The URL can be used to link to this page

Agenda Packets - Board - 2007-07-09Costa .Mesa Sawwfy + + ... an Independent Special District Arlene Schafer Vice President Jim Ferryman Director Art Perry President Bob ®oten Secretary Gary Monahan Director Regular Meeting ® Monday, July 9, 2007 RECOMMENDED ACTION CALL TO ORDER — 6:30 p.m. — 628 W. 19`h Street, Costa Mesa II. PLEDGE OF ALLEGIANCE — Gary Monahan III. INVOCATION — Tom Fauth IV. 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.) V. CONSENT CALENDAR - All matters listed under the Consent Calendar are considered to be routine and will be enacted in one motion in the form listed below. There will be no separate discussion on these items prior to the time the Board votes on the motion, unless members of the Board request specific items to be removed from the Consent Calendar for discussion, in which event the item will be removed from the Consent Calendar and considered in its normal sequence on the agenda. Reports Minute Approval 1. Recycling Committee Meeting — June 11, 2007 2. Sewer System Committee Meeting — June 13, 2007 3. Investment Oversight Committee — June 14, 2007 Protecting our community's health 6y providing solid waste and sewer collection services. wurw. crosdcagov Costa Aesa Saititory Di It iCt AGENDA 4. Regular Meeting — June 14, 2007 5. Special Meeting — June 28, 2007 Manager's Reports 6. Refunds 7. Occupancy Report and payment to Costa Mesa Disposal — June 2007 8. Monthly Spill Report to State Water Resources Control Board 9. Additional Container Program Report Engineer's Reports 10. Project Status Report Treasurer's Reports 11. Financial Reports as of June 30, 2007 12. Treasurer's Reports as of June 30, 2007 13. Warrant Register for the month of June 2007 in the am ount of $825,039.10 14. Directors' Compensation and Rei mbursement of Expenses for the Month of June 2007 END OF CONSENT CALENDAR VI. WRITTEN COMMUNICATIONS VII. PUBLIC COMMENTS VIII. MANAGER'S REPORTS A. CMSD Strategic Plan 1. Year 2007/2008 Strategic Planning Action Items B. Special Meeting June 28, 2007 to Discuss Sewer Lateral and Clean Out Assistance Program C. Proposed 2007 -2008 Trash Collection and Sewer Service Charges July 9, 2007 Page 2 RECOMMENDED ACTION No Refunds Approve Receive & File Receive & File Receive & File Receive & File Receive & File Ratify Payments Approve Compensation & Ratify Expenses --------------------- - - - - -- Accept Report Follow Up Discussion Discussion Twtecting out community's heaCth 6y providing soCuf waste and sewer colXection services. www.crosdcagov Qpsta le5� San it � Dist�� c AGENDA July 9, 2007 Page 3 RECOMMENDED ACTION D. Sewer System Committee Accept Report 1. Report on Committee Meeting held June 13, 2007 Accept Report E. District Yard Accept Report 1. Property at 2973 Randolph Avenue (Possible need for closed session pursuant to Government Code 54956.9(a)) F. Status of CMSD Website Accept Report G. Recycling Reports 1. Waste Diversion Report — June 2007 Receive & File H. Contract Payment to CR Transfer for Recycling Services and Disposal 1. Payment for June 2007 Services Ratify Subject to Verification of Diversion Report by Staff I. Ordinance Enforcement Officer's Report Accept Report J. Update on Monitor Video Accept Report K. Update on Receptionist, Accounting Specialist and Management Analyst Accept Report Recruitment Process L. Recycling Committee -- Mondg, July 9, 2007, 12:00 p.m., CMSD Board Room, 628 W. 19t Street, Costa Mesa (Director Ooten and Director Monahan) 1. Recycling Committee Goals for 2007/2008 Receive & File 2. Large Item Collection — June 11 — August 24, 2007 Accept Report 3. Review of Special Programs & Distribution of Outreach Material Accept Report IX. ENGINEER'S REPORTS A. General Waste Discharge Requirements (GWDR) Update B. 2007 -2008 Capital Improvement Program Report Receive & File Copy as Sent to Independent Engineer for Review C. Project #129 — Three Party Agreement between CM SD, OCDA and Approve Revisions City of Newport Beach D. Memorandum of Understanding with Irvine Ranch Water District Consider Protecting out community's health 6y pmvi4ing solid waste and sewer co&ction services. www.cmsdca.gov AGENDA E. FOG Program 1. Report on 2006 -2007 Program 2. Agreement with EEC for FOG Program —Phase IV X. TREASURER'S REPORTS A. Statement of Investment Policy for Fiscal Year 2007 -2008 CMSD Resolution No. 2007 -726 XI. ATTORNEY'S REPORTS A. Astin v. CMSD (Sup. Court Case No. 06CC05755) Status Report (Possible need for closed session pursuant to Government Code 54956.9(a)) B. CMSD Ordinance No. 58 Setting Forth a Procedure for the Reimbursement of Miscellaneous Expenses C. Increasing Director Compensation 1. CMSD Ordinance No. 59 Increasing Director Compensation D. Rental Agreement between CM SD and the 32 nd District Agricultural Association — June 1, 2007 through M ay 31, 2008 July 9, 2007 Page 4 RECOMMENDED ACTION Consider Approve Adopt Resolution Coverage and Defense Status Report Adopt Ordinance Adopt Ordinance Authorize Signature by President & Secretary XII. LOCAL MEETINGS (includes Reports by all Directors Representing CMSD) A. Orange County Sanitation District (OCSD) 1. Meeting Held June 20, 2007 ( Director Ferryman) Accept Report B. Santa Ana River Flood Protection Agency (SARFPA) (Director Perry) 1. Full Agency Meeting on June 28, 2007 Accept Report C. Independent Special Districts of Orange County (ISDOC) Accept Report (Director Schafer) D. Local Agency Formation Commission ( LAFCO) Accept Report (Director Schafer) 1. Approval of CMSD MSR by LAFCO — June 20, 2007 Accept Report E. California Special Districts Association (CSDA) Accept Report (Director Schafer) Protecting our community's health 6y pmvdtiny sofid waste and'sewer collection services. www.cms&w.gov 7rfl.++VL %7.,: L'1f k9t D1 rict AGENDA F. California Association of Sanitation Agencies (CASA) G. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 XIII. OLD BUSINESS A. Request for Route Day Changes from CR &R XIV. NEW BUSINESS XV. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XVI. ADJOURNMENT July 9, 2007 Page 5 RECOMMENDED ACTION Accept Report Report on Matters Pertaining to CMSD Consider Teotecting our community's heafth 6y providing sofid waste and sewer collection services. www crosdc gov 4- 19 -07: Magnificent Creator, We are gathered together this evening to give the best of ourselves in reaching the best decisions for our community and the District. We also take this moment in the aftermath of the Virginia Tech Tragedy to remember schools are often the targets of tragic events. We ask for your guidance in helping the victims recover and to provide comfort and stability in our community schools and homes. We also ask for your warmth and kindness to shine on those protecting our nation and the principles guiding our group's intentions this evening. We ask this in your name. Amen 5- 10 -07: Glorious Creator, We thank You for Your many Blessings. We thank You for the Patience You have given us to clearly and consciously reach the best decisions in the service of our community. We thank You for the Strength You have shared with us to meet our commitments with sincerity and the true understanding of the results of our chosen paths. And, We thank You for Your Generosity in allowing us the Freedom to speak our inner thoughts as we ponder the challenges placed before us. Lastly, we humbly ask for Your continued warmth, kindness and protection over those safeguarding our nation and our nations guiding principles. We ask this in your name. Amen 7 -9 -07 Great and powerful creator: We are gathered together this evening to give the best of ourselves in reaching the best decisions for our community and the District. We humbly ask for your guidance: 1. to give our best attention to the issues we are about to address; 2. to remain focused with determination and common sense in reaching our decisions; 3. and to keep the best interests of our community as our main goal. For this, mixed with an appropriate sense of humor, we thank you for your strength. In Your Name, Amen 1 .:t COSTA MESA SANITARY DISTRICT MINUTES OF RECYCLING COMMITTEE MEETING June 11, 2007 The Costa Mesa Sanitary District Recycling Committee met at 12:00 p.m. at 628 W. 19th Street, Costa Mesa. Directors Present: Bob Ooten, Arlene Schafer Staff Present: Rob Hamers, Tom Fauth, Joan Revak, Denise Gilbert Director Ooten called the meeting to order at 12:00 p.m. I. RECYCLING COMMITTEE GOALS FOR 2007/2008 The Committee reviewed the detailed 2007/2008 recycling goals and suggested moving items "Continue Tours of CRT, OC Landfills & OCSD" and "Sponsor Tour of OCSD Groundwater Replenishment Facility in November 2007" to Item VIII. The Committee also discussed adding to goals "CRT Conducted Seminars ". Suggested names to add to guest speakers are Sue Gordon and Tim Grogan, IWMD II. LARGE ITEM COLLECTION - JUNE 11 - AUGUST 24, 2007 Ms. Revak reported the 2007 Large Item Collection Program will run from June 11 to August 24, 2007 and provided samples of the door hangers. Included with the door hangers this year is a magnet listing holidays observed by the trash collector and phone number to call for information on the CMSD trash collection program. Ms. Revak also provided dates for large item collection for each of the Directors. A copy of the City Recreation Review summer publication where a copy of the magnet with the holiday listing was featured was provided by Ms. Revak III. WATER CONSERVATION Mr. Fauth provided an article on "25 Ways to Save Water at Home" such as, checking for hidden water leaks, checking toilets for leaks, not using toilet as an ashtray or wastebasket, placing plastic bottles in toilet tank to cut down on water waste by ten or more gallons of water per day. Other ideas including replacing toilets with an ultra -low flush volume 6 liter flush model, representing a 70% savings in water flushed. Insulating water pipes is an easy and inexpensive way to get hot water faster avoiding waste of water while it heats up. Many other suggestions for water conservation are included in the publication. Protecting our community's health by providing solid waste and sewer collection services. www.emsdcagov Costa Mesa Sanitary District Minutes of Recycling Committee Meeting June 11, 2007 Page 2 IV. REVIEW OF SPECIAL PROGRAMS & DISTRIBUTION OF OUTREACH MATERIAL Ms. Gilbert presented a listing of CMSD public outreach events and brochures. Discussion ensued on the programs and events supported by the CMSD. A revised list of events and brochures incorporating ideas suggested by the Committee will be provided at the next meeting. A review of the Sharps program was provided for the benefit of Director and Recycling Committee Chairman Bob Ooten. V. CHANGE OF MEETING DATE FOR JULY RECYCLING COMMITTEE It was determined there was no need to reschedule the July 9, 2007 Recycling Committee meeting. VI. PUBLIC COMMENTS There were no public comments. Former Director of Newport Beach Director of General Services David Neiderhaus will be invited to the July 9, 2007 meeting of the Recycling Committee. The meeting was adjourned at 1:20 p.m. Secretary President Protecting our community's Health by providing solid waste and sewer colection services. www.crosdcaAov • • • S y _ 1 COSTA MESA SANITARY DISTRICT MINUTES OF SEWER SYSTEM COMMITTEE MEETING JUNE 139 2007 CALL TO ORDER Board members of the Costa Mesa Sanitary District met in Committee session on June 16, 2007, at 10:30 a.m. at 628 W. 19th Street, Costa Mesa. Director Monahan called the meeting to order at 10:30 a.m. DIRECTORS PRESENT: Jim Ferryman, Gary Monahan, Bob Ooten DIRECTORS ABSENT: STAFF PRESENT: Robin B. Hamers, Manager /District Engineer; Thomas A. Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Karl Dulake, Maintenance Supervisor; Joe Limon, Inspector; Debbie Bjornson, Permit Processing Specialist; OTHERS PRESENT: None CMSD SEWER SPILL STATISTICS AND MAINTENANCE UPDATE Following a review of the minutes from the May 23, 2007 Sewer System Risk Assessment Subcommittee Meeting, Mr. Fauth presented the overall Sanitary Sewer Overflow (SSO) statistics for 2007 — grease caused four SSOs, tree roots caused one SSO and Other issues such as debris blockage and a pump station bubbler failure caused two SSOs. Discussion centered on pump station and line cleaning maintenance, plans and records Staff maintained since January 2006 since changing to National Plant Systems, Inc. (NPSI) and JIMNI Systems for maintenance. Of note, zero SSOs have occurred in areas NPSI have cleaned District main lines. Staff confirmed hot spot cleaning has managed to prevent repeat SSOs at the same locations. The District extended the CCTV schedule to July 2008 instead of doubling up the CCTV and cleaning crews. Staff continues to evaluate options to back -up or potentially replace pump station bubbler systems. COS* MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SEWER SYSTEM COMMITTEE MEETING ►" JUNE 13, 2007 PAGE 2 Staff presented Risk Analysis Primer including a fishbone analysis technique for evaluating pump station failure risk. These results will next be evaluated and plotted using a classic Risk - Frequency Analysis technique. Mr. Dulake provided a summary of pump station status for all 20 District pump stations, which directly support the fishbone analysis. CMSD must rent a hoist truck to remove and maintain the largest pumps at Irvine, Elden and Harbor as the weight is above the capacity of the District service truck. CMSD PROJECT #101 — WESTSIDE PUMP STATION ABANDONMENT Staff presented the OCSD "Rough Order of Magnitude Estimate" covering the projected decreasing OCSD budget trend from $353M in FY 08 -09 to $24M in FY16 -17. Director Ferryman confirmed FY12 -13 is the soonest OCSD can add the cost to the budget to fund the CMSD Westside Abandonment. Director Ooten noted the OCSD budget process begins in September of each year. The two options OCSD costed are as follows: 1. Option 2: $9M for a gravity flow approach. 2. Option 2: $6.6M to rebuild the City of Newport Beach Pump Station. Mr. Hamers presented a map depicting the completed CMSD lines (Southern A6, A3 and Al) and District plans to cost out the engineering /construction costs for CMSD's portion of the cost including $250K/FY in the Capital Improvement Projects (CIP). Director Monahan recommended adding a Consumer Price Index (CPI) inflationary factor to the CIP budget each year. Mr Hamers will send a letter to OCSD documenting CMSD's estimated cost within the next two months. CMSD CLEANING CREWS Discussions re- verified the District sewer maintenance plan consists of the following approach through June 2008: 1. NPSI will provide maintenance cleaning of one -half of the CMSD main lines every year after the current televising project is complete. 2. NPSI will provide hotspot cleaning on Friday every week. 3. JIMNI Systems will provide the primary maintenance on the 20 District pump stations. 4. C &R Drains remains as the CMSD after -hours emergency first - responder. Staff analysis documented the cost of a comparable in -house crew and equipment to perform hot spot cleaning and first responder services is approximately 2/3 the cost of a contractor, using fully- burdened data. Staff will document the savings comparing NPSI costs to the costs for in -house operations. 0 C( MESA SANITARY DISTRICT MIN ES OF BOARD OF DIRECTORS SEWER YSTEM COMMITTEE MEETING e ` JUNE 13, 2007 PAGE 3 SEWER LATERAL ISSUES Mr Hamers presented the memo on "Common Sewer Laterals ", noting CMSD ordinances allow common laterals for condominiums, but for condominium conversions, owners must CCTV their lines. Director Monahan recommended Mr Hamers write a letter to the City of Costa Mesa regarding the CMSD approach to require CCTV services for condominium conversions. Discussion covered several options for triggers requiring CCTV of lateral lines. Mr Hamers and Staff will document a comprehensive approach to identifying when CCTV services are required and the conditions for changing common sewer laterals to single laterals. Potential triggers include an SSO, an inside facility backup, a repeat SSO and remodeling thresholds. Staff included the Lateral Assistance program in the 5 -Year Capital Improvement Program for FY 2007 -08 Through FY 2011 -12 at a level $100,000.00 per FY. CMSD EMERGENCY RESPONSE - DISTRICT YARD UPDATE Staff is coordinating meetings with City of Costa Mesa representatives to reach an agreement on suitable locations for a CMSD yard within the City of Costa Mesa. The minimum District Yard requirements to respond to SSO emergencies remain as follows: a. Location: Centralized District location for equalized response; b. Lot Size: 9,000 to 12,000 sq ft for outside storage and parking; c. Building Size: 2,500 to 5,000 sq ft for office, hoist repairs and storage; Siting issues include the availability of property, the property zoning (MG needed), the City of Costa Mesa requirement for conditional use permits (CUPs requiring 10 -12 weeks to obtain approval) and the four zoning overlays in place. The overlays are: 1. South of Bristol Entertainment, Culture and Arts Urban Plan (SoBECA); 2. Mesa West Bluffs Urban Plan; 3. 19 West Urban Plan; and 4. Mesa West Residential Ownership Urban Plan. Mr Fauth will contact Mr Don Lamm, City of Costa Mesa Development Services Director to pursue flexibility in obtaining a yard in the City of Costa Mesa. The primary example of the issue is the inability of CMSD to acquire the property at 2973 Randolph Ave, Costa Mesa, CA with attractive terms including an all cash purchase and close of escrow in 30 days. CLOSURE The next two meetings are scheduled for July 11, and August 8, 2007 at 10:30 a.m. COOMESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SEWER SYSTEM COMMITTEE MEETING ® JUNE 13, 2007 PAGE 4 PUBLIC COMMENTS There were no public comments. ADJOURNMENT Chairman Monahan adjourned the meeting at 12:15 p.m. SECRETARY PRESIDENT • • • • _ t4 COSTA MESA SANITARY DISTRICT MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING June 14, 2007 CALL TO ORDER The meeting was called to order at 5:30 p.m. by Treasurer /Finance Director Marc Davis ROLL CALL Committee Members Present: Director Arlene Schafer (rotating committee member) Director Robert Ooten (rotating committee member) Director Jim Ferryman Mr. Rob Hamers, Manager /District Engineer Staff Members Present: Mr. Marc Davis, Treasurer /Finance Director Mr. Thomas Fauth, Assistant Manager Ms. Joan Revak, Board Secretary/Program Manager /Clerk of the District Ms. Sherry Kallab, Accountant NEW BUSINESS Review of Treasurer's Report Mr. Davis reported that the yield on the District's portfolio has gone up as a result of a $1,000,000 government agency security that matured in May. The proceeds of the matured security were placed into LAIF. In the event the District needs the funds to purchase or place a deposit on a yard, LAIF provides that liquidity. LAIF was paying 5.25% interest at the end of the May while the District portfolio was earning 4.39% at the end of May. The next investment will be maturing in September 2007 and those proceeds will also be deposited into LAIF. The September investment of $500,000 is currently earning interest at the rate of 2.6 %, and it will go into the 5% range once the funds are deposited into LAIF. The District should see an increase in investment earnings next fiscal year due to the higher interest rates. Director Ooten inquired about LAIF's liquidity and District cash flow. Mr. Davis provided an overview of LAIF and the daily liquidity it provides. Mr. Davis confirmed that the District does experience a cash flow deficiency from July through November due to the timing of collection and processing of District charges through the Orange County Property Tax Assessors Office. In the event the District did have to sell an investment to cover cash flow, the result would be a loss due to the fact all District investments are currently below market value. MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING June 14, 2007 Page 2 Director Ooten asked the amount of the District's monthly expenses and why • the current month's financial statements provided in the Board packet were missing the monthly information. Mr. Davis estimated the District monthly expenses between $400,000 and $600,000 per month. Mr. Davis directed staff to follow up on the reason for the lack of rr)onthly expenses on the financial statements. Mr. Hamers questioned what effect a recession would have on the District investments. Mr. Davis stated that a recession would drive our investments' market value down, but that the District would only be impacted if we are forced to sell a security during that time. Mr. Fauth inquired if the District found a yard in the $3,000,000 price range where the funds would come from. Mr. Davis stated the actual dollars would come from District funds held in LAIF. A purchase of a District yard for $3,000,000 would leave approximately $3,000,000 in LAIF to cover the cash flow dry spell that ends in November. Director Ferryman arrived at 5:40pm. Review of Investment Policy Mr. Davis reported that there are no real changes to the District's Investment Policy. The 07/08 District Investment Policy will be presented the Board at • the July 2007 Board meeting. In updating the District Investment Policy, the California Government Code that covers investments of special districts was reviewed and there were no changes this year. Director Schafer asked Mr. Davis if he was comfortable with the grandfather provision in the policy. Mr. Davis explained that the grandfather provision states that if the California legislature changes allowable securities and the district is currently invested in one of those securities, we do not have to sell the security until it matures, which protects the District. Mr. Davis reviewed the primary components of our investment policy: legality, safety, liquidity, diversification and yield. Mr. Davis emphasized that District philosophy is safety first before yield. Mr. Hamers requested staff to share information from the GFOA convention. Ms. Kallab stated that there were recommendations for government agencies to establish an audit committee. Mr. Davis recommended that the investment oversight committee could also function as the District's audit committee. Mr. Hamers asked if audit periods were discussed and Ms. Kallab responded that the recommended time to go out to bid was every 5 years to ensure rate competitiveness. Ms. Kallab also reported that audit costs are expected to increase 10 to 15% due to new regulations that would increase the amount of time required for the audit. C • MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING PUBLIC COMMENTS ADJOURNMENT Approved by: June 14, 2007 Page 3 Director Ooten questioned the District's $3,000,000 limit per broker /dealer. Mr. Davis noted this serves as a means to limit the number of people we do business with. The District currently has three approved broker dealers. Mr. Davis informed the Committee that the components of the District Investment Policy include the policy covered in the first six pages of the report and several attachments that cover guidelines, internal controls, segregation of duties and a glossary of investment terms. Mr. Davis does not foresee buying any securities in the upcoming fiscal year. Director Ooten asked about areas the district auditors review and Mr. Davis provided a brief overview. There were no items discussed under public comments. The meeting adjourned at 5:55 p.m. Secretary, Costa Mesa Sanitary District Board of Directors President, Costa Mesa Sanitary District Board of Directors • • 9 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 149 2007 CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on June 14, 2007, at 6:00 p.m. at 628 W. 19th Street, Costa Mesa. President Perry called the meeting to order at 6:00 p.m. PLEDGE OF ALLEGIANCE Director Ooten led the Pledge of Allegiance. INVOCATION Mr. Fauth gave the invocation. ROLL CALL DIRECTORS PRESENT: Art Perry, Bob Ooten, Arlene Schafer, Gary Monahan, James Ferryman DIRECTORS ABSENT: None STAFF PRESENT: Robin B. Hamers, Manager /District Engineer; Alan Burns, Legal Counsel; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Marc Davis, Treasurer; Sherry Kallab, Accountant; Karl Dulake, Maintenance Supervisor; Debbie Bjornson, Permit. Processing Specialist; Denise Gilbert, Public Outreach Coordinator; Ron Shef, Ordinance Enforcement Officer OTHERS PRESENT: Ms. Gina Keuilian, 1079 Visalia Drive, Costa Mesa COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 2 . ............................... CONSENT CALENDAR . ............................... Director Monahan motioned to approve the Consent Calendar as presented. Director Ooten seconded. Motion carried 5 -0. REPORTS MINUTE APPROVAL Minutes of Recycling Committee Meeting — May 7, 2007 Minutes of the Sewer System Committee Meeting — May 9, 2007 Minutes of Regular Meeting — May 10, 2007 Minutes of Special Meeting — May 29, 2007 MANAGER'S REPORTS The Minutes of the Recycling Committee Meeting of May 7, 2007, were approved as distributed. The Minutes of the Sewer System Committee Meeting of May 9, 2007, were approved as distributed. The Minutes of the Regular Meeting of May 10, 2007, were approved as distributed. The Minutes of the Special Meeting of May 29, 2007, were approved as distributed. Refunds In accordance with Resolution No. 96 -584, adopted by the Costa Mesa Sanitary District on April 17, 1996, the following refunds were granted subsequent to receiving evidence of outside trash service and a signed statement from the applicants: Approved payment of Applicant: JKS -CMFV LLC $5,517.74 Parcel Address: 545 Anton Blvd. to JKS -CMFV LLC Assessor's Parcel No. 410- 501 -25 Number of Units: 3 Total refund: $5,517.74 Tax years: 2006/2007 Square footage of buildings was calculated incorrectly. 0 is . 0 0 • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 3 Occupancy Report and The Trash Occupancy Count documented an Payment of $195,641.74 increase of 7 units for the occupancy report for to Costa Mesa Disposal — solid waste collection as of June 1, 2007. May 2007 Therefore, the total for June is 21,369. Board directed Staff to prepare a warrant for $195,641.74 for June 2007 collection based on occupancy report. Said payment in the amount of $195,641.74 to Costa Mesa Disposal to be ratified on the July 2007 warrant register. Monthly Spill Report to The Monthly Spill Report to the State Water State Water Resources Resources Control Board (SWRCB) for May 2007 Control Board was accepted as submitted. 1 Additional Container The Additional Container Program report for May Program Report 2007 was approved as distributed. Minutes of CMSD Human Resources Meeting of May 24, 2007 ENGINEER'S REPORTS Project Status Report TREASURER'S REPORTS Financial Report as of May 31, 2007 Treasurer's Report as of May 31, 2007 The Minutes of the Human Resources Meeting of May 24, 2007, were received and filed. The Project Status Report dated June 2007 was accepted as submitted. The Financial Report as of May 31, 2007 was accepted as submitted. The Treasurer's Report as of May 31, 2007 was accepted as submitted. Warrant 2007 -12 for May Warrant Resolution #CMSD 2007 -12 was 2007 in the amount of approved, authorizing the President and Secretary $631,405.45 to sign the warrant ratifying the payment of certain claims and demands, and specifying the funds out of which the same were paid in the amount of $631,405.45. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING 'L JUNE 14, 2007 PAGE 4 Directors Expenses for the Director Compensation and Expense . Month of May 2007 Reimbursements for the Month of May 2007 were approved and ratified as follows: Director Ferryman: $850.00 President Perry: $850.00 Vice President Schafer: $1020.00 + $13.23 Director Ooten: $1020.00 Director Monahan: $510.00 .......................... END OF CONSENT CALENDAR ......................... WRITTEN COMMUNICATION Ms. Revak reported a letter was received from Ms. Jennifer Knapp, Rainbow Magnetics, Inc. Ms. Knapp thanked the Board for the recent magnet order. PUBLIC COMMENTS 0 Director Ferryman thanked Mr. Burns for hosting at a recent dinner party. MANAGER'S REPORTS CMSD STRATEGIC PLAN YEAR 2007/2008 STRATEGIC PLANNING ACTION ITEMS Mr. Hamers presented the report and invited comments. Director Ooten inquired as to the status of the CMSD video. Mr. Fauth reported the video will be delayed approximately two months and should be completed by the end of August. Director Monahan inquired on the status of the web site. Ms. Revak reported it should be up and running around the middle of July. Director Monahan suggested a press release when the web site is up and running. • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING r JUNE 14, 2007 PAGE 5 • SEWER SYSTEM COMMITTEE Mr. Hamers commended the Board for establishing the Sewer System Committee. REPORT ON COMMITTEE MEETING HELD JUNE 13, 2007 Director Monahan reported the Committee met and discussed the spill statistics and reported that once an area has been cleaned, there have been no additional spills in that area. Director Monahan reported the Committee discussed the following: ❑ Cleaning crew costs. ❑ Sewer lateral issues. ❑ Going forward with Condominium Conversion Ordinance ❑ Board letter to the City to let them know that the District is formulating an Ordinance for condominiums PROJECT #101 — WEST SIDE PUMPING STATION ABANDONMENT — RESULTS OF MEETING HELD APRIL 27, 2007 Director Monahan reported the Sewer System Committee discussed the West Side Pumping Station Abandonment. OCSD provided estimates in either the $9 million or $6.6 million range, one for a gravity system and one for a new pumping station. Board directed Staff to write a letter to OCSD thanking them for the study and advising that the CMSD Board will update their original cost estimates for the CMSD sewer lines leading from the pumping stations proposed for abandonment to the regional facility prior to formalizing plans to continue. REPORT ON RISK ASSESSMENT MEETING HELD MAY 23, 2007 Director Ooten reported he chaired a Risk Assessment Meeting on May 23, 2007, attended by Mr. Hamers, Mr. Fauth, Ms Revak, Mr. Dulake, Mr. Guzman, and Mr. Limon. The subcommittee discussed areas of risk in the District and developed a list of priorities to address those risks. Staff is developing a risk list and estimated costs to continuously strive to reach the goal of zero public and private SSOs. FORMALIZE RISK ASSESSMENT SUBCOMMITTEE Mr. Hamers recommended formalizing a Risk Assessment Subcommittee with Director Ooten as Chairman. Discussion was held regarding the length of time the committee would need to be in existence. The Board determined that once the risks were identified, the Subcommittee would not need to meet on a regular schedule and that an ad -hoc committee would be suitable for risk assessment purposes. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING Y . JUNE 14, 2007 PAGE 6 • Director Ferryman motioned to approve the formulation of an Ad -Hoc Risk Assessment Subcommittee. Director Schafer seconded. Motion carried 5 -0. DISTRICT YARD UPDATE CITY OVERLAY ZONING Mr. Fauth provided a brief explanation of the four overlay zones in the City's industrially zoned districts and how they affect the District's choice of property for a District Yard. All of the possible choices would be affected by an overlay zone. Mr. Fauth reported the City is steering the District to the Logan Street area. Mr. Fauth reported he directed Mr. Gregg to send letters to each of the properties in the acceptable area to determine if they are interested in selling their property. Director Monahan suggested looking in Newport Beach to determine if there is an acceptable property available. Mr. Hamers suggested working with the City to determine CUP status on a prospective property. AUTHORITY OF A CITY OVER A SANITARY DISTRICT ON LAND USE MATTERS 0 Mr. Burns provided a report regarding who has jurisdiction on land use matters. Mr. Burns stated the District must adhere to the City's zoning laws regarding the location of a corporate yard. AUTHORITY OF THE DISTRICT TO PURCHASE PROPERTY OUTSIDE ITS BOUNDARIES Mr. Burns reported Health and Safety Code Section 6514 provides that a District may acquire property within or outside the limits of the District. STATUS OF CMSD WEBSITE Ms. Revak reported the completion of the website is scheduled for the beginning to middle of July 2007. Director Monahan suggested having links to other agencies on the CMSD website as well as requesting a reciprocal link on the City's website. RECYCLING REPORTS WASTE DIVERSION REPORT - MAY 2007 0 Ms. Revak presented the Waste Diversion Report for May 2007 showing a 50.45% diversion rate. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 7 Director Schafer motioned the Waste Diversion Report be received and filed. Director Ferryman seconded. Motion carried 5 -0. CONTRACT PAYMENT TO CR TRANSFER FOR RECYCLING SERVICES AND DISPOSAL PAYMENT FOR MAY 2007 SERVICES Ms. Revak presented the Invoices for May 2007 recycling services and disposal. Director Ferryman motioned to ratify contract payment to CR Transfer for recycling services and disposal for the month of May 2007 in the amount of $181,005.49. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None Director Ferryman motioned to ratify contract payment to CR Transfer for recycling services and disposal for Santa Ana Heights for the month of May 2007 in the amount of $15,362.61. Director Ooten seconded. Motion carried as • follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None ORDINANCE ENFORCEMENT OFFICER'S REPORT Mr. Shef provided a report for the period of May 2007. Mr. Shef reported more than 20 courtesy notices were distributed with several resident contacts for explanation. Mr. Shef reported there is little evidence of scavenging for recyclables and any graffiti noted on the containers is called in to the trash hauler for action by their personnel. UPDATE ON MONITOR VIDEO - REVISED SCHEDULE Mr. Fauth reported the completion date was originally June 30, 2007, but due to other priorities, the deadline has been revised to the end of August. UPDATE ON RECEPTIONIST AND ACCOUNTING POSITIONS Mr. Fauth reported an ad was placed in the Orange County Register for a receptionist position with the District and approximately ten applications have been received to date. Mr. Fauth stated the position is scheduled to close on June 25, 2007 and Staff will begin the interview process. COSTA MESA SANITARY DISTRICT +u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 8 Mr. Fauth reported a qualified UCI student has been located and temporarily • appointed to the part -time position. Mr. Fauth reported the current appointment is to be for a term no longer than 6 months while the permanent part-time position is being advertised. Mr. Monahan requested a copy of the job opportunities and inquired whether the District has utilized interns. Mr. Fauth reported they have had interns in the past, but has not engaged the services of an intern since moving to the new location. RECYCLING COMMITTEE — WEDNESDAY, JUNE 11, 2007 —12:00 P.M., CMSD BOARDROOM, 628 W. 19TH STREET, COSTA MESA (DIRECTORS OOTEN AND SCHAFER RECYCLING COMMITTEE GOALS FOR 2007/2008 Director Ooten reported the Recycling Committee met on June 11, 2007, and reviewed and reprioritized their recycling goals. Director Ooten reported discussion was held regarding guest speakers and adding possible presenters to the list. LARGE ITEM COLLECTION - JUNE 11, 2007 - AUGUST 24, 2007 • Director Ooten reported the Large Item Collection will commence on June 11, 2007 and run until August 24, 2007. A sample of the door hanger was distributed to the Board and a holiday schedule magnet will be affixed to the door hanger for distribution to residents. WATER CONSERVATION Director Ooten reported the Committee discussed a water conservation program. An article outlining 25 ways to save water may be placed on the District's website. REVIEW OF SPECIAL PROGRAMS & DISTRIBUTION OF OUTREACH MATERIAL Director Ooten reported the Committee reviewed the District's special programs such as e- waste, curbside pickup, and the sharps program and distributed a list of public outreach events and brochures. The list will be updated to depict current materials and programs as well as future opportunities. Mr. Fauth will provide an update on the cost and number of people estimated to be participating in the Sharps program at the July regular meeting. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 9 0 CHANGE OF MEETING DATE FOR JULY 2007 RECYCLING COMMITTEE • Director Ooten reported the Recycling Committee Meeting date for July will not be changed. ENGINEER'S REPORTS GENERAL WASTE DISCHARGE REQUIREMENTS (GWDR) Mr. Hamers reported he appreciated the contribution by the Board and Staff regarding the sewer system. PROJECT #101 — WEST SIDE PUMPING STATION ABANDONMENT — RESULTS OF MEETING HELD APRIL 27, 2007 (REVISITED) Director Schafer requested Mr. Hamers provide more information on his recommendation for the West Side Pumping Station Abandonment. Mr. Hamers stated he recommended updating the District's cost for building gravity sewer lines from the pumping stations to the regional facility prior to requesting OCSD commit to constructing and owning the "regional facility." PROJECT #129 — THREE PARTY AGREEMENT BETWEEN CMSD, OCDA, AND CITY OF NEWPORT BEACH Mr. Hamers reported the three -party agreement between CMSD, OCDA, and City of Newport Beach is still being fine -tuned and will be brought to the Board when complete. CMSD PROJECT #168 — IRVINE PUMP STATION RELOCATION Mr. Hamers reported the Orange County Public Works Department is widening Irvine Avenue, necessitating the moving of the Irvine Pump Station. Mr. Hamers reported the current project funding including the 2007 -2008 budget contribution is approximately $1.39 million. Mr. Hamers recommended reallocating Project #183, Sewer System Wide repair funds of $450,000 to Project #168. BID OPENING Mr. Hamers reported receiving three bids for construction of Project #168: Vadnais $1,715,875 Orion Construction Corporation $1,936,950 Schuler Engineering Corporation $2,278,798 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 10 Mr. Hamers recommended awarding the bid to Vadnais Corporation as the lowest responsive and responsible bidder. Director Ooten motioned to award the bid to Vadnais Corporation in the amount of $1,715,875, with the transfer of funds as recommended. Director Schafer seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None PROPOSAL TO PROVIDE INSPECTION SERVICES Mr. Hamers presented a proposal to provide inspection services for Project #168 as follows: Engineering 24 weeks x 16 hrs /week x $85 /hr = $32,640 Surveying _ 20 hrs x $220 /hr = $4,400 Inspection— 75 days x 8 hrs /day x $60.00 /hr = $36,000 Total $73,040 Director Ferryman motioned to approve inspection services for Project #168, not to exceed $73,040. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan No: None CMSD PROJECT #181 — NEWPORT BLVD. SEWER AT 19TH STREET Mr. Hamers reported Project #181, Newport Boulevard Sewer at 19th Street was completed and recommended the following: ❑ Accept improvements as completed and file a Notice of Completion. ❑ Authorize payment of 5% retention 35 days after Notice of Completion is recorded. ❑ Exonerate Labor and Material Bond 35 days after notice of Completion is recorded. ❑ Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. • • COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 11 Director Monahan motioned to accept improvements on Project #181 as completed, file a Notice of Completion, Authorize payment of 5% retention 35 days after Notice of Completion is recorded, Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded, and Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Director Schafer seconded. Motion carried 5 -0. 3333 HYLAND AVENUE SOUTH COAST HOME FURNISHINGS Mr. Hamers reported the project at 3333 Hyland Avenue, Costa Mesa, was completed and recommended the following: ❑ Accept improvements as completed and file a Notice of Completion. ❑ Exonerate Labor and Material Bond 35 days after notice of Completion is recorded. ❑ Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Director Schafer motioned to accept improvements at 3333 Hyland Avenue as completed, file a Notice of Completion, Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded, and Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Director Ferryman seconded. Motion carried 5 -0. MEMORANDUM OF UNDERSTANDING WITH IRVINE RANCH WATER DISTRICT Mr. Hamers presented the Memorandum of Understanding with Irvine Ranch Water District regarding the Anniversary Lane Water Line Construction. Mr. Hamers reported Staff from IRWD chose to disregard the basic hold - harmless language provided by CMSD attorney, Alan Burns, in the proposed MOU. Therefore, IRWD is refusing to accept the liability for increased construction costs and potential fines from the State of California Department of Health Services based on the construction of their water line in the prohibited zone directly above the Costa Mesa Sanitary District Sewer line. Director Ferryman requested Staff outline the issue and he would assist in the negotiations. REPORT ON EMERGENCY WORK — GISLER PUMPING STATION Mr. Hamers reported pumps at the Gisler Pumping Station were repaired on an emergency basis and requested the item be ratified by a 4/5 vote. 10 Director Monahan motioned to ratify the emergency work performed at the Gisler Pumping Station. Director Ooten seconded. Motion carried 5 -0. COSTA MESA SANITARY DISTRICT ,u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 12 TREASURER'S REPORTS • RESOLUTION NO. 2007-735 ADOPTING BUDGET FOR 2007 -2008 Mr. Davis presented Resolution No. 2007 -735, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, ADOPTING A BUDGET FOR THE FISCAL YEAR 2007 -08. Mr. Davis requested a modification of moving the funds from CIP Improvement Project #183 to Project #168. Director Monahan motioned to adopt Resolution No. 2007 -735, Budget for 2007- 2008 and reallocate the funds from Project #183 to Project #168. Director Ooten seconded. LOCAL TRASH AND SEWER RATES Mr. Davis presented a survey of local trash and sewer rates for Board review. INVESTMENT OVERSIGHT COMMITTEE MEETING - THURSDAY, JUNE 14, 2007, 5:30 P.M. (DIRECTORS SCHAFER AND OOTEN) Mr. Davis reported the Investment Oversight Committee Meeting was held prior to the June regular meeting where the Treasurer's report for May was reviewed and the investment policy was discussed. ATTORNEY'S REPORT INCREASE IN DIRECTOR COMPENSATION Mr. Burns reported the Director's compensation increase was noticed in the Daily Pilot newspaper on June 14 and June 28, 2007, and will be voted upon at the July 9, 2007 meeting. ASTIN, LOCKE v CMSD (Sup. COURT CASE NO. 06CCO5755) STATUS REPORT (POSSIBLE NEED FOR CLOSED SESSION PURSUANT TO GOVERNMENT CODE 54956.9(A) Mr. Burns reported he is still anticipating the release of the District from the lawsuit. CAR DAMAGE BY CR&R TRASH BIN AT ST. JOACHIM SCHOOL Mr. Burns reported a rejection letter was sent and a tender of defense letter was sent to CR &R regarding the claim of Ms. Noelle Peterson and there has been no change or contact from anyone to date. 0 COSTA MESA SANITARY DISTRICT �u MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 13 POLICY ON REIMBURSEMENT FOR TONER AND INK CARTRIDGES, ETC. Mr. Burns presented a draft policy for reimbursement for expenses on toner and ink cartridges. The policy outlined the steps to be taken to authorize a reimbursement. Director Ferryman motioned to approve the reimbursement policy concept and direct Staff to prepare a formal policy. Director Ooten seconded. Motion carried 5 -0. SENATE BILL NO. 343 AND No. 964 - AMENDMENTS TO THE BROWN ACT Mr. Burns reported both Senate Bill No. 343 and No. 964 are moving forward and provided an update on each Senate Bill to the Board. FLOW CONTROL UPHELD BY THE U.S. SUPREME COURT ON A SPLIT DECISION (UNITED HAULERS V ONEIDA- HERKIMER SOLID WASTE AUTHORITY) Mr. Burns presented a review of United Haulers v Oneida - Herkimer Solid Waste Authority. SDRMA AMENDMENT TO THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY JOINT POWERS AGREEMENT Mr. Hamers provided a brief history of SDRMA Amendment to the Special District Risk Management Authority Joint Powers Agreement. CMSD RESOLUTION NO. 2007 -734 APPROVING SIXTH AMENDED JOINT POWERS AGREEMENT RELATING TO THE SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY Mr. Hamers presented Resolution No. 2007 -734, A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A SIXTH AMENDED JOINT POWERS AGREEMENT. Director Ferryman motioned to adopt Resolution No 2007 -734. Director Ooten seconded. Motion carried as follows: Ayes: 4 Noes: 0 Abstention: 1 (Director Schafer) INSPECTION AND REHABILITATION OF EXISTING SEWER LATERALS Mr. Hamers reported Mr. Burns is working on an Ordinance regarding the inspection and rehabilitation of existing sewer laterals. COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 14 USE OF PUBLIC MONEY FOR PRIVATELY OWNED SEWER LATERAL MAINTENANCE/REPAIR Mr. Burns provided a synopsis regarding the use of public money for privately owned sewer lateral maintenance and repair. Mr. Burns reported the money would not be considered a gift of public funds if it was determined it served the District's goal of preventing sewage spills. A special meeting was scheduled for June 28, 2007 to finalize the components for a policy for review and approval by the Board regarding sewer lateral maintenance and repair. POLICY FOR COMMON SEWER LATERALS IN WESTSIDE CMSD Director Ferryman motioned to direct Staff to bring back proposed revisions to the Operations Code regarding common sewer laterals in accordance with the Sewer Committee's recommendations. Director Ooten seconded. Motion carried 5 -0. INFORMATION OF INTEREST FROM MAY 2007 LEAGUE CITY ATTORNEYS CONFERENCE Mr. Burns provided highlights of the City Attorney's Conference, briefly discussing the NPDES permits. Mr. Burns will monitor the cases and provide updates to the Board as they become available. REPORT ON SETTLEMENT OF LOS ANGELES REGIONAL WATER QUALITY CONTROL BOARD & SANTA MONICA BAYKEEPER V THE SANITATION DISTRICTS OF LOS ANGELES COUNTY Mr. Burns presented a settlement sheet for the Los Angeles Regional Water Quality Control Board & Santa Monica Baykeeper v the Sanitation Districts of Los Angeles County. LOCAL MEETINGS (INCLUDES REPORTS BY ALL DIRECTORS REPRESENTATING CMSD) ORANGE COUNTY SANITATION DISTRICT (OCSD) MEETING HELD MAY 23, 2007 (DIRECTOR FERRYMAN) President Perry attended the May 23, 2007 OCSD meeting and reported they discussed the following: ❑ Director Ferryman nominated as Chairman, Doug Davert nominated as Vice Chairman. Election will be held on June 27, 2007 ❑ SARI line funding status U A • COSTA MESA SANITARY DISTRICT y MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 15 SANTA ANA RIVER FLOOD PROTECTION AGENCY (SARFPA) President Perry attended the May 24, 2007, and reported they discussed the following: ❑ Revised annual assessment reduced from $1,200 to $1,100 ❑ Herb Nakasone reported on Washington DC Trip ❑ Prado Dam Project estimated to be completed in 2013 ❑ Status of State Subvention Program INDEPENDENT SPECIAL DISTRICTS OF ORANGE COUNTY (ISDOC) (DIRECTOR SCHAFER Director Schafer attended the ISDOC meeting on May 1, 2007 and provided reports on LAFCO and CSDA. QUARTERLY MEETING - MAY 31, 2007 Director Schafer attended the Quarterly ISDOC meeting on May 31, 2007, and reported the following: Lisa Kalustian, Deputy Director from the Office of Governor Arnold Schwarzenegger, spoke on "What the Governor's May Budget Revision Could Mean to Special Districts, Taxpayers, and our Continued Investment in California Infrastructure." ' LOCAL AGENCY FORMATION COMMISSION (LAFCO) (DIRECTOR SCHAFER) MUNICIPAL SERVICES REVIEW /SPHERE OF INFLUENCE UPDATE FOR THE CMSD - WEDNESDAY, JUNE 20, 2007 AT 9:00 A.M. ORANGE COUNTY HALL OF ADMINISTRATION, 10 CIVIC CENTER PLAZA, PLANNING COMMISSION HEARING ROOM, SANTA ANA Director Schafer attended the May 9, 2007, LAFCO meeting and reported the following: ❑ Approved consent calendar - annexation of 1.6 acres of uninhabited territory located in the unincorporated North Tustin area to the Orange County Sanitation District. ❑ Status on West Santa Ana Heights reorganization to City of Newport Beach ❑ Banning Ranch sphere of influence ❑ Amendment to the.City of Costa Mesa SOI ❑ PowerPoint presentation - Director Schafer offered a copy for the Board's review COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 16 r� U ❑ Municipal Service Reviews for OCSD passed ❑ Municipal Service Review for OCWD continued to June 20, 2007 ❑ CMSD Municipal Service Review /Sphere of Influence to be considered June 20, 2007 CALIFORNIA SPECIAL DISTRICTS ASSOCIATION (CSDA) (DIRECTOR SCHAFER) Director Schafer attended the May 14 - 15, 2007 CSDA meeting and reported the following: ❑ Legislative Days a success ❑ Financial Corp. meeting ❑ Legislative meeting ❑ Board of Director meeting ❑ Legislative Day Speaker meeting ❑ Director Schafer to run for re- election for CSDA ❑ Conference call on 5 -25 -2007 ❑ SB -343, Director Schafer provided Special District impact. OTHER MEETINGS QUALIFYING FOR REIMBURSEMENT UNDER CMSD ORDINANCE NO. 55, OPERATIONS CODE SECTION 3.01.030 0 CHAMBER OF COMMERCE Director Schafer attended the May 2, 2007 Chamber of Commerce legislative meeting and provided information for the Board's perusal. Reports from the county, state, districts, and city, Gas Company, Edison, and special districts were given. WACO Director Schafer attended the May 4, 2007 meeting and reported the guest speaker was very informative. OLD BUSINESS REQUEST FOR ROUTE DAY CHANGES FROM CR &R Mr. Fauth reported he did not have an update on the route day change request from CR &R r1 L� 0 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING JUNE 14, 2007 PAGE 17 NEW BUSINESS SDRMA RENEWAL CONTRIBUTION FOR 2007 -2008 IN THE AMOUNT OF $69,094.45 Mr. Burns reported he spoke to Mr. Jim Towns, Chief Executive Officer, SDRMA regarding coverage for inverse condemnation. Mr. Towns assured Mr. Burns he was working on the issue and would be speaking to the re- insurers in Boston. Mr. Towns felt the Board would have no problem extending coverage to CMSD for a year until a more permanent solution could be found. Director Monahan motioned to approve the renewal in the amount of $69,094.45, subject to Staff getting appropriate assurance that the inverse coverage will be provided. Director Ooten seconded. Motion carried as follows: Ayes: Perry, Schafer, Ooten, Ferryman, Monahan Noes: None • ORAL COMMUNICATIONS AND DIRECTOR COMMENTS There were no oral communications from Directors. ADJOURNMENT President Perry adjourned the meeting 8:07 p.m. SECRETARY 0 PRESIDENT COSTA MESA SANITARY DISTRICT MINUTES OF SPECIAL MEETING JUNE 2% 2007 The Costa Mesa Sanitary District held a Special Meeting at 11:00 a. m. on Thursday, June 28, 2007 at 628 W. 19th Street, Costa Mesa. Directors Present: Art Perry, Arlene Schafer, Gary Monahan, James Ferryman Directors Absent: Bob Ooten Staff Present: Robin B. Hamers, Manager /District Engineer; Tom Fauth, Assistant Manager; Joan Revak, Board Secretary/Program Manager /Clerk of the District; Sherry Kallab, Accountant; Debbie Bjornson, Permit Processing Specialist; Denise Gilbert, Public Outreach Coordinator President Art Perry called the meeting to order at 11:00 a.m. and turned the meeting over to Mr. Hamers. I. Review of Proposed Capital Improvement Project No. 186 Mr Hamers presented a review of the intent of Project No. 186 — to provide a Sewer Lateral and Clean Out Assistance Program in the amount of $100,000. Mr. Hamers noted laterals need regular maintenance or experience severe problems that lead to sewer system overflows. The United States EPA prohibits sewer spills and the State Water Resources Control Board has recognized private property sewer spills as a significant cause of pollution of bodies of water. Mr. Hamers noted several main points from the Staff prepared "Sewer Lateral Assistance Program Point Paper' including the proposed costs to assist in the cleaning of laterals and the installation of a clean out. An average residential lateral replacement cost is $7,000. Director Monahan noted the lateral repairs at his business cost $15,000 due to the concrete and inside office work required, even though the majority of the work was performed by no -dig. Also, City tree roots are causing problems with laterals and removal of the trees requires approval of the Parks and Recreations Commission. Mr. Hamers concluded the review by reviewing the CMSD Clean Out Drawing No. S -107. Director Monahan reviewed the recommended parameters of the proposed program. Director Schafer proposed raising the District support ceiling and the potential Minutes of Special Meeting June 28, 2007 Page 2 application to businesses. Director Ferryman suggested the District support should be capped at 50% of the actual cost up to the ceiling amount and to consider starting the program in known problem areas such as Royal Palm. Directors Monahan and Ferryman recommended coordinating the repairs with the City of Costa Mesa sidewalk repair. The committee agreed to focus on the following concepts: a. The primary goal is to reduce Sanitary Sewer Overflows (SSOs). b. A secondary goal is to reduce Infiltration and Inflow (1 /1). c. Focus only on residential customers under this pilot program. d. The use of the funds is appropriate as the District has an aging sewer system and the program is of ultimate benefit to the general public. e. The improvement of private property laterals and the reduction of sewer spills provide an affirmative defense to third party lawsuits. f. The program is a combined sewer lateral and clean out assistance program. g. The District support limit was increased from the originally proposed ceiling of $1200 to $1800 per property under the annual program funding level at $100,000. h. Staff will prepare a waiver form for low- income situations. II. Sewer Lateral Standards for Condominium Conversions r Mr. Hamers noted the ordinance for sewer lateral requirements for condominium conversions is being prepared by the Attorney for the District. III. Public Comments No members of the public were present. ADJOURNMENT Director Perry adjourned the meeting at 12:00 p.m. Secretary 4 President • 0 TO: Costa Mesa Sanitary District Board of Directors FROM: Ron Shef, Ordinance Enforcement Officer DATE: July 2, 2007 SUBJECT: ORDINANCE ENFORCEMENT SUMMARY REPORT This report covers the monthly period of June 2007. Over twenty five courtesy notices and regulation sheets were left at resident homes due to non- compliance, both current and follow -up. The Large Item Collection Program began on June 11. The door hangers were visibly noticed in those areas scheduled for the collection in the next two weeks although some areas seemed to be notified only one week prior to collection. Also some adjoining residences had the door hangers where collection would not occur for two weeks later. These mistakes cause confusion with some residents if collection schedules are not followed properly, route by route. Monitoring of the collection program will be continued through the summer to ensure appropriate compliance and minimal scavenging by outsiders. It has also been noticed that residents place items at the curb that are specifically indicated is not to be picked up, according to program guidelines. • COSTA MESA s I I PROJECT STATUS REPORT July 2007 Proiect 1 1 1 21 00 -1 01 West Side Pumping Station Abandonment Study Directors Ferryman and Ooten along with Manager /District Engineer Rob Hamers, Assistant Manager Tom Fauth and Inspector Paul Guzman met with OCSD General Manager Jim Ruth and executive engineering staff on March 29, 2007 to discuss OCSD's participation in the project. It was agreed that the two agencies will work together to determine an approximate project cost and then meet again to discuss the feasibility. The cost estimate has been prepared and is being considered by both agencies. After the CMSD updates its costs for constructing the gravity lines from the pumping stations to be abandoned to the "regional facility," the CMSD will request another meeting with OCSD. Proiect 1112100-129 Bristol Street Sewer The County of Orange plans on widening Irvine Avenue from Bristol Street to University Drive, which will cause relocation of the CMSD Irvine Pumping Station. The District can upgrade the station to a level able to serve the redevelopment of the area. The upgrade alleviates the need for the Bristol Street Pump Station and the project can be reduced to construction of a new gravity sewer only. These. findings were submitted to the Orange County Development Agency and as requested the Sanitary District prepared a new three party agreement reflecting these findings. The agreement has been signed by the Sanitary District and is at the City of Newport Beach for approval. Proiect 1112100 -135 Reconstructing Force Main for Elden Pumpinq Station (Phase II) Construction is complete. The State Department of General Services (DGS) has verbally committed to recording the sewer easement. Proiect 1112100-159 Televising Sewer Lines Program Years 98 -99 99 -2000 Areas are televised as needed. Proiect 1112100-168 Irvine Pumping Station Remodel or Relocation Bid opening was June 4, 2007, and the Board awarded the construction contract to Vadnais Corporation and constructed is scheduled to begin August 1, 2007. Proiect 1112100 -171 Irvine Pumping Station Force Main Rehabilitation -Phase I The design phase is continuing. is Proiect 1112100-17.5 OCSD Cooperative Project Grant - Televising CMSD Sewer Lines The televising is continuing and is approximately 50% complete. Project 1112100-176 WDR Grease Control Program Phase III The project is complete and the annual assessment report is being presented to the Board at the July 2007 regular meeting along with a proposal for the next phase. Project 1112100-181 Newport Boulevard Sewer at 19th Street Construction is complete. • • Pr fmcting our community's kedth by providing solid waste and sewer co(Iection services. crosdcagov COSTA 9VESA SAWITART(DISTRICT Memorandum ... an Independent Special District To: Board of Directors From: Marc Davis, Treasurer /Director of Finance Date: July 5, 2007 Subject: Treasurer's Report for the Month of June 2007 Attached is the Treasurer's Report for the month of June 2007. As required by the District's Statement of Investment Policy, the Treasurer's report delineates all investment activity during the month. This report. lists the types of securities held in the District's portfolio, the institutions from which the securities were purchased, maturity dates and interest rates as of June 30, 2007. The District's investments are in compliance with the Statement of Investment Policy adopted by the Board at the July 13, 2006 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party custodian; Bank of New York, 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 Sanitary District's investment portfolio as of June 30, 2007, was 4.314 %. The yield to maturity of the portfolio was 4.321 %. The District's weighted average interest rate was 93 basis points (0.936 %) below the daily effective yield of LAIF, which was 5.250% as of June 30, 2007. The weighted average number of days to maturity for the District's total portfolio was 198 days (0.54 years). The average duration of the underlying securities in LAIF as of June 28, 2007 was 170 days. 1Trotecting our community's health by providing solid waste and sewer collection services. crosdca.gov Compliance Reportinq • The District's investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than one year as of June 30, 2007 was 62.46 %. • CJ As of June 30, 2007, the District has adequate operating reserves necessary to meet its obligations for the next six months. 2 • COSTA MESA SANITARY DISTRICT Treasurer's Report of Pooled Cash and Investments as of June 30, 2007 Costa Mesa Sanitary District Pooled Cash and Investments by Fund as of June 30, 2007 CMSD Solid Waste Activities $ 2,808,682.30 CMSD Liquid Waste Activities 8,704,424.37 Total Pooled Cash & Investments $ 11,513,106.67 Marcus D. Davis Date Treasurer /Director of Finance Q Deposits Outstanding Active Accounts Bank Balance In Transits Checks Book Balance Bank of America $ 56,761.56 - 3,401.00 $ 53,360.56 Reconciling Items - - Total Active Accounts 56,761.56 - 3,401.00 53,360.56 Market Adjustment Investments Market Value Increase Decrease Cost Local Agency Investment Fund $ 5,600,000.00 - - $ 5,600,000.00 Money Market/Sweep Account 10,214.86 - - 10,214 86 Medium Term Corporate Notes Federal Agency Securities - 5,746,640.63 - - 102,890.62 5,849,531.25 Total Investments 11,356,855.49 - 102,890.62 11,459,746.11 Total Pooled Cash & Investments $ 11,413,617.05 $ - $ 106,291.62 $ 11,513,106.67 Costa Mesa Sanitary District Pooled Cash and Investments by Fund as of June 30, 2007 CMSD Solid Waste Activities $ 2,808,682.30 CMSD Liquid Waste Activities 8,704,424.37 Total Pooled Cash & Investments $ 11,513,106.67 Marcus D. Davis Date Treasurer /Director of Finance Q COSTA MESA SANITARY DISTRICT Investment Activity Summary as of June 30, 2007 Total investments outstanding as of May 31, 2007 Additions: Gain on Sale of Investment: Investment Purchases: Deductions: Investment Maturity /Sale Proceeds: Loss on Sale of Investment: Investments Called: Net increase (decrease) in Sweep Account 0 Net increase (decrease) in LAIF • Total investments outstanding as of June 30, 2007 4 $ 12,499,531.25 none none none 10,214.86 (1, 050, 000.00) $ 11,459,746.11 "Represents the LAIF daily rate at 6/29/07 5 COSTA MESAINITARY DISTRICT Investment and Investment Earnings as of June 30, 2007 Interest CUSIP Purchase Maturity Coupon Investment Earned at Number Investment Date Date Rate Cost 06/30/07 Comments n/a Local Agency Investment Fund n/a n/a 5.250% $ 5,600,000.00 n/a ** n/a Bank of New York -Sweep Acct n/a n/a 4.730% 10,214.86 n/a 31331 QV61 Federal Farm Credit Bank 06/24/03 09/24/07 2.625% 500,000.00 3,536.46 3128X1AW7 Federal Home Loan Mortgage Corp. 05/14/03 05/14/08 3.750% 1,000,000.00 4,895.83 31331 QS32 Federal Farm Credit Bank 06/18/03 06/18/08 3.240% 600,000.00 702.00 31339YDRO Federal Home Loan Bank. 07/22/03 07/22/08 3.050% 1,499,531.25 20,206.25 31339YPE6 Federal Home Loan Bank 07/30/03 07/30/08 3.400% 1,000,000.00 14,261.11 3136F34U7 Federal National Mortgage Assoc. 08/14/03 08/14/08 3.910% 500,000.00 7,439.86 3133X5ZK7 Federal Home Loan Bank 04/30/04 04/30/09 4.050% 500,000.00 3,431.25 3133X63Y0 Federal Home Loan Bank 04/30/04 04/30/09 4.130% 250,000.00 1,749.51 $ 11,459,746.11 56,222.27 "Represents the LAIF daily rate at 6/29/07 5 COSTA MESA SANITARY DISTRICT Summary of Policy Limitations as of June 30, 2007 9 Current % of Market Value Description as of 6/30/07 Maximum % U.S. Treasury Bills 0.00% UNLIMITED U.S. Treasury Notes 0.00% UNLIMITED Federal Agency Issues: FICB 0.00% 40% FFCB 9.56% 40% FLB 0.00% 40% FHLB 28.02% 40% FNMA 4.34% 40 % FHLMC 8.69% 40% Other * 0.00% 40% Banker's Acceptances 0.00% 40% Certificates of Deposit 0.00% UNLIMITED Negotiable Certificates of Deposits 0.00% 30% Commercial Paper 0.00% 15% or 30% (1) Medium Term Corporate Notes 0.00% 30% Repurchase Agreements 0.00% UNLIMITED Reverse Repurchase Agreements 0.00% 10% of base LAIF (Local Agency Investment Fund) 49.31% 40,000,000.00 Orange County Treasurer's Pool 0.00 % 35% Money Market/Mutual Funds (Sweep Acct) 0.09% 10% per fund (2) Asset - Backed /Mortgage- Backed Securities 0.00% 20% Total 100.00% % of portfolio maturing under one year 62.46% no less than 20% % of portfolio maturing over one year 37.54% 100.00% (1) Current dollar weighted average maturity as of 5/31/07 is 0 days. (2) Also limited to 20% in total. *These securities are not considered for purchases: SBA, GNMA, NA and SALLIEMAE 9 COSTA MESA SANITARY DISTRICT Schedule of Investments by Instrument Type as of June 30, 2007 * *Represents the LAIF daily rate at 6/29/07 7 Purchase Maturity Coupon Investment % of Market % of Description Broker /Dealer Date Date Rate Cost Portfolio Value Portfolio Comments State Treasurer's Pool LAIF n/a Continuous 5.250% ** $ 5,600,000.00 $ 5,600,000.00 POOL 5,600,000.00 48.87% 5,600,000.00 49.31% Money Market Mutual Fund Bank of New York n/a Continuous 4.730% 10,214.86 10,214.86 SWEEP 10,214.86 0.09% 10,214.86 0.09% Federal Home Loan Mortgage Corp. Banc of America 05/14/03 05/14/08 3.750% 1,000,000.00 986,750.00 FHLMC 1,000,000.00 8.73% 986,750.00 8.69% Federal Home Loan Notes & Bonds Morgan Keegan 07/22/03 07/22/08 3.050% 1,499,531.25 1,465,781.25 FHLB Federal Home Loan Notes & Bonds Morgan Keegan 07/30/03 07/30/08 3.400% 1,000,000.00 980,625.00 FHLB Federal Home Loan Notes & Bonds Morgan Keegan 04/30/04 04/30/09 4.050% 500,000.00 490,000.00 FHLB Federal Home Loan Notes & Bonds Morgan Stanley 04/30/04 04/30/09 4.130% 250,000.00 245,390.63 FHLB 3,249,531.25 28.36% 3,181,796.88 28.02% Federal National Mortgage Assoc. Morgan Keegan 08/14/03 08/14/08 3.910% 500,000.00 492,656.25 FNMA 500,000.00 4.36% 492,656.25 4.34% Federal Farm Credit Bank Citigroup Global 06/24/03 09/24107. 2.625% 500,000.00 496,875.00 FFCB Federal Farm Credit Bank Morgan Stanley 06/18/03 06/18/08 3.240% 600,000.00 588,562.50 FFCB 1,100,000.00 9.60% 1,085,437.50 9.56% Total Investments $ 11,459,746.11 100.00% $ 11,356,855.49 100.00% * *Represents the LAIF daily rate at 6/29/07 7 COSTA MESA SANITARY DISTRICT Investment Portfolio as of June 30, 2007 Total Portfolio Weighted Avg Interest Rate 4.314 % Weighted Avg Yield to Maturity 4.321 % Weighted Avg Days to Maturity 198 Days 0.54 Years * *Represents the LAIF daily rate at 6/29/07 Investment Purchase Maturity Days to Coupon Yield to Investment Broker /Dealer Type Date Date Maturity Rate Maturity Cost Local Agency Investment Fund Pool 1 5.250% ** 5.250% $ 5,600,000.00 Bank of New York Sweep 1 4.730% 4.730% 10,214.86 Citigroup Global Markets Inc. FFCB 06/24103 09/24/07 86 2.625% 2.670% 500,000.00 Banc of America FHLMC 05/14/03 05/14/08 319 3.750% 3.740% 1,000,000.00 Morgan Stanley FFCB 06/18/03 06/18/08 354 3.240% 3.260% 600,000.00 Morgan Keegan FHLB 07/22/03 07/22/08 388 3.050% 3.090% 1,499,531.25 Morgan Keegan FHLB 07/30/03 07/30/08 396 3.400% 3.410% 1,000,000.00 Morgan Keegan FNMA 08/14/03 08/14/08 411 3.910% 3.900% 500,000.00 Morgan Keegan FHLB 04/30/04 04/30/09 670 4.050% 4.040% 500,000.00 Morgan Stanley FHLB 04/30/04 04/30/09 670 4.130% 4.120% 250,000.00 Total Investment Portfolio $ 11,459,746.11 Total Portfolio Weighted Avg Interest Rate 4.314 % Weighted Avg Yield to Maturity 4.321 % Weighted Avg Days to Maturity 198 Days 0.54 Years * *Represents the LAIF daily rate at 6/29/07 0 0 COSTA MESA SANITARY DISTRICT For all Maturities with Market Values as of June 30, 2007 **Represents the LAIF daily rate at 6/29/07 9 Net Purchase Maturity Intuition Investment Coupon Investment Market Accrued Gain /(Loss) Date Date Broker /Dealer Type Par Rate Cost Value Interest If Sold n/a Continuous LAIF POOL $ 5,600,000.00 5.250% '" 5,600,000.00 5,600,000.00 - - n/a Continuous Bank of New York SWEEP 10,214.86 4.730% 10,214.86 10,214.86 - - 06/24/03 09/24/07 Morgan Keegan FFCB 500,000.00 2.625% 500,000.00 496,875.00 3,536.46 (3,125.00) 05/14/03 05/14/08 Banc of America FHLMC 1,000,000.00 3.750% 1,000,000.00 986,750.00 4,895.83 (13,250.00) 06/18/03 06/18/08 Morgan Stanley FFCB 600,000.00 3.240% 600,000.00 588,562.50 702.00 (11,437.50) 07/22/03 07/22/08 Morgan Keegan FHLB 1,500,000.00 3.050% 1,499,531.25 1,465,781.25 20,206.25 (33,750.00) 07/30/03 07/30/08 Morgan Keegan FHLB 1,000,000.00 3.400% 1,000,000.00 980,625.00 14,261.11 (19,375.00) 08/14/03 08/14/08 Morgan Keegan FNMA 500,000.00 3.910% 500,000.00 492,656.25 7,439.86 (7,343.75) 04/30/04 04/30/09 Morgan Keegan FHLB 500,000.00 4.050% 500,000.00 490,000.00 3,431.25 (10,000.00) 04/30/04 04/30/09 Morgan Stanley FHLB 250,000.00 4.130% 250,000.00 245,390.63 1,749.51 (4,609.37) Total Investments $11,460,214.86 11,459,746.11 11,356,855.49 56,222.27 (102,890.62) **Represents the LAIF daily rate at 6/29/07 9 COSTA MESA SANITARY DISTRICT Call Schedule as of June 30, 2007 Type of Purchase Maturity Coupon Investment Investment Date Date Rate Par Value Cost Call Features FFCB 06/18/03 06/18/08 3.240% $ 600,000.00 600,000.00 Continuous Call w/ 7 days notice. FFCB 06/24/03 09/24/07 2.625% 500,000.00 500,000.00 Continuous Call w/ 7 days notice. FHLB 07/22/03 07/22/08 3.050% 1,500,000.00 1,499,531.25 Callable 7/22/07 w/ 5 days notice. FHLB 04/30104 04/30/09 4.050% 500,000.00 500,000.00 Callable 7/30/07 w/ 5 days notice. FHLB 04/30/04 04/30/09 4.130% 250,000.00 250,000.00 Callable 7/30/07 w/ 5 days notice. FHLB 07/30/03 07/30/08 3.400% 1,000,000.00 1,000,000.00 Callable 7/30/07 w/ 5 days notice. FNMA 08/14/03 08/14/08 3.910% 500,000.00 500,000.00 Callable 8/14/07 w/ 10 days notice. FHLMC 05/14/03 05/14/08 3.750% 1,000,000.00 1,000,000.00 Callable 11/14/07 w/ 5 days notice. $ 5,850,000.00 5,849,53125 10 11 COSTA MESA SANITARY DISTRICT - MATURITIES DISTRIBUTION as of June 30, 2007 70%-, ----------------------------------------- ' - -- Cost 60% ------------------------------------------- 53.32% In Thousands -- ------------------------------ - - - - -- 1 -180 Days $ 6,110 50% - - --- ------------ --- --- ------ - - - - - -- 181 -365 Days 1,600 40%-- 32.72% 1 - 2 Years 3,750 30%- -- ' ---- - - - - -- ---------------------- 2 - 3 Years 20% -- ---- - - - - -- ---------------------- 13.96% 3 - 4 Years - -- - -- - -- ---------------- - - - - -- 4 -5 Years - 10% ' 0.00% 0.00% 0.00°x° TOTAL $ 11,460 ° 1 -180 181 -365 1-2 2 -3 3 -4 4 -5 Days Days Years Years Years Years % Rounded 5/4 11 • 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% i Costa Mesa Sanitary District Portfolio Interest Rate Information as of February 28, 2007 0.00% i i i i i i i ' 0 0 fo 0 0 ro 6 0 6 ro 0 6 6 0 1 A 1 1 A A A A A A A A A O O O O O O O O O O O O O O O O O O O O O O O O O O Q3 0 ,�0 ��2p OIL° 1pp 9 9P ,SST �Lp 1\T 4V V \ry T, P �`Lp �T, \2p �Lp \Lp � �`Lp �'V �'Lp \'V 'D �Lp �Lp \V rV �\� ^\� 4, °\v :b 41 '(3 �p\ti ° { \�° Nr ti , �6 °° ,\`° \�� `° 41 4° °\,ya �� rx�ti1 ��h ��'° 6�� °6 bo • 5 year T -Note 3 year T -Note 2 year T -Note 6 month T -Bill 3 month T -Bill CMSD - monthly LAIF- monthly OC Pool- monthly 9 BASIS FOR INCREASE IN 2007 -2008 YEARLY SEWER CHARGES 1. Necessity for increased operations and maintenance (O &M). The gravity sewer lines have above - normal amounts of grit and debris in the lines due to substandard cleaning practices by the previous maintenance contractor. The cleaning process is now slower, requires more water, and is costlier. The pumps and equipment in the 20 sewer pumping stations were not maintained on a regular schedule and increased maintenance and replacement equipment is required. 2. State Water Resources Control Board Requirements The State of California Water Resources Control Board adopted the General Waste Discharge Requirements (GWDR) under Order No. 2006 -0003. The order mandates comprehensive'sewer system management in order to eliminate sewer spills and overflows. The order requires • Preventative Maintenance • Capacity Assurance • Televising Sewer Mains • Repair Program . • Fats, Oils and Grease (FOG) Control Program • Education and Outreach Program • Emergency Response Sewer rate increases are necessary to cover the cost of increased work in each of these categories. 3. Higher Energy Costs Higher energy costs in the form of higher gasoline costs and higher electricity costs for the District's 20 pumping stations are also causing sewer rates to increase. 4. Sewer Lateral Assistance Program The District is initiating a sewer lateral assistance program. 5. Comparative Notes Even with the increase, the District has one of the very lowest single family sewer rates in Orange County. BASIS FOR NO INCREASE IN 2007 -2008 TRASH COLLECTION CHARGES 1. The Sanitary District negotiated a freeze in the 2006 -2007 trash collection charge with its contractor CR &R of Stanton, California. The District also negotiated limited increases in future years' rates by tying the rate to rates of other local agencies and cities in Orange County. 2. The District instituted an "extra container charge" program where residents pay $8 per month for each container above the first two containers. This prevents residents who leave out average amounts of trash from subsidizing those who leave out above - average amounts of trash. The revenue collected from this program is being used as a rate stabilization fund for the trash collection program. 3. The County of Orange Integrated Waste Management Department (IWMD) is holding the landfill charge at the existing rate of $22 per ton. Therefore, the landfill charge is not causing the CMSD trash collection charge to rise. 4. The CMSD and CR &R have kept expenses at a reasonable level and are absorbing increases to maintain the trash collection rate at the current level. • • I� U U *2004 Data city Cart Size Rate 1 Laguna Woods* NA $6.00 2 Irvine NA $11.04 3 Orange NA $11.77 4* Lake Forest NA $11.95 5 Rancho Santa Margarita NA $12.01 6 Laguna Hills NA $12.79 7* Mission Viejo NA $13.13 8 Tustin NA $13.69 9 Dana Point 95 $13.75 10 Aliso Viejo NA $14.12 11 Buena Park MRF NA $14.13 12 Laguna Beach NA $14.18 13 Los Alamitos 95 $14.58 14 Seal Beach NA $14.70 15 Westminster NA $14.75 16 La Palma NA $14.89 17 Santa Ana NA $15.34 18 Yorba Linda NA $15.45 19 Cypress NA $15.80 20 La Habra* NA $15.99 21 San Juan Capistrano 95 $16.28 22 Anaheim NA $16.61 23 San Clemente 65 $16.63 24 Stanton NA $16.73 25 Brea NA $16.77 26 Fullerton NA $17.09 27 La una Ni uel 65 $17.48 28 Fountain Valle NA $17.83 29 Huntington Beach NA $18.62 30 Garden Grove NA $18.92 31 Villa Park NA $18.98 32 Placentia NA $19.49 33 lNewport Costa Mesa MRF NA $19.95 34 Beach NA Paid through General Fund *2004 Data COSTA MEStt SA, a�7a7(�'DI,sZ�ICZ Memorandum ... an Independent Special rDistrict To: Board of Directors From: Robin B. Hamers, Manager /District Engineer 44� Date: June 5, 2007 Subject: Preliminary 2007 -2008 Sewer Rates Shown below are preliminary 2007 -2008 sewer rates based on information obtained by OCSD as part of their annual rate survey. In the case of Newport Beach, the rate is partially based on usage and it was assumed that the water usage is 15 units per month. Agencies such as Anaheim and Newport Beach charge a tiered rate with a higher charge for residents outside the corporate limits or receiving water from another water agency. Agencies charging solely on water usage were omitted. • AGENCY MONTHLY SFR /o ABOVE OR CHARGE (BELOW) CMSD CMSD $4.93 City of Anaheim $4.62 (6)% $6.95 41% Garden Grove Sanitary District $6.15 25% City of Brea $6.97 41% City of Huntington Beach $7.11 44% Midway City Sanitary District $7.75 57% City of Newport Beach $9.75 98% Sunset Beach Sanitary District $12.40 152% IRWD $13.05 165% Protecting our community's health by providing solid waste and sewer collection services. www.crosdcagov ��gRtdtT,l 6 Sa" itar A' Imstrict �eoI.PaRh., ... an In6epenbent Special District Boars) oj'Dircctors Arl Yerr1, Arlene schajf r Bob Omen James Forronan Gar): Monahan staff Robin- B. Hanters Awao e7 0i.s7ricl L'n,,irreer (149) 01l -l731 June 25, 2007 Mr. Bruce Mattern BDM Consulting 9441 Harcourt Circle Huntington Beach, CA 92646 RE: CMSD 2007 -2008 CAPITAL IMPROVEMENT PROGRAM Dear Bruce: Enclosed please find the proposed capital improvement program 1/7s» nme:a. Fowl? As,cr 7cun ,h4unu��c7 report for the District's 2007 -2008 fiscal year. The Board of Directors of the District approved the report as part of the budget approval at their regular meeting on June 14, 2007. J00)? Revok �4(Ilonl sccre,ac Similar to previous years, please prepare your independent review , t n Di.sioo -`', and analysis of the projects individual) and collective) as to C7crk 7he nisrri�, y p J y y necessity, costs, appropriateness of the entire program, and any /Ahm other areas warranting comment. If you desire additional backup cgo / °' °r'`'1 R. Brn ns materials such as maps, cost estimates or previous reports, please i.`�,�a call me at 949 - 631 -1731. A4arr r7s n. Davis Thank you again for all your work on behalf of the District. Please Th.omrer11)i1e(,1or- ,)/ call Joan Revak at 949 -645 -8400 x 223 if you desire a F i o'w `' purchase order for your work. Phone Sincerely, 194Q) 045 -5400 Fax 4- ( 9=19) 050 -225 ROBIN B. HAMERS Manager /District Engineer Address RBH /pb 628 IV. 19711 sire,"I Cos7a Mesa. CA Encl. 92v27.2,16 Cc: Board 0 Staff et rr to 41's Primcd on Protecting our communitv�'s � ealtb 6p provibing sotff ib waste anb sewer collection serVices. Recycled Pnjn,r cnlsbca.gov ti, gAN1jA,pf i s i ° y Cost. Mesa Sanity strict V . r ... an Inbehenbent Special District ORATE Board of Directors Ari Perry Arlene Schuler Bob Omen James Ferryman Gary Morialian Staff Robin B. Homers Manager Disiriet iingmeer (949) 631 -1731 Thomas A. Fouth Assislonl Mmia -cr Joan Renck Q rBoard Secretary ogrom Manager Clerk o/ the Divrici Alan. R. Minis Legal Counsel Marcus D. Danis TreosurerlDirecior o/' Finance Phone (949) 645 -8400 Fax (949) 650 -225.3 Address 628 W. 19th Sine ei Costa Mesa, CA is 92627 -2716 CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2007 -2008 W Pon= CAL Prepared by: Robin B. Hamers Manager /District Engineer June 23, 2007 0* to 4 Printed O,t Protecting our community's health 6�q providing solid waste and sewer collection services. Recccled Pupei crosdca.gov • • 5 -YEAR CAPITAL IMPROVEMENT PROGRAM FY 2007 -08 THROUGH FY 2011 -12 Fiscal Year 2007 -2008 #101 West Side Pumping Station Abandonment $250,000 #149 Sinking Fund 100,000 #159 Televising 25,000 #164 Miscellaneous Sewer Work 190,000 #168 Irvine Pump Station Relocation 950,000 #180 FOG Program 100,000 #182 Analysis of CCTV Results 125,000 #186 Lateral Assistance Program 100,000 Fiscal Year 2008 -09 #101 West Side Pumping Station Abandonment $250,000 #149 Sinking Fund 100,000 #159 Televising 25,000 #164 Miscellaneous Sewer Work 125,000 #171 Irvine P.S. Force Main 440,000 #180 FOG Program 100,000 #183 System Wide Repair Program 700,000 #186 Lateral Assistance Program 100,000 Fiscal Year 2009 -10 #101 West Side Pumping Station Abandonment #149 Sinking Fund #159 Televising #164 Miscellaneous Sewer Work #171 Irvine P.S. Force Main #180 FOG Program #183 System Wide Repair Program #186 Lateral Assistance Program Rev. 6/25/07 1 $250,000 100,000 25,000 125,000 440,000 100,000 700,000 100,000 $1,840,000 • 0 • Fiscal Year 2010 -2011 #101 West Side Pumping Station Abandonment $250,000 #149 Sinking Fund 100,000 #159 Televising 25,000 #164 Miscellaneous Sewer Work 125,000 #180 FOG Program 100,000 #183 System Wide Repair Program 700,000 #184 Force Main Replacement 440,000 #186 Lateral Assistance Program 100,000 $1,840,000 Fiscal Year 2011 -2012 #101 West Side Pumping Station Abandonment $250,000 #149 Sinking Fund 100,000 #159 Televising 25,000 #164 Miscellaneous Sewer Work 125,000 #180 FOG Program 100,000 #183 System Wide Repair Program 700,000 #185 Force Main Replacement 440,000 #186 Lateral Assistance Program 100,000 Note: All projects are Capital Replacement Projects. Rev. 6/25/07 $1,840,000 COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FISCAL YEAR 2007 -2008 PROJECT #101 WEST SIDE PUMPING STATION ABANDONMENT $ 250,000 (CR) PROJECT #149 SINKING FUND 100,000 (CR) PROJECT #159 TELEVISING 25,000 (CR) PROJECT #164 MISCELLANEOUS SEWER WORK 190,000 (CR) PROJECT #168 ® IRVINE PUMP STATION RELOCATION 950,000 (CR) PROJECT #180 FOG PROGRAM 100,000 (CR) PROJECT #182 ANALYSIS OF CCTV RESULTS 125,000 (CR) PROJECT #186 LATERAL ASSISTANCE PROGRAM 100,000 (CR) TOTAL $1,840,000 (CR) Denotes Capital Replacement Project (CI) Denotes Capital Improvement Project (D) Denotes Design Phase only at this time (0) Denotes Other (SP) Special Project cc. Rob Hamers, Tom Fauth, Joan Revak, Marc Davis, Sherry Kallab 3 2007 -2008 Capital Improvement Program Introduction The Board of Directors and Staff of the Costa Mesa Sanitary District (CMSD) recognized the need to substantially increase the commitment to the sewer Operations and Maintenance (O &M) Program and the Capital Improvement Program (CIP) in future years beginning with the 2007 -2008 fiscal year. The need to increase funding is due mainly to two events: • The necessity to meet the State Water Resources Control Board General Waste Discharge Requirements (WDR.) The CMSD and other agencies tributary to the Orange County Sanitation District (OCS.D) treatment plants were under a nearly identical order from the Santa Ana Regional Water Quality Control Board until the state- wide order was adopted. After state adoption on May 2, 2006, the regional order was rescinded. The order requires comprehensive sewer system management with the requirement to eliminate sewer overflows and spills to meet the United States Environmental Protection Agency (EPA) Clean Water ® Act. The need to increase funding is due to the following requirements in the order: • 1. Comprehensive O &M program 2. Preventative Maintenance Program 3. Emergency Response Program 4. Televising and Rehabilitation Program for Gravity Sewers 5. Pumping Station and Force Main Program 6. Fats, Oils and Grease (FOG) Control Program 7. Capacity Assurance 8. Public Outreach and Education 9. Program Audit Requirements 10. Comprehensive Monitoring and Reporting Program Discovery by the CMSD that the previous sewer system contractor (the City of Costa Mesa) did not perform industry standard pumping station maintenance nor gravity line cleaning. Beginning December 15, 2005, when the CMSD relieved the City of its duties, eight pumping stations experienced emergency conditions. Certain pumps had milky white oil from not being changed, some pumps had no oil while others had not been serviced in years. Valves were not exercised nor other routine maintenance performed. El • The gravity sewer system was left with substantial amounts of grit and debris in the lines, so much that the CMSD purchased a water truck to provide the extra water needed to properly clean the lines. As an example, the 15 -inch gravity sewer on Adams Avenue had 6- inches of grit and debris in the line. The current project to clean the lines is on -going and the CMSD staff estimated the economic loss at $2 million. Rather than file a claim with the City of Costa Mesa, the Board of Directors determined that the public would be best served by upgrading the operations and maintenance program and moving forward. In order to properly establish a comprehensive sewer system management program, the District established a Sewer System Committee comprised of three Directors, engineering staff, maintenance staff, and inspection staff. The committee meets monthly and discusses all aspects of improving the District's sewer system management. The result of the above is that the CMSD Board of Directors adopted a sewer system budget with a 50% increase in rates, including adopting the 2007 -2008 Capital Improvement Program subject to review by an independent Registered Civil Engineer and approval of the engineer's report by the Board of Directors. Even with the proposed 50% increase, the CMSD sewer rate for single family residences is virtually the lowest rate in Orange County as shown on the attached 2007 -2008 rate study of other Orange County agencies. Additionally, the CMSD Manager /District Engineer is a long- standing member of the WDR Steering Committee that meets monthly as a steering committee and monthly to present to the general group (those agencies tributary to OCSD) how to successfully comply with the WDR. The CMSD Manager /District Engineer created an Education Program for the general group that includes all pertinent topics for comprehensive sewer system management. The first seminar was centered on the subject of whether or not the public agency should own and be responsible for sewer laterals from the right -of- way line to the point of connection with the sewer main in the street. The second seminar was a comparison of vitrified clay pipe (VCP) and polyvinylchloride pipe (PVC.) The third seminar, scheduled for September 20, 2007 will be Design and Maintenance of Sewer Siphons. All of the seminars are open to attendance by engineers and sewer system operations staff from anywhere in the United States. There are currently over 25 topics on the education program list. This is an example of the CMSD's commitment to proper sewer system management. 5 • • COSTA .��S�L SAN, 7.��}'' D IS21�IC7 Memorandum ...an Independent Special District To: Board of Directors From: Robin B. Hamers, Manager /District Engineer 444"..- Date: June 5, 2007 Subject: Preliminary 2007 -2008 Sewer Rates Shown below are preliminary 2007 -2008 sewer rates based on information obtained by OCSD as part of their annual rate survey. In the case of Newport Beach, the rate is partially based on usage and it was assumed that the water usage is 15 units per month. Agencies such as Anaheim and Newport Beach charge a tiered rate with a higher charge for residents outside the corporate limits or receiving water from another water agency. Agencies charging solely on water usage were omitted. AGENCY MONTHLY SFR CHARGE CMSD City of Anaheim Garden Grove Sanitary District City of Brea City of Huntington Beach Midway City Sanitary District City of Newport Beach Sunset Beach Sanitary District IRWD $4.93 $4.62 $6.95 $6.15 $6.97 $7.11 $7.75 $9.75 $12.40 $13.05 % ABOVE OR (BELOW) CMSD (6)% 41% 25% 41% 44% 57% 98% 152% 165% Protecting our community's health by providing solid waste and sewer coffection services. www.crosdcagov 5A • • Project #101— West Side Pumping Station Abandonment $250,000 The project is the first year of funding for constructing the gravity sewer lines from the six CMSD pumping stations to be abandoned to the "regional facility." The 5 -year Capital Improvement Program (CIP) includes yearly funding of $250,000, in effect, establishing a revenue stream for the construction of the gravity lines. The status of the project is as follows. CMSD Director and Orange County Sanitation District (OCSD) President Jim Ferryman, CMSD Director Bob Ooten (former OCSD Director of Operations and Maintenance (O &M)), and senior CMSD engineering staff met with OCSD General Manager Jim Ruth and senior OCSD engineering staff on March 29, 2007 to discuss OCSD's possible participation in the project. OCSD recognizes the result of the project will be the abandonment of six CMSD pumping stations, one City of Newport Beach (CNB) pumping station, one private pumping station, and alleviate the need for a pumping station for the north half of the Banning Ranch in the unincorporated Orange County when it is developed. OCSD usually owns sewer lines when flows from different local agencies become combined, which is the case for this project. At the subject meeting, the CMSD noted that prior OCSD management and engineering staff was positive regarding the project and the CMSD has constructed one long section of the infrastructure; a dry sewer line in the City of Costa Mesa's (CCM) Canyon Park. The CMSD and OCSD agreed to study the cost of the regional facility, the regional facility being the facility that will transmit the combined flows from the west side of the Costa Mesa Sanitary District to the OCSD treatment plant. The study would be performed prior to discussion of OCSD considering whether to commit to the project. CMSD and OCSD staff met and developed a cost estimate for the regional facility. Two options were studied, a gravity system and a pumping station option that uses the same route as the existing CNB station. The cost estimate shows the gravity option at $9.0 million and the pumping station option at $6.6 million. Director Ooten obtained the OCSD 10 -year spending plan and it shows the current cash flow needs at over $300 million to a low of $24 million in year 2016 -2017. on • n I►.�J Prior to the CMSD considering a commitment to the project, the CMSD Manager /District Engineer recommended the CMSD update its 1989 cost estimate for the gravity sewer lines from the pumping stations to be abandoned to the regional facility. The Board of Directors recognized the need for this update to insure the CMSD has the funding source prior to formally requesting OCSD add this project to their 10 -year Capital Improvement Program. As of the end of June 2007, the CMSD is updating the 1989 costs with an expected completion date of August 2007, at which time the CMSD Board will review the results and take appropriate action with respect to committing to the project. The cost estimate work by CMSD staff is funded through previous contributions to the project. A map showing the proposed options for the regional facility is attached along with a map showing the CMSD gravity lines leading from the pumping stations to be abandoned to the regional facility. Recommended appropriation $250,000. 7 • R 1 s i 1 I'IT r f , RI R � � � R RlW • i 1� � tA. �•�NL ..__.._ _- •� A fZ 0 wit !!! i 2 : CI ,t1l �_ "RJR ,`'R�'iRi' RI R L 3 — -- f - -� :✓EST fF P. S. ,JCC.h fly FS' �• .,;-; ! ; I , r f .: - _ �= Y -- - - -- �f'=h jj t` BAIMGRAI. cyL" r . i L ,P L A 1 1 I 1 1 I f S I 1 1 I FF'�iQC.E t f'✓�' -- - -- _ i \ a P4, r. MEN ` PIINP I I tYi A/ B R Y - R I R -- - -- _ - --/9 -T!/ - _fTfEET_ L /9 -TN ST. P.1' A2 ___ ._... :_ R3 NA I 0 Project #149 - Sinking Fund $100,000 • This yearly project provides a contribution to the long term replacement fund for the sewer system. The Board of Directors approves the yearly contribution that will contribute to replacing the sewer system if and when the sewer system reaches its life expectancy. A long -term replacement fund is prudent and one of the important features of a responsible agency. The District has 227 miles of gravity sewer main that was constructed beginning in 1953. Therefore, the system is 54 years old and industry standard thinking considers the life expectancy of vitrified clay pip (VCP) to be 100 years. The economics of a system wide replacement program are as follows: Assigning a per foot construction cost of $250 per foot, which includes manholes and other related costs, times 227 miles of sewer equals $300 million. This is a significant sum and one that will not be reached by the District since the total yearly budget for the entire District is just over $8 million. Fortunately, VCP sewers have lasted over 200 years in certain locations in the United States and the material itself is inert (resistant to chemical breakdown) and resistant to abrasion. Therefore, it is possible to consider the life expectancy long enough so that technology may advance to a point where new inexpensive rehabilitation methods will be formulated. The most important component for extending the life expectancy of the sewer system is to televise the pipe interior and repair problems before they magnify. The District is currently halfway through the District -wide televising program and the 5 -year CIP includes rehabilitation projects. The following page shows the history of the sinking fund. Interest earned on the funds is not allocated to the project balance but is allocated to the sewer program in general as is usual in the industry. Recommended appropriation $100,000 0 �1 Sinking Fund Deposits Fiscal Year Deposit 1995 -96 $ 100,805 96 -97 200,000 97 -98 200,000 98 -99 200,000 99 -00 320,000 00 -01 125,000 01 -02 125,000 02 -03 125,000 03 -04 100,000 04 -05 100,000 05 -06 100,000 06 -07 25,000 07 -08 100,000 Total Deposits $ 1,820,805 w 0 Project #159 - Televising $25,000 Even though the District -wide televising program is currently in progress, there is a necessity to perform small scale or pickup televising during the year. The charges for this work are hourly as opposed to the larger scale District -wide project that is based on a per foot cost so separate project funding is appropriate. The project provides funds for small -scale miscellaneous sewer televising work. The need for occasional televising occurs when: • A homeowner with a backup claims the District's main is backed up, not the lateral, and televising the sewer main will disclose the condition of the line. • When the jetting hose from the vactor truck hits an obstruction or becomes lodged, televising (also termed CCTV for closed circuit televising) provides a visual assessment of the problem. • The FOG (fats, oils, and grease) program relies on CCTV images of the amount of grease accumulating in the District's main where a lateral enters the main to prove that a food service establishment (FSE) is discharging unacceptable levels of grease. • Other utilities are constructed under or over a CMSD sewer main and the sewer main needs to be checked for structural damage. Yearly projects have been on -going since the entire sewer system was first televised in 1989 -1992. Televising is an important tool and is always a part of the yearly Capital Improvement Program. Televising is approximately $270 per hour and if an eight hour day is spent televising sewer lines that were previously cleaned, approximately 2,000 feet of line can be televised. Because the televising will be of sewer lines with potential problems and will be slow and deliberate, for the purposes of the budget, the approximate footage under this project will be 15,000. Proposed Budget Design $ 3,500 Televising 16,500 Inspection 3,500 Contingency 1,500 0 Total $ 25,000 10 • • Project #164 — Miscellaneous Sewer Work and Manhole Adjustment $190,000 The project provides funds for the purchase of miscellaneous pumping station parts, valves, regular repairs, and emergency repairs such as repairing a ruptured force main. The project also provides funds for the emergency repair of the gravity sewer system as well as the purchase of manhole rings and covers and for the adjusting of manholes to grade during a street rehabilitation project. Funds are also used for applying roach control product in sewer manholes. An example of an emergency repair at a pumping station was the leak in the discharge piping at the Mendoza Pumping Station. When the pump turns on, water shoots out of the hole in the force main. The pump must be shut down, the piping unbolted, and a new elbow bolted in while the station is running on one pump or the bypass pump. When the District terminated the agreement with the City of Costa Mesa on December 15, 2005 for the operations and maintenance of the District's sewer system, the District realized significant additional funds were necessary to bring the maintenance of the pumping stations to the desired standard. Therefore, the project appropriation for this year is proposed as $190,000. Towards the end of the year, the project budget will be reviewed and the recommended appropriation for the subsequent year adjusted as necessary. Recommended appropriation $190,000. 11 • r� Project #168 - Irvine Pumping Station Relocation $950,000 The Irvine Pumping Station (formerly named the Tustin Pumping Station) is located at the intersection of Irvine Avenue and Mesa Drive. The County of Orange will be widening Irvine Avenue, and, under the streets and highways code, the CMSD is required to fund and relocate the pumping station. The project design was completed and bids were opened in order to award the project. The low bidder is Vadnais Corporation and the bid is just over $1.7 million. The project balance prior to this project was $888,000 and the additional funds are needed to fund the construction phase. Construction of the new pumping station is scheduled for the beginning of August 2007. An important consideration in construction projects is the role of the inspector. Proper and continuous inspection insures the construction is performed in a professional manner in accordance with the plans and specifications. In order to allow for continuous inspection, the Board of Directors approved the following construction administration budget on June 14, 2007: Engineering not to exceed 24 weeks x 16 hrs /week x $ 85 /hr = $32,640 Surveying 20 hrs x $220 /hr = $ 4,400 Inspection 75 days x 8 hrs /day x $ 60 /hr = $36,000 Recommended appropriation $950,000 12 TOTAL $73,040 C: 0 0 COSTA MESA SANITARY DISTRICT CONSTRUCTION PLANS FOR IRVINE PUMPING STATION RELOCATION AND REHABILITATION SUPERVISED AND APPROVED BY: PREPARED BY: COSTA MESA SANITARY DISTRICT , mm p— 6I1+1 IIAMERS, PE DATE MANAGER / DISTRICT ENGINEER IRVINE AVENUE AT MESA BOULEVARD i� MAY 2007 COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS: ARTHUR PERRY ARLENE SOHAFER ROBERT OOTEN JAMES FERRYMAN GARY MONAHAN L5]TU-RF-S1DE F.N�3INE.ERS SHEET 1 OF 15 PREPARED BY: SURFSIDE CONSULTJNG ENGINEERS, INC. ppiESSi� s0K 6//7 JOSE PH P. INA RI II, PE DATE PROJECT ENGINEER SHEET 1 OF 15 0 0 SEE SHEET C-5 EXISTING OVERHEAD POWI UYILITY LINES FOR CONSTRUCTION OF 8' GRAVITY SEWER MAIN SEE SHEET C-4 EXCITING UTILITY POLE - I FUTURE STREET R/W E%CITWGOii -R9,I LE� _ II FUTURE STORM EXISTING UTILITY POLE MESA DRNE H0. EXISTING PUMP STATION FOR CONSTRUCTION OF �1 EMERGENCY STORAGE VAULT DEMOLITION PLAN I 12' SEWER FORCE MAIN ! d SEE SHEET SCALE -2C SEE SHEET C -2, / e' . C-J F3 SEWER MANHOLE BACK HAY CEMER FUTURE RETAINING WALL N 2187067.62. E 6061190.01 ❑1 WETWELL FUTURE SIDEWALK FUTURE BUS TURNOUT N 2187076.33. E 8064183.82 �S WETWELL NW CORNER N 2187083.87, E 8064200.62 O VALVE VAULT 1 2 3 A S 6 J ` ❑J VALVE VAULT NW CORNER 4 ❑B SEWER MANHOLE CENTER OF MH N 2187010.]0, E 8064218.78 �E, 1 l - -___. .._... .... I NTURE STREET CENTERLINES ::. — — 11 4 :.. :^,,, -mot — FOR.CONSTRUCTION OF 21' GRAVITY SEWER MAIN (TO PROPOSED WETWELL) - — "- SEE SHEET'C -4 7� .FDR ABANDONMENT OF 8' GRAVITY SEWER MAIN SEE SHEET C -4 IRVINE AVENUE HORIZONTAL CONTROL POINTS H0. LOORFNNA �1 EMERGENCY STORAGE VAULT Sw CORNER N 2187019.36. E IMMH67.28 O EMERGENCY STORAGE VAULT NW CORNER N 2187011/ E 6061181.19 F3 SEWER MANHOLE CENTER OF MR N 2187067.62. E 6061190.01 ❑1 WETWELL SW CORNER N 2187076.33. E 8064183.82 �S WETWELL NW CORNER N 2187083.87, E 8064200.62 O VALVE VAULT SW CORNER N 2187087.09, E 606420— ❑J VALVE VAULT NW CORNER H 2187091.43, E 606421D.59 ❑B SEWER MANHOLE CENTER OF MH N 2187010.]0, E 8064218.78 NOTES TO CONTRACTOR 1. CONSTRUCTION SURVEY (STARING) TO BE PROVIDED BY CMSD. 2. GO N TRACTOR SHALL INSTALL VERIFY ALL CONTROL P NTS WITH CMSD AND OC RDMO PRIOR TO CONBTRIICTIDN. 3. CONTROL POINTS FOR VAULT STRUCTURES DESIGNATED AT INSIDE OF VAULT WALL IN CORNER (TYPICAL). 4. FUTURE STRIPING IS NOT SHOWN FOR CLARITY 5, FUTURE IMPROVEMENTS ONLY SHOWN IN AREA OF PROPOSED CMSD CONSTRUCTION. LEGEND AND FUTURE T IRVINE AVENUE WIDENING G PRD ELT ( IMPROVEMENTS PER OC RDMD O EROB922) PREPARED BY DESIGN ki SURFSIDE , � �`` '""'Mw COSTA MESA SANITARY STRICT C.!+h;:Ll f INi; Y k ��> MAY 2007 IRVINE PUMPING STATION RELOCATION AND REHABILITATION sw ENL>fN<EER� �@ PROJECT N0. 4 JOSEPH P SNACOR 11 p61E PaaecT ENGINEER cuso -1 Gah9aAT® PUMP STATION LOCATION AND HORIZONTAL CONTROL PLAN SURFS DE CONSULTING ENGINEERS. INC. Of 15 SHEETS • PROPOSED ACCESS HATCH FS TA52 PROPOSED ACCESS HATCH FOR CONTINUATION OF AIR RELEASE FUTURE FINISH SURFACE CONSTRUCTION NOTES PROPOSED ELECTRIC AND FS 2n0; VALVE PIPING. SEE SHEET C -T PROPOSED ODOR CONTROL CABINET CONTROL PANEL O 21' EXTRA STRENGTH VITRIFIED CLAY PIPE WITH TYPE '0' COMPRESSION PROPOSED ACCESS HATCH PROPOSED ACCESS HATCH 1B 1B `SOy0B3 ACCESS HATCH FUTURE BUS STOP BENCH JgNTS. TRENCHING AND BEDDING PER CMSD STD. ERG. NO. 5 -111 FS -11, ip is 2nlY 10 NSTALL 24' DIAMETER DROP BOWL WITH 1S VERTICAL OUTLET PIPE. RELINER 1T O MANUFACTURER EQUAL. INSTALL IN ((�� Po ASSEMBLY PER 7t INSTAIL O ACCESS NATCHPxTERIORCLINING. iANDAEXTERWR COATING K PROJECT TIGHT SPECIFICATIONS. 12 INSTALL 6' %8' GAS TIGHT DOUBLE LEAF ALUMINUM ACCESS MATCH WITH AASHTO H -20 REINFDRCEMENT, SS 316 HARDWARE, AND TAMPER PROOF HASP PROPOSED AND LOCK PER PROJECT SPECIFICATIONS. b W T ROOF 2 VALVE VAULT ELEV. 25.5 1] INSTALL H 0GAS TIGHT DOUBLE LEAF ALUMINUM ACCESS HATCH b u VAULT FLOOR HAS AND LO H-2O REINFORCEMENT. SS 316 HARDWARE, AND TAPPER PROOF 2 ELEV. T1BO RASP AND LOCK PER PROJECT SPECFICATIOXS. 16 m IA INSTALL 10.20' PRECAST CONCRETE VAULT (DEPTH PER RAN) WITH GAS TIGHT 25 -�° -- -a� O ACCESS HATCH. INTERIOR LINING. AND EXTERIOR COATING PER PROJECT f'. snanCATIONS. VAULT ROOF ____ 6' DRAIN 1S INSTALL ]'%J GAS TIGHT SINGLE LEAF ALUMINUM ACCESS HATCH WITH ELEV. 1 &00 - - -- AASHTO X -20 REINFORCEMENT, SS 316 HARDWARE. AND TAMPER PROOF HASP 6' DRAIN A INVTALL 11 1 T BEND AND LOCK PER PROJECT SPECIFICATIONS. PRO N POSED V. 1n5i 18 INSTALL B' SCH 10 PVC VENT PIPE WITH A• MINIMUM COVER. SEWER MANHOLE PROSED EMERGENCY 10 PO O INSTALL 6' SCH HO PVC VENT PIPE MYTH DRILLED HOLES AND CAP. b STORAGE VAULT TYP. 26 6 1B PRESS INSTALL E. SEWAGE AIR RELEASE ASSEMBLY TOR 150 PSI MAXIMUM OPERATING PROPOSED PRESS RE. APCO MODEL N0. A00 OR APPROVED EQUAL WITH 1/2' NPT OUTLET. WETWELL INLET. AND BLOWOFF VALVE. QUICK INSCONNECT LOURING AND MNNUM 21•s 5' HOSE FOR RUSHING, T% INV. 9.50 N� 030 19 INSTALL AN RELEASE AND VENT COVER PER PRO,IECT SPECIFICATIONS. VAULT BOOR 20 INSTALL V SCH HO SS TYPE 316 gPINO (LENGTH AS REOUNEO) ATTACHED TO L V 9 VAULT WALL WITH STAINLESS STEEL AN GAS AND HARDWARE. ...,o._aw_ _____ - a ��1))) T1 INSTALL 11Y SCH AO PVC PINS AND FITTINGS FOR AIR RELEASE VALVE DRAIN. l ® TYP. 26 / ® INSTALL DOUBLE STRAP BRONZE SADDLE (2 TOTAL) WITH Ig AND 1' OUTLETS hh Y FOR CONNECTION OF 11Y AND 1' GRAIN LINES TO VALVE VAULT DRAIN. b © INSTALL 12' FLOOR DRAIN AND ORATE. TIP. 2e a [?TIP. ©I INSTALL 0' SCH b PVC PIPE AND FITTINGS. 21-S © SINE 6' TIDEFLEX TF-2 SLIP-ON RUBBER CHECK VALVE WITH STAINLESS INV. -1.3D 21 •' 27 STEEL WANDS. - 1W . __50 ® WALL PENETRATION PER DETAILe. IN WETWELL FLOOR Q CONSTRUCT CONCRETE VAULT FLOOR FOR WETWELL TO NMP MANUFACTURER ELEV. -200 SPECIFICATIONS WITH 6' CUT OUT UNDERNEATH PUMP SUCTION. COXCRETE AULT Je 3 BY DI LAYOUT, DIMENSIONS AND THICKNESS SMALL BE REVIEWED AND APPROVED qyA, //.-•YY/ BY DISTINCT PRIOR TO INSTALLATION. I 28 INSTALL FIBERGLASS LADDER ASSEMBLY PER PROJECT SPECIPILATIDIIS. XI' -0' 6 L.F. 21' VCP e' -0' 6 L.F. 21' VCP NY-O' Js 6 SCALE: 1/!' - 1' -0' 29 NECTRI AND INSTALL PUMP CONTROL ELECTRIC PER PROJECT SPECIFICATIONS AND AND SITE DRAMYNEN REFER TO ELECTRIC DRAWING FOR ELECTRIC SERVICE AND SITE REOUIREYENTS. ® INSTALL ODOR CONTROL CABINET AND EOUIPXENT FURNISHED BY DISTRICT. SECTION 0,0 INSTALL OVERHEAD POWER/ FUTURE RETAINING WALL ]1 INSTALL 1 11Y SCH b PVC PIPE AND FITTINGS FOR HYDROGEN ROXIDE LINES FUTURE STREET R/M UTILITY LINES O FOR DOOR CONTROL. 3T INSTALL REMOVABLE GUARD POST PER OETAn OA6 . EXACT LOCATION TO BE yr 3] 15 11 16 li 19 30 Jt 13� 6 15 3 6 IB J 1J 11 21 1D 1B 11 2 O RETORATETRAFFICE SIGNAL BOX- AND'UNE TO SATISFACTION OF THE DISTRICT AND COUNTY OF ORANGE RELOCATE CATHDDIC PROTECTION STATION AND WINES TO THE SATISFACTION OF THE DISTRICT AND CITY OF NEWPORT BEACH. CONSTRUCT NEW CONCRETE CURB AND SIDEWALK (APPRO%. ]0 LINEAR FEET) h 't E y F,_ •'', N >p,• "' ^' $+ " ,��,,�� ° '3 O IN LOCATION OF PROPOSED PUMP STATION VAULTS TO THE IMPROVEMENT EXISTING JNNT PER PROPOSED GRADES SHOWN ON O< RDMD STREET IMPROVEMENT RAXS. TI VERIFY PROPOSED GRADES WITH CMSD AND OC ROMD PRIOR To cousTauLnoN. O INSTALL 12' THICK GRAVEL BEODINO. NOTES TO CONTRACTOR I. CONTRACTOR SHALL POUF CONCRETE FLOOR M PROPOSED VAULTS 10 MATCH ,,, •. / : ., � ---x P g4S�8T3R BEN k Y � PROPOSED SEWER GRADES AND GRADE TO diAIN AT MINIMUM 1W SLOPE. 10 16 / n 6na* • 2� }� C '/ § + W 43 1 CANLRACTOR SHALL INSTALL EXTERIOR COATING AND INTERIOR LINING FOR ALL JJJ /// 6 gKl$'ffN gUg gROp gERG)y `S, VAULTS AND MANHOLES FER PROJECT SPECIFICATIONS. 3] ]5 to EXISTING CURB FACE l'}' `� �1 1�•`' U{ J CONTRACTOR SMALL USE 1 -SACK CEMENT SLURRY BACKFILL FOR CONTINUATION D< ��Y $ fE 16 PA CURB FACE AIR RELEASE VALVE PIPI G R °L ys'C i } M � Sel • CONi A OR PROVDE SHOP NIAWIRGS, CLUDING STRUCTURAL DESIGN SEE SHEET C-] 1^� y'bE'i � „ 7 ANOFCALCULATIONS PERFORMED ENGINEER R ALL OF AND SEALED BY A CALI ORNIA PROFESSIONAL EN N FO L VAULTS AND MANHOLES E — ..._ _._.._ _. _- ... ... ..... -.... i, . _ . _ .......... .._.. _ _. .,.,;;;;•.` t yes ;`Y?� v1�`•iR au.: PER PROJECT SPECIFICATIONS. SHOP DRAWINGS SHALL BE ACCEPTED BY DISTRICT ]! �•h ` ,F..'. -T. „f`+"1' > RRIOR TO FABRICATION. _ 3. PROPOSED ACCESS MATCHES FOR ALL PRECAST VAULTS AND MANHOLES SHALL - " "- - - eE SHOWN ON SHOP DRAWINGS AND MUST CONSIDER CONSTRUCTION OF PROPOSED EXISTING STREET STRIPING CURB, GUTTER, AND SIDEWALK. s F E D FUTURE BUS TURNOUT CAUTION: OVERHEAD POWER / uT,uTn LINES IRVINE AVENUE ` -5 °-5 LEGEND FUTURE STREET AND STORM DRAIN IMPROVEMENTS PER I OC RDMm IRVINE AVENUE WIDENING PROJECT (WO EROS922) PREPARED BY: DESIGN s T ^�,�E � COSTA MESA SANITARY SURFSIDE Boo-zz� -2600 onra ul i7Nr3 "� » AN' 4 ��, MAY 2GO IRVINE PUMPING STATION RELOCATION AND REHABILITATflUF 58 ENGINEERS y �. tLN@ PRWECI NO J05EP P. SINACORI II DATE Ja FI PROIECDT ENGINEER DATE BY DESCRIPTION .`ti.�' " °•'.�� ^F�IUC�ECI'L1 SURFS E CONSULONG ENGINEERS, INC. CMSD -168 t ®V PUMP STATION SITE PLAN AND SECTION 15 SHEETS 0 Project #180 - FOG Program $100,000 The District has remained in compliance with the State Water Quality Control Board's General Waste Discharge Requirements (WDR) by having an on -going grease control program. Grease is the number one cause of sewer line blockages and sanitary sewer overflows (SSOs) and the District has retained a consultant to manage the FOG program and reduce the grease in the sewer system. The program has been successfully managed for four years by the consultant Environmental and Engineering Contractors, Inc. (EEC) and the proposed budget is for the forthcoming year. Both the Assistant Manager and Manager /District Engineer of the District spend considerable time managing the FOG program and working to decrease the number and severity of SSOs. The District is subject to fines, regulatory action, and third party lawsuits for the incidence of sewer spills. The number and severity of spills is considered the measuring stick of sewer agencies. The Garden Grove Sanitary District recently settled a federal lawsuit from the Orange County Coastkeepers for violations of the Clean Water Act. The District originally structured the FOG control program to allow a decrease of the consultant's time with a corresponding increase of District staff time with the two District sewer inspectors and the District's Ordinance Enforcement Officer increasing their duties to handle the time needed. However, additional demands in their respective areas precluded their transfer to this program so the level of consultant time remained level for the first four years of the FOG program and is proposed to remain at this level. The CMSD Manager /District Engineer is a member of the regional steering committee for WDR understanding and compliance and the District's Assistant Manager is responsible for the detailed reporting of sewer spills. The District also recently entered into an agreement to have the Orange County Health Care Agency (OCHCA) inspectors check for FOG program compliance during one of their three yearly inspections of food service establishments (FSEs.) In order to better understand the consultant's role in the FOG program, the proposed scope of work from EEC is attached. Discussions between the Manager /District Engineer and EEC concluded that a budget of $100,000 was the minimum that would provide for a satisfactory program. A smaller budget would result in too few inspections and follow up. • Recommended appropriation - $100,000 13 • June 12, 2007 Mr. Rob Hamers Costa Mesa Sanitary District 234 East 17th Street Suite 205 Costa Mesa, California 92627 ENVIRONMENTAL ENGINEERING & CONTRACTING, INC. 501 Parkcenter Drive, Santa Ana, CA 92705 Phone (714) 667 -2300 Fax (714) 667 -2310 Subject: Proposal and Cost Estimate for Waste Discharge Requirements Fats, Oils, and Grease (FOG) Control Program Phase IV, CMSD Project 180 Dear Mr. Hamers, Environmental Engineering & Contracting, Inc. (EEC) is pleased to present this proposal to provide Waste Discharge Requirements Fats, Oils, and Grease (FOG) Control Program Phase IV services for the Costa Mesa Sanitary District (District). These services will be performed in accordance with the District's FOG Control Program Manual and Grease Control Regulations Ordinance to comply with the State Water Resources Control Board Statewide General Waste Discharge Requirements for Sanitary Sewer Systems, Order No. 2006 -0003. The services described in this proposal intend to provide key services for an effective FOG control program. Pursuant to our previous discussions, the FOG Control Program services currently provided to the District equates to approximately 1.5 Full Time Equivalents (FTE). While the District's FOG Control Program continues to mature, fewer resources are needed to maintain an effective program. In order to maintain an effective FOG Control Program for the District and provide the necessary District presence and outreach to the FOG community, a minimum of 1 FTE is, required. The following scope of work includes FOG Program services, equating to approximately 1 FTE, to be provided from July 1, 2007 through June 30, 2008. SCOPE OF WORK The scope of work for the proposed FOG control program management and inspection services will include the following tasks: 1. Program Management Providing FOG control program management, including database and GIS management Providing a FOG control program assessment and recommendations Providing FOG Source Investigation oversight and support . Providing other support activities 13 a 0 F.FC, FOG Program 2007, Proposal, Costa Mesa Sanitary District 7nne 12, 2007 2. Inspections Conducting permitting inspections Conducting grease removal equipment (GRE) inspections Conducting kitchen best management practices (BMP) inspections Conducting combined kitchen BMP and GRE inspections Conducting compliance inspections Conducting CCTV source inspections 3. Enforcement Providing enforcement management Conducting enforcement inspections The specific details to these tasks are as follows: 1.0 PROGRAM MANAGEMENT 1.1 FOG CONTROL PROGRAM MANAGEMENT, INCLUDING DATABASE AND GIS MANAGEMENT EEC will: identify and prioritize food service establishment (FSE) inspections, including coordination with OCHCA; review and update the results of the FSE inspections into the associated database and GIS; and will develop database forms and reports, as appropriate, to summarize the findings of these inspections. On a monthly basis, EEC will report the activities conducted during the month, identify findings, and provide recommendations to the FOG Control Program Manager. These services are proposed to be performed monthly for the 12 month service period. 1.2 FOG CONTROL PROGRAM ASSESSMENT AND RECOMMENDATIONS At the end of the year period, EEC will conduct a FOG control program assessment and provide recommendations for program enhancement and resource management. This will include hot spot mitigation, FSE compliance status, and grease- related SSO status. 1.3 CCTV SOURCE INSPECTIONS EEC will assess hot spots to identify FSEs that are discharging FOG to the sewer collection system utilizing the District's CCTV staff or subcontractor. It is projected that 4 days of CCTV Source Inspections will be conducted during the next 12 months of the program. 1.4 ADDITIONAL AGENCY SUPPORT ACTIVITIIES 0 1 • Assist District personnel, as requested, to provide other support activities, such as: 138 • F.F.C:, FOG Program 2007, Proposal, Costa Mesa Sanitary District .Tune 12, 2007 Assist in developing FOG Policies (e.g., Grease Trap Usage, Additive Usage); • Assist in preparation for and/or attending Hot Spot and other Sewer System issue resolution meetings; • SSO investigation support; • Assist in training agency or other' agency staff on the District's FOG Program; • Assist in obtaining FOG Program or sewer related data from other agencies; and 0 Assist in preparation and/or attending meetings on FOG or sewer related issues. 2.0 INSPECTIONS The details are described below and also in the FSE Inspection Detail attached table. 2.1 PERMITTING INSPECTIONS EEC will physically inspect and educate FSEs within the District that are new to the FOG Program. These FSEs include new FSEs and existing FSEs that have a change in ownership or name change requiring re- permitting. For the sake of this proposal from July 2007 to June 2008, EEC will plan to perform 25 permitting inspections (quantity based on an estimation of approximately 7.5% of the total FSEs [ -370] in the program). For those FSE that have been identified in the vicinity of hot spots or identified as FOG sources, EEC will discuss, with the FSE management, the enforcement options that are available to the District and the steps that the FSE can take to avoid additional enforcement. 2.2 GREASE REMOVAL EQUIPMENT (GRE) INSPECTIONS EEC will physically conduct GRE inspections for FSEs with a grease interceptor or grease trap and is projecting to perform approximately 74 inspections. 2.3 KITCHEN BEST MANAGEMENT PRACTICE (BMP) INSPECTIONS EEC will physically conduct kitchen BMP inspections for FSEs without GREs and is projecting to perform approximately 160 inspections. 2.4 COMBINED KITCHEN BMP AND GRE INSPECTIONS EEC will physically conduct combined kitchen BMP and GRE inspections for FSEs and is projecting to perform approximately 150 inspections. C 13c, 2.5 COMPLIANCE INSPECTIONS Although it is difficult to estimate the amount of non - compliance at this time, EEC will plan to perform compliance inspections at 75 FSEs due to non - compliance issues or on- going hot spot source identification. This may include the issuance of written warnings or notice of violations (NOVs) to FSEs that are found to be in non - compliance of the FOG control ordinance or permit. 3.0 ENFORCEMENT 3.1 ENFORCEMENT MANAGEMENT Based on the results of the CCTV Source Inspections and continued NOVs, EEC will review, provide recommendations, and assist the District staff and FOG Control Program Manager in the enforcement process. For the sake of this proposal, EEC is assuming that enforcement management will be required for 4 FSEs. 3.2 ENFORCEMENT INSPECTIONS Although it is difficult to estimate the amount of enforcement required at this time, EEC will plan to perform enforcement inspections at 4 FSEs (2 visits per FSE for a total of 8) during the next 12 months of the program. Due to the serious nature of these inspections, EEC will attempt to meet with the FSE manager or property owner to discuss the enforcement and the FSE's plans to achieve compliance. COST ESTIMATE Based on the aforementioned scope of work, EEC has identified the projected costs (identified as either a time- and - material estimate or unit based cost) for each of the tasks as follows: July 1, 2007 through June 30, 2008 Description Units Rate Subtotal Total 1.1 Program Management Fixed 12 months $ 3,300 $39,600 1.2 Annual Assessment Fixed 1 $ 3,000 $3,000 1.3 Additional Agency Support T &M 1 $ 3,000 $3,000 1.4 CCTV Source Inspection Oversight T &M 1 $ 4,000 $4,000 $49,600 4 k3 0 The total projected cost is $99,809 (not -to- exceed) to complete the aforementioned scope of work. The payment terms are net 30 -days and progress invoices will be submitted on a monthly basis. These costs do not include CCTV, printing or mailing associated costs and the time -and- materials portion of the work will be based on EEC's 2007 Fee Schedule (attached). EEC looks forward to this opportunity to assist the Costa Mesa Sanitary District in the management and operation FOG Control Program and will be available to start immediately upon issuance of a purchase order. If you have any questions regarding this proposal, please call Jim Kolk or Stan Steinbach at (714) 667 -2300. Sincerely, vironmental Engineering and Contracting, Inc. Jim Kolk Project Engineer I Attachments: FSE Inspection Detail, July /2007 to June /2008 Environmental Engineering and Contracting, Inc., 2007 Fee Schedule s 135- FSEs 2.1 Permitting Inspections Unit 25 1 $ 121 $3,025 2.2 GRE Inspections Unit 74 1 $ 74 $5,476 2.3 BMP Inspections Unit 160 1 $ 74 $11,840 2.4 BMP /GRE Inspections Unit 150 1 $ 84 $12,600 2.5 Compliance Inspections . Unit 75 1 $ 124 $9,300 $42,241 FSEs 3.1 Enforcement Project Management T &M 4 - $ 1,490 $5,960 3.2 Enforcement Inspections T &M 4 2 visits $ 251 $2,008 $7,968 Total $99,809 The total projected cost is $99,809 (not -to- exceed) to complete the aforementioned scope of work. The payment terms are net 30 -days and progress invoices will be submitted on a monthly basis. These costs do not include CCTV, printing or mailing associated costs and the time -and- materials portion of the work will be based on EEC's 2007 Fee Schedule (attached). EEC looks forward to this opportunity to assist the Costa Mesa Sanitary District in the management and operation FOG Control Program and will be available to start immediately upon issuance of a purchase order. If you have any questions regarding this proposal, please call Jim Kolk or Stan Steinbach at (714) 667 -2300. Sincerely, vironmental Engineering and Contracting, Inc. Jim Kolk Project Engineer I Attachments: FSE Inspection Detail, July /2007 to June /2008 Environmental Engineering and Contracting, Inc., 2007 Fee Schedule s 135- • FSE Inspection Detail July /2007 - June /2008 Costa Mesa Sanitary District Inspection Type Current FSE QTY Projected FSE QTY Relationship to Hot Spots GRE Type Inspection Frequency Sub -Total BMP /GRE Inspections 21 20 HS Related Interceptor Quarter) 80 BMP /GRE Inspections 11 10 HS Related Trap Quarter) 40 BMP /GRE Inspections 14 15 Non -HS Related Trap Semi-Annually 30 Total GRE /BMP Inspections 150 GRE Inspections 4 4 HS Related Shared GRE Quarterly 16 GRE Inspections 4 4 Non HS Related Shared GRE Semi - Annually 8 GRE Inspections 52 50 Non -HS Related Interceptor Annually 50 Total GRE Inspections 74 BMP Inspections 72 75 HS Related None Annually 75 BMP Inspections 164 170 Non -HS Related None Bi-Annually 85 BMP Inspections 9 10 HS Related Shared GRE Annual) (OCHCA) 0 BMP Inspections 15 15 Non -HS Related Shared GRE Annual) (OCHCA) 0 366 Total BMP Inspections 160 Permitting Inspections - 25 NA NA One Time for New FSEs (Based on an estimation of approximately 7.5% of the total FSEs in the Program) 25 Total Permitting Inspections 25 Compliance Inspections - 75 NA NA Based on an estimation of approximately 20% non- compliance rate of total inspections performed 75 Total Compliance Inspections 75 Notes: - - -- - - ' Quantity includes an estimation of additional FSEs to be included to current FSEs in the program • 13F • • EPVV /itt7NMENT ^itL ENGINEERING & CONTRACTING, INC. 501 Parkcenter Drive, Santa Ana, CA 92705 Phone (714) 667 -2300 Fax (714) 667 -2310 2007 Fee Schedule Prior to the commencement of services provided by EEC a Professional Service Agreement, Contract, Purchase Order, or Commitment Letter must be executed by both parties engaged. PERSONNELCHARGES The charge for all time required for the performance of the Scope of Work, including office, field and travel time, will be billed at the hourly rate according to the labor classifications set forth below: Labor Classification Hourly Rate Staff Engineer /Geologist/Scientist $85 Sr Staff Engineer /Geologist/Scientist $95 Project Engineer /Geologist/Scientist -1 $110 Project Engineer /Geologist/Scientist - 11 $120 Sr Project Engineer /Geologist/Scientist - 1 $140 Sr Project Engineer /Geologist/Scientist - II $165 Principal Engineer /Geologist $175 Sr Process Specialist $175 Principal $195 EH &S Audit Director $150 Project Assistant $65 Technician $75 Drafter $80 Sr Technician $85 Compliance Inspector $85 GIS Analyst $85 GIS, Database Specialist $110 Construction Technician $60 Construction Field Supervisor $70 Construction Manager $80 Sr Construction Manager $110 Emergency response and client requested work during non - standard business hours will be charged at a rate of 1.25 times the standard hourly rate. Travel Field vehicles used on project assignments will be charged at $50 per day. The mileage charge will be billed by the current rate established by the Internal Revenue Service plus mark up. Per Diem is billed at a unit cost of $40 per day. Lodging and Per Diem is billed at $175 per day. Field Equipment Field Equipment is billed at standard unit costs. Rate schedules are available upon request. Subcontractors and Reimbursables The costs of subcontractors, materials, equipment rental and costs incurred will be charged at cost plus 15 %. Other Project Charges The cost of additional report reproduction and special project accounting will be billed as appropriate. Plotting plans are charged by size, black and white or color, and by the number of copies supplied. Shipping and Postage Shipping charges include couriers and the postage necessary will be charged at cost plus markup. When EEC Staff appear as expert witnesses at court Interest Charges trials, mediation, arbitration hearings and depositions, Interest on late payments will be charged at the rate their time will be charged at 2.0 times the standard rate. of 1.5% per month. All time spent preparing for such trials, hearings, and depositions, will be charged at the standard hourly rate. This Fee Schedule is adjusted each subsequent year to reflect the economic changes for the new year. The new schedule will apply to existing and new assignments. I *)G C,, 0 Project #182 - Analysis of CCTV Results $125,000 • As of June 2007, the District -wide closed circuit televising (CCTV) project is 50% complete with an expected completion date of June 2008. The CCTV project is being completed under the Orange County Sanitation District's (OCSD) Cooperative Projects Program and OCSD is funding 50% of the televising. OCSD's goal is to identify sources and decrease the volume of inflow and infiltration (1 /1) at the treatment plants. The televising was originally scheduled for completion in November 2006 but was extended with the approval of OCSD due to finding significant amounts of debris in the system. Inflow is surface water that finds its way into the sewer system through manhole covers or illegal storm drain connections and infiltration is water that enters the system underground through misaligned joints and cracks in the line. OCSD's flow doubles from 240 million gallons per day (MGD) to 480 MGD during significant storm events. All 1.2 million feet of the CMSD sewer mains are being televised by National Plant Services (NPS) and graded using the NAASCO PACP grading system. This project proposes to analyze the results and formulate a rehabilitation program. The grading system places a 5 on sewer lines that are in need of immediate repair and a 4 on lines that much be watched closely. The analysis may also include identifying sewer lateral connections to the main line that have root masses and then notifying the corresponding property owner. The analysis of CCTV Results will begin with comparing all the 5 scores and then ranking them for the forthcoming repair program. A yearly rehabilitation project is included in the 5 -year CIP beginning with the 2008- 2009 fiscal year. Included in the proposed appropriation is the purchase of the specialized software Wincam and extra hard drive space that is needed to manage the data in the approximate amount of $15,000. The project is expected to last at least six months and cannot be completed until after all the lines have been televised. Proposed appropriation $125,000 14 °V' Ll • NA 0 Proiect #186 — Sewer Lateral Assistance Program $100,000 • The State Water Resources Control Board recognizes that private property sewer spills are not the responsibility of the public sewer agency but the number of private property spills is significant and needs to be addressed. CMSD Director Gary Monahan became concerned at the significant cost, of sewer lateral repair, particularly if the problem is located in the street. Because many property owners are unable to service their sewer laterals due to the lack of a cleanout, Director Monahan proposed an incentive program where the District would financially assist the property owner. Prior to beginning the program, the CMSD Attorney will be preparing an ordinance where the Board of Directors will make findings that the use of public money to assist private property owners is for the good of the public due to decreasing the chances of sewer spills, and that the program does not constitute a gift of public funds. The WDR requirements already include an outreach and education program and a few other agencies already have lateral programs. The CMSD Sewer System Committee is developing standards for the incentive program including possibly contributing to televising the lateral and constructing a cleanout. With a cleanout and periodic maintenance program, the laterals will function more reliably and be less inclined to need expensive reconstruction at a later date. The Committee's contribution to a particular property will be approximately $1,200 based on current estimates of costs, and with a project budget of $100,000, approximately 86 laterals can be addressed. The 5 -year CIP includes a yearly contribution of $100,000 to the program. Means of identifying candidates for the, incentive program include property owners who require the services of a plumber, property owners whose laterals have roots protruding into the mainline as seen in the District -wide televising program, and property owners who experience slow moving water. Proposed appropriation $100,000 15 s • Notes to 2007 -2008 Capital Improvement Program: Project #173 — South Coast Plaza Force Main Replacement — Planned D_ elay The force main replacement project was initiated due to a severe break in the force main as it passed under a storm drain box culvert of which the property owner states they have no construction plans. Without the plans, it was impossible to review the sewer -storm drain crossing protection methods and determine the cause of the break. The force main was originally dedicated to the Sanitary District after it was constructed as a private facility but when the property owner realized they did not have the capability of maintaining the pumping station, force main, and gravity sewer. The CMSD accepted dedication of the facility but never inspected the installation nor was sure of the standards used during construction. Because of this uncertainty, and because of the rupture in the line, and because the infrastructure was constructed in the early 1960s implying the force main was 47 years old, the CMSD added the planned replacement of the force main to the yearly Capital Improvement Program. However, when Bloomingdales (the successor to the May Company) was performing construction and exposed a portion of the force main, it was found to be in good condition and did not appear in need of replacement. Therefore, the proposed delay was brought to the Board of Directors and approved. The construction plans are complete and will be held until it is determined to replace the force main as part of the force main planned replacement program. The construction funds were transferred to the operations and maintenance program. 16 COSTA 911ESA SANYTART(DISTRICT Memorandum ... an Independent Special 1District To: Board of Directors From: Marc Davis, Treasurer /Director of Finance f� Date: July 9, 2007 Subject: Statement of Investment Policy for Fiscal Year 2007 -08 Recommended Action Adopt Resolution No. 2007 -736 adopting a Statement of Investment Policy for fiscal year 2007 -08 and delegating certain investment functions to the District Treasurer. 0 Executive Summary • Enclosed for consideration is the Statement of Investment Policy for the 2007 -08 fiscal year. Although a statement of investment policy is no longer required by the California Government Code to be adopted by the Board, Section 53646 of the Code allows the treasurer of a local agency to submit such an annual statement to the Board for consideration and review. Although no longer required, Staff believes it is prudent to continue to do so. The Statement of Investment Policy was reviewed with the Investment Oversight Committee at their meeting of June 14, 2007. There were no changes to the investments permitted by California law this past year. Thus there are no changes proposed to the District's investment policy from that which was adopted for the 2005- 06 fiscal year. Attachments: Attachment 1 — Resolution No. 2007 -736 Attachment 2 — Statement of Investment Policy protecting our community's health by providing solid waste and sewer collection services. crosdca.gov C] ATTACHMENT 1 RESOLUTION NO. 2007 -736 A RESOLUTION OF.THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ADOPTING A STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2007 -08, AND AUTHORIZING THE TREASURER TO INVEST AND REINVEST IDLE MONIES OF THE COSTA MESA SANITARY DISTRICT IN ACCORDANCE WITH THE STATEMENT OF INVESTMENT POLICY, AND FURTHER AUTHORIZING THE SAID TREASURER TO DELEGATE TO A DEPUTY THE CARRYING OUT OF ANY SUCH TASKS. WHEREAS, Government Code Section 53601 sets forth the investments that the District may lawfully make; and WHEREAS, Government Code Section 53646 sets forth that the District's Treasurer may annually render to the Board of Directors a Statement of Investment Policy at a public meeting for the Board to consider; and WHEREAS, The Board has reviewed the Statement of Investment Policy; and WHEREAS, Government Code Section 53607 allows the Board to delegate the • authority to make investments and to sell or exchange securities for a one year period to the Treasurer, provided that monthly reports are thereafter made of the status of said transactions. 0 NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT DOES HEREBY RESOLVE AS FOLLOWS: 1. That the Statement of Investment Policy is approved. 2. That the Treasurer is authorized to make investments consistent with said Policy and is required to report to the Board on a monthly basis and to the Investment Oversight Committee on a quarterly basis on the status of those transactions. The Treasurer is hereby given all of the authority provided by Government Code Section 53607, including the power to invest and reinvest and the power to sell or exchange securities, consistent with the District's policy. 3. That the Treasurer may delegate some part of these duties to a deputy provided that the Treasurer remains responsible for such decisions and provides oversight. 1 PASSED AND ADOPTED this AYES: NOES: ABSTENTIONS: ABSENT President of the Board STATE OF CALIFORNIA) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) ATTACHMENT 1 day of 2007, by the following vote: Secretary of the Board • I, Joan Revak, Clerk of the Costa Mesa Sanitary District, hereby certify that the above • and foregoing Resolution No. 2007 -736 duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the day of 2007. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this day of 2007. Clerk of the Costa Mesa Sanitary District • 2 COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2007 -08 I. PURPOSE ATTACHMENT 2 This statement is intended to formalize the various policies and procedures for the prudent investment of temporarily idle cash for the Costa Mesa Sanitary District. It outlines the investment - related activities, which comprise good cash management. In concert with these activities there are many facets of an appropriate secure short-term investment program, which will enhance the economic condition of the District while safeguarding its assets. 11. INVESTMENT SELECTION OBJECTIVE The District strives to maintain the level of investment of all idle funds as near 100% as possible. All temporarily pooled idle cash is invested under the "Prudent Man Rule" (Civil Code Sect. 2261, et seq.) which states, in essence: "in investing... property for the benefit of another, a trustee shall exercise the judgment and care, under the circumstances then prevailing, which men of prudence, discretion and intelligence exercise in the management of their own affairs..." This affords the District a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California Government Code Section 53600 et seq. and the Costa Mesa Sanitary District Statement of Investment Policy. The District Treasurer, after meeting the legality, safety, liquidity and diversification criteria, will attempt to obtain the highest yield possible. The criteria for selecting investments, in order of priority are: 1. Le all - The District's investments must conform to federal laws, state statutes, District ordinances and internal policies and procedures. The District has established internal controls to ensure that investment activities comply with all applicable statutes, ordinances and policies. 2. Safe - The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The District only operates in those investments that are considered very safe. 3. Liquidity - This refers to the ability to "cash in" at any moment in time with a minimal chance of losing, some portion of principal or interest. The District's investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements as well as unanticipated needs for funds. • ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2007 -08 • 4. Diversification - The District's investment portfolio will be sufficiently diversified to avoid incurring unreasonable risks resulting from saturation of assets in specific security types, maturities or individual financial institutions. 5. Yield - Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. The basic premise underlying the District's investment philosophy is to ensure that funds are always safe and available when needed. The District does not buy stocks, speculate or deal in futures or options. Any investment extending beyond a five -year period requires prior District Board approval. III. AUTHORIZED INVESTMENTS The District limits its investments to the following vehicles: US Treasury Bills US Treasury Notes Federal Agency Issues - Examples include: • Federal Intermediate Credit Bank Debentures (FICB) • • Federal Farm Credit Bank (FFCB) • Federal Land Bank Bonds (FLB) • Federal Home Loan Bank Notes and Bonds (FHLB) • Federal National Mortgage Association (FNMA) • Federal Home Loan Mortgage Corporation (FHLMC) Banker's Acceptances Certificates of Deposit (CD) Negotiable Certificates of Deposit Commercial Paper Medium Term Corporate Notes Money Market Mutual Funds Passbook Savings Account Local Agency Investment Fund (LAIF) IV. DELEGATION OF AUTHORITY The District Board hereby delegates its authority to invest surplus District funds to the Treasurer /Director of Finance (hereinafter referred to as District Treasurer). Delegation of the investment function by the District Board is limited to a one -year period. Failure to • 2 ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2007 -08 delegate deems the District Board to be trustee and fiduciary, therefore subject to the prudent investor standard. V. INTERNAL CONTROLS A system of internal control shall be established and documented in writing. The controls shall be designed to prevent loss of public funds arising from irregularities, employee error, misrepresentation of third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the District. Controls deemed most important include: control of collusion, separation of duties, custodial safekeeping, clear delegation of authority, confirmation of transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and code of ethics standards. VI. REPORTING Under provisions of Section 53607 of the California Government Code, the District Treasurer shall submit a monthly investment report to the District Board. This report will list the type of investment, institution, date of maturity, amount of deposit, rate of interest, current market value of securities with maturities in excess of 12 months, source of market valuations, and statement of compliance. Also provided shall be a schedule of market values maturing by date and type, and such other data as required by the District Board. VII. LEGAL CONSTRAINTS . Surplus funds must be deposited in state or national banks, state or federal savings associations or federal credit unions within the State of California. These deposits cannot exceed the amount of the institution's paid -up capital and surplus. The bank or savings and loan must secure public funds deposits with eligible securities having a market value of 110% of the total amount of the deposits or first trust deeds having a value of 150% of the total amount of the deposits. A third class of collateral is a 105% letter of credit drawn on the Federal Home Loan Bank. The District Treasurer may waive security for that portion of a deposit, which is insured pursuant to Federal law. Currently, the first $100,000 of a deposit is federally insured. Deposits over $100,000 are collateralized as indicated above. • 3 ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2007 -08 VIII. DERIVATIVES The term derivative is a commonly used name that describes a variety of securities whose values are "derived from" the value of another asset, a reference rate or an index. Investment in derivative instruments is limited to securities that have periodic increases, or step -up interest rate adjustments that provide an increased yield. Investment in callable securities is also allowed, but must comply with other restrictions as specified in this Investment Policy. Derivative securities known as "inverse floaters" and other such securities that produce higher yields when purchased but have the possibility of producing low or no return through the life of the security, are not allowable. IX. BOND PROCEEDS When investing bond proceeds, the Costa Mesa Sanitary District will adhere to this Investment Policy when determining appropriate instruments for placing monies. If the bond's trust agreement is more restrictive than the District's Policy, then the trust agreement supersedes the District's Policy. The District may delegate it's responsibly to the fiscal agent to ensure compliance with the bond covenants when managing bond proceeds on behalf of the District. Borrowing money solely for the purpose of investing and earning arbitrage is specifically prohibited. X. GRANDFATHER PROVISIONS The Costa Mesa Sanitary District investment strategy is to buy and hold until maturity. As legislation and the District's Statement of Investment Policy change, certain investments may become prohibited. Under Section 53601.6 of the California Government Code, the District may hold prohibited investments until their maturity to avoid incurring a loss. This allows the District to "grandfather" in securities purchased prior to the effective date of new legislation. When selling securities prior to maturity, losses are only acceptable if the proposed swap /trade can clearly enhance yield (value) over the life of the new security on a total return basis, or to prevent the further loss of principal. Sufficient written documentation to facilitate the audit of the transaction must be maintained. In the event that an issuer's rating is downgraded from when the security was purchased, the District Treasurer's awareness is heightened and the security will be closely monitored to determine if credit risk has been significantly increased. The District Treasurer will evaluate the need to sell the security prior to maturity. • 4 0 ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2007 -08 XI. BANKS AND SECURITIES DEALERS The Costa Mesa Sanitary District shall transact business only with banks, savings and loans, and "primary" or "regional" registered investment securities broker /dealers with offices located in the State of California. Any broker /dealer or financial institution wishing to provide services must complete the District's questionnaire and be approved by the District Treasurer. The number of broker /dealers authorized to transact business with the District is one broker /dealer for every $3,000,000 of portfolio size. XII. SAFEKEEPING AND CUSTODY Securities should be held in a third party custodian /safekeeping account. Said securities shall be held in a manner that establishes the District's right of ownership pursuant to Government Code Sections 53601 and 53608 et seq. All securities owned by the District should be held by a third party except the collateral for time deposits in banks and savings and loans, which is held by the Federal Home Loan Bank or an approved Agent of Depository. The collateral for time deposits in banks should be held in the District's name by the bank's Trust Department, or alternately, by the Federal Reserve Bank pursuant to Government Code Sections 53656 and 53657 et seq. XIII. INDEMNIFICATION Any authorized investment personnel acting with prudence and in accordance with the District Statement of Investment Policy, will not be held personally liable for any investment losses. Through surety bonds the District is indemnified against any investment personnel acting with malfeasance, misfeasance or nonfeasance. XIV. CONFLICT OF INTEREST Any firm proposing to provide any type of investment service to the District shall acknowledge their familiarity with and agree to abide by any Federal and State laws or regulations pertaining to contractual conflicts of interest or contributions by such firms, their employees, spouses or agents. Any persons, firms, dealers, brokers and advisors providing investment services or bond issue assistance shall disclose to the District Treasurer all fee sharing and commission arrangements with other entities or persons prior to the District agreeing to buy an investment or issuing bonds. COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2007 -08 XV. POLICY REVIEW ATTACHMENT 2 The District Treasurer shall be responsible for reviewing and modifying this Statement of Investment Policy annually for District Board approval to ensure its consistency with the overall objectives of safety, preservation of principal, and liquidity, and its relevance to current law and current financial and economic conditions. XVI. SUMMARY The basic premise underlying the District's investment philosophy is conservative, and will continue to be, to ensure that money is always safe and available when needed. Attachments: Investment Guidelines and Strategy Investment Procedures — Internal Control Guidelines Cash Controls Segregation of Treasury Functions F C7 C� COSTA MESA SANITARY DISTRICT Investment Guidelines and Strategy Fiscal Year 2007 -08 I. GUIDELINES ATTACHMENT 2 Guidelines are established to direct and control activities in such a manner that previously established goals are achieved. 1. Investment Transaction: Every investment transaction must be authorized and reviewed by the District Treasurer. 2. Pooled Cash: Whenever practical, cash is consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated quarterly to each fund according to fund actual month -end cash balances. 3. Competitive Bids: Purchases and sales of securities are made on the basis of competitive offers and bids when practical. 4. Cash Forecasting: The cash flow for the District is projected with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements. • 5. Investment Limitations: Security purchases and holdings are maintained within statutory limits imposed by the California Government Code. The District's current limits are: • Permitted Investments /Deposits US Government Securities Certificates of Deposit Bankers' Acceptances (1) Commercial Paper (1) Negotiable CDs (1) Medium Term Notes (1) LAI F Time Deposits District Policy Percent Maturi Unlimited 5 years 25% 1 year 25% 180 days 25% 270 days 25% 5 years 25% 5 years $40 million n/a Unlimited 5 years (1)Further limited to 10% in any single issuer Government Code Percent Maturity Unlimited 5 years Unlimited 5 years 40% 180 days 30% 270 days 30% 5 years 30% 5 years $40 million n/a Unlimited 5 years 6. Liquidity: The marketability of a security is considered at the time of purchase, as the security may have to be sold at a later date to meet unanticipated cash demands. 7 ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Investment Guidelines and Strategy Fiscal Year 2007 -08 7. Diversification: The portfolio should consist of various types of securities, issuers, and maturities. 8. Evaluate Certificates of Deposit: a) Certificates of Deposit shall be evaluated in terms of FDIC coverage. The District does not purchase Certificates of Deposit in excess of $100,000. b) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized promissory notes. II. STRATEGY Strategy refers to the ability to manage financial resources in the most advantageous manner. �J 1. Economic Forecasts: Economic forecasts are obtained periodically from economists and financial experts through bankers and brokers to assist with the formulation of an investment strategy for the local agency. 0 2. Implementing Investment Strategy: Investment transactions are executed which conform to anticipated interest rate trends and the current investment strategy plan. 3. Rapport: A close working relationship is maintained with large vendors of the District. The objective is to pinpoint when large disbursements will clear the District's bank account. It is essential for good cash control that such large expenditures be anticipated, estimated as to dollar amount, and communicated to the Treasurer for liquidity planning purposes. 4. Preserve Portfolio Value: Standards are developed in order to maintain earnings near the market and to preserve the value of the portfolio. III. AUDIT Annually, the District's external auditors review the District's portfolio and perform limited procedures related to compliance. Additionally, they review that purchase price, market value and maturity date for financial statement purposes. • 0 `.J ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Investment Procedures — Internal Control Guidelines Fiscal Year 2007 -08 I. OBJECTIVES OF INTERNAL CONTROL Internal control is the plan of organization and all the related systems established by management's objective of ensuring, as far as practical: • The orderly and efficient conduct of its business, including adherence to management policies; • The safeguarding of assets; • The prevention or detection of errors and irregularities; • The accuracy and completeness of the accounting records; and • The timely preparation of reliable financial information. 11. LIMITATIONS OF INTERNAL CONTROL No internal control system, however elaborate, can by itself guarantee the achievement of management's objectives. Internal control can provide only reasonable assurance that the objectives are met, because of its inherent limitations, including: • Management's usual requirement that a control be cost - effective; • The direction of most controls at recurring, rather than unusual, types of transactions; • Human error due to misunderstanding, carelessness, fatigue or distraction of functions; and • The potential for a person responsible for exercising control abusing that responsibility. Frequently, a member of management is in a position to override controls which management has set up. III. ELEMENTS OF INTERNAL CONTROL Elements of a system of internal control are the means by which an organization can satisfy the objectives of internal control. These elements are: 1. Organization: Specific responsibility for the performance of duties should be assigned and lines of authority and reporting clearly identified and understood. 2. Personnel: Personnel should have capabilities commensurate with their responsibilities. Personnel selection and training policies, together with the quality and quantity of supervision, are thus important. ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Investment Procedures — Internal Control Guidelines Fiscal Year 2007 -08 3. Segregation of Functions: Segregation of incompatible functions reduces the risk that a person is in a position both to perpetrate and conceal errors or irregularities in the normal course of duty. If different people handle two parts of a transaction, collusion is necessary to conceal errors or irregularities. In particular, the functions that should be considered when evaluating segregation of functions are authorization, execution, recording, custody of assets, and performing reconciliations. 4. Authorization: An appropriate responsible individual should authorize all transactions. The responsibilities and limits of authorization should be clearly delineated. The authorization for a specific transaction or granting general authority for transactions should be to a position commensurate with the significance of the transactions. Delegation of authority to authorize transactions should be handled very carefully. 5. Controls Over an Accounting System: Controls over an accounting system include manual and computerized procedures carried out independently to ascertain that transactions are complete, valid, authorized and properly recorded. • • 10 • ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Cash Controls Fiscal Year 2007 -08 I. PROCEDURES PERFORMED BY AUDITORS WITH RESPECT TO CASH RECEIPTS District procedures and controls are reviewed. Some of the system strengths are: a. Receipts are controlled upon receipt by proper registration devices; b. Receipts are reconciled on a daily basis; c. Amounts are deposited intact; d. All bank accounts are authorized by the District Board; e. Cash counts are done by two or more individuals; f. Bank reconciliations are reviewed; g. The posting of cash receipt entries in books is prompt; h. Receipt forms are prenumbered, accounted for, and physically secured; i. Proper approval required for write -offs of customer accounts; j. Checks are restrictively endorsed upon receipt; k. Adequate physical security over cash; I. Individuals who handle cash do not post account records or process billing statements; and m. Adequate supervision of financial operations. 2. Significant revenues are confirmed directly with payor and compared with District books to make sure amounts are recorded properly. 3. Cash balances are substantiated by confirming account balances. Bank reconciliations are reviewed for propriety and recalculated by the auditor. All significant reconciling items on bank reconciliations are verified as valid reconciling items by proving to subsequent bank statements. 11 ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Segregation of Treasury Functions Fiscal Year 2007 -08 • The District's treasury function is segregated as follows. Function Responsibility Authorization of investment transactions: A) Formal investment policy Prepared by District Treasurer Reviewed by Investment Committee Adopted by Board B) Investment transactions approved by District Treasurer C) Monthly Investment Report: Execution of investment transactions District Treasurer Recording of investments in Treasurer's records District Treasurer Recording of investments in accounting records Accountant Accounting records approved by District Treasurer Verification of investment and confirmation of Treasurer's records Accountant Bank reconciliation: Prepared by Accountant Approved by District Treasurer Execute wire transfers District Treasurer Callback verification of wire transfer Bank Annual review of investment portfolio External Auditors • 12 ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2007 -08 US Treasury Bills - are direct obligations of the United States Government issued weekly with maturity dates up to one year. They are issued and traded on a discount basis with interest calculated on a 360 -day basis and actual invested days. They are issued in amounts of $10,000 and up, in multiples of $5,000. They are a highly liquid security. An unlimited amount may be invested in US Treasury Bills. US Treasury Notes - are direct obligations of the United States Government with original maturities of 1 to 10 years. They are generally available in minimum denominations of $5,000 for two and three -year maturities, and $1,000. denominations for all other maturities. Notes are actively traded in a large secondary market and are very liquid. An unlimited amount of funds may be invested in US Treasury Notes with maximum terms of five years. The term may be extended if authorized by the District Board. Federal Agency Issues - are guaranteed directly or indirectly by the United States Government. All agency obligations qualify as legal investments and are acceptable as security for public deposits. Agencies usually provide higher yields than direct Treasury issues with all of the same advantages. An unlimited amount of funds may be invested in Federal Agency issues with maximum maturities of less than five years. The District Board must expressly authorize any investment with a maturity greater than five years. Examples include: is Federal Intermediate Credit Bank Debentures (FICB) - are loans to lending institutions used to finance the short -term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine -month maturity. Interest is payable at maturity and is calculated on a 360 -day, 30- day month basis. Federal Farm Credit Bank (FFCB) - are debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three and six -month maturities. The FFCB issues larger issues (one to ten years) on a periodic basis. These issues are highly liquid. Federal Land Bank Bonds (FLB) - are long -term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi - annual coupons. Interest is calculated on a 360 -day, 30 -day month basis. Federal Home Loan Bank Notes and Bonds (FHLB) - are issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies and mortgage- lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. The 13 ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2007 -08 bonds are issued with various maturities and carry semi - annual coupons. Interest is calculated on a 360 -day, 30 -day month basis. Federal National Mortgage Association (FNMA) - are used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued four times a year with maturities from a few months to eight years. The minimum amount is $10,000 and carry semi - annual coupons, with interest computed on a 360 -day, 30 -day month basis. Federal Home Loan Mortgage Corporation (FHLMC) - is a government- sponsored corporation established to develop the secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Interest is paid semi - annually and is calculated on a 360 -day, 30 -day month basis. 1] Government National Mortgage Association (GNMA) - is established to monitor compliance with requirements for the structuring of securities backed by pools of mortgages guaranteed by the Federal Housing Administration, the Farmers' Home Loan • Administration and the Veterans' Administration. All mortgages in the pool must carry the same interest rate and, when possible, the same maturity. Interest and principal on the mortgage pools is "passed through" to investors monthly after the deduction of service and guarantee fees. Student Loan Marketing Association (SLMA) - is established by the Education Amendments Act of 1972 by the US Congress to increase funds into student loans. SLMA is a for - profit, stockholder -owned corporation with the specific purpose of providing a secondary market for the federally sponsored student loans. Discount notes are issued on a daily basis to mature in one year or less with a minimum denomination of $100,000. Six -month floating rate notes are issued monthly with a minimum denomination of $10,000. Longer term fixed rate and floating rate securities are issued as needed. All loans are guaranteed by either the federal government or by a state or private agency. Bankers' Acceptances - are short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at its maturity. An acceptance is a high - grade negotiable instrument. Acceptances are purchased in various denominations for 30, 60, or 90 days, but no longer than 180 days. The interest is calculated on a 360 -day discount basis • 14 ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2007 -08 similar to Treasury Bills. The District may not invest more than 25% of its surplus money in Bankers' Acceptances with each issuer limited to 10 %. Certificates of Deposit (CD) - are time deposits of a bank or savings and loan. They are purchased in various denominations with maturities ranging from 30 to 360 days. The District does not purchase Certificates of Deposit that are not FDIC insured. The interest is calculated on a 360 -day, actual day month basis and is payable monthly. The District may invest up to 25% of its surplus money in insured CD's with maturities of one year of less. Negotiable Certificates of Deposit - are unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high -grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. The primary market issuance is in multiples of $1,000,000, the secondary market usually trades in denominations of $500,000, and smaller lots are occasionally available. As a matter of practice, only the ten largest US banks, where there is a secondary market established for continued liquidity, are considered for investment. Purchases of Negotiable Certificate of Deposit may not exceed 25% of the District's surplus funds and five years to maturity. The District may not buy more than 10% of any single issuer. Commercial Paper - are short -term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial Paper is issued by corporations such as General Motors, IBM, etc. Local agencies are permitted by State law to invest in Commercial Paper of the highest ranking or of the highest letter and numerical rating as provided by Moody's Investor's Service, Inc., or Standard and Poor's Corporation. Purchases of eligible Commercial Paper may not exceed 270 days maturity, nor exceed 25% of the District's surplus funds. The District may not purchase more than 10% of any single issuer. Medium Term Corporate Notes - are unsecured promissory notes issued by a corporation organized and operating in the United States. These are negotiable instruments and are traded in the secondary market. Medium Term Corporate Notes can be defined as extended maturity Commercial Paper. Local agencies are restricted by the Government Code to investments in corporations rated in the top three note categories by a nationally- recognized rating service, five year maximum maturity and may not exceed 30% of surplus funds. The District's restrictions are a maximum term of five years to maturity and total investments in Medium Term Corporate Notes may not exceed 25% of the District's surplus funds. The District may not purchase more than 10% of any single issuer. Passbook Savings Account Demand Deposit - are interest bearing active deposits placed at state or national banks, state or federal savings and loan associations, state or federal credit unions and federally insured industrial loan companies. Monies placed in a savings account earn short-term interest. Deposits are FDIC insured up to $100,000, and may be in any amount. 15 ATTACHMENT 2 COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2007 -08 Local Agency Investment Fund (LAIF) - a special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $40,000,000 for any agency. The District is restricted to 15 transactions per month for each LAW account. LAIF offers high liquidity because deposits can be converted to cash in 24 hours with no interest lost. Interest is distributed to those agencies participating on a per share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains a portion for administrative costs, not to exceed one - quarter of one percent of the earnings. The pooling of the State's surplus cash with the participant's surplus cash creates a multi - billion dollar money pool and allows diversified investments. In a high interest rate market, the District does better than LAW however, in times of low interest rates, LAIF's yields are higher. The District invests in the Local Agency Investment Fund whose Investment Policy allows investments in securities not specifically authorized by the District's Investment Policy, but allowable under the California Government Code. 16 L' • U