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2024_08_26_boardMonday, August 26, 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 1. Call to Order - President Scheafer 2. Pledge of Allegiance - President Scheafer 3. Invocation - Vice President Schafer 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) 8/23/24, 11:51 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/3 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. 6. Ceremonial Matters and Presentations B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. 1. Public Comments C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1. Approve Consent Calendar 2. Approve the Board of Directors Study Session Minutes of July 16, 2024 3. Approve the Joint Board of Directors and Citizens Advisory Committee Meeting Minutes of July 22, 2024 4. Adopt Warrant Resolution No. CMSD 2025-02 Approving District Warrant Registers 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Approve Payroll Transparency Disclosure for July 2024 7. Approve the Occupancy Count of 23,124 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $266,691.40 in the August 2024 Warrant Register for July 2024 Solid Waste Collection Services. 8. Approve the Preparation of a Warrant to CR Transfer for $238,153.47 in the August 2024 Warrant Register for July 2024 Recycling and Disposal Services 9. Receive and File July 2024 Organics Tonnage Report 10. Receive and File July 2024 Solid Waste Diversion Report 11. Receive and File July 2024 Contracts Signed by the General Manager 12. Investment Report for the Month of July 2024 D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Consider Approving the Second Amendment to the 2018 Agreement with CR&R Incorporated 2. Consider Adopting Ordinance No. 139 Pertaining to Out of State Traveling 3. Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) 4. Receive and File the Preliminary Fourth Quarter Budget Review of Fiscal Year 2023-24 5. Request for Adjustment to the Adopted Budget for Fiscal Year 2024-2025 F. ENGINEER'S REPORTS 1. Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status 8/23/24, 11:51 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#2/3 2. Reject All Project 354 Elden Fan Replacement Bids and Direct Staff to Review and Rebid the Project 3. Adopt Resolution No. 2024-997 Confirming an Emergency and Ratifying an Order of the General Manager to Replace Critical Infrastructure of South Coast Plaza Pump Station (CIP #355 SCP Sewer Emergency Replacement) and Approve a General Fund Transfer to the Project G. TREASURER'S REPORTS H. ATTORNEY'S REPORTS I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request  of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.  For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (Vice Secretary Ooten) 2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry) 3. Independent Special Districts of Orange County (ISDOC) - (Vice President Schafer) 4. California Special Districts Association (CSDA) - (Vice President Schafer) 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 J. OLD BUSINESS K. NEW BUSINESS L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. ADJOURN TO CLOSED SESSION N. RECONVENE TO OPEN SESSION O. CLOSING ITEMS 1. Adjourn 8/23/24, 11:51 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/3 Monday, August 26, 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 Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Procedural 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/64 A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Scheafer Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Procedural 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#2/64 A. OPENING ITEMS Subject 3. Invocation - Vice President Schafer Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Procedural 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/64 A. OPENING ITEMS Michael Scheafer, President Arlene Schafer, Vice President Arthur Perry, Secretary Robert Ooten, Vice Secretary Brett Eckles, Director Subject 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Procedural 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#4/64 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 Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Procedural 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#5/64 A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Procedural 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#6/64 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 26, 2024 - Board of Directors Regular Meeting Access Public Type Procedural 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#7/64 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 Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Consent Calendar as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#8/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Senior Management Analyst Date: August 26, 2024 Subject: Approve the Board of Directors Study Session Minutes of July 16, 2024 Summary The recorded minutes of the July 16, 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 on July 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 minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the August 26, 2024 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. Subject 2. Approve the Board of Directors Study Session Minutes of July 16, 2024 Meeting Aug 26, 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 Jul 16, 2024 - Board of Directors Study Session 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#9/64 2. Direct staff to report back with more information. File Attachments minutes_2024_07_16_ss.pdf (73 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#10/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Senior Management Analyst Date: August 26, 2024 Subject: Approve the Joint Board of Directors and Citizens Advisory Committee Meeting Minutes of July 22, 2024 Summary The recorded minutes of the July 22, 2024 Joint Board of Directors and Citizens Advisory Committee Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Joint Board of Directors and Citizens Advisory Committee Meeting on July 22, 2024. Staff Recommendation That the Board of Directors approves the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the August 26, 2024 Board of Directors Meeting at District Headquarters and posted on the District’s website. Alternative Actions Subject 3. Approve the Joint Board of Directors and Citizens Advisory Committee Meeting Minutes of July 22, 2024 Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action (Consent), Minutes Recommended Action That the Board of Directors approves the meeting minutes as presented. Minutes View Minutes for Jul 22, 2024 - Joint Board of Directors and Citizens Advisory Com 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#11/64 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2024_07_22_joint_cac_board.pdf (131 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#12/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Amanda Doan, Accounting Clerk Date: August 26, 2024 Subject: Adopt Warrant Resolution No. CMSD 2025-02 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 2025-02 approving District warrants for the month of July in the amount of $1,245,645.51. Analysis Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were paid. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of the exempt classes", and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6 "Projects" does not include .... C. Continuing administrative or maintenance activities." Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 26, 2024 Board of Directors Regular meeting at District Headquarters and posted on the District's website www.cmsdca.gov Subject 4. Adopt Warrant Resolution No. CMSD 2025-02 Approving District Warrant Registers Meeting Aug 26, 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 2025-02 approving District warrants for the month of July in the amount of $1,245,645.51. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#13/64 Alternative Actions Refer item back to staff with further instructions. File Attachments WARRANT RESO 2025-02.pdf (4,945 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#14/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk/Public Information Officer Date: August 26, 2024 Subject: Directors' Compensation and Reimbursement of Expenses Summary The Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses. Staff Recommendation That the Board of Directors approve the compensation and reimbursement of expenses as presented. Legal Review Not applicable. Environmental Review Consideration of the compensation and reimbursement of expenses is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6. "Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the August 26, 2024 Board of Directors Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the compensation and reimbursement of expenses as presented. 2. Direct staff to report back with more information. File Attachments Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Aug 26, 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. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#15/64 pr_scheafer.pdf (274 KB) pr_schafer.pdf (50 KB) perry-pr.pdf (43 KB) pr_ooten.pdf (81 KB) pr_eckles.pdf (81 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#16/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Amanda Doan, Accounting Clerk Date: August 26, 2024 Subject: Approve Payroll Transparency Disclosure for July 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 which fall within each of the exempt classes", and the District has adopted "CEQA Guidelines and Administrative Content Executive Content Implementing Procedures" that state on page 6 "Projects" does not include .... C. Continuing administrative or maintenance activities." Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 26, 2024 Board of Directors Regular meeting at District Headquarters and posted on the District's website www.cmsdca.gov. Alternative Actions Subject 6. Approve Payroll Transparency Disclosure for July 2024 Meeting Aug 26, 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. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#17/64 Refer item back to staff with further instructions. File Attachments Payroll Transparency Disclosure July 2024.pdf (195 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#18/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: August 26, 2024 Subject: Approve the Occupancy Count of 23,124 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $266,691.40 in the August 2024 Warrant Register for July 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 $11.5331 and the July 2024 occupancy count presented to the Board of Directors is 23,124, for a total payment of $266,691.40. Recommendation That the Board of Directors: 1. Approve the Occupancy Count of 23,124; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $266,691.40 in the August 2024 warrant register for July 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 May 28, 2024, effective July 1, 2024, is $11.5331. The District pays CR&R $11.5331 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 July 31, 2024, the District's occupancy count was 23,124 with one new account added since the last billing period. The occupancy count approved by the Board of Directors for June 2024 was 23,123. The District's payment to CR&R is calculated by multiplying the occupancy count by the occupancy rate. The payment calculation for July 2024 is included below. Occupancy Count X Occupancy Rate = Payment to CR&R 23,124 $11.5331 $266,691.40 Subject 7. Approve the Occupancy Count of 23,124 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $266,691.40 in the August 2024 Warrant Register for July 2024 Solid Waste Collection Services. Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors: 1. Approve the Occupancy Count of 23,124; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $266,691.40 in the August 2024 warrant register for July 2024 solid waste collection services. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#19/64 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 2024-25 budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 26, 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 July 2024 Occupancy Report.pdf (57 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#20/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: August 26, 2024 Subject: Approve the preparation of a warrant to CR Transfer for $238,153.47 in the August 2024 warrant register for July 2024 recycling and disposal services Summary The District pays CR Transfer monthly for the sorting of recyclables from mixed waste, landfill disposal of the remaining waste, and 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 $238,153.47 in the August 2024 warrant register for July 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 July 2024. The tonnage rates approved by the Board of Directors on May 28, 2024, effective July 1, 2024, is $61.19 per ton for mixed waste recycling and disposal and $84.19 per ton for organics recycling. Type of Waste Invoice No.Tonnage Rate Amount Billed Residential Waste - Newport Beach 45854 127.98 $61.19 $7,831.10* Residential Waste - Costa Mesa 45853 2,589.96 $61.19 $158,479.72* Total Residential Waste $166,310.82 Organics Recycling 45888 853.34 $84.19 $71,842.65* Total Organics $71,842.65 Grand Total $238,153.47 *Due to weight ticket calculation rounding, some invoice totals may be off by a few cents. Legal Review Not applicable. Subject 8. Approve the Preparation of a Warrant to CR Transfer for $238,153.47 in the August 2024 Warrant Register for July 2024 Recycling and Disposal Services Meeting Aug 26, 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 $238,153.47 in the August 2024 warrant register for July 2024 recycling and disposal services. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#21/64 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 2024-25 budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 26, 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. 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. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#22/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: August 26, 2024 Subject: Receive and File July 2024 Organics Tonnage Report Summary In July 2024, CR&R collected 853.34 tons of organic waste and recycled 814.05 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. FY 2024-25 Organics Month Recycled Landfilled Total Collected July 814.05 39.29 853.34 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 August 26, 2024 Board of Directors Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Subject 9. Receive and File July 2024 Organics Tonnage Report Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#23/64 Alternative Actions Refer item back to staff with further instructions. File Attachments Organics_Tonnage_July_2024.pdf (557 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#24/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: August 26, 2024 Subject: Receive and File July 2024 Solid Waste Diversion Report Summary In July 2024, CR&R collected 3,571.28 tons of solid waste and recycled 2,176.95 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 60.96%. A tonnage summary for the past 20 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 August 26, 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 Subject 10. Receive and File July 2024 Solid Waste Diversion Report Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#25/64 Tonnage_Summary_July_2024.pdf (463 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#26/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Scott Carroll, General Manager Date: August 26, 2024 Subject: Receive and File July 2024 Contracts Signed by the General Manager Summary At the January 24, 2019 Board of Directors meeting, the Board directed the General Manager to submit a list of contracts he signed during the previous month. Below are the contracts he signed in the months of July 2024. Recommendation That the Board of Directors receive and file this report Analysis The following contracts/agreements were signed by the general manager in July 2024 Contracts/Agreement No contracts and/or agreements were signed in the month of July. Purchase Orders 1. Corrpro Companies, Inc – Pipe assessment of the Elden Pump Station Forcemain located inside the Mesa Drive SR55 overpass bridge. Cost: $7,500 2. 4imprint, Inc. – Promo Item Giveaways, Reusable 24oz Coffee Tumblers (75) for special events. Cost: $1,540.86 3. Roadway Construction Service – Traffic control for Project 343, Elden Pump Station Emergency Bypass Project. Cost: $12,500 4. Continental Carbon Group – Purchased carbon canisters for odor control at Elden Pump Station. Cost: $3,100 5. Eller’s Tree Service – HQ Parking Lot Tree Removal. Cost: $6,500 Legal Review Not applicable Environmental Review Providing the Board of Directors a monthly list of contracts signed by the General Manager is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There is adequate funding in the budget to perform the contract services mentioned above. Subject 11. Receive and File July 2024 Contracts Signed by the General Manager Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action (Consent) 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#27/64 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the August 26, 2024 Joint Board of Directors and Citizens Advisory Committee meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#28/64 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Marc Davis, District Treasurer Date: August 26, 2024 Subject: Approve the Investment Report for the Month of July 2024 Summary Attached is the Investment Report for the month of July 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 July 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 June 30, 2024. The District's investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 24, 2024 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 July 31, 2024, was 2.808%. The yield to maturity of the portfolio was 2.805%. The District's weighted average interest rate was 171 basis points (1.711%) below the LAIF average monthly rate of 4.516% for the month of July 2024. The weighted average number of days to maturity for the District's total portfolio was 386 days (1.06 years). The duration of the underlying securities in LAIF as of July 31, 2024 was 220 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 July 31, 2024 was 50.35%. The District has adequate cash reserves necessary to meet its obligations for the next six months. A majority of the District's cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District's cash and investments are as follows: Solid Waste Fund: Operating Reserve - Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Subject 12. Investment Report for the Month of July 2024 Meeting Aug 26, 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 July 2024. Goals 8.0 Finance 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#29/64 Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. Undesignated - Remaining available cash, which is available to be appropriated by the Board. Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund - Accumulation of funds in accordance with the asset management model for long-term replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6, "Projects" does not include...C. Continuing administrative or maintenance activities. Financial Review The portfolio was budgeted to earn an average rate of 1.487% for the year ending July 31, 2024. Through July 31, 2024, the portfolio has earned a weighted average interest rate of 2.805%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the August 26, 2024 Joint Board of Directors and Citizens Advisory Committee 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 7-31-24.pdf (572 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#30/64 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Marissa Pereyda, Senior Management Analyst Date: August 26, 2024 Subject: Consider Approving the Second Amendment to the 2018 Agreement with CR&R Incorporated Summary Costa Mesa Sanitary District and CR&R Incorporated have agreed to begin implementation of the Three-Cart Collection System on October 7, 2024, as mandated by Senate Bill 1383. With the Three-Cart System, customers will separate recyclables from landfill waste, and CR&R will collect three carts (Landfill, Recycling, and Organics). Prior to implementation, the District and CR&R must amend the Agreement for Solid Waste Collection Services to include CR&R's rates for the Three-Cart Collection System. The Second Amendment to the Agreement with CR&R, including Exhibit F, incorporates the new Three-Cart System rate structure into the Agreement. Recommendation That the Board of Directors approve the Second Amendment to the 2018 Agreement with CR&R Incorporated. Analysis Costa Mesa Sanitary District (District) entered into an agreement with CR&R Incorporated (CR&R) for residential solid waste collection services on July 1, 2018. On July 27, 2023, the District and CR&R entered into the First Amendment to the Agreement in order to delegate some of the District's responsibility for Senate Bill 1383 to CR&R, including to implement collection programs, meet processing facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements. The First Amendment established that no later than December 31, 2024, CR&R would provide a Three-Cart Collection System for the separate collection of recyclable materials, organic waste, and landfill waste. Exhibit B of the First Amendment also established that the two-cart system rates would be adjusted at a later date before implementing the Three-Cart Collection System. The District and CR&R have agreed that Three-Cart Collection System implementation will begin on October 7, 2024, with the first three-cart collection taking place on October 14, 2024. The Agreement with CR&R must be amended to include the Three-Cart System rates prior to program implementation. The current two-cart rate includes three (3) components: (1) Occupancy Fee, (2) Mixed-Waste Processing Fee, and (3) Organics Recycling Fee. The Three-Cart Program rate includes four (4) components to address collection of a third Recycling Cart: (1) Occupancy Fee, (2) Landfill Processing Fee, (3) Recycling Processing Fee, and (4) Organics Recycling Fee. The FY 2024-25 two-cart rates included below were approved by the Board of Directors with CR&R's 3.10% Consumer Price Index (CPI) adjustment request on May 28, 2024. The Second Amendment to the Agreement with CR&R will add the fourth component of collection (Recycling) to CR&R's rates. Two-Cart System FY 2024/25 Rate Three-Cart System FY 2024/25 Rate Occupancy (Per account)$11.5332 Occupancy (Per account)$17.0527 Mixed-Waste (Per ton)$61.19 Landfill (Per ton)$61.19 Organics (Per ton)$84.19 Organics (Per ton)$84.19 Subject 1. Consider Approving the Second Amendment to the 2018 Agreement with CR&R Incorporated Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the Second Amendment to the 2018 Agreement with CR&R Incorporated. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#31/64 Recycling (Per ton)$15.27 Legal Review District Counsel has reviewed and approved the Second Amendment to the Agreement with CR&R, including Exhibit F. Environmental Review Consideration of an amendment to the agreement with CR&R 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 The Three-Cart System rates included in this report and Amendment were included in the Solid Waste Rate Study financial analysis to determine the solid waste collection rates for FY 2024/25 through FY 2028/29 approved at the Public Hearing on June 24, 2024. The proposed budget adjustment being presented to the Board on August 26, 2024, includes proposed expenditures for the Three-Cart Collection System rates. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 26, 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 CR&R 2024 Second Amendment Exhibit F.pdf (34 KB) CR&R 2024 Second Amendment.pdf (91 KB) 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#32/64 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: August 26, 2024 Subject: Consider Adopting Ordinance No. 139 Pertaining to Out of State Traveling Summary On July 22, 2024, the Board of Directors reviewed and commented on proposed amendments to the Operations Code pertaining to out of state traveling. The Board directed staff to make additional amendments to the Operations Code and to bring back an ordinance to tonight's meeting for approval consideration. Recommendation That the Board of Directors Adopt Ordinance No. 139 Pertaining to Out of State Traveling Analysis The proposed ordinance is amending Sections 3.01.090 and 3.02.070 of the Operations Code allowing the general manager to approve out of state traveling in Nevada and Arizona. Staff traveling to all other states would still require Board approval. Out of state traveling for board members does not require board approval if the traveling is adopted in the district's budget. However, on July 22, 2024, the board directed staff to amend the proposed ordinance by requiring board approval for out of state traveling if the traveling is not in the adopted budget. Section 3.01.090(c) of the proposed ordinance adheres to board direction. On July 22, 2024, the Citizens Advisory Committee (CAC) reviewed and commented on the proposed ordinance. The CAC did recommend the board adopt Ordinance No. 139, but the ordinance the CAC reviewed did not include Section 3.01.090(c) as described above. Legal Review Ordinance No. 139 was reviewed and approved by district counsel. Environmental Review Consideration for amending district polices 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 There are no financial impacts to the district. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 26, 2024 Board of Directors/Citizens Advisory Committee joint meeting held at District headquarters located at 290 Paularino Avenue in Costa Mesa and posted on the District’s website. Alternative Actions 1. Do not adopt Ordinance No. 139. Subject 2. Consider Adopting Ordinance No. 139 Pertaining to Out of State Traveling Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors Adopt Ordinance No. 139 Pertaining to Out of State Traveling 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#33/64 2. Direct staff to report back with more information. File Attachments Revised Ordinance No. 139 - Amending Out of State Traveling.doc (42 KB) 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#34/64 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: August 26, 2024 Subject: Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) Summary A hazard mitigation plan is a long-term strategy that helps local governments reduce the impact of disasters on people, property and the environment. The plan aims to break the cycle of disaster damage and reconstruction by identifying natural disaster risks and vulnerabilities, and then developing strategies to protect people and property from similar events. Adopted hazard mitigation plans are required by the Federal Emergency Management Agency (FEMA) to be eligible to receive federal grant funds from the agency. Staff will be seeking hazard mitigation grant funds from FEMA to help finance Project No. 341, Elden Pump Station Forcemain Redundancy Project, but first the district needs an adopted hazard mitigation plan. Recommendation That the Board of Directors direct staff to begin engaging with members of the public about the MJHMP and allow them opportunities to provide feedback about the plan. Analysis The Water Emergency Response of Orange County (WEROC) is coordinating a multi-jurisdiction project that will update the group's Multi-Jurisdictional Hazard Mitigation Plan (MJHMP), which will be the strategic plan to assess and reduce the threats that our communities face from current and future hazard conditions. Based on preliminary discussions, these hazards include: Climate Change Coastal Hazards Coastal Storms Coastal Erosion Sea level rise Tsunami Dam/Reservoir Failure Flood Geologic Hazards Expansive Soils Land Subsidence Landslide/Mudflow Human-Caused Hazards Contamination/salt water intrusion Hazardous Materials Power Outage Terrorism (Cyberthreat) Terrorism (Mass-casualty incident) Seismic Hazard Fault Rupture Liquefaction Seismic Shaking Severe Weather Drought Extreme Heat Windstorm (Santa Ana Winds) Urban Fire Subject 3. Multi-Jurisdictional Hazard Mitigation Plan (MJHMP) Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Discussion 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#35/64 Wildfire The overarching goals of the MJHMP include but are not limited to: Goal 1: Minimize vulnerabilities of critical facilities and infrastructure to minimize damages and loss of life and injury to human life caused by hazards. Goal 2: Minimize security risks to water and wastewater infrastructure. Goal 3: Minimize interruption to water and wastewater utilities. Goal 4: Improve public outreach, awareness, education, and preparedness for hazards in order to increase the community resilience. Goal 5: Eliminate or minimize wastewater/recycled water spills and overflows (Wastewater agencies). Goal 6: Protect water quality and supply, critical aquatic resources and habitat to ensure a safe water supply. Goal 7: Strengthen emergency response services, workforce training, and education enhancement to ensure preparedness, response, and recovery during any major or multi-hazard event. The multi-jurisdictions that are participating in the MJHMP include the following: Costa Mesa Sanitary District El Toro Water District Irvine Ranch Water District Laguna Beach County Water District Mesa Water District Moulton Niguel Water District Municipal Water District of Orange County Orange County Sanitation District Orange County Water District Santa Margarita Water District Serrano Water District South Coast Water District South Orange County Wastewater Authority Trabuco Canyon Water District Yorba Linda Water District Guidelines from the Federal Emergency Management Agency (FEMA) require that the agency preparing the plan create opportunities for members of the public to be involved in developing their MJHMP and that these opportunities are documented. This process helps ensure the MJHMP reflects community values, concerns, and priorities. Tonight's meeting is serving as the community kick-off meeting that focuses on informing the public about the hazard mitigation planning process, the project schedule, ways to stay engaged with the district, and ways to stay informed about upcoming events and project documents. Vicki Osborn, Director of Emergency Management for WEROC will be providing a presentation about the project overview. District staff will be engaging with the public through online systems and media outlets. Outreach channels such as the district's website, social media, online survey, press releases and the district's newsletter will be utilized for public engagement about the MJHMP. Below is the online survey link members of the public are encouraged to complete. MJHMP Online Survey The following is the proposed schedule for adoption. 2024 2025 August Sept Oct Nov Dec Jan Feb March Planning Process Admin Draft Review CMSD Board Draft Review Public Draft Review Public Review Period Cal OES/FEMA Review CMSD Board Adopt Final Legal Review Not applicable 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#36/64 Environmental Review Consideration for a multi-jurisdictional hazard mitigation plan 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 The district's cost share for updating the MJHMP is $11,800. There are sufficient funds in the budget for this expense. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 26, 2024 Board of Directors meeting held at District headquarters located at 290 Paularino Avenue in Costa Mesa and posted on the District’s website. Alternative Actions 1. Direct staff to report back with more information. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#37/64 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Lieu Tran, Sr. Accountant Date: August 26, 2024 Subject: Receive and File the Preliminary Fourth Quarter Budget Review of FY 2023-24. Summary This report serves as a summary of the District’s spending through June 30, 2024 as well as staff’s best estimate of projected balances for the year-ended June 30, 2024. Recommendation This report serves as a summary of the District’s revenues and expenditures through June 30, 2024, with the understanding the fiscal year numbers won't be final until the annual audit is complete later this calendar year. 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 June 30, 2024. Solid Waste Fund Expenditure- The Solid Waste fund has an amended budget of $7,418,109. As of June 30, 2024, 88% of the Solid Waste budget has been expended. Staff anticipates budgetary savings of $276,900 for the fiscal year, primarily 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 June 30, 2024, the District received $7,891,418 in total revenue. The District received more revenue than budgeted from property taxes, additional container, investment earnings, and other non-operating revenue accounts (such as grants and fines/forfeitures/liquidated damages). Wastewater Fund Expenditure- The Wastewater fund has an amended budget of $6,103,978 (excluding capital improvement projects). As of June 30, 2024, 88% of the Wastewater Fund's operating budget has been expended. Staff anticipates budgetary savings of $85,000 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 June 30, 2024, the District received a total of $8,096,525 in Wastewater Fund revenue. The District received more revenue than budgeted from investment earnings, sewer permits, and inspection fees. However, charges for services and other non-operating revenue accounts did not meet the anticipated adopted budget amount. 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 4. Receive and File the Preliminary Fourth Quarter Budget Review of Fiscal Year 2023-24 Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 8.3 Finance - Forecast revenues and expenditures 8.0 Finance 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#38/64 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 August 26, 2024 Board of Directors 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 Fourth Quarter Budget Analysis.pdf (305 KB) B - Expenditure Analysis.pdf (401 KB) 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#39/64 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: August 26, 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. Recommendation That the Board of Directors approve 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. Staff presented the proposed budget adjustment for FY 2024-25 to the Board of Directors at the Study Session meeting on August 13, 2024. The Board requested rather than using the General Fund to provide a balanced budget in the Wastewater Fund Staff reduce expenses in other accounts. Proposed Budget Adjustments as follows: 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: Subject 5. Request for Adjustment to the Adopted Budget for Fiscal Year 2024-2025 Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action, Discussion Fiscal Impact Yes Budgeted Yes Recommended Action That the Board of Directors approve the proposed budget adjustment for Fiscal Year 2024-25 to ensure the continuation of services. Goals 8.2 Finance - Adopt a balanced budget 8.0 Finance 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#40/64 Account Description 1383 Plan Amount Part Time Salary 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 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. How does the District plan 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 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#41/64 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 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 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#42/64 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 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 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 $35,000 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. 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 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#43/64 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. On-Site IT Manager- There is a $44,400 budgeted to hire a consultant IT Manager to be on-site at HQ. Of that amount, $40,000 is budgeted for the Wastewater Fund. Staff proposes in lieu of hiring a consulting IT Manager to be on-site at HQ, the $40,000 budgeted be used to fund $21,200 for IT projects and $18,800 to support the Permit and Fixture Fee Study in the Wastewater Fund. 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 6c) 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 - - - 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 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 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#44/64 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 Maintenance - Special Services 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 $60,000 for the HQ painting project. Figure 5 Adopted Proposed Solid Waste Wastewater Solid Waste Wastewater A 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 - - - - 60,000 Total Capital Outlay Admin & Operations $ - $ 50,000 $ 50,000 $ - $ 117,000 $ 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#45/64 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 Expense 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 proposed budget adjustments for fiscal year 2024-25 Budget reflects a balanced budget in the Solid Waste Fund. Figure 6 Adopted Proposed Adj General Solid Waste General Solid Waste Solid Waste Fund Fund Fund Fund Variance 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 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#46/64 Total Transfers (355,000) 302,200 (355,000) 302,200 - Total Budget, Net Of Transfers 355,000 7,028,600 355,000 8,247,100 1,218,500 Net Revenue $ - $ - $ - $ - $ - 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 $145,200. The remaining $45,200 are funded by budget adjustments in difference expense accounts. Table 4 Proposed New Activities FY 2024-25 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 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 60,000 HQ Painting Project Total $ 145,200 Proposed Budget Adjustments - Available Funds Account Amount Proposed Adjustment Budget Item Wastewater Fund Balance $ 100,000 From the Cancellation of the Combo Sewer Cleaning Unit Professional Services 18,800 On-site IT Manager Pump Stations Maintenance 21,300 ArcFlash Study (4 Pump Stations) Computer Licenses & Maintenance HQ 5,100 Trimble Catalyst 1 License Total $ 145,200 Figure 7 Adopted Proposed Adj Wastewater Wastewater Fund Fund Variance Total Revenues 8,101,200 8,101,200 - Expenses: 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#47/64 Total Salaries and Benefits 3,084,800 3,114,700 29,900 Total Operations & Maintenance 3,465,200 3,035,300 (429,900) Total Programs - - - Total Capital Improvement Projects 1,911,000 1,911,000 - Total Expenses 8,461,000 8,061,000 (400,000) Transfers: Transfer In From Solid Waste Fund (HQ Rent) 52,800 52,800 - Transfer Out To Wastewater Fund (HQ Rent) - - - Transfer In From General Fund- Property Tax - - - 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, Net 359,800 (40,200) (400,000) Total Budget, Net Of Transfers 8,101,200 8,101,200 - Net Revenue $ - $ - $ - Figure 8 below shows the summary of the Proposed Budget Adjustment for Fiscal Year 2024-25. The Solid Waste and Wastewater Funds reflect balanced budgets. Pease see Attachment A – Line-item Proposed Budget Adjustment Fiscal Year 2024-25 for details of account. Figure 8 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 Expenses: Total Salaries and Benefits - 996,000 3,084,800 4,080,800 - Total Operations & Maintenance - 6,314,800 3,465,200 9,780,000 - Total Programs - 20,000 - 20,000 - Total 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 - - (355,000) 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, Net (355,000) 302,200 359,800 307,000 (355,000) Total Budget, Net Of Transfers 355,000 7,028,600 8,101,200 15,484,800 355,000 Net Revenue $ - $ - $ - $ - $ - 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#48/64 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the August 26, 2024 Board of Directors regular meeting at District Headquarters and on the District's website. Alternative Actions 1. Refer the matter back to staff for additional information 2. Not approve of the budget adjustments. File Attachments Attachment A- Proposed FY2024-25 Budget Adjustment.pdf (184 KB) 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#49/64 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: August 26, 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 activities for the period of mid-July to mid-August. The District Engineer's memorandum is attached. Also attached is a detailed summary of the Capital Improvement Project activities and associated 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 are 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 August 26, 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. Subject 1. Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action, Discussion, Receive and File Preferred Date Aug 26, 2024 Fiscal Impact No Budgeted Yes Budget Source Operations Budget Recommended Action Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#50/64 File Attachments 2024 08 Monthly Engineers Report CMSD Memorandum.pdf (244 KB) 2024-07 Financial Section for CIP Updates.pdf (71 KB) Administrative File Attachments 2024 08 Monthly Engineers Report CMSD Memorandum.docx (105 KB) 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#51/64 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: August 26, 2024 Subject: Reject All Project 354 Elden Fan Replacement Bids and Direct Staff to Review and Rebid the Project Summary The wetwell ventilation fan at the Elden pump station failed because it is past its useful life. The District plans to replace the failed ventilation system with an upgraded fan that meets current codes. Due to changes in the fire code, the need for an intrinsically safe fan, and required electrical upgrades, District staff designed the fan system improvements and bid the project. The bids ranged from $164,443 to $250,000. All bids exceeded the $93,000 Engineers estimate. The District staff reviewed the construction estimate, contacted the suppliers to confirm prices, and do not understand why the bids are extremely high. The District staff will review the design for constructability and if value engineering improvements to the design may be implemented. Recommendation The Board of Directors receive, file, and reject all bids. Analysis District staff contacted the parts and material suppliers to confirm part, material, and equipment prices. Based on the review, Staff do not understand why the bids are so high. As an example, the fan, fan housing, and frame are priced at $5,000. Bid prices to install the fan ranged from $50,000 to 82,000. District estimated the mechanical installation, including parts at almost $18,000. Staff recently contacted the City of Huntington Beach because they have been installing ventilation and odor scrubber systems on their pump stations. They reported construction costs between $40,000 and $100,000. The $100,000 project included 40 feet of 7-foot concrete masonry unit wall. Legal Review Legal Counsel has reviewed the project contract documents. 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 budget is $110,000 and can't support the bids as received. The District must review the design detail further, conduct a value engineering review for substitute methods and/or designs, in order to more this project forward. Subject 2. Reject All Project 354 Elden Fan Replacement Bids and Direct Staff to Review and Rebid the Project Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action, Discussion Fiscal Impact No Budgeted Yes Budget Source Project 354 Elden Fan Replacement Project Recommended Action Receive, File, and Reject All Project 354 Elden Fan Replacement Bids 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#52/64 Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 26, 2024 Board of Directors meeting at District Headquarters and posted on the District's website at www.cmsdca.gov Alternative Actions 1. Award the project to the lowest responsive bidder in the amount of $164,432. File Attachments 2024 08 22 Board Report 354 contract docs and scope of work.pdf (968 KB) 354 contract docs and scope of work.pdf (2,528 KB) Bid Register - project 354 Elden PS Rehab.pdf (106 KB) 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#53/64 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: August 26, 2024 Subject: Adopt Resolution No. 2024-997 Confirming an Emergency and Ratifying an Order of the General Manager to Replace Critical Infrastructure of South Coast Plaza Pump Station (CIP #355 SCP Sewer Emergency Replacement) and Approve a General Fund Transfer to the Project Summary The District determined that the 8-inch South Coast Plaza (SCP) Sewer started to leak. The District hired Robotic Solutions to install liner patches and stop the leaks. It was thought that the patches would hold until quotes to install structural pipeline liner could be received from various contractors. Performance Pipeline Technologies, Inc. (PPT) provided the low quote of $32,975. Within two weeks of installing the patches, new leaks developed. So PPT was dispatched to install the full-length, structural liner. During the preparation work, the pipeline completely failed and large volumes of ground water was entering the District's SCP pump station. Due to the complete failure, the planned liner project could not take place. District staff immediately shut down the station because a large amount of dirt and debris inundated the pumps. The District initiated emergency bypass pumping, then isolated the SCP sewer, and restored service to the SCP Mall. The general manager declared an emergency and then the district hired TE Roberts Construction Inc, (TER) to assist with the emergency operation activities. TER has performed many emergency operations for the City of Newport Beach and was recommended to the district by two other contractors. TER has experience with groundwater dewatering projects, and was requested to mobilize materials, equipment, Subject 3. Adopt Resolution No. 2024-997 Confirming an Emergency and Ratifying an Order of the General Manager to Replace Critical Infrastructure of South Coast Plaza Pump Station (CIP #355 SCP Sewer Emergency Replacement) and Approve a General Fund Transfer to the Project Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Action, Discussion, Presentation Fiscal Impact Yes Dollar Amount $250,000.00 Budgeted No Budget Source General Fund Transfer to Wastewater Fund Recommended Action That the Board of Directors approve the following: 1. Adopt Resolution No. 2024-997 confirming an emergency and ratifying an order of the general manager to replace critical infrastructure of the South Coast Plaza Pump Station 2. Approve the transfer of $182,000 from the General Fund to the Wastewater fund and appropriate $182,000 to the CIP #355, Sewer Emergency Replacement Project budget. 3. Authorize District staff to: a. Negotiate and approve a time-and-materials contract with TER Construction Inc. to provide emergency construction services, including dewatering activities and related services; b. Negotiate a CIP #355 SCP Sewer pipeline/liner installation and emergency services change order with Performance Pipeline Technologies, Inc. for the emergency activities and replacement pipeline installation; and c. Bring the TER Construction Inc. contract and Performance Pipeline Technologies, Inc. change order to the September 2024 Board of Directors meeting for consideration and ratification. 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#54/64 labor, and supplies for the emergency work. The TER work will generally consist of performing construction work to restore permanent service back to SCP Mall. It is estimated that the emergency work will require $250,000. The PPT change order may consist of an extra cost for the emergency operations, including extended overhead, supporting District bypass pumping, testing a method for replacing the pipeline, and installing the new pipeline/liner combination. The current estimate to conduct the emergency work is $250,000. Recommendation That the Board of Directors: 1. Adopt Resolution No. 2024-997 confirming an emergency and ratifying an order of the general manager to replace critical infrastructure of the South Coast Plaza Pump Station 2. Approve the transfer of $182,000 from the General Fund to the Wastewater fund and appropriate $182,000 to the CIP #355, Sewer Emergency Replacement Project budget. 3. Authorize District staff to: a. Negotiate and approve a time-and-materials contract with TER Construction Inc. to provide emergency construction services, including dewatering activities and related services; b. Negotiate a CIP #355 SCP Sewer pipeline/liner installation and emergency services change order with Performance Pipeline Technologies, Inc. for the emergency activities and replacement pipeline installation; and c. Bring the TER Construction Inc. contract and Performance Pipeline Technologies, Inc. change order to the September 2024 Board of Directors meeting for consideration and ratification. Analysis The District worked with TER, PPT, RBH Engineering, and South Coast Plaza (SCP) to develop alternatives for replacing the 8-inch SCP sewer. Significant groundwater is present at the site and will present a difficult and expensive situation. TER began to excavate. Various utilities, including the District pump station forcemain pipe are in the way and must be relocated to perform excavation work. After determining that the excavation work would be extremely expensive, the emergency team developed an alternative consisting of installing a 6-inch pipe/liner composite into the existing pipeline. Installing a 6-inch flexible corrugated pipe, followed with a structural liner has not been previously performed. PPT and TER purchased pipeline parts to "mimic" the existing pipe, then tried installing the proposed pipe system. It appears to work and the contractors are in the process of installing the proposed corrugated pipe/liner system as a replacement pipeline. Legal Review District counsel has reviewed and approved Resolution No. 2024-997 and he will review the contracts and approved to form. Environmental Review Emergency projects are statutory exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15269(b), Emergency Projects Financial Review The available CIP #355 SCP Urgent Capital Repair Project construction funds, with encumbrance, is $68,159. This budget is not sufficient to cover the cost of the emergency work. It is estimated that TER will require $148,000, PPT will require $75,000, RBH will require about $15,000, and Robotic Solutions was paid about $12,000, for a total cost of $250,000. There is not adequate funding/budget available for the required emergency work. Staff is proposing the Board of Directors consider approving the transfer of $182,000 from the General Fund to the Wastewater fund and appropriate $182,000 to CIP #355, SCP Urgent Capital Repair Project. The Asset Management Fund balance is $4.7 million, which is below the 5 million goal; therefore staff is proposing to transfer from the unrestricted General Fund to support the #355 SCP Urgent Capital Repair Project. The Unrestricted General Fund has an available balance of $313,200. Account Account Number Increase Decrease General Fund Cash 05-000000-1001 $182,000 General Fund Transfer Out 05-050000-4995 $182,000 Wastewater Fund Cash 20-000000-1001 182,000 Wastewater Transfer in 20-000000-3995 182,000 Wastewater Fund Balance 20-000000-2990 182,000 CIP #355, SCP Urgent Capital Repair Project 20-201335-4300 182,000 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#55/64 The current $250,000 estimate for the emergency work consists of $148,000 for TER (vacuum, dewatering, bypass pumping, and heavy equipment services) and $75,000 for PPT (Additional mobilization/demobilization, emergency bypass pumping support, additional costs for cleaning, recleaning, and condition assessment of the siphon pipes), $15,000 for RBH, and about $12,000 for Robotic Solutions. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the August 26, 2024 Board of Directors meeting at District Headquarters (290 Paularino Avenue) and posted on the District’s website at www.cmsdca.gov. Alternative Action Refer the matter back to District staff for consideration of project alternatives and return to a future Board meeting. Emergency/extra work authorized by the District must be paid, however. Delaying the emergency work will cause additional bypass pumping costs, contractor costs, and issues for SCP Mall, among other item costs. File Attachments Resolution - Declaring An Emergency for Project #355.pdf (106 KB) 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#56/64 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 1. Orange County Sanitation District (OCSD) - (Vice Secretary Ooten) Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#57/64 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry) Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#58/64 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 3. Independent Special Districts of Orange County (ISDOC) - (Vice President Schafer) Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#59/64 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 4. California Special Districts Association (CSDA) - (Vice President Schafer) Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#60/64 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#61/64 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#62/64 L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Discussion 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#63/64 O. CLOSING ITEMS The next regular meeting of the Costa Mesa Sanitary District Board of Directors will be held at 4:30 p.m. on Monday, September 23, 2024 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626. Subject 1. Adjourn Meeting Aug 26, 2024 - Board of Directors Regular Meeting Access Public Type Procedural 8/23/24, 11:52 AM BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#64/64