 $
Public Relations 30,000 30,000 60,000
Bilingual Translation Services 2,500 2,500 5,000
Record Retention Updates 100 900 1,000
Comprehensive Parcel and Levy Audit 11,100 11,100 22,200
OPEB Actuarial 1,000 9,000 10,000
ECS Imaging - Document Imaging Services - 2,000 2,000
IT Monthly Maintenance 5,500 49,700 55,200
Vulnerability Scan 900 8,100 9,000
On-site IT Manager 4,400 40,000 44,400
Website Maintenance 600 5,400 6,000
Franchise Hauler & SB 1383 Compliance & Composition Studies 36,600 - 36,600
6a) SB 1383 Compliance 8,000 - 8,000
6b) Permit & Fixture Fee Study - - -
6c) Emergency Battery Storage for Solar Photovoltaic System Study - - -
Waste Hauler Profit Margin Audit 6,000 - 6,000
Total Professional Services $ 106,700 $ 163,700 $ 270,400 $ 17
7. Engineering/Architectural Services, Plan Check/Inspection Inside and Outside accounts
The Board of Directors approved rate increases for FY 2024-25 for Robin B. Hamers & Associates for Engineering, Inspection,
and Contract Administration Services on May 23, 2023 (except the Inspector rate) as follows:
Position FY 2023-24 FY 2024-25 % Increase
Principal Engineer $140.40 $143.20 2%
Design/Licensed Engineer $124.20 $126.68 2%
Inspector $116.50 $120.52 (new, 7/1/24)3.5%
Clerical/Admin $70.20 $71.60 2%
The prevailing wage percentage increase for FY 2024-25 for the Inspector rate was unknown on May 23, 2023. Staff recently
received a letter from Robin B. Hamers & Associates, notifying the District that effective July 1, 2024, there was an increase of
3.5% ($4.02) per hour for the Inspector rate due to an increase in the prevailing wage. All workers employed on public works
projects must be paid the prevailing wage determined by the Director of the Department of Industrial Relations according to
the type of work and location of the project. Therefore, the inspector rate increased from $116.50 to $120.52. The Dig Alert
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review and inspection costs were budgeted and charged to the Engineering/Architectural Services account in previous years.
Staff is proposing to create an account for Dig Alert review and inspection to separate the costs for better record tracking. Staff
has analyzed the FY 2023-24 expenses and estimated the FY 2024-25 expenses based on the new rates as follows:
Account Adopted Budget Proposed Adj Budget
Engineering/Architectural Services $102,300 $32,300
Dig Alert Review & Inspection $0 $50,000
Plan Check/Inspection - Inside $34,500 $7,700
Plan Check/Inspection - Outside $53,200 $100,000
Total $190,000 $190,000
There are no additional budget requests for the Engineering/Architectural Services, Dig Alert Review & Inspection, Plan
Check/Inspection – Inside, and Plan Check/Inspection – Outside. The total budget for these four accounts is $190,000. Staff is
proposing to adjust the budget within these four accounts.
8. Building Maintenance Account- (use Figure 4 below as a reference)
The Building Maintenance Account has a budget of $3,600 in the Solid Waste Fund and $32,400 in the Wastewater fund, a
total of $36,000. This included a total budget of $5,000 for HQ landscape maintenance. Staff is proposing a budget increase of
$23,000 to maintain the landscape at headquarters.
Figure 4
Adopted Proposed
Solid Waste Wastewater Solid Waste Wastewater
Description Fund Fund Total Fund Fund
Building Maintenance HQ
Bolt Charger Maintenance/Repair 100 900 1,000 100 900
Building Maintenance Repairs/Electrical 600 5,400 6,000 600 5,400
Building Maintenance Supplies 600 5,400 6,000 600 5,400
Fire Extinguisher Maintenance 50 450 500 50 450
Heat/Ventilating/ Air Conditioning 480 4,320 4,800 480 4,320
Janitorial Contract - Special Cleaning 100 900 1,000 100 900
Landscape and Miscellaneous Maintenance 500 4,500 5,000 2,800 25,200
OC Special Assessments Tax HQ 220 1,980 2,200 220 1,980
Pest Control 200 1,800 2,000 200 1,800
Plumbing 100 900 1,000 100 900
Surveillance Security System Replacement 250 2,250 2,500 250 2,250
Water Delivery HQ 100 900 1,000 100 900
Miscellaneous 300 2,700 3,000 300 2,700
Total Building Maintenance HQ $ 3,600 $ 32,400 $ 36,000 $ 5,900 $ 53,100
9. Liability Insurance Account
Currently the District does not have earthquake insurance for the Headquarters and District Yard buildings. Earthquake
insurance for the buildings will add an additional $22,500 to the FY 2024-25 liability insurance account budget. The earthquake
premium cost is split 50/50 between the HQ building (Liability Insurance Administrative account) and the District Yard building
(Liability Insurance Sewer Maintenance account).
10. Capital Outlay Administrative Account (Use Figure 5 below as a reference)
The FY 2024-25 Wastewater Capital Outlay Administrative Account has a budget of $50,000 for the second phase of the HQ
Landscape project. Staff is proposing to add an additional $7,000 to replace the HQ roof hatch for safety compliance with
OSHA and $115,000 for the HQ painting project.
Figure 5
Adopted Proposed
Solid Waste Wastewater Solid Waste Wastewater A
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Description Fund Fund Total Fund Fund
Capital Outlay Admin & Operations
HQ Landscape Phase II - 50,000 50,000 - 50,000
HQ Roof Hatch Replacement - 7,000
HQ Painting Project - - - - 115,000
Total Capital Outlay Admin & Operations $ - $ 50,000 $ 50,000 $ - $ 172,000 $
11. Capital Outlay Sewer Maintenance Account
On June 26, 2023, the Board of Directors approved $500,000 to the District Yard Capital Outlay account to replace the 10-
year-old combo cleaning truck in FY 2024-25. The District allocated $400,000 in the Asset Replacement Fund over the last 10
years to replace the truck; therefore, $400,000 was transferred from the Asset Replacement Fund to the Capital Outlay
Wastewater Fund with the remaining $100,000 from fund balance. On August 21, 2023, the Board of Directors approved to
transfer an additional $140,000 from Asset Replacement to the Capital Outlay Wastewater Fund due to an increase in price of
the Combo Cleaning Truck. The District received and paid for the Vactor 2112-18 Combination Sewer Cleaning Unit in FY
2023-34. Staff has proposed to use the unspent budget in FY 2023-24 to cover the Vactor 2112-18 Combination Sewer
Cleaning Unit expense. Staff is proposing to cancel the budget transfer of $540,000 from the Asset Replacement Fund to the
Capital Outlay Wastewater Fund and use $100,000 remaining from the fund balance to cover the additional expenses
proposed in this report.
Approved Budget
Account No.Account Description Transfer out Transfer In Proposed
40-000000-2990 Fixed Asset Replacement Fund $400,000 Cancel transfer
40-000000-2990 Fixed Asset Replacement Fund $140,000 Cancel transfer
20-000000-2990 Wastewater Fund Balance $100,000 For new items request
20-200001-4795 Capital Outlay Swr Maint
$640,000 Cancel Combo Truck Purchase in
FY 24-25
12. Contingency Account
Contingency account is used to manage unexpected emergency expenses that arise during the year. The adopted budget for
the Solid Waste Fund has $70,800 in the contingency account. As a result of the changes mentioned in the previous sections,
the District is adjusting the Contingency account to $125,400. By the fiscal year-end, any unspent amount will go towards the
fund balance.
Legal Review
Not applicable.
Environmental Review
The preparation of financial statements is an administrative action that 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
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
Solid Waste Fund (use Figure 6 below for reference) - The proposed budget adjustments are necessary, and approval of these
adjustments will allow the District to maintain financial stability and continue providing essential services to the community. The
proposed FY 2024-25 Solid Waste revenue budget includes an adjustment of $1,218,500, resulting in an increase from $7,028,600 to
$8,247,100. The Solid Waste Fund expenditure includes transfers and budget adjustments of $1,218,500, an increase from $7,028,600
to $8,247,100. The proposed budget adjustments for fiscal year 2024-25 Budget reflects a balanced budget in the Solid Waste Fund.
Figure 6
Adopted Proposed
General Solid Waste General Solid Waste Solid Waste
Fund Fund Fund Fund Variance
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Total Revenues 355,000 7,028,600 355,000 8,247,100 1,218,500
Expenses
Salaries and Benefits - 996,000 - 1,046,300 50,300
Operations & Maintenance - 6,314,800 - 7,381,000 1,066,200
Programs - 20,000 - 122,000 102,000
Capital Improvement Projects - - - - -
-
Total Expenses - 7,330,800 - 8,549,300 1,218,500
Total Transfers (355,000) 302,200 (485,200) 302,200 -
Total Budget, Net Of Transfers 355,000 7,028,600 485,200 8,247,100 1,218,500
Net Revenue $ - $ - $(130,200) $ - $ -
Wastewater Fund (use Table 4 and Figure 7 below for reference)- The proposed FY 2024-25 Wastewater revenue budget remains
the same amount of $8,101,200. Since the acquisition of the Vactor 2112-18 Combination Sewer Cleaning Unit was expensed in FY
2023-24, staff is proposing to cancel the $540,000 transfer from the Asset Replacement Fund to the Wastewater Capital Outlay Fund
and use the available $100,000 from the Wastewater Fund Balance to cover a portion of the new budget items staff outlined in this
report. The total amount of the new budget items and projects is $230,200. In order for the Wastewater Fund to have a balanced
budget, staff is proposing the Board of Directors transfer $130,200 from the General Fund to the Wastewater Fund.
Table 4
Account Amount New Budget Item
Salaries and Benefits $ 29,900 Classification & Compensation Study
Annual Sewer Maintenance (29,900)Classification & Compensation Study
Engineering/Architectural Services (70,000)New rates
Dig Alert Review & Inspection 50,000 New rates
Plan Check/Inspection - Inside (26,800)New rates
Plan Check/Inspection - Outside 46,800 New rates
Professional Services 35,000 Permit & Fixture Fee Study
Professional Services 30,000 Emergency Battery Storage for Solar Photovoltaic System Study
Building Maintenance 20,700 Landscaping Maintenance
Liability Insurance DY 11,250 Earthquake Insurance DY
Liability Insurance HQ 11,250 Earthquake Insurance HQ
Capital Outlay HQ 7,000 HQ Roof Hatch Replacement
Capital Outlay HQ 115,000 HQ Painting Project
Total New Expenses $ 230,200
Wastewater Fund Balance $ 100,000 Canc. of the Combo Sewer Cleaning Unit
General Fund Balance 130,200 General Fund (Avail Bal as of 6/30/23 $323,754)
Total Propose Transfer $ 230,200
Figure 7
Adopted
General Solid Waste Wastewater Budget General
Fund Fund Fund Total Fund
Total Revenues 355,000 7,028,600 8,101,200 15,484,800 355,000
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Expenses
Salaries and Benefits - 996,000 3,084,800 4,080,800 -
Operations & Maintenance - 6,314,800 3,465,200 9,780,000 -
Programs - 20,000 - 20,000 -
Capital Improvement Projects - - 1,911,000 1,911,000 -
Total Expenses - 7,330,800 8,461,000 15,791,800 -
Transfers:
Transfer In From Solid Waste Fund (HQ Rent) - - 52,800 52,800 -
Transfer Out To Wastewater Fund (HQ Rent) - (52,800) - (52,800) -
Transfer In From General Fund- Property Tax (355,000) 355,000 - - (485,200)
Transfer Out from Asset Replacement Fund - - 400,000 400,000 -
Transfer In From Facilities Revolving Fund - - 50,000 50,000 -
Transfer In From Asset Management Fund - - 1,911,000 1,911,000 -
Transfer Out To Asset Management Fund - - (2,054,000) (2,054,000) -
Total Transfers (355,000) 302,200 359,800 307,000 (485,200)
Total Budget, Net Of Transfers 355,000 7,028,600 8,101,200 15,484,800 485,200
Net Revenue $ - $ - $ - $ - $(130,200) $
General Fund- At the beginning of the FY 2019-20 budget, the District created a General Fund to account for the financial resources of
the general government. These unrestricted resources will consist primarily of property taxes and investment earnings. The Orange
County Tax Collector bills and collects the Property Taxes, which are then apportioned directly to the District throughout the fiscal year.
The Board of Directors has the authority to direct staff to utilize property tax revenues for the Solid Waste Fund or Wastewater Fund.
The property taxes are unrestricted revenues which had previously been recorded in the Solid Waste Fund as rate stabilization and a
donation to the City of Costa Mesa of $50,000 in FY 2019-20 for the restrooms at the permanent bridge shelter.
FY 2023-24, the District received $487,373 in property taxes. Through the budget process, the Board of Directors approved a $348,000
transfer to the Solid Waste Fund. The difference between what was received and what was transferred out remains in the General Fund
balance account each fiscal year. As of June 30, 2024, the General Fund has an available unrestricted amount of $323,754. The FY 24-
25 adopted revenue budget for property taxes is $355,000. During the budget process the Board approved transferring the full amount
to the Solid Waste Fund to stabilize the rate. Based on the trends, staff is projecting the District will receive more than $355,000 in
property taxes this FY 2024-25.
Fiscal Year 2019-20 2020-21 2021-22 2022-23 2023-24
Beginning Balance $ - $ 46,226 $ 54,832 $ 100,942 $ 184,412
Property Taxes 366,226 371,422 379,111 423,469 487,343
Transfer Out (SW) (270,000) (362,816) (333,000) (340,000) (348,000)
Transfer Out (WW) (50,000) - - - -
Ending Balance $ 46,226 $ 54,832 $ 100,942 $ 184,412 $ 323,754
Please see Attachment A – Line-item Proposed Budget Adjustment Fiscal Year 2024-25 for details of account.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the August 13, 2024 Board of Directors Study
Session at District Headquarters and on District website at www.cmsdca.gov.
Alternative Actions
1. Direct staff to report back with more information.
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File Attachments
Attachment A- Proposed FY2024-25 Budget Adjustment.pdf (184 KB)
Attachment B- Classification and Compensation Costs By Line-item.pdf (31 KB)
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C. ITEMS OF STUDY
To: Board of Directors
Via: Scott Carroll, General Manager
From: Angela Colunga, Management Analyst I
Date: August 13, 2024
Subject: Consider Approving Amendments to the Alkaline Battery Recycling Program
Summary
The Alkaline Battery Recycling Program promotes recycling and environmental stewardship among local schools. It is the District's
hope that students will apply these principles at home, educate their families, and become good stewards of the environment.
Additionally, the program benefits the District through increased visibility within the community, the development of partnerships with
local schools, and credit towards the District's diversion rate.
There are 33 eligible schools within the District’s service area that are invited to participate in the program prior to the beginning of the
school year. The program runs from September to March. This staff report outlines proposed increases to the program award amounts.
On July 22, 2024, the proposed recommendations were presented during a joint meeting of the Board of Directors and Citizens
Advisory Committee (CAC). The CAC recommended the Board of Directors consider approving staff's recommendations and the Board
of Directors directed staff to bring this item back to tonight's meeting for approval consideration.
Recommendation
That the Board of Directors approves the amendments to the Alkaline Battery Recycling Program and appropriated $30,000 from the
Solid Waste Fund Balance to the Alkaline Battery Recycling Program.
Analysis
To increase program participation, District staff recommends increasing the monetary reward amounts for the 1 place, 2 place, and
3 place winners as well as the monetary reward amounts for schools that collect over 500 pounds of batteries and 1,000 pounds of
batteries. The proposed changes are highlighted in yellow.
Current Award Structure Proposed Award Structure
1st Place $1,200 1st Place $1,500
2nd Place $1,000 2nd Place $1,200
3rd Place $800 3rd Place $1,000
Over 1,000 lbs collected $500 Over 1,000 lbs collected $750
500-999 lbs collected $350 500-999 lbs collected $500
100 to 499 lbs collected $300 100 to 499 lbs collected $300
51 to 99 lbs collected $200 51 to 99 lbs collected $200
Under 50 lbs collected $100 Under 50 lbs collected $100
Historically, the program collects an average total of 11,019 pounds of batteries and the District awards an average total of $7,312.50 in
reward amounts to an average total of 17 schools (based on data from 2019-2024). Based on the average participation rate of 17
schools, staff estimates a $2,237.50 increase in the average total in reward amounts.
Subject 4. Consider Approving Amendments to the Alkaline Battery Recycling Program
Meeting Aug 13, 2024 - Board of Directors Study Session
Access Public
Type Action
Recommended
Action
That the Board of Directors approves the amendments to the Alkaline Battery Recycling
Program and appropriated $30,000 from the Solid Waste Fund Balance to the Alkaline
Battery Recycling Program.
st nd
rd
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Average Participation Estimated Reward Total
17 Schools $9,550
15% Increase in Participation Estimated Reward Total
20 schools $10,850
Full Participation Estimated Reward Total
33 schools $15,950
The Alkaline Battery Recycling Program has an average participation rate of 17 schools out of 26 schools. Starting this year, staff will be
inviting 7 additional schools to participate in the program.
Staff has also researched the cost of promotional yard signs intended to increase program participation within the community. The
average cost of a yard sign and materials is $20. If all eligible schools request 1 yard sign, the estimated total cost for this item is $660.
Legal Review
Not applicable.
Environmental Review
Consideration of the Alkaline Battery Recycling Program 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
Based on the increases in reward amounts and program costs, staff has adjusted the program’s budget from $20,000 to $50,000 for
Fiscal Year 2024-25. A budget adjustment of $30,000 will cover the estimated maximum program costs at a 100% participation rate (33
schools). If the Board approves the proposed program amendments, an additional $30,000 will need to be appropriated from the Solid
Waste Fund Balance to the Alkaline Battery Recycling Program.
Account Description Increase Decrease
10-000000-2990 Solid Waste Fund - Fund Balance $(30,000)
10-100011-4300 Solid Waste Fund- Battery Recycling Program $30,000
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the August 13, 2024, Board of Directors Study
Session meeting at District Headquarters and posted on the District's website at www.cmsdca.gov.
Alternative Actions
1. Direct staff to report back with more information.
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D. CLOSING ITEMS
Subject 1. Oral Communications and Director Comments
Meeting Aug 13, 2024 - Board of Directors Study Session
Access Public
Type
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D. CLOSING ITEMS
The next Study Session of the Costa Mesa Sanitary District Board of Directors will be held at 8:00 a.m. on Tuesday, October 8, 2024 in
the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626.
Subject 2. Adjournment
Meeting Aug 13, 2024 - Board of Directors Study Session
Access Public
Type Procedural
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