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2025-03-24_boardMonday, March 24, 2025 Board of Directors Regular Meeting Time: 4:30 p.m. Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626 President Scheafer will be attending this meeting remotely while on business travel, and will attend the meeting from Hilton Arden West, 2200 Harvard Street, Sacramento, CA 95815. *** 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. *** 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 :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Procedural A. OPENING ITEMS Subject :2. Pledge of Allegiance - President Scheafer Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Procedural A. OPENING ITEMS Subject :3. Invocation - Vice President Ooten Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Procedural A. OPENING ITEMS Subject :4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence such determination shall be the permission required by law.) Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Procedural Public Content Michael Scheafer, President Robert Ooten, Vice President Arthur Perry, Secretary Arlene Schafer, Vice Secretary Nicole Wiltshire, 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 :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Procedural A. OPENING ITEMS Subject :6. Ceremonial Matters and Presentations Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Procedural B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject :1. Public Comments Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Procedural C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :1. Approve the Board of Directors Special Meeting Minutes of January 13, 2025 Meeting :Mar 24, 2025 - 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 Jan 13, 2025 - Board of Directors Special Meeting Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: March 24, 2025 Subject: Approve the Board of Directors Special Meeting Minutes of January 13, 2025 Summary The recorded minutes of the January 13, 2025 Board of Directors Special Meeting are 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 Special Meeting of January 13, 2025. 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 theMarch 24, 2025Board 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_2025_01_13_sm.pdf (164 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 :2. Approve the Board of Directors Study Session Minutes of February 11, 2025 Meeting :Mar 24, 2025 - 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 Feb 11, 2025 - Board of Directors Study Session Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: March 24, 2025 Subject: Approve the Board of Directors Study Session Minutes ofFebruary 11, 2025 Summary The recorded minutes of the February 11, 2025 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 February 11, 2025. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutesis an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District has adopted CEQA Guidelines and Implementing Procedures that state on page 6 Projects does not include . C. Continuing administrative or maintenance activities. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the March 24, 2025Board 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_2025_02_11_ss.pdf (153 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :3. Approve the Board of Directors Regular Meeting Minutes of February 24, 2025 Meeting :Mar 24, 2025 - 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 Feb 24, 2025 - Board of Directors Regular Meeting Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: March 24, 2025 Subject: Approve the Board of Directors Regular Meeting Minutes of February 24, 2025 Summary The recorded minutes of the February 24, 2025Board 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 of February 24, 2025. 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 theMarch 24, 2025 Board of Directors Regular Meeting at District Headquarters and posted on the Districts website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2025_02_24_rm.pdf (197 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 :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Recommended Action :That the Board of Directors approve the compensation and reimbursement of expenses as presented. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk/Public Information Officer Date: March 24, 2025 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 March 24, 2025 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 board_pr_february_2025.pdf (4,039 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :5. Adopt Warrant Resolution No. CMSD 2025-09 Approving District Warrant Registers Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Budgeted :Yes Recommended Action :That the Board of Directors adopt Warrant Resolution No. CMSD 2025-09 approving District warrants for the month of February in the amount of $1,129,737.39. Public Content To: Board of Directors Via: Scott Carroll, General Manager From:Amanda Doan, Accounting Clerk Date: March 24, 2025 Subject:Adopt Warrant Resolution No. CMSD 2025-09 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 2025-09 approving District warrants for the month of February in the amount of $1,129,737.39. 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 March 24, 2025 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 WARRANT RESO 2025-09.pdf (4,814 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 Payroll Transparency Disclosure for February 2025 Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Fiscal Impact :Yes Budgeted :Yes Recommended Action :That the Board of Directors approve and file the report. Public Content To: Board of Directors Via: Scott Carroll, General Manager From:Amanda Doan, Accounting Clerk Date: March 24, 2025 Subject:Approve Payroll Transparency Disclosure for February 2025 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 March 24, 2025 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 February 2025.pdf (195 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :7. Receive and File February 2025 Organics Tonnage Report Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Recommended Action :That the Board of Directors receive and file this report. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: March 24, 2025 Subject: Receive and File February 2025Organics Tonnage Report Summary In February 2025, CR&R collected 554.18tons of organic waste and recycled 528.66tons 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 645.7 31.17 676.94 October 699.58 33.77 733.35 November 657.49 31.74 689.23 December 613.77 29.62 643.39 January 776.77 37.49 814.26 February 528.66 25.52 554.18 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 March 24, 2025Board 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_Feb_2025.pdf (590 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :8. Approve the Occupancy Count of 23,185 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $395,366.85 in the March 2025 Warrant Register for February 2025 Solid Waste Collection Services. Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Action (Consent) Recommended Action :That the Board of Directors: 1. Approve the Occupancy Count of 23,185; and 2. Direct staff to prepare a warrant to CR&R Environmental Services for $395,366.85 in the March 2025 warrant register for February 2025 solid waste collection services. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: March 24, 2025 Subject: Approve the Occupancy Count of 23,185 and Direct Staff to Prepare a Warrant to CR&R Environmental Services for $395,366.85 n the March 2025 Warrant Register for February 2025 Solid Waste Collection Services. i 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 $17.0527and the February 2025 occupancy count presented to the Board of Directors is 23,185, for a total $395,366.85payment of . Recommendation That the Board of Directors: 1. Approve the Occupancy Count of 23,185; and $395,366.852. Direct staff to prepare a warrant to CR&R Environmental Services for in the March 2025 warrant register for February 2025 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 $17.0527. The District pays CR&R $17.0527 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 February 28, 2025, the District's occupancy count was 23,185 with 19 new accounts added since the last billing period. The occupancy count approved by the Board of Directors for January 2025was 23,166. The District's payment to CR&R is calculated by multiplying the occupancy count by the occupancy rate. The payment calculation for February 2025 is included below. Occupancy Count X Occupancy Rate =Payment to CR&R 23,185 $17.0527 $395,366.85 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 March 24, 2025, 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 February 2025 Occupancy Report.pdf (439 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :9. Approve the Preparation of a Warrant to CR Transfer for $150,691.02 in the March 2025 Warrant Register for February 2025 Recycling and Disposal Services Meeting :Mar 24, 2025 - 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 $150,691.02 in the March 2025 warrant register for February 2025 recycling and disposal services. Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: March 24, 2025 Subject: Approve the preparation of a warrant to CR Transfer for $150,691.02in the March 2025warrant register for February 2025recycling 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 $150,691.02in the March 2025 warrant register for February 2025 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 February 2025. The tonnage rates approved by the Board of Directors on May 28, 2024, effective July 1, 2024, is $61.19 per ton for landfill disposal, $15.27 for recycling services, and and $84.19 per ton for organics recycling. Type of Waste Invoice No.Tonnage Rate Amount Billed Landfill Waste - Newport Beach 46460 79.96 $61.19 $4,892.74* Landfill Waste - Costa Mesa 46459 1,626.02 $61.19 $99,141.85* Total Landfill Waste $104,034.59 Organics 46491 554.18 $84.19 $46,656.43* Total Organics $46,656.43 Grand Total $150,691.02 *Due to weight ticket calculation rounding, some invoice totals may be off by a few cents. At this time, the District is unable to submit payment for the February recycling charges due to tonnage discrepancies on CR&R's Invoice #46500. CR&R is currently rectifying this invoice and the charges will be presented at the April Board Meeting for approval. 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 March 24, 2025, Board of Directors Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :10. Investment Report for the Month of February 2025 Meeting :Mar 24, 2025 - 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 February 2025. Goals :8.0 Finance Public Content To: Board of Directors From: Marc Davis, District Treasurer Date: March 24, 2025 Subject: Approve the Investment Report for the Month of February 2025 Summary Attached is the Investment Report for the month of February 2025. 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 February 2025. 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 February 28, 2025. 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 February 28, 2025, was 2.869%. The yield to maturity of the portfolio was 2.869%. The District's weighted average interest rate was 146 basis points (1.464%) below the LAIF average monthly rate of 4.333% for the month of February 2025. The weighted average number of days to maturity for the District's total portfolio was 321 days (0.88 years). The duration of the underlying securities in LAIF as of February 28, 2025 was 237 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 February 28, 2025 was 66.97%. The District has adequate cash reserves necessary to meet its obligations for the next six months. A majority of the District's cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District's cash and investments are as follows: :Solid Waste Fund - Equal to 30% of the operations budget of the Solid Waste Fund per Operations CodeOperating Reserve Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. - Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. - Remaining available cash, which is currently used for rate stabilization and payment of organicsUndesignated recycling costs. :Wastewater Fund - Equal to 25% of the operations budget of the Wastewater Fund per Operations CodeOperating Reserve Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. - Set aside for capital improvement projects approved and budgeted by the Board,Reserved for Capital Outlay but which have not yet been completed. - Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. - Remaining available cash, which is available to be appropriated by the Board.Undesignated - Collection of fixture fees which is a restricted revenue source and can only be used for newFacilities Revolving Fund sewer facilities. - Accumulation of funds for replacement of vehicles, equipment and computers.Asset Replacement Fund - Accumulation of funds in accordance with the asset management model for long-termAsset Management Fund replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of the exempt classes," and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6, "Projects" does not include...C. Continuing administrative or maintenance activities. Financial Review The portfolio was budgeted to earn an average rate of 1.487% for the year ending June 30, 2025. Through February 28, 2025, the portfolio has earned a weighted average interest rate of 2.781%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 24, 2025 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 - February 2025.pdf (426 KB) Consent All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject :11. Receive and File February 2025 Contracts Signed by the General Manager Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public 1. 2. 3. Type :Action (Consent) Fiscal Impact :No Budgeted :Yes Recommended Action :That the Board of Directors receive and file this report Goals :6.0 Administrative Management Public Content To: Board of Directors From: Scott Carroll, General Manager Date: March 24, 2025 Subject:Receive and File February 2025 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 February 2025. Recommendation That the Board of Directors receive and file this report Analysis The following contracts/agreements were signed by the general manager in February 2025. Contracts/Agreements 1.- Facilitating seven safety training sessions for district employees throughout the Occupational Safety Training Systems (OSTS) 2025 calendar year.. Cost: $3,950.00 2. - Perform organics recycling education assemblies to elementary school students. Discovery Science Center Cost: $29,600.00 Purchase Orders Jerry Weimer Consulting Certification training for sewer pipe, manhole, and sewer lateral pipeassessments.Cost: $7,440.00 Dukes Root Control, Inc. Apply at various locations foaming herbicidein sewer pipes to eradicate root infestationCost: $6,262.00 Syneco Systems Inc. Purchase and acquire oneDry Air Scrubber to control odors at Elden Pump Station.Cost: $36,720.00 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 March 24, 2025 Board of Directors 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. Consider Appointment of Five (5) Citizens Advisory Committee Members Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Action Recommended Action :That the Board of Directors consider appointing five (5) Citizens Advisory Members to fill the existing vacancies for five (2) two-year terms ending in 2027 Public Content To: Board of Directors Via: Scott Carroll, General Manager From: Angela Colunga, Management Analyst I Date: March 24, 2025 Subject:Consider Appointment of Five (5) Citizens Advisory Committee Members Summary There are currently a total of five (5) vacancies on the Citizens Advisory Committee (CAC), and thus the Board is being asked to consider appointing new members. Recommendation That the Board of Directors consider appointing five (5) Citizens Advisory Members to fill the existing vacancies for five (5) two- year terms ending in 2027. Analysis The Citizens Advisory Committee (CAC) consists of 11 members that provide advisory input on subject matters desired by the Board of Directors. CAC members serve staggered two-year terms. Five (5) vacancies currently exist for the upcoming 2025- 2027 term. District staff publicized these vacancies for a total of 5 weeks on the District's website, as well as through targeted email campaigns and social media posts. A total of six (6) applications were received from the following individuals: Sue Lester Current CAC Chair Served on CAC a total of 3.5terms, 2018-2019, 2019-2021, 2021-2023 and2023-2025 District 5 resident Cindy Brenneman Current CAC Member Served on CAC a total of 2terms, 2021-2023 and2023-2025 District 3resident Jeff Arbour Current CAC Member Served on CAC a total of 2 terms, 2021-2023 and 2023-2025 District 1resident Brooke Natzke New applicant District 4 resident Donald Neal New applicant District 5 resident Shayanne Wright New applicant District 5 resident Below is a breakdown of the current and prospective CAC Members' voting divisions. Voting Division # ofMembers /Applicants in Division Existing CAC Members CAC Applicants Division 1 2 Jeff Arbour Division2 1 Birger "Dickie" Fernández Division3 2 Michael Tou Cindy Brenneman Division4 3 Rosemarie Chora,Paul R. Lancaster Brooke Natzke Division5 4 Xerxez Calilung Sue Lester, Donald Neal, Shayanne Wright Each of the redacted applications are attached to the staff report for the Board's consideration. Legal Review Not applicable. Environmental Review Appointing members to the Citizens Advisory Committeeis an administrative matter, which will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA. 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 March 24, 2025 Board of Directors Regular Meeting at District Headquarters and posted on the Districts website. Alternative Actions Refer the matter back to staff. File Attachments Lester_Sue_redacted.pdf (184 KB) Brenneman_Cindy_redacted.pdf (189 KB) Arbour_Jeff_redacted.pdf (240 KB) Natzke_Brooke_redacted.pdf (169 KB) Natzke_Brooke_resume_redacted.pdf (101 KB) Neal_Donald_redacted.pdf (163 KB) Neal_Donald_resume_redacted.pdf (168 KB) Wright_Shayanne_redacted.pdf (170 KB) F. ENGINEER'S REPORTS Subject :1. Receive and File the District Engineer's Monthly Report and Capital Improvement Projects Status Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Receive and File Public Content To: Board of Directors From: Mark Esquer, District Engineer Date: March 24, 2025 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-February to mid-March. 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 March 24, 2025 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 2025 03 Monthly Engineers Report CMSD Memorandum.pdf (213 KB) 2025-02 Financial Section for CIP Updates.pdf (71 KB) Administrative File Attachments 2025 03 Monthly Engineers Report CMSD Memorandum.docx (75 KB) F. ENGINEER'S REPORTS Subject :2. Review Sewer Building Permit and Fixture Fee Preliminary Study Information Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Discussion, Presentation Public Content To: Board of Directors From: Mark Esquer, District Engineer Date: March 24, 2025 Subject: Review Sewer Building Permit and Fixture Fee Preliminary Study Information Summary The Costa Mesa Sanitary District (District) retained Robert D. Niehaus, Inc. (RDN) to conduct a Fee Study consisting of review of the Sewer Permit Program costs and determination of updated fees. Depending on which fee, it has been 7 to 12 years since fees have been changed. The current fees do not cover the District Permit Program cost(s). The Fee study will also project fee increase(s) for the upcoming 5-year period. RDN worked cooperatively with District staff to develop and evaluate fee alternatives along with draft study results. Based on this analysis and review, RDN and District staff are providing the Board with cursory/preliminary Fee information. The overall cost of sewer permits, plan checks, inspections, and fixture fees will increase. Permit Fees and Plan Check with Inspection fees will increase 22% and 58 %, respectively. Fixture Fees will increase between 66% and 271%, depending on the method used, and adopted, to determine the cost recovery for our system capacity. There are two methods used to develop the fixture fees. Fixture Fee Option 2 has typically been used by the District to determine the past Fixture Fees. Option #2 considers only the water generation impact (flow rate) from each fixture. In addition, all fixtures are considered to be used the same amount. This option does not consider how often a fixture is used. The District currently collects about $64,000 in fixture fees. Option #1 provides for higher generation fixture fees as it considers the probability and likely hood that a specific fixture is used during the day. This method considers that certain fixtures are used more often, produce more wastewater during the day, and require additional capacity in the pipes. The two methods provide for differing amounts of capacity value. Option 1 will collect $550,000 in fixture fees and Option 2 will $131,000 in fixture fees. Recommendation The Board of Directors discuss the Permit Program, ask questions, and provide feedback. Analysis The District collected employee timesheet information, consulting fees, and inspection costs associated with the sewer permit program for a two (2) year period. The costs were provided to RDN, along with projected hourly staffing rates, to project permit and permit-related costs and to update associated fees. RDN also used the District's sewer rate study results and industry- published construction costs to project and develop the various fee cost increases. Permit, Plan Check, and Inspection Fees are intended to cover the District labor and expense costs associated with Permit Program. The District plans to collect only enough fees to cover the Permit Program labor and expense costs. Fixture fees cover the cost of installed capacity and are charge to customers to pay for their capacity needs. The goal is to collect fees to cover, but not exceed, program expenses. There are two fixture fee methods considered for this study. Permit and other related costs are equal between the two Options considered. Fixture Fee Option 1 considers the water consumption and probability of use information from various sources, including the California Plumbing Code. Using this method to determine the appropriate fixture fees, the District will need to increase fixture fees by $486,000. Fixture Fee Option #2, considers the current District fee system and is based on only using the California Plumbing Code per unit water consumption value(s). This option assumes that all fixture units are used equally by customers. Using this method, the District will increase Fixture Fees by $67,000 per year. The difference between the two methods considers how often a fixture is used. For example, Option #1 considers that showers and bathing units are generally used daily, while home bar sinks may be used primarily on weekends. Option #1 is statistically more accurate and better represents the cost of sewer capacity and cost for gallon of wastewater. District staff are reviewing both Fixture Fee Options carefully but are considering to recommend Option #2. The probability and likely hood of use data should be reviewed in more detail prior to proceeding with this method. The biggest driver in fixture fee costs include construction of capacity (cost of sewer installation) and water generation volumes. The attached PowerPoint presentation identifies cursory information, costs, and alternatives used to develop these initial Fees. On March 12, 2025, the Citizens Advisory Committee (CAC) received a written and oral report regarding this subject. After receiving the reports and asking questions, the CAC is recommending the Board of Directors consider approving Option #1. Legal Review Not Applicable. Environmental Review Consideration of the Draft Permit Fees 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 administration or maintenance activities. Financial Review In fiscal year 2023-24 the District collected about $203,800 in permit fees, inspection and plan check costs, and fixture fees. Option 2 will generate about $338,000 per year: a 66% increase. Option 1 will generate about $757,000 per year: a 271% increase. Refer to the comparison chart below. Item FY 2023-24 Revenue Option #1 Revenue Option #2 Revenue Permit Fees $38,400 $47,000 $47,000 Plan Check and Inspection $101,400 $160,000 $160,000 Fixture Fees $64,000 $550,000 $131,000 Total $203,800 $757,000 $338,000 Sewer permit fees will increase 22%. Plan Check, Inspection, and other development fees will increase between 4% to over 100%, depending on the specific fee. As an example, Food Service Establishment fees will increase 4%. On-site Sewer Connections to an existing sewer will increase between 86% for small improvements like room additions, to 103% for very large house or business projects. Sewer repair permits will increase between 35% and 143%, depending on type of repair or replacement. A complete summary of the options and associated Fees are included within the attached Presentation. Forthcoming Fees will be based on actual District costs, inflated using the latest CPI-U, Los Angeles, Construction Cost Index projections, COLA of 3%, Merit up to 5%, and increased contract costs of 4.4%. If the Fee increases are not implemented, the District costs associated with permits and new sewer connections will not be covered. These excess costs will be paid from annual assessments, should the permit program costs not be increased. Public Notice Process Copies of this report are on file and will be included with the complete agenda packed for the March 24, 2025, 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 RDN Presentation for Costa Mesa SD 3-24-25.pptx (1,027 KB) Administrative File Attachments RDN Presentation for Costa Mesa 3-12-25 Update.pptx (1,027 KB) F. ENGINEER'S REPORTS Subject :3. Consider Determining a Sole-Source Contract with Jamison Engineering Contractors for Installing One Odor Control Scrubber at Elden Pump Station is in the Best Interest of the District Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Action, Discussion Fiscal Impact :No Dollar Amount :$23,500.00 Budgeted :Yes Budget Source :P347 Elden Odor Control Project Recommended Action :That the Board of Directors determine a sole source contract with Jamison Engineering Contractors for installing one odor control scrubber at Elden Pump Station is in the best interest of the district and authorize the general manager to sign the contract in the amount of $23,500 Public Content To: The Board of Directors From: Mark Esquer, District Engineer Date: March 24, 2025 Subject: Consider Determining a Sole-Source Contract with Jamison Engineering Contractors for Installing One Odor Control Scrubber at Elden Pump Station is in the Best Interest of the District Summary Staff is recommending a sole-source contract toJamison Engineering Contractors, Inc. (JEC) in the amount of $23,500 for the installation of an Odor Control Scrubber at Elden Pump Station is in the best interest of the district. On February 24, 2025, the Board of Directors supported staff's recommendation by approving a sole source contract with SYNECO Systems for purchasing and acquiring one odor control scrubber for Elden Pump Station. The justification to sole source is in the best interest of the district, as per Section 4.04.100(e) of the district's Operations Code because of the 16 to 20 week lead time to acquire the equipment. The scrubber would not arrive in time for the summer months when odor levels are at their highest. The Elden Pump Station has been odorous for many years. The Santa Ana Country Club and adjacent residential area has called in odor complaints or have discussed the odor issue with District staff. The Santa Ana Country Club has tried scent beads and flavored scent spray to no avail. They have requested the District to repair the ventilation system and work to eliminate the odors from our station. District staff have designed and purchased this scrubber based on its use and success at several City of Huntington Beach (CHB) sewer pump stations. District staff visited sites at OC Sanitation (OC San) and the HBC to review three odor scrubber installations. CHB has had such success, they have sole-sourced and installed three (3) of these units. The District must hire a contractor to install the new odor unit. Based on the desire to install the new scrubber prior to the summer and the contractor's experience installing these units at HBC, staff believes it is in the best interest of the district to sole source a contract with JEC, as per Section 4.04.100(e) of the district's Operations Code. Staff is confident that the proposed price is of value to the District, saves time bidding the work, and is commensurate/lower than the prices paid by the HBC. HBC paid $42,340, $36,700, and $34,400 at their Edgewater pump station, Slater pump station, and C-Station pump station(s), respectively. The District purchased a unit that is sized slightly larger than the HBC Edgewater pump station ($42,340 installation cost). Bidding the project installation will take at least two (2) months, followed by submittal and startup period of one (1) month, for a total additional installation period of three months. It is estimated that the installation will take about two (2) weeks, once project work is scheduled. Recommendation That the Board of Directors determine a sole source contract with Jamison Engineering Contractors for installing one odor control scrubber at Elden Pump Station is in the best interest of the district and authorize the general manager to sign the contract in the amount of $23,500 Analysis there is a desire to install the new scrubber prior to the summer and the Staff is recommending a sole-source contract because contractor's experience installing these units is in the best interest of the district.Odors are typically worst during Summer and Fall because the tributary wastewater is warmer than other times of the year. JEC has experience installing scrubber units in CHB and can effectively install the District's new unit. The proposed price is commensurate/lower than CHB paid installation prices, less value-engineering changes that the District Engineer made to reduce installation prices further. The construction contract will consist of installing the purchased unit, modifying the station vent piping, connecting the new unit to our existing electrical system, and providing the piping, labor, and other materials for a complete and operable installation. The price includes the installation of a vent silencer but it does not include the purchase of a vent silencer unit. The District will purchase the silencer and provide it for installation. The District Engineer has been told by the scrubber manufacturer that a silencer is recommended. The District Engineer will bid the installation work should the Board desire. However, bidding the work will extend the work into early Summer (extend by 2 to 3 months). Legal Review Legal Counsel will review the Agreement as to form. A separate CEQA action must be taken prior to award of a contract. Environmental Review The replacement of an existing sewer infrastructure, with in-kind capacity, 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. This project essentially replaces a ventilation fan that exceeded its useful life. This Project will not change the station capacity and only provides for replacement of the ventilation fan and improved odor handling. This odor scrubber will not increase the capacity of the Elden pump station and will reduce the number of complaints from the golf club and surrounding community. Financial Review The Project 347 Elden Odor project budget has available for this contract, as of February 28, 2025. This agreement is $58,280 valued at $23,500, leaving a remaining balance of $34,780 for additional work and/or change orders, within the total project budget of $95,000. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the March 24,2025 Board of Directors Regularmeeting at District Headquarters and posted on the Districts website. Alternative Actions 1. Direct staff to report back with more information. 2. Direct staff to bid and award the project work. File Attachments 2025 03 11 Jamison Engineering Quote #03402.pdf (216 KB) P347 Odor Scrubber Installation Contractor Agreement for Jamison Engineering .pdf (313 KB) F. ENGINEER'S REPORTS Subject :4. Consider Transferring $170,000 from the FY 2024-25 Capital Improvement Budget to Provide Additional Funding for Project 355 South Coast Plaza Emergency Sewer Replacement Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Action, Discussion Fiscal Impact :No Dollar Amount :$170,000.00 Budgeted :No Budget Source :Various Capital Projects, Nos. 311, 327, 330, 343, 350, & 510 Recommended Action :That the Board of Directors approve transferring $170,000 from the FY 2024-25 Capital Improvement Budget to provide additional funding for Project 355 South Coast Plaza Emergency Sewer Replacement. Goals :1.0 Sewer Infrastructure Public Content To: Board of Directors The District Engineer is requesting consideration to transfer funds from six (6) CIP projects to cover the cost(s). The Project consisted of replacing a failed sewer that is about 16 to 20 feet below groundwater level. The Project included, but not limited to, dewatering wells, a coffer dam, piping, and other services required to successfully complete the new sewer installation. Consideration of the budget Adjustments 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 administration or maintenance activities. From: Mark Esquer P.E., District Engineer Date: March 24, 2025 Subject: Consider Transferring $170,000 from the FY 2024-25 Capital Improvement Budget to Provide Additional Funding for Project 355 South Coast Plaza Emergency Sewer Replacement Summary The District has completed the P355 Emergency Sewer Replacement construction at South Coast Plaza (SCP). It is estimated that $1,822,558 is required to settle the construction and construction related invoices. The Project budget is $1,652,558, so an additional $170,000 is required. Recommendation That the Board of Directors approve transferring $170,000 from the FY 2024-25 Capital Improvement Budget to provide additional funding for Project 355 South Coast Plaza Emergency Sewer Replacement. Analysis The Board of Directors adopted a wastewater Capital Improvement Project (CIP) budget comprising twenty-one (21) wastewater projects. Since adoption of the FY25 CIP budget, Staff determined a need for this emergency Project #355. Staff has reviewed the various projects and is proposing to adjust the CIP Project #355 budget to accommodate the Project expenses and outlay. Legal Review Legal review is not required at this time. Environmental Review Account Description Account No.Beginning Balance Increase Decrease Ending Balance Manhole Cover Repairs #311 20-201311-4300 97,228 12,000 85,228 Calcium Remove Ph 1 #327 20-201327-4300 58,310 7,000 51,310 WestBluff PS Rehab #330 20-201330-4300 470,497 80,000 390,497 Elden Emergency Bypass #343 20-201343-4300 173,878 7,000 166,878 Demolish Hitch Crafter #350 20-201350-4300 167,293 50,000 117,293 MH Rehab #510 20-202510-4300 114,216 14,000 100,216 SCP Emergency Sewer Replacement #355 20-201355-4300 1,632,561 170,000 1,802,561 H. ATTORNEY'S REPORTS Subject :1. Oral report of Executive Compensation (General Manager) (Government Code §54953(c)(3)) Also, the replacement of an existing sewer infrastructure, with in-kind capacity, 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. The Project did not change the capacity. Financial Review The proposed $170,000budget adjustment(s) is sufficient to cover the expenses associated with the emergency project. Project #311, 327, 330,343,350, and 510 will be reduced and the funding transferred to Project 355. This action provides for no increase in the CIP outlay for the current fiscal year. As of February 28, 2025, the listed Projects have funding that may be transferred, see Budget table below for summary of changes. Public Notice Process Copies of this Staff Board report are on file and will be included with the entire agenda packet for March 24, 2025, Regular Board meeting at District Headquarters and on the District website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to District staff for consideration of alternatives and return to a future meeting, or; 2. Do not approve recommended CIP budget adjustments and direct staff to continue with the existing CIP outlay. Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type : H. ATTORNEY'S REPORTS Subject :2. Consider Approving Third Amendment to Restated Employment Agreement for Scott Carroll, General Manager, and Consider Approving General Managers Annual Compensation of $245,373.08. Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Action Recommended Action :That the Board of Directors: 1. Receive oral report of Executive Compensation Increase; and 2. Approve Third Amendment to Restated Employment Agreement (Scott Carroll) Goals :7.0 Human Resources Management 7.7 Human Resources Management - Provide competitive compensation, benefits package and incentives Public Content To: Board of Directors From: Alan Burns, District Counsel Date: March 24, 2025 Subject:Consider Approving Third Amendment to Restated Employment Agreement for Scott Carroll, General Manager, and Consider Approving General Managers Annual Compensation of $245,373.08. Summary Pursuant to Government Code Section 53593, an oral report of increased compensation must be made before any final action may be made to an Executives contract. The Board and General Manager Scott Carroll have reached a tentative agreement on increased compensation that will be reflected in a new Agreement that is on the agenda for approval tonight. Recommendation That the Board of Directors: 1. Receive oral report of Executive Compensation Increase; and 2. Approve Third Amendment to Restated Employment Agreement (Scott Carroll) Analysis Government Code Section 53953 was enacted after the City of Bell scandal and provides for more transparent procedures before Executive compensation is increased. Those procedures include that no increased compensation can be approved except in a general meeting, and that an oral public report will precede any action to increase compensation. Pursuant to that Section, the oral report will be as follows: The General Manager and Board of Directors have reached a tentative agreement on the Managers annual compensation increase. The parties have agreed that the General Managers compensation shall be increased by six percent of his salary. His salary shall therefore be $245,373.08. Other benefits will be based on this amount. Legal Review District Counsel prepared theThird Amendment to Restated Employment Agreement, which is attached hereto. Environmental Review Considering approving a contract amendment to the general manager 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 Districts CEQA Guidelines. Financial Review The general manager's annual compensation will increase by $13,889 and it will be retroactive to January 4, 2024. Public Notice Process Copies of this staff report are on file and will included with the entire agenda packet for the March 24, 2025 regular Board of Directors meeting at District Headquarters and on the Districtwebsite. Alternative Actions 1. Do not approve the second amendment. 2. Direct staff to report back with more information. File Attachments Third Amendment to Restated Employment Agreement(2025).pdf (246 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 President Ooten) Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type : I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :2. Santa Ana River Flood Protection Agency (SARFPA) - (Secretary Perry) Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type : I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :3. Independent Special Districts of Orange County (ISDOC) - (Vice Secretary Schafer) Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type : I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :4. California Special Districts Association (CSDA) - (Vice Secretary Schafer) Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type : I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :5. Special District Risk Management Authority (SDRMA) - (President Scheafer) Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type : I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each days service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject :6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type : L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject :1. Oral Communications and Director Comments Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Discussion O. CLOSING ITEMS Subject :1. Adjourn Meeting :Mar 24, 2025 - Board of Directors Regular Meeting Access :Public Type :Procedural Public Content The next regular meeting of the Costa Mesa Sanitary District Board of Directors will be held at 4:30 p.m. on Monday, April 28, 2025 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626.