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2018_03_22_board Protecting our community’s health and the environment by providing solid waste and wastewater collection services. www.cmsdca.gov Costa Mesa Sanitary District …an Independent Special District AGENDA Michael Scheafer President James Ferryman Arlene Schafer Vice President Secretary Robert Ooten Arthur Perry Assistant Secretary Director Public Comments. Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to three minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. The Deputy Clerk of the District may be contacted at (949) 645-8400. In Compliance with ADA: Contact Noelani Middenway, (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). BOARD OF DIRECTORS MEETING Thursday, March 22, 2018 5:30 P.M. 290 PAULARINO AVENUE, COSTA MESA, CA 92626 A. OPENING ITEMS 1. Call to Order – President Scheafer 2. Pledge of Allegiance – President Scheafer 3. Invocation – Vice President Ferryman 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. 6. Ceremonial Matters and Presentations Costa Mesa Sanitary District March 22, 2018 AGENDA Page 2 B. PUBLIC COMMENTS - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. 1. Public Comments C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. 2. Approve the Board of Directors Study Session Meeting Minutes of February 13, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. 3. Approve the Board of Directors Regular Meeting Minutes of February 22, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. 4. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. 5. Adopt Warrant Resolution No. CMSD 2018-9 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2018-9 approving District warrants for the month of February 2018 in the amount of $781,399.61. 6. Approve Payroll Transparency Disclosure for February 2018 Recommendation: That the Board of Directors approve and file the report. 7. Receive and File Closed Circuit TV (CCTV) Program Report Recommendation: That the Board of Directors receive and file the report. 8. Accept the occupancy count as presented as 22,558 and direct staff to prepare a warrant to CR&R Environmental Services for $220,964.63 for February 2018 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,558 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,964.63 to be ratified in the March 2018 warrant list. Costa Mesa Sanitary District March 22, 2018 AGENDA Page 3 9. Approve the preparation of a warrant to CR Transfer in the amount of $165,603.01 for February 2018 recycling and disposal services in the March 2018 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $165,603.01 for February 2018 recycling and disposal services to be ratified in the March 2018 warrant register. 10. Consider Accepting the Self-Audit of CMSD's Sewer System Management Plan performed by EEC Environmental. Recommendation: That the Board of Directors consider accepting the Self-Audit of CMSD's Sewer System Management Plan performed by EEC Environmental. 11. Approve Investment Report for February 2018 Recommendation: That the Board of Directors approve the Investment Report for the month of February 2018. D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Consider Approving an Employee Lending Agreement with Orange County Sanitation District Recommendation: That the Board of Directors Approves the Employee Lending Agreement with Orange County Sanitation District and direct the General Manager to sign the Agreement on CMSD's behalf. 2. Approve Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook Recommendation: That the Board of Directors approve a Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index for the Los Angeles-Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook. 3. Consider Accepting Roof Repairs at Headquarters as Complete and Direct Staff to File a Notice of Completion and Exonerate Labor and Material Bond 35 Days after Notice of Completion has been Filed at the County’s Recorder’s Office Recommendation: The Board of Directors approves the following action: 1. Accept improvements as completed and file a Notice of Completion in the County’s Recorder’s Office; and 2. Authorize payment of 5% retention 35 days after Notice of Completion is recorded; and 3. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded; and 4. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. 4. Consider Approving Agreement with Precision Electric Company for Installing Solar Photovoltaic System on HQ Rooftop for $156,500. Recommendation: That the Board of Directors approves Agreement with Precision Electric Company for Installing Solar Photovoltaic System on HQ Rooftop for $156,500. Costa Mesa Sanitary District March 22, 2018 AGENDA Page 4 F. ENGINEER'S REPORTS 1. Receive and File Monthly Capital Improvement Projects Status Report Recommendation: The Board of Directors receive and file the report. 2. Receive and File District Engineer's Conflict of Interest for 170 Cabrillo Street in Costa Mesa Recommendation: That the Board of Directors receive and file the report. G. TREASURER'S REPORTS H. ATTORNEY'S REPORTS I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (Vice President Ferryman) 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) 4. California Special Districts Association (CSDA) - (Secretary Schafer) 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 J. OLD BUSINESS K. NEW BUSINESS L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. ADJOURN TO CLOSED SESSION 1. Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager 2. Conference with Legal Counsel - Existing Litigation Government Code §54956.9(d)(1) -- 1. The Costa Mesa Sanitary District v. Mesa Water District; OCSC No. 30-2017- 00923819-CU-PT-CJC N. RECONVENE TO OPEN SESSION O. CLOSING ITEMS 1. Adjourn THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON THURSDAY, APRIL 26, 2018 IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Thursday, March 22, 2018 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 5:30 P.M. Public Comments: Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to four minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS Subject 1. Call to Order - President Scheafer Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Scheafer Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Ferryman Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Procedural B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject 1. Public Comments Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Procedural C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 1. Approve Consent Calendar Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Consent Calendar as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: March 22, 2018 Subject: Board of Directors Study Session Meeting Minutes of February 13, 2018 Summary The recorded minutes of the February 13, 2018 Board of Directors Study Session Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Study Session Meeting on February 13, 2018. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the March 22, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2018_2_13_ss.pdf (46 KB) Subject 2. Approve the Board of Directors Study Session Meeting Minutes of February 13, 2018 Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the meeting minutes as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: March 22, 2018 Subject: Board of Directors Regular Meeting Minutes of February 22, 2018 Summary The recorded minutes of the February 22, 2018 Board of Directors Regular Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Regular Meeting on February 22, 2018. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the March 22, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments minutes_2018_2_22_rm.pdf (59 KB) Subject 3. Approve the Board of Directors Regular Meeting Minutes of February 22, 2018 Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the meeting minutes as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk Date: March 22, 2018 Subject: Directors' Compensation and Reimbursement of Expenses Summary The Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses. Staff Recommendation That the Board of Directors approve the compensation and reimbursement of expenses as presented. Legal Review Not applicable. Environmental Review Consideration of the compensation and reimbursement of expenses is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the March 22, 2018 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the compensation and reimbursement of expenses as presented. 2. Direct staff to report back with more information. File Attachments a_director_compensation.pdf (1,324 KB) Subject 4. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as presented. b_director_expense_reimbursement.pdf (484 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. File Attachments WARRANT RESO Mar 2018 Mtg.pdf (302 KB) Subject 5. Adopt Warrant Resolution No. CMSD 2018-9 Approving District Warrant Registers Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2018-9 approving District warrants for the month of February 2018 in the amount of $781,399.61. Goals 7.0 Finance All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Steve Hodges, Finance Manager Date: March 22, 2018 Subject: Payroll Transparency Disclosure for February 2018 Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Staff Recommendation That the Board of Directors approve and file the report. Analysis Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Legal Review Not Applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 22, 2018 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions Refer item back to staff with further instructions. File Attachments Payroll Transparency Disclosure Feb 2018.pdf (982 KB) Subject 6. Approve Payroll Transparency Disclosure for February 2018 Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve and file the report. Goals 7.0 Finance All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Steve Hodges, Finance Manager Date: March 22, 2018 Subject: Closed Circuit TV (CCTV) Program Report Summary The Closed Circuit TV (CCTV) Program Report is hereby submitted to the Board of Directors for review. Staff Recommendation That the Board of Directors receive and file the report. Analysis The following is a summary of the CCTV (Closed Circuit TV) Pilot Program activity for the 2017-2018 fiscal year as of February 28, 2018: Adopted CCTV Budget $50,000 FY 16-17 Carryover Budget 0 Total Budget $50,000 FY 17-18 New Applications Received = 133 Applications Processed for Payment = 74 $ 15,450 Applications In Process = 59 14,750 Available Spots Based on Funding = 80 19,800 Total Projected Cost $ 50,000 Legal Review Not applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Subject 7. Receive and File Closed Circuit TV (CCTV) Program Report Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file the report. Goals 1.9 Sewer Lateral Assistance Program (SLAP) Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 22, 2018 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: March 22, 2018 Subject: Accept the occupancy count as presented as 22,558 and direct staff to prepare a warrant to CR&R Environmental Services for $220,964.63 for February 2018 collection Summary Accept the occupancy count as presented using 22,558 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,964.63 to be ratified in the March 2018 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,558 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,964.63 to be ratified in the March 2018 warrant list. Analysis The occupancy count is the number of residential customers that the District pays CR&R for the trash truck to stop and pick-up trash. The District pays CR&R $9.7954 per occupant per month. Each month, new residential customers in brand new developments contact the District to establish new trash service. District staff contacts CR&R to approve the drop-off of carts at the residence, which results in an increase in the occupancy count as shown on the attached list. Over the years, some discrepancies have occurred in the number of total occupancies. District staff has been working with CR&R to reconcile the entire list of service addresses for the past few months. As of February 28, 2018, total District occupancy was at 22,558, District staff will continue to track the number of new service addresses, nineteen (19) accounts have been added since the last billing period. The payment calculation is based on the following: District's Current Rate for February of 2018: Subject 8. Accept the occupancy count as presented as 22,558 and direct staff to prepare a warrant to CR&R Environmental Services for $220,964.63 for February 2018 collection Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors accept the occupancy count as presented using 22,558 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $220,964.63 to be ratified in the March 2018 warrant list. Goals 2.2 Annual Contract Audits 2.4 Develop Strategies for 75% Waste Diversion 22,558 x $9.7954 = $220,964.63 Legal Review Not Applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the March 22, 2018 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. Alternative Actions Refer item back to staff with further instructions. File Attachments CMSD Occupancy Report 2.2018.pdf (16 KB) C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: March 22, 2018 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $165,603.01 for February 2018 recycling and disposal services in the March 2018 warrant register Summary This payment to CR Transfer is for the sorting of recyclables from the mixed waste and disposal of the remaining waste at the landfill. With the implementation the Organics Recycling Program adopted by the Board, this payment also includes the diverting of the organics waste to the Anaerobic Digestion facility to be recycled into fertilizer or renewable natural gas to fuel the refuse trucks. Recommendation That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $165,603.01 for February 2018 recycling and disposal services to be ratified in the March 2018 warrant register. Analysis Below is a chart depicting the total tonnage and payments due for residential and organic waste collected in Costa Mesa and Newport Beach. Please note there was a discrepancy with billing this month, CR&R's billing system inaccurately calculated invoice totals and under billed the District by $50.07, but CMSD will be paying what is reflected on the invoice. Costa Mesa Newport Beach Total Residential Waste $121,331.22 $3,627.50 $124,958.72 Organics $38,733.09 $1,911.20 $40,644.29 Total Payment $165,603.01 Tonnage Residential Waste 2335.33 69.80 2405.13 Organics 541.92 26.73 568.65 Total Tonnage 2973.78 Legal Review Subject 9. Approve the preparation of a warrant to CR Transfer in the amount of $165,603.01 for February 2018 recycling and disposal services in the March 2018 warrant register Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $165,603.02 for February 2018 recycling and disposal services to be ratified in the March 2018 warrant register. Not Applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 22, 2018 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: March 22, 2018 Subject: Consider Accepting the Self-Audit of CMSD's Sewer System Management Plan performed by EEC Environmental Summary On March 13, 2018, the Board of Directors received an internal audit report of the District's Sewer System Management Plan (SSMP). The audit was performed by EEC Environmental in which they found two minor nonconformance issues. Staff has completed updating the SSMP to reflect the recommendations provided by EEC Environmental. Recommendation That the Board of Directors consider accepting the Self-Audit of CMSD's Sewer System Management Plan performed by EEC Environmental. Analysis Per the Statewide General Waste Discharge Requirements (GWDR) for Sanitary Sewer Systems (State Water Resources Control Board No. 2006-003-DWQ), the District developed and implemented a comprehensive Sewer System Management Plan (SSMP), with the primary objective of reducing and preventing Sanitary Sewer Overflows (SSO’s). A key requirement of the SSMP is that every two years routine internal audits be performed to evaluate the effectiveness of the SSMP as well as the District’s compliance with the SSMP elements. CMSD entered into an agreement with EEC Environmental to perform the 2018 self-audit of the District's SSMP and EEC Environmental provided their findings to the Board on March 13, 2018. EEC Environmental identified only two minor nonconformance issues, which are described below: 1. Update the SSMP and supporting documents to reflect the District’s current organizational structure. This is due to recent staffing additions and turnover within the District. 2. Create SSO Emergency Response Plans for the four remaining pump stations due to recent plans to not abandon pumping stations. One of the minor nonconformances found in the audit has already been addressed by staff, the organizational chart has been updated and the revised SSMP has been uploaded to the District's website. Robin B. Hamers & Associates (RBH) has submitted a proposal of $9,870 to complete the Emergency Response Plan for the pump stations identified in the audit. However, this proposal was not budgeted. Staff will monitor the Engineering Budget and if there is money available at the end of the fiscal year, staff will approve RBH's proposal to begin developing the plan; otherwise, staff will budget this item in the next budget development cycle (FY 2019-20). Overall, Subject 10. Consider Accepting the Self-Audit of CMSD's Sewer System Management Plan performed by EEC Environmental. Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors consider accepting the Self-Audit of CMSD's Sewer System Management Plan performed by EEC Environmental. Goals 1.0 Sewer Infrastructure 1.3 Reduce Hot Spot Locations to less than 30 CMSD has developed a comprehensive SSMP in compliance with the State WDR. Attached are the 2018 SSMP audit report and presentation. Legal Review Not Applicable. Environmental Review Preparation of a self-audit of the District’s Sewer System Management Plan (SSMP) is an administrative matter, and administrative matters are exempt under CEQA and the District’s CEQA Guidelines. The SSMP assists the District in providing comprehensive sewer system management, including protection of the environment by eliminating sanitary sewer overflows. Financial Review The contract to perform the Sewer System Management Plan Internal Audit by EEC Environmental for $10,500 was included in the FY 2017-18 adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 22, 2018 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments CMSD 2018 SSMP Audit Report.pdf (1,023 KB) Board SSMP Audit Presentation.pdf (314 KB) C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Marc Davis, District Treasurer Date: March 22, 2018 Subject: Approve the Investment Report for the month of February 2018 Summary Attached is the Investment Report for the month of February 2018. As required by the District’s Statement of Investment Policy, the Investment Report delineates all investment activity during the month. Recommendation That the Board of Directors approve the Investment Report for the month of February 2018. Analysis This report lists the types of securities held in the District’s portfolio, the institutions from which the securities were purchased, maturity dates and interest rates as of February 28, 2018. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 22, 2017 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party custodian, Pershing, LLC, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer’s Office. It does not represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw. This reporting practice is consistent with industry standard practices for similar funds. The weighted average stated rate of return (current yield) for the District’s investment portfolio as of February 28, 2018, was 1.513%. The yield to maturity of the portfolio was 1.517%. The District’s weighted average interest rate was 10 basis points (0.101%) above the LAIF average monthly rate for February 2018 of 1.412%. The weighted average number of days to maturity for the District’s total portfolio was 734 days (2.01 years). The average duration of the underlying securities in LAIF as of February 28, 2018 was 172 days. The District’s investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than one year as of February 28, 2018 was 35.98%. The District has adequate cash reserves necessary to meet its obligations for the next six months. A majority of the District’s cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District’s cash and investments are as follows: Solid Waste Fund: Operating Reserve - Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges Subject 11. Approve Investment Report for February 2018 Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Investment Report for the month of February 2018. Goals 7.0 Finance from the County of Orange. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. Undesignated - Remaining available cash, which is available to be appropriated by the Board. Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund - Accumulation of funds in accordance with the asset management model for long-term replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not include….C. Continuing administrative or maintenance activities.” Financial Review The portfolio was budgeted to earn an average rate of 0.900% for the year ending June 30, 2018. Through February 28, 2018, the portfolio has earned a weighted average interest rate of 1.470%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 22, 2018 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and on the District’s website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff. File Attachments Investment Report - February 2018.pdf (584 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 22, 2018 Subject: Consider Approving an Employee Lending Agreement with Orange County Sanitation District Summary Since 2015, Orange County Sanitation District (OCSD) employee, Rudy Davila, has been serving as CMSD's Alternate District Engineer. The existing Agreement with OCSD is scheduled to expire on May 24, 2018. Attached is a new Agreement with OCSD that will allow Mr. Davila to continue serving as CMSD Alternate District Engineer. Recommendation That the Board of Directors Approves the Employee Lending Agreement with Orange County Sanitation District and direct the General Manager to sign the Agreement on CMSD's behalf. Analysis Section 3.01.045(a) of the Operations Code allows a private civil engineer to serve as District Engineer. Rob Hamers, of Robin B. Hamers & Associates, Inc. (RBH) is a private civil engineer who is serving as District Engineer. Section 3.01.045(b) of the Operations Code requires the Alternate District Engineer to review and approve plans when the District Engineer is the engineer of record for private development within CMSD service area. To comply with Section 3.01.045(b), the Board of Directors appointed Rudy Davila as CMSD's Alternate District Engineer by adopting Resolution No. 2014-855 (see attachment). Since 2015, an agreement between OCSD and CMSD existed where CMSD compensated OCSD the fully burden rate for Mr. Davila's services. The Agreement is scheduled to expire on May 24, 2018 and therefore a new Agreement is presented tonight for the Board's consideration. The attached agreement will be presented to the OCSD Board of Directors for approval consideration on April 25, 2018. Legal Review District Counsel has reviewed and approved the attached Agreement. Environmental Review The determination of who performs services for the District as the Alternate District Engineer is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review The hourly rate is increasing from $82.03 to $89.63 an hour. This is still less than a private engineer who once served as CMSD's Alternate District Engineer when his hourly rate was $130 an hour. There are sufficient funds budgeted to cover the increase costs for the Alternate District Engineer. Public Notice Process Subject 1. Consider Approving an Employee Lending Agreement with Orange County Sanitation District Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Budgeted Yes Recommended Action That the Board of Directors Approves the Employee Lending Agreement with Orange County Sanitation District and direct the General Manager to sign the Agreement on CMSD's behalf. Goals 1.0 Sewer Infrastructure Copies of this report are on file and will be included with the entire agenda packet for the March 22, 2018 Board of Directors regular meeting at CMSD headquarters (290 Paularino Avenue) and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to seek proposals from private engineering firms to serve as the District’s Alternate District Engineer. 2. Direct staff to report back with more information File Attachments Employee Lending Agmt-CMSD 2.16.18 to S Carroll.pdf (36 KB) Resolution No. 2014-855.pdf (618 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Steve Hodges, Finance Manager Date: March 22, 2018 Subject: Approve Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook Summary In June 2017, the Board adopted Resolution No. 2017-899 which approved the biennial budget for Fiscal Years 2017-18 and 2018-19. As part of the FY 2018-19 adopted budget, staff estimated and included a 2.5% Cost of Living Adjustment (COLA). Per Policy 2.2 in the Employee Handbook, all district employees receive a salary adjustment equal to the February to February Consumer Price Index (CPI) with the approval of the Board effective July 1 of each year.. The February Los Angeles-Long Beach-Anaheim CPI came in at 3.6%. Recommendation That the Board of Directors approve a Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index for the Los Angeles-Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook. Analysis The February Los Angeles-Long Beach-Anaheim CPI of 3.6% came in 1.1% higher than what the board approved for the FY 2018-19 budget. The 1.1% increase would result in an approximate $20,000 increase to the FY 2018-19 budget. As with all salary expenses, this expense will compound and carry into future budget years. Legal Review Not applicable Environmental Review Subject activity is exempt from requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures "to list those specific activities which fall within each of the exempt classes", and the District has adopted "CEQA Guidelines and Implementing Procedures" that state on page 6 ""Projects" does not include...C. Continuing administrative or maintenance activities." Financial Review It is anticipated that the District will have sufficient Salary and Benefit savings from FY 2017-18 to carryover and cover the additional estimated $20,000 in expenses to the FY 2018-19 budget. Therefore, no additional appropriations will be needed to cover this expense. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 22, 2018 Board of Directors regular meeting at District Headquarters and on the District's website at www.cmsdca.gov. Alternative Actions 1. Approve Cost of Living Adjustment (COLA) to salaries in FY 2018-19 of 2.5%, equal to what was adopted with the biennial budget. Subject 2. Approve Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve a Cost of Living Adjustment (COLA) to salaries in FY 2018-19 to be equal to the February to February Consumer Price Index for the Los Angeles- Long Beach-Anaheim area of 3.6% as outlined in the Employee Handbook. Goals 7.0 Finance 6.7 Promote high employee satisfaction 2. Do not approve a Cost of Living Adjustment (COLA) to salaries in FY 2018-19. File Attachments CPI February 2018.pdf (75 KB) Employee Handbook - page 45.pdf (109 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 22, 2018 Subject: Consider Accepting Roof Repairs at Headquarters as Complete and Direct Staff to File a Notice of Completion and Exonerate Labor and Materials Bond 35 Days after Notice of Completion has been Filed at the County's Recorder's Office Summary On January 25, 2018, the Board of Directors approved a contract with Tecta America to perform roof repairs in the amount of $147,000. The repairs are now compete and the project is ready for the Board to consider accepting the improvements. Recommendation That the Board of Directors: 1. Accept improvements as complete and file a Notice of Completion in the County's Recorder's Office; and 2. Authorize payment of 5% retention 35 days after the Notice of Completion is recorded; and 3. Exonerate Labor and Material Bonds 35 days after Notice of Completion is recorded; and 4. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Analysis Repairs were needed due to water leaks in several areas of the roof. The repairs were also recommended by the building inspection report performed in 2016 when CMSD was in the process of acquiring the building. The report recommend having a licensed roofing contractor repair all flashing failure at the roofing membrane to insure water tight condition. The roof repair workmanship has a three (3) year warranty and the roofing membrane that was installed has a five (5) year warranty. During the repairs it was discovered that one of the HVAC units needed electrical upgrades. Staff bought parts from Walters Electric at a total cost of $1,234 and then hired OC Electric to perform and complete the repairs at a cost of $3,875. Legal Review District Counsel signed the contract with Tecta America. Environmental Review The proposed repair of the existing roof at the District Headquarters is maintenance and maintenance is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” project as stated under 15301; “Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration Subject 3. Consider Accepting Roof Repairs at Headquarters as Complete and Direct Staff to File a Notice of Completion and Exonerate Labor and Materials Bond 35 Days after Notice of Completion has been Filed at the County's Recorder's Office Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Recommended Action That the Board of Directors: 1. Accept improvements as complete and file a Notice of Completion in the County's Recorder's Office; and 2. Authorize payment of 5% retention 35 days after the Notice of Completion is recorded; and 3. Exonerate Labor and Material Bonds 35 days after Notice of Completion is recorded; and 4. Exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Goals 6.0 Personnel/Organizational Management 6.7 Promote high employee satisfaction of existing public or private structures, facilities …”; pertaining to 15301(b) “Existing facilities of both investor and publicly- owned utilities used to provide electric power, natural gas, sewerage, or other public utility services”. Financial Review There is $166,000 budgeted for this project. The breakdown of the costs incurred for this project is below. Tecta America $ 147,000 Walters Electric $ 1,234 OC Electric $ 3,875 TOTAL: $152,109 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 22, 2018 Board of Directors regular meeting at CMSD headquarters (290 Paularino Avenue) and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Do not approve staff's recommendation and direct staff to report back with more information. File Attachments 2018 HQ Roof Repairs.pdf (430 KB) CMSD HQ Roof Repairs Notice of Completion.pdf (15 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: March 22, 2018 Subject: Consider Approving Agreement with Precision Electric Company for Installing Solar Photovoltaic System on HQ Rooftop for $156,500 Summary In keeping with the spirit of CMSD's mission, protecting our community's health and the environment, the Board approved in the FY 2017- 18 Budget the installation of a solar photovoltaic system on the rooftop at headquarters (HQ). A solar photovolaic system will help combat greenhouse gas emissions and reduce our collective dependence on fossil fuel, while at the same time reducing energy costs at HQ. In January 2018, staff solicited bids from qualified solar companies and bids were due on February 8, 2018. Recommendation That the Board of Directors approves Agreement with Precision Electric Company for Installing Solar Photovoltaic System on HQ Rooftop for $156,500. Analysis On February 8, 2018 the following sealed bids were opened: Precision Electric Company $156,500.00 Baker Electric $159,202.57 Planet Solar, Inc. $198,168.24 Precision Electric Company (PEC) was the apparent low bidder, so staff had its consultant, Utility Costs Management (UCM) LLC, perform an objective analysis of the financial calculations and performance guarantee submitted by PEC. UCM determined the following: Performance Guarantee – Precision Electric will guarantee generation of 75,000 kWh per year, about 89% of the expected generation. This is higher than the 80% of expected generation guaranteed by Baker Electric. Precision says “In case the system is not producing the 75,000 kWh per year, Precision will send a service and maintenance team… to fix any technical issues… and make sure the system will function properly and produce the 75,000 kWh.” Estimated Savings – UCM performed calculations based on the information provided, and concluded the electric energy savings will be over $16,000 per year. This equates to a project return on investment to be roughly 10%. Based on UCM findings, staff is recommending the Board award the Agreement to Precision Electric Company for $156,500. Attached is a sample rendering of of the solar photovoltaic system installed on HQ rooftop. PEC is projecting it will take 120 working days to complete this project. Legal Review District Counsel has reviewed and approved the Agreement attached hereto. Environmental Review Adding solar panels is exempt from CEQA as a Class 1 Existing Facility minor alteration of existing structure. Subject 4. Consider Approving Agreement with Precision Electric Company for Installing Solar Photovoltaic System on HQ Rooftop for $156,500 Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $156,500.00 Budgeted Yes Recommended Action That the Board of Directors approves Agreement with Precision Electric Company for Installing Solar Photovoltaic System on HQ Rooftop for $156,500. Financial Review There is $180,000 in the FY 2017-18 Capital Outlay Budget for this project. The breakdown of the costs are as follows: Precision Electric Company $156,500 Ten percent contingency $ 15,650 Utility Cost Management $ 12,800 TOTAL: $184,950 If all contingency funds are expended, the over run of $4,950 can be absorbed in the existing budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 22, 2018 Board of Directors regular meeting at CMSD headquarters (290 Paularino Avenue) and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Do not approve the Agreement with Precision Electric Company. 2. Direct staff to report back with more information. File Attachments Solar Rendering.pdf (724 KB) Solar at HQ Contract - PEC.pdf (14,182 KB) F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: March 22, 2018 Subject: Capital Improvement Projects Status Report Summary Attached is a summary of the Capital Improvement Project activities during the month. Staff Recommendation That the Board of Directors receive and file the report. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the March 22, 2018 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions Refer item back to staff with further instructions. File Attachments CIP Updates Mar 2018.pdf (43 KB) Subject 1. Receive and File Monthly Capital Improvement Projects Status Report Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 1.0 Sewer Infrastructure 1.1 Manhole Cover Maintenance Program 1.4 System Wide Sewer Replacement and Repair Program 1.6 Evaluate Force Main Conditions on a Regular Basis 4.7 Demonstrate outstanding efforts in transparency 7.2 Develop a long term CIP F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Robin Hamers, District Engineer Date: March 22, 2018 Subject: Receive and File District Engineer's Conflict of Interest for 170 Cabrillo Street in Costa Mesa Summary Please be advised that I have been retained to do private engineering work for the property at 170 Cabrillo Street in Costa Mesa. I have reason to believe that this project or the persons involved in this project may have the need for District engineering approvals in the future. I have been retained by Matt White, MW Custom Homes and will be reporting this relationship as a source of income on my FPPC Statement of Economic Interests Form 700 next year. Recommendation That the Board of Directors receive and file the report. Analysis Pursuant to state law, District Operations Code Section 3.01.045, and my contract with the District: 1. I hereby notify you of this source of income or other relationship that causes me a conflict in approving any matters in my official capacity pertaining to this property and these persons. 2. I request that the General Manager alert the Alternate District Engineer that he is to provide all engineering approvals on behalf of the District with respect to these persons or that property. 3. That the Alternate District Engineer shall report directly to the General Manager and submit his bills for services directly to the General Manager. 4. That if any plans are required to be approved, that those shall show my seal and signature as private engineer of record, and the Alternate District Engineer shall provide his approval by signing as Alternate District Engineer. That these separate approvals shall be given on the same page and in a manner that clearly shows the separate capacities of each engineer in providing their respective approvals. 5. I request that the District Clerk maintain a copy of this Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer as a permanent record of the District or for as long as required under the District’s record retention schedule. I understand that this procedure does not allow me to enter into or influence the awarding of contracts in my official capacity in which I have a financial interest, which is a separate prohibition. (Gov. Code § 1090.) If I can provide further information about the identity of my source of income or about the scope of my assignment, please advise, and I will elaborate as necessary. Legal Review The attorney for the District prepared the conflict of interest form and created the procedure to avoid conflict. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Subject 2. Receive and File District Engineer's Conflict of Interest for 170 Cabrillo Street in Costa Mesa Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file the report. Staff will route the appropriate plans to the Alternate Engineer and Inspector for approval. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 22, 2018 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff for additional information. File Attachments 170 Cabrillo St - Matt White - Declaration of Conflict of Interest.pdf (24 KB) I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 1. Orange County Sanitation District (OCSD) - (Vice President Ferryman) Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer) Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Information L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Discussion M. ADJOURN TO CLOSED SESSION Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager Subject 1. Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Discussion M. ADJOURN TO CLOSED SESSION Conference with Legal Counsel - Existing Litigation Government Code §54956.9(d)(1) -- 1. The Costa Mesa Sanitary District v. Mesa Water District; OCSC No. 30-2017-00923819-CU-PT-CJC Subject 2. Conference with Legal Counsel - Existing Litigation Government Code §54956.9(d)(1) -- 1. The Costa Mesa Sanitary District v. Mesa Water District; OCSC No. 30-2017-00923819-CU-PT-CJC Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Discussion O. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON APRIL 26, 2018 IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Mar 22, 2018 - Board of Directors Regular Meeting Access Public Type Procedural