Loading...
2024_10_28_boardMonday, October 28, 2024 Board of Directors Regular Meeting Time: 4:30 p.m. Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626 *** The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary. *** To participate in the meeting by computer: 1. Copy and paste the following into your browser - https://us02web.zoom.us/join 2. Enter the Meeting ID number - 850 1825 3471 3. Click "Join." *** To join the meeting with a mobile device: 1. Download the Zoom app at the Google Play Store (for Android devices) or the App Store (for Apple devices) 2. Open the Zoom app. Select "Join a Meeting." 3. Enter Zoom Meeting ID. Select "Join Meeting." *** To join the meeting by phone: 1. Call 1-669-900-6833. 2. You will be asked to enter the Meeting ID number. Dial 850 1825 3471# 3. Lastly, you will be asked to enter your Participant ID. Press the # symbol again to bypass this step. *** Public Comments: Members of the public can submit any comments in real time during the meeting or prior to the meeting in writing for the Board of Directors' consideration by sending them to the District Clerk, Noelani Middenway, at nmiddenway@cmsdca.gov. Those comments will be made part of the official public record of the meeting. *** Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained from the District Clerk's Office. *** In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS Subject :1. Call to Order - President Scheafer Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Procedural A. OPENING ITEMS Subject :2. Pledge of Allegiance - President Scheafer Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Procedural A. OPENING ITEMS Subject :3. Invocation - Vice President Schafer Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Procedural A. OPENING ITEMS Subject :4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence such determination shall be the permission required by law.) Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Procedural Public Content Michael Scheafer, President Arlene Schafer, Vice President Arthur Perry, Secretary Robert Ooten, Vice Secretary Brett Eckles, Director A. OPENING ITEMS Subject :5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Procedural A. OPENING ITEMS Subject :6. Ceremonial Matters and Presentations Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Procedural B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject :1. Public Comments Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Procedural C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :1. Approve Consent Calendar Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action (Consent) Recommended Action :That the Board of Directors approve the Consent Calendar as presented. Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :2. Approve the Board of Directors Regular Meeting Minutes of September 23, 2024 Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action (Consent), Minutes Recommended Action :That the Board of Directors approve the meeting minutes as presented. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: October 28, 2024 Subject: Approve the Board of Directors Regular Meeting Minutes of September 23, 2024 Summary The recorded minutes of the September 23, 2024Board of Directors Regular Meetingare hereby submitted to the Board of Directors for review and approval. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Analysis Attached to the staff report are the minutes for the Board of Directors Regular Meeting on September 23, 2024. Legal Review Not applicable. Environmental Review Consideration of public meeting minutesis an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District has adopted CEQA Guidelines and Implementing Procedures that state on page 6 Projects does not include . C. Continuing administrative or maintenance activities. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the October 28, 2024Board of Directors Regular Meeting at District Headquarters and posted on the Districts website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2024_09_23_rm.pdf (215 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :3. Adopt Warrant Resolution No. CMSD 2025-04 Approving District Warrant Registers Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action (Consent) Budgeted :Yes Recommended Action :That the Board of Directors adopt Warrant Resolution No. CMSD 2025-04 approving District warrants for the month of September in the amount of $897,230.67. Public Content To:Board of Directors Via: Scott Carroll, General Manager From: Amanda Doan, Accounting Clerk Date: October 28, 2024 Subject:Adopt Warrant Resolution No. CMSD 2025-04 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 2025-04 approving District warrants for the month of September in the amount of $897,230.67. 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 October 28, 2024 Board of Directors at District Headquarters and posted on the District's website www.cmsdca.govRegular meeting Alternative Actions Refer item back to staff with further instructions. File Attachments WARRANT RESO 2025-04.pdf (4,933 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :4. Approve the Directors' Compensation and Reimbursement of Expenses Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action (Consent) Recommended Action :That the Board of Directors approve the compensation and reimbursement of expenses as presented. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk/Public Information Officer Date: October 28, 2024 Subject:Directors' Compensation and Reimbursement of Expenses Summary The Directors' Compensation and Reimbursement of Expensesare hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses. Staff Recommendation That the Board of Directors approve the compensation and reimbursement of expenses as presented. Legal Review Not applicable. Environmental Review Consideration of the compensation and reimbursement of expensesis an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District has adopted CEQA Guidelines and Implementing Procedures that state on page 6. "Projects does not include . C. Continuing administrative or maintenance activities. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the October 28, 2024 Board of Directors Meeting at District Headquarters and posted on the Districts website. Alternative Actions 1. Do not approve the compensation and reimbursement of expenses as presented. 2. Direct staff to report back with more information. File Attachments eckles_pr.pdf (38 KB) scheafer_pr_expense.pdf (91 KB) perry_pr.pdf (1,247 KB) ooten_pr.pdf (48 KB) A. Schafer Board Timesheet 8-2024.pdf (1,233 KB) A. Schafer Board Timesheet 9-2024.pdf (1,071 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :5. Approve Payroll Transparency Disclosure for September 2024 Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action (Consent) Fiscal Impact :Yes Budgeted :Yes Recommended Action :That the Board of Directors approve and file the report. Public Content To: Board of Directors Via: Scott Carroll, General Manager : From Amanda Doan, Accounting Clerk Date: October 28, 2024 Subject:Approve Payroll Transparency Disclosure for September 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 October 28, 2024 Board of Directors Regular meeting at District Headquarters and posted on the District's website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Payroll Transparency Disclosure September 2024.pdf (194 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :6. Approve the Preparation of a Warrant to CR Transfer for $203,489.12 in the October 2024 Warrant Register for September 2024 Recycling and Disposal Services Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action (Consent) Recommended Action :That the Board of Directors approve the preparation of a warrant to CR Transfer for $203,489.12 in the October 2024 warrant register for September 2024 recycling and disposal services. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: October 28, 2024 Subject: Approve the preparation of a warrant to CR Transfer for $203,489.12in the October 2024 warrant register for September 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 $203,489.12in the October 2024 warrant register for September 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 September 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 46004 61.18 $61.19 $3,743.60* Residential Waste - Costa Mesa 46003 2,332.96 $61.19 $142,753.96* Total Residential Waste $146,497.56 Organics Recycling 46037 676.94 $84.19 $56,991.56* Total Organics $56,991.56 Grand Total $203,489.12 *Due to weight ticket calculation rounding, some invoice totals may be off by a few cents. Legal Review Not applicable. Environmental Review Consideration of the CR Transfer warrant is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6 "Projects" does not include... C. Continuing administrative or maintenance activities. Financial Review Sufficient funds are available in the adopted FY 2024-25 budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the October 28, 2024, Board of Directors Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :7. Receive and File September 2024 Organics Tonnage Report Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action (Consent) Recommended Action :That the Board of Directors receive and file this report. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: October 28, 2024 Subject: Receive and File September 2024 Organics Tonnage Report Summary In September 2024, CR&R collected 676.94tons of organic waste and recycled 645.77tons 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 August 792.62 38.26 830.88 September 645.77 31.17 676.94 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 October 28, 2024 Board of Directors Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Organics_Tonnage_September_2024.pdf (444 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :9. Receive and File September 2024 Solid Waste Diversion Report Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action (Consent) Recommended Action :That the Board of Directors receive and file this report. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: October 28, 2024 Subject: Receive and File September 2024 Solid Waste Diversion Report Summary In September 2024, CR&R collected 3,071.08 tons of solid waste and recycled 1,845.21 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 60.08%. 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 October 28, 2024 Board of Directors Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Tonnage_Summary_September_2024.pdf (436 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :10. Receive and File September 2024 Contracts Signed by the General Manager Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action (Consent) Fiscal Impact :No Budgeted :Yes Recommended Action :That the Board of Directors receive and file this report. Public Content To: Board of Directors From: Scott Carroll, General Manager Date: October 28, 2024 Subject: Receive and File September 2024 Contracts Signed by the General Manager Summary At the January 24, 2019Board of Directors meeting, the Board directed the General Manager to submit a list of contracts he signed during the previous month.Below are the contracts he signed in the monthsof September 2024. Recommendation That the Board of Directors receive and file this report Analysis The following contracts/agreements were signed by the general manager in September 2024 Contracts/Agreement 1. - Exterior painting of CMSD HQ. Cost: AJ Fistes $18,473 2. - Water service repair at Rob Hamers Yard. Cost: Torres Sanitation Systems Construction $5,300 Purchase Orders 1. Mattucci Plumbing - Closed Circuit Televising South Coast Plaza sewer fore. Cost: $3,300 Legal Review Not applicable Environmental Review Providing the Board of Directors a monthly list of contracts signed by the General Manager is anadministrative matterthat will not result in direct or indirect physical changes in the environment and isnot considered a "project". Financial Review There is adequate funding in the budget to perform the contract services mentioned above. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 28, 2024 Joint Board of Directors and Citizens Advisory Committee meetingat District Headquarters and on District website atwww.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. E. GENERAL MANAGER'S REPORTS Subject :1. Receive and File the First Quarter Budget Review for Fiscal Year 2024-25 Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type : Public Content To: Board of Directors From: Scott Carroll, General Manager From: Lieu Tran, Senior Accountant Date: October 28, 2024 Subject: Receive and File the First Quarter Budget Review for Fiscal Year 2024-25 Summary This report serves as a summary of the Districts spending through September 30, 2024 as well as staffs best estimate of projected balances for the year-ended June 30, 2025. Recommendation That the Board of Directors receive and file this report. Analysis Based on spending trends through September 30, 2024, staff projects the Solid Waste Fund to stay within budget, while the Wastewater Fund is expected to be under budget by $50,000 as of June 30, 2025. However, projections based on only three months of activity should be viewed with caution, as they will become more accurate as the year progresses. The Solid Waste Fund has an amended budget of $8,612,496. As of September 30, Solid Waste Fund Expenditure- 2024, 10% of the budget has been expended. The fund is projected to remain on target by the end of the fiscal year. The total revenue budget for the Solid Waste and General Funds for FY 2024-Solid Waste & General Funds Revenue- 25 is $8,602,100. As of September 30, 2024, the District has received $334,060 in revenue. The Wastewater Fund has an amended budget of $6,182,445 (excluding capital Wastewater Fund Expenditure- improvement projects). As of September 30, 2024, 24% of the operating budget has been expended. Staff anticipates a savingof $50,000 in the Personnel account. The total revenue budget for the Wastewater Fund for FY 2024-25 is $8,154,000. As of Wastewater Fund Revenue- September 30, 2024, the District has received $174,435 in revenue. Capital Improvement Projects (CIP) The Capital Improvement Projects are expected to stay within the allocated budget. Please refer to the attached report for a more comprehensive analysis. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District has adopted CEQA Guidelines and Implementing Procedures that state on page 6 Projects does not include . C. Continuing administrative or maintenance activities. Financial Review See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 28, 2024 Board of Directors regular meeting at District Headquarters and on District website. Alternative Actions Refer the matter back to staff for additional information. File Attachments A-FY2024-25 First Quarter Budget Analysis.pdf (231 KB) B - Expenditure Analysis.pdf (405 KB) E. GENERAL MANAGER'S REPORTS Subject :2. Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2023-24 to Fiscal Year 2024-25 Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action Fiscal Impact :Yes Recommended Action :That the Board of Directors approve: 1. The re-appropriation of funds in the Fiscal Year 2024-25 for the carryover items from the prior fiscal year as detailed in Attachments A and B, and summarized as follows: 10 Solid Waste Fund: Carryover Appropriations $5,473, Encumbrances $11,436 20 Wastewater Fund: Carryover Appropriations $2,789,933, Encumbrances $1,306,644. 2. The Proposed Budget Adjustments to Reallocate Funds within the FY 2024-25 Capital Improvement Projects as detailed in Attachment C. Goals :8.0 Finance Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: October 28, 2024 Subject:Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2023-24 to Fiscal Year 2024-25 and FY 2024-25 Capital Improvement Projects Budget Adjustments. Summary All appropriations lapse at the end of each fiscal year; therefore, it is necessary to request that certain unspent appropriations and encumbrancesfor goods and/or services that have yet to be completed by fiscal year endbe carried over into the subsequent fiscal year. After the close of the prior fiscal year, the Board of Directors reviews and approves a list of appropriations andencumbrancesthat are requested to be carryover into the new fiscal year. Recommendation That the Board of Directors approve: 1. The re-appropriation of funds in the Fiscal Year 2024-25 for the carryover items from the prior fiscal year as detailed in Attachments A and B, and summarized as follows: Carryover Appropriations Encumbrances 10 Solid Waste Fund:$5,473, $11,436 Carryover Appropriations Encumbrances 20 Wastewater Fund: $2,789,933,$1,306,644. 2. The Proposed Budget Adjustments to Reallocate Funds within theFY 2024-25 Capital Improvement Projects as detailed in Attachment C. Analysis All appropriations lapse at the end of each fiscal year; therefore, it is necessary to request that certain unspent appropriations for goods and/or services be carried over into the subsequent fiscal year. The carryover appropriations represent budgeted Fiscal Year 2023-24 appropriations for goods and/or services that were not expended as of June 30, 2024, but are expected to be expended in the Fiscal Year 2024-25. Generally, allowable carryovers are limited to certain types of goods or services, such as professional service contracts, capital outlay or capital improvement projects (CIP). Due to their scope and size, CIP is inherently precluded from being completed within the fiscal year in which funding was initially appropriated. The carryover of operating transfers represents the use of specific resources to fund specific carryover appropriations. The carryover of revenues typically relates to grants where the money has been received but not earned. Encumbrances represent purchase orders (POs) issued for goods and/or services which were not received or completed during the prior fiscal year by June 30, 2024. A PO is a commitment created to reserve a portion of the appropriations available balance but does not represent an expenditure or liability for budgetary or accounting purposes. The budget appropriations associated with encumbrances lapse at fiscal year-end unless the Board re-appropriates the funds in the subsequent fiscal year as requested in this report. After all payments are made for goods and services received by June 30, 2024, staff analyzes the remaining appropriation balances and open encumbrances to determine their validity. If the proposed continuing appropriations and encumbrances were not carried over into Fiscal Year 2024-25, there would not be sufficient appropriations in the current year budget to fund existing and the current year adopted projects. In addition, staff recommends that the Board of Directors approve the proposed capital improvement projects budget adjustments to reallocate funds within the Fiscal Year 2024-25 as detailed in Attachment C. Legal Review Not applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000et seq.). Section 15300.4 ofCEQAallows 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 CEQAGuidelines and Implementing Procedures that state on page 6 Projects does not include...... Continuing administrative or maintenance activities. Financial Review The total amount to be carried over for the Solid Waste Fund is . The total amount to be carried over for the Wastewater $16,909 Fund is $4,096,577. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 28, 2024, Board of Directors regular meeting at District Headquarters and on Districts website. Alternative Actions Refer the matter back to staff File Attachments Attachment A- Carryover Appropriations FY2023-24 to 2024-25.pdf (200 KB) Attachment B- Carryover Encumbrances FY2023-24 to 2024-25.pdf (201 KB) Attachment C- Proposed Budget Adjustments Capital Improvement Projects FY 2024-15.pdf (108 KB) E. GENERAL MANAGER'S REPORTS Subject :3. Fiscal Year 2023-2024 Annual Compliance Report for Requirements of Government Code Section 66013(d) for Capacity Charges. Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Receive and File Goals :8.0 Finance Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: October 28, 2024 Subject:Fiscal Year 2023-2024 Annual Compliance Report for Requirements of Government Code Section 66013(d) for Capacity Charges. Summary Staff is providing the Board with the Annual Compliance Report to fulfill the information and reporting requirements of Government Code Section 66013(d) for capacity charges. Recommendation Staff recommends the Board receive and file this report. Analysis On May 27, 2010 the Board adopted Ordinance No. 76, revising the charges collected by the District and establishing that fixture fees are capacity charges and making related clarifying changes. Fixture fees are capacity charges for public facilities in existence at the time a charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged, including supply or capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local agency involving capital expense relating to its use of existing or new public facilities. Upon payment of the fees, the money shall be deposited in a separate capital facilities account maintained in accordance with Government Code Section 66013(d). For each such separate account, the District shall, within one hundred eighty (180) days of the close of the fiscal year, make available to the public the following information: (1) A description of the charges deposited in the fund. (2) The beginning and ending fund balance of the fund and the interest earned from investment of moneys in the fund. (3) The amount of charges collected in that fiscal year. (4) An identification of all of the following: (A) Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used. (B) Each public improvement on which charges were expended that was completed during that fiscal year. (C) Each public improvement that is anticipated to be undertaken in the following fiscal year. (5) A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan. Legal Review District Counsel has reviewed this report. The report complies with Gov. Code Section 66013 and CMSD Operations Code 6.06.040. Environmental Review Preparing the yearly compliance report is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) Section 15300.4 of CEQA allows an agency while establishing its 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 Finance staff confirms that the Annual Compliance Report presents fairly the financial activity of the Facilities Revolving Fund for the fiscal year ending June 30, 2024. During the fiscal year 2023-24, the Facilities Revolving Fund received $65,858 in capacity charges, interest income earned of $14,370. Due to cancellation of projects by the contractors there were six refunds from the Two hundred thousand were transferred out to the Wastewater Fund for the purchase of the old Hitchfund for a total of $1,276. Crafter building at the Costa Mesa Sanitary Districts Robin Hamers Yard in FY 2023-24. As of June 30, 2024, the funds available in the Facilities Revolving Fund were .$131,109 In comparison, the capacity charges collected in fiscal year 2022-23 were $56,494. The increase of $9,364 in capacity charges collected over the prior fiscal year was the result of the timing of payments received, a decrease in new development constructions and the District Yard expansion. Public Notice Process , 2024Copies of this report are on file and will be included with the entire agenda packet for the October 28 regular Board of Directors meeting at District Headquarters and on Districts website www.cmsdca.gov Alternative Actions Refer the matter back to staff File Attachments Annual Compliance Report for Capacity Charges FY2023-24.pdf (115 KB) E. GENERAL MANAGER'S REPORTS Subject :4. Receive and File 2024 Performance Measurement Report - 3rd Quarter (January - September) Calendar Year Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action Recommended Action :That the Board of Directors receive and file this report Goals :6.0 Administrative Management Public Content To: Board of Directors From: Scott Carroll, General Manager Date: October 28, 2024 Subject: Receive and File 2024 Performance Measurement Report - 3rd Quarter (January - September) Calendar Year Summary On November 29, 2018, the Board of Directors adopted Administrative Regulations No. 70.00, Performance Measurement Program, which established methods and procedures for gathering and analyzing organizational performance while at the same timecollaborating towards continuous improvement of performance in an open and transparent manner. Recommendation That the Board of Directors receive and file this report Analysis A Performance Measurement Program has been developed to determine how well the District is performing in areas of efficiency, effective workforce, customer satisfaction, cost effectiveness, citizen engagement and transparency. The purpose of the program is to continually look at ways to improve and/or enhance the level of service that is being provided internally to staff and externally to the public. The outcome data reflected in the attached report is for six months (January to September 2024). Legal Review Not applicable Environmental Review A Performance MeasurementProgramis anadministrative matterthat will not result in direct or indirect physical changes in the environment and isnot considered a "project". Financial Review There are no financial impacts to the District for implementing a Performance Measurement Program Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 28, 2024 Joint Board of Directors/Citizens Advisory Committee meetingat District Headquarters and on District website atwww.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information File Attachments 3rd Qtr 2024.pdf (906 KB) E. GENERAL MANAGER'S REPORTS Subject :5. Receive and File 2020-25 Strategic Plan Progress Report - Fiscal Year 2024-25 First Quarter Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Discussion Goals :1.0 Sewer Infrastructure 2.0 Solid Waste 3.0 Emergency Preparedness 4.0 Partnerships 5.0 Community Outreach & Communications 6.0 Administrative Management 7.0 Human Resources Management 8.0 Finance Public Content To: Board of Directors From: Scott Carroll, General Manager Date: October 28, 2024 Subject:Receive and File 2020-25 Strategic Plan Progress Report - Fiscal Year 2024-25 First Quarter Summary On June 22, 2020, the Board of Directors adopted the 2020-2025Strategic Plan, which is a plan that establishes goals, objectives, strategies and work plans for the next five years andwill help move the organization in a directiontoward achieving its mission and vision. Attached is the quarterly update of the Plan that demonstrates the progress staff is making toward achieving the strategic goals. The nextquarterly report from this Plan will be presented to the Board on January 27, 2025. Recommendation That the Board of Directors receive and file this report. Analysis The 2020-25 Strategic Plan is the most ambitious Plan in the history of the District. The Plan has 125 Strategic Goals to achieve and/or implement in the next five years compared to 48 strategic goals in the FY 2015-20 Strategic Plan. Of the 125 goals, more than half (86) of the goals are completed. Twenty-seven (27) goals are in progress, eight goals (8) have not been started due to unforeseen circumstances and four (4) goals were eliminated. In January 2025, the District will begin the process for developing and adopting the FY 2025-30 Strategic Plan. Legal Review Not applicable Environmental Review The District's Strategic Plan is a planning document and preparation and adoption of the plan itself is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District's CEQA Guidelines. The environmental review of each of the efforts or projects outlined in the Strategic Plan will occur when the Board of Directors specifically considers each of the items since that is when the full scope of work of each effort or project will be described. Financial Review Activities described in the strategic goals are funded in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 28,2024 Joint Board of Directors/Citizens Advisory Committee meeting at CMSD headquarters and on CMSD's website at www.cmsdca.gov. Alternative Actions Direct Staff to report back with more information. File Attachments Strategic Plan Qtly Update 2024-25 1st Qtr.xlsx (103 KB) E. GENERAL MANAGER'S REPORTS Subject :6. Consider Authorizing Continuation of Resolution No. 2024-997 Confirming an Emergency To Replace Critical Infrastructure of the South Coast Plaza Pump Station Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action Recommended Action :That the Board of Directors approve authorizing continuation of Resolution No. 2024-997 to support the #355 SCP Urgent Capital Repair Project (aka SCP Emergency Sewer Replacement Project). Public Content To: Board of Directors From: Scott Carroll, General Manager Date: October 28, 2024 Subject:Consider Authorizing Continuation of Resolution No. 2024-997 Confirming an Emergency To Replace Critical Infrastructure of the South Coast Plaza Pump Station Summary On August 26, 2024, the Board of Directors received a report from staff about emergency work at the South Coast Plaza (SCP) Pump Station. An 8-inch sewer line failed and due to the abundance of ground water, a liner to rehabilitate the pipe could not be performed. 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 RobertsConstruction Inc, (TER) to assist with the emergency operation activities. The Board of Directors adopted 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. Recommendation statutory exemptunder the California Environmental Quality Act 1. Adopt Project #355 SCP Emergency Sewer Replacement as (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15269(b), Emergency Projects. 2. That the Board of Directors approve authorizing continuation of Resolution No. 2024-997 Analysis The pump station is currently stabilized, but its operating on emergency/temporary by-pass pump system. The station is being monitored on a daily basis and the by-pass system is routinely inspected to ensure its operating effectively. After meeting with SCP mall leadership, it was agreed the construction work should begin after the holidays. In the mean time, the district is performing a geotechnical study, dewatering well pumping/draw-down test, and liner installation for the emergency forcemain. The geotecnical work is to determine soil and other subsurface conditions, the dewatering test is to understand how much water may be pumped from a well, well spacing, and number of well required to excavate the District sewer. The emergency forcemain liner will eliminate the need to install a temporary primary forcmain relocation and replacement. Designs concepts are continuing to develop as well. Because the station is being operated on emergency by-pass system, staff is recommending this project is continued as an emergency in case the by-pass system fails in which the district can perform immediate improvements without going through the bidding process, and thus, avoiding a sanitary sewer overflow and ensuring SCP mall can still operate. To approve authorizing continuation of Resolution No. 2024-997, a 4/5 vote by the Board of Directors is required. A roll call vote is appropriate. Legal Review District counsel has reviewed and approved Resolution No. 2024-997 Environmental Review Emergency projects are statutory exemptunder the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15269(b), Emergency Projects Financial Review Staff is estimating the emergency work already performed is slightly more than 200,000, see chart below.$ Prior to the A detailed estimate has not been developed for the emergency Holiday season, an additional $265,000 must be outlayed. work but is expected to be about $1,600,000. A detailed estimate will be available by the November Board Meeting. Activities Cost (Current Operations) TER (Emergency operations/construction)$ 77,000 PPT (Sewer Liner)75,000 RBH (Design/Inspection)15,000 Robotic Solutions (Patch Liner)12,000 Geotechnical study 26,000 Total Cost $ 205,000 (Prior to Holidays) Test Wells (TBD)$ 90,000 Utility Relocation/Rehab (TER/Sancon)125,000 Design (RBH)50,000 $ 265,000 (Start January 6, 2025) Dewatering Wells (Foothill)$ 500,000 Coffer Dam (TBD)225,000 Excavation/Sewer Replacement (TER)405,000 $ 1,130,000 Grand Total $ 1,600,000 FY 2023-24 Budget $ 120,000 BOD Appropriated August 26, 2024 182,000 Need to Appropriate Funds 10/28/2024 1,298,000 Total Budget $ 1,600,000 The total budget for the project is . There are funds to pay for the anticipated costs. T$1,600,000 herefore, staff has requested transferring funds from several CIP projects to this Emergency work. When the detailed estimate is complete,Staff will report back to the Board members and provide details for funding the emergency work for approval. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the September 23, 2024 Board of Directors meeting at District Headquarters (290 Paularino Avenue) and posted on the Districts website at www.cmsdca.gov. Alternative Actions 1. Do not approve the continuationof Resolution No. 2024-997. File Attachments Reso 2024-997.pdf (189 KB) F. ENGINEER'S REPORTS Subject :1. Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action, Discussion, Receive and File Fiscal Impact :No Budgeted :Yes Budget Source :Operating Budget Recommended Action :Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status Public Content To: Board of Directors From: Mark Esquer, District Engineer Date: October 28, 2024 Subject: Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status Summary The District Engineer has provided a memorandum with a brief summary of major capital or other engineering activitiesfor the period of mid-September to mid-October. The District Engineer's memorandum is attached. Also attached isa detailed summary of the Capital Improvement Project activities andassociated project cost expenses for the previous calendar month. Recommendation The Board of Directors receive and file the Capital Improvement Status Report. Analysis Attached is information regarding project or technical sewer activities for the Board of Directors' use and information. Legal Review Not Applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District has adopted CEQA Guidelines and Implementing Procedures that state on page 6 Projects does not include . C. Continuing administrative or maintenance activities. Financial Review The cost of preparing this report is contained within the operating budget. There aresufficient funds 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 October 28, 2024,Board of Directors Regular meeting at District Headquarters and posted on the Districts website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments 2024 10 Monthly Engineers Report CMSD Memorandum.pdf (240 KB) 2024-09 Financial Section for CIP Updates.pdf (71 KB) F. ENGINEER'S REPORTS Subject :2. Project No. 343 Elden Emergency Bypass Improvements: Accept Improvements as Completed, File Notice of Completion, Exonerate Labor and Materials Bond and Exonerate Faithful Performance Bond Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action, Discussion Preferred Date :Oct 28, 2024 Fiscal Impact :No Budgeted :Yes Budget Source :#343 Elden Emergency Bypass Capital Budget Recommended Action :That the Board of Directors: 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Public Content To: Board of Directors From: Mark Esquer,District Engineer Date: October 28, 2024 Subject:Project No. 343 Elden Emergency Bypass Improvements: Accept Improvements as Completed, File Notice of Completion, Exonerate Labor and Materials Bond and Exonerate Faithful Performance Bond Summary GCI Construction, Inc. has completed the Elden Bypass Improvements via the #343 Elden Emergency Bypass Improvements Project in the City of Costa Mesa on or around September 25, 2024, therefore, it is appropriate for the District to accept the improvements and file a notice of completion for the construction work. Analysis The project included a Hot Tap/Roll Tee Connection, Recoat Tee, and extra digging for slurry on 12" Bypass and paving. Recommendation That the Board of Directors: 1. Accept improvements as completed and file a Notice of Completion; 2. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded; and 3. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Legal Review The District legal counsel reviewed the Project Close Out Notice. Environmental Review The emergency bypass improvements does not change sewer pipeline system capacity. Installing replacement or rehabilitated appurtenance with the same capacity as the existing facility is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a Class 2 project as stated under 15302(c) Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. Financial Review The approved budget for Project #343 Elden Emergency Bypass Improvements is and the balance as of September $1,001,472 30, 2024 is about . The expenses, including encumbrances, to date for the project total approximately .$17,111 $984,361 Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the October 28, 2024,Board of Directors Regular meeting at District Headquarters and posted on the Districts website www.cmsdca.gov. Alternative Actions 1. Do not accept the improvements as complete. 2. Direct staff to report back with more information. File Attachments 343 Elden PS Emergency Bypass Improvement - Notice of Completion 2024 10.pdf (139 KB) F. ENGINEER'S REPORTS Subject :3. Approve a Sole-Source Contract to West Coast Safety for the Modification of Emergency Lay-flat Hose and Purchase of Additional Fittings Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action, Discussion, Presentation Fiscal Impact :No Budgeted :Yes Budget Source :343 Elden Emergency Bypass CIP Budget Recommended Action :Approve Sole-source Contract to West Safety Supply Inc., for the Purchase of several fittings and custom length hose, Not-to-Exceed of $138,626, including freight/delivery and taxes. Public Content To: The Board of Directors From: Mark Esquer, District Engineer Date: October 28, 2024 Subject: Approve a Sole-Source Contract to West Coast Safety for the Purchase of Emergency Lay-flat Hose and Fittings Summary District staff is recommending a sole-source contract to West Coast Safety in the amount of $138,626 for eleven (11) new camlock style fittings and for cutting about 1,200 feet of the District hose into custom lengths to facilitate rapid installation and reduce impact to City street closures. The previous District purchase consisted of three (3) special trailers with reels and motor for deploying and retrieving the hose, 7,920 feet of 12" emergency, 175 psi hose, and fittings. That Hose Purchase was $674,838. The District will make the shorter hose lengths from 1,200 feet of our own hose. District have been practicing deploying the hose on a quarterly basis at the OC Fairgrounds. It has been learned that deploying and taking up the hose is very cumbersome. Staff and the District Engineer worked out a plan to provide easier deployment and a reduction in roadway impacts/closures. The Plan includes using some "short" hoses and additional fitting to make tight turns and deploy the hose next to the curb. The purchase of several fittings and providing several hoses from 5-feet through 300-feet will provide for increased efficiency for deploying the hose. Recommendation Approve Sole-source Contract to West Safety Supply Inc., for the Purchase of several fittings and custom length hose, Not-to- Exceed of $138,626, including freight/delivery and taxes. Analysis District staff is recommending a sole-source contract to West Coast Safety because they are the only provider of the layflat hose in California and provided the initial materials and hose purchase. Having West Coast Safety and the hose manufacturer take responsibility for cutting hose and making custom lengths of hose maintains responsibilities for leaks and failures. The Board approved the initial sole-source purchase of layflat hose and Trailers in December 2022 . There is another vendor, but that vendor is located on the east coast and the proposed price point is low enough that the east-coast firm will not be lower. Irvine Ranch and Orange County Sanitation also purchase their 12" layflat hose and materials from this vendor. When OC Sanitation solicited bids for their 12-inch layflat hose, West Coast Safety was the only bidder. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000et seq.). Section 15300.4 ofCEQAallows 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 CEQAGuidelines and Implementing Procedures that state on page 6 Projects does not include......C. Continuing administrative or maintenance activities. Financial Review The Project 343 Elden Emergency Bypass Budget has about $173,000 available for this purchase. This should be the last purchase of this type and size of hose materials. Funds for purchasing the emergency lay-flat hose parts and hose modifications are included in the P343 budget. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the October 28,2024 Board of Directors Regularmeeting at District Headquarters and posted on the Districts website. Alternative Actions 1. Direct staff to report back with more information. File Attachments 2024 09 06 West Coast Safety Elden Layflat Parts EST-0001120.pdf (72 KB) F. ENGINEER'S REPORTS Subject :4. Consider Approving the Acquisition of One (1) New 200 KW Portable Generator from Quinn Power Caterpillar Company and Appropriate Funds for $167,000 Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action, Discussion Fiscal Impact :No Dollar Amount :$167,000.00 Budgeted :Yes Budget Source :Insurance Payment and Asset Replacement Fund Recommended Action :That the Board of Directors: 1. Approve a budget appropriation of $84,000 from the Asset Replacement Fund, a budget appropriation of $55,400 from the Wastewater Fund Balance and a budget adjustment of $27,600 from the Annual Sewer Maintenance Account to the Wastewater Capital Outlay Account totaling $167,000. 2. Approve the acquisition of one (1) new 200KW Portable Caterpillar Generator from Quinn Power Caterpillar Company for $167,000 Public Content To: Board of Directors From: Mark Esquer, District Engineer Date: October 28, 2024 Subject: Consider Approving the Acquisition of One (1) New 200 KW Portable Generator from Quinn Power Caterpillar Company for $167,000 Summary In April 2024, the Districts largest portable generator caught fire and was a total loss. The District must purchase a replacement unit, as our other portable units are not large enough to power the Elden pump Station. The District filed an insurance claim and was issued $55,400 from our insurance carrier toward the purchase of a replacement. Recommendation That the Board of Directors: 1.Approve a budget appropriation of $84,000 from the Asset Replacement Fund, a budget appropriation of $55,400 from the Wastewater Fund Balance and a budget adjustment of $27,600 from the Annual Sewer Maintenance Account to the Wastewater Capital Outlay Account totaling $167,000. 2. Approve the acquisition of one (1) new 200KW Portable Caterpillar Generator from Quinn Power Caterpillar Company for $167,000 Analysis The District's portable generator was dispatched to operate the Harbor pump station because of a scheduled SCE power outage. About 5AM, the generator caught fire and was a total loss. The District staff and the insurance inspector agree that early morning moisture and age-related wear on electrical wires and connections contributed to the fire. It appears that a short-circuit and arc- flash caused and started the fire. Attached is a quote dated August 6, 2024 from Quinn Power Caterpillar after submitting a bid to Sourcewell, a cooperative government purchasing organization. A 200 KW portable Caterpillar generator unit is or soon will be available depending on inventory. The District is a member of Sourcewell, which is a public agency that serves as a member-focused cooperative for over 50,000 government, education and nonprofit organizationsnationally. There is no cost to be a member of Sourcewell. Sourcewellwill solicit a request for proposals (RFP) and then enters into a cooperative agreement with vendors that have demonstrated the following in their proposal: Conforming to RFPs intent, scope and specifications Competitive pricing strategies Ability to sell and service SourcewellMembers nationally Financial strength, experience and success in the industry/marketplace References from past customers and prior experience with Sourcewell A clear, concise, aggressive and effective marketing plan Value added related products, services and technological advances Financing options and detailed payment terms Warranty, product and service responsibility Identifying the depth, breadth and quality of products and service offerings According to Section 4.04.120(b) of the Districts Operations Code, the District can purchase items when a competitive bid procedure has been conducted by another public agency. Sourcewell conducted a competative bid and the District staff is recommending that the District purchase via Sourcewell Cooperative Procurement process. Staff contacted Quinn Power Caterpillar in July 2024 to obtain a proposal to acquire one 200 KW generator unit. . Legal Review Not applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000et seq.). Section 15300.4 ofCEQAallows an agency while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District has adoptedCEQAGuidelines and Implementing Procedures that state on page 6 Projects does not include......C. Continuing administrative or maintenance activities. Financial Review The total cost for the new 200KW Portable Caterpillar Generator from Quinn Power Caterpillar Company is $167,000. The District received $55,400 from our insurance carrier toward the purchase of a replacement. The District has set aside $84,000 in the Asset Replacement Fund for a new generator. The Annual Sewer Maintenance Account as an available budget of $108,900. In order to acquire the replacement generator unit staff is proposing the Board of Directors to: 1. Approve a budget appropriation of $84,000 from the Asset Replacement Fund to the Wastewater Capital Outlay Account; 2. Approve a budget appropriation of $55,400 from the Wastewater Fund Balance to the Wastewater Capital Outlay Account; and, 3. Approve a budget adjustment of $27,600 from the Annual Sewer Maintenance Account to the Wastewater Capital Outlay Account. Account Description Increase (Decrease) 40-400000-4995 Fixed Asset Replacement Fund - Transfer Out $84,000 40-000000-1001 Fixed Asset Replacement Fund - Cash ($84,000) 20-000000-1001 Wastewater Fund - Cash $84,000 20-000000-3995 Wastewater Fund - Transfer In (84,000) 20-200001-4795 Sewer Maint. Wastewater Fund - Capital Outlay $167,000 20-000000-2990 Wastewater Fund - Fund Balance ($84,000) 20-000000-2990 Wastewater Fund - Fund Balance ($55,400) 20-200001-4364 Annual Sewer Maintenance Account ($27,600) Public Notice Process Copies of this report are on file and will be included in the complete agendapacket for the October 28, 2024,Board of Directors regular Meeting at District Headquarters and posted on the District's .website Alternative Actions 1. Do not approve the acquisition of one (1) new 200 KW Generator Unit from Quinn Power Caterpillar Equipment Company for $167,000. 2.Direct staff to report back with more information. File Attachments 240527SW Costa Mesa Sanitation District XQ230.pdf (250 KB) G. TREASURER'S REPORTS Subject :1. Investment Report for the Month of October 2024 Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Action Recommended Action :That the Board of Directors approve the Investment Report for the month of October 2024. Goals :8.0 Finance Public Content To: Board of Directors From: Marc Davis, District Treasurer Date: October 28, 2024 Subject: Approve the Investment Report for the Month of September 2024 Summary Attached is the Investment Report for the month of September 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 September 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 September 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 September 30, 2024, was 2.678%. The yield to maturity of the portfolio was 2.678%. The District's weighted average interest rate was 190 basis points (1.897%) below the LAIF average monthly rate of 4.575% for the month of September 2024. The weighted average number of days to maturity for the District's total portfolio was 379 days (1.04 years). The duration of the underlying securities in LAIF as of September 30, 2024 was 231 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 September 30, 2024 was 50.17%. The District has adequate cash reserves necessary to meet its obligations for the next six months. A majority of the District's cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District's cash and investments are as follows: :Solid Waste Fund - Equal to 30% of the operations budget of the Solid Waste Fund per Operations CodeOperating Reserve Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. - Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. - Remaining available cash, which is currently used for rate stabilization and payment of organicsUndesignated recycling costs. :Wastewater Fund - Equal to 25% of the operations budget of the Wastewater Fund per Operations CodeOperating Reserve Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. - Set aside for capital improvement projects approved and budgeted by the Board,Reserved for Capital Outlay but which have not yet been completed. - Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. - Remaining available cash, which is available to be appropriated by the Board.Undesignated - Collection of fixture fees which is a restricted revenue source and can only be used for newFacilities Revolving Fund sewer facilities. - Accumulation of funds for replacement of vehicles, equipment and computers.Asset Replacement Fund - Accumulation of funds in accordance with the asset management model for long-termAsset Management Fund replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6, "Projects" does not include...C. Continuing administrative or maintenance activities. Financial Review The portfolio was budgeted to earn an average rate of 1.487% for the year ending July 30, 2025. Through September 30, 2024, the portfolio has earned a weighted average interest rate of 2.743%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 28, 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 - September 2024.pdf (436 KB) I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :1. Orange County Sanitation District (OCSD) - (Vice Secretary Ooten) Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type : I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry) Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type : I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :3. Independent Special Districts of Orange County (ISDOC) - (Vice President Schafer) Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type : I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :4. California Special Districts Association (CSDA) - (Vice President Schafer) Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type : I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :5. Special District Risk Management Authority (SDRMA) - (President Scheafer) Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type : I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type : L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject :1. Oral Communications and Director Comments Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Discussion O. CLOSING ITEMS Subject :1. Adjourn Meeting :Oct 28, 2024 - Board of Directors Regular Meeting Type :Procedural Public Content The next regular meeting of the Costa Mesa Sanitary District Board of Directors will be held at 4:30 p.m. on Monday, November 25, 2024 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626.