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2018_06_28_boardThursday, June 28, 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 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 B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. 1. Public Comments C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1. Approve Consent Calendar 2. Approve the Board of Directors Special Meeting Minutes of May 8, 2018 3. Approve the Board of Directors Study Session Minutes of May 8, 2018 4. Approve the Board of Directors Regular Meeting Minutes of May 24, 2018 5. Approve the Board of Directors Special Meeting Minutes of May 24, 2018 6. Approve the Board of Directors Special Meeting Minutes of May 31, 2018 7. Approve the Directors' Compensation and Reimbursement of Expenses 8. Accept the occupancy count as presented as 22,594 and direct staff to prepare a warrant to CR&R Environmental Services for $221,317.27 for May 2018 collection 9. Approve the preparation of a warrant to CR Transfer in the amount of $197,131.28 for May 2018 recycling and disposal services in the June 2018 warrant register 10. Adopt Warrant Resolution No. CMSD 2018-12 Approving District Warrant Registers 11. Approve Payroll Transparency Disclosure for May 2018 12. Receive and File Closed Circuit TV (CCTV) Program Report 13. Approve the Investment Report for the Month of May 2018 14. Approve Auditor Engagement Letter for Fiscal Year 2017-18 Audit D. PUBLIC HEARINGS 1. Adopt Resolution No. 2018-909 confirming Wastewater Annual Charges and Resolution No. 2018-910 confirming Solid Waste Annual Charges respectively for FY 2018-19 to be collected with the General Taxes and Direct the Finance Manager to File with the County Auditor. E. GENERAL MANAGER'S REPORTS 1. Consider Approving CR&R Environmental Services Agreement 2. Adopt Ordinance No. 118 Confirming Annual Charges for Solid Waste and Wastewater for 2018-19 3. Consider Approving Out-of-State Travel for Nabila Guzman, to attend SWANA's 2018 Wastecon conference in Nashville, Tennessee 4. Consider Approving Out-of-State Travel for Steve Cano, Wastewater Maintenance Superintendent and Jesse Blakely, Wastewater Maintenance Worker II, to attend the Water Environment Federation Technical Exhibition and Conference (WEFTEC) in New Orleans, Louisiana 5. Award Noelani Middenway, District Clerk, $100 for her Rewarding Ideas Program submission to Improve Customer Service with CR&R Environmental Services 6. California Special Districts Association Board of Directors Election - Southern Network Seat A F. ENGINEER'S REPORTS 1. Receive and File Monthly Capital Improvement Projects Status Report 2. Declaration of Conflict of Interest - 1618 Ohms Way, Costa Mesa 3. #318 President Pump Station - Consider Sole Source Findings for Direct Purchase of Pumps and Accessories 4. #319 Canyon Force Main Replacement, #320 Canyon Pump Station Rehabilitation, Consideration of Request to Combine Projects G. TREASURER'S REPORTS H. ATTORNEY'S REPORTS 1. Consider approving Amendment to General Manager’s Employment Agreement and a one percent increase for a total annual compensation of $191,380.41. 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 1. Consider Submitting 2018 California Special Districts Association (CSDA) Award Nominations L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. ADJOURN TO CLOSED SESSION 1. Conference with Legal Counsel - Existing Litigation Government Code §54956.9(d)(1) -- The Costa Mesa Sanitary District v. Mesa Water District; OCSC No. 30-2017-00923819-CU-PT-CJC. 2. Conference with Legal Counsel-Anticipated Litigation -- Significant exposure to litigation pursuant to Government Code Section 54956.9(2)- (1 case). The “existing facts and circumstances” creating a significant exposure to litigation are set forth in a letter from Attorney Kevin Shenkman dated March 26, 2018 and received March 29, 2018. N. RECONVENE TO OPEN SESSION 1. Reconvene to Open Session and Report Out of any Reportable Action O. CLOSING ITEMS 1. Adjourn Thursday, June 28, 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 Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Scheafer Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Ferryman Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Board of Directors President - Michael Scheafer Vice President - James Ferryman Secretary - Arlene Schafer Assistant Secretary - Robert Ooten Director - Arthur Perry 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 Jun 28, 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 Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Jun 28, 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 Jun 28, 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 Jun 28, 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: June 28, 2018 Subject: Board of Directors Special Meeting Minutes of May 8, 2018 Summary The recorded minutes of the May 8, 2018 Board of Directors Special 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 Special Meeting on May 8, 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 June 28, 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_5_8_special.pdf (39 KB) Subject 2. Approve the Board of Directors Special Meeting Minutes of May 8, 2018 Meeting Jun 28, 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: June 28, 2018 Subject: Board of Directors Study Session Minutes of May 8, 2018 Summary The recorded minutes of the May 8, 2018 Board of Directors Study Session are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Study Session on May 8, 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 June 28, 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_5_8_ss.pdf (51 KB) Subject 3. Approve the Board of Directors Study Session Minutes of May 8, 2018 Meeting Jun 28, 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: June 28, 2018 Subject: Board of Directors Regular Meeting Minutes of May 24, 2018, 2018 Summary The recorded minutes of the May 24, 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 May 24, 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 June 28, 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_5_24_rm.pdf (68 KB) Subject 4. Approve the Board of Directors Regular Meeting Minutes of May 24, 2018 Meeting Jun 28, 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: June 28, 2018 Subject: Board of Directors Special Meeting Minutes of May 24, 2018 Summary The recorded minutes of the May 24, 2018 Board of Directors Special 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 Special Meeting on May 24, 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 June 28, 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_5_24_special.pdf (38 KB) Subject 5. Approve the Board of Directors Special Meeting Minutes of May 24, 2018 Meeting Jun 28, 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: June 28, 2018 Subject: Board of Directors Special Meeting Minutes of May 31, 2018 Summary The recorded minutes of the May 31, 2018 Board of Directors Special 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 Special Meeting on May 31, 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 June 28, 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_5_31_special.pdf (37 KB) Subject 6. Approve the Board of Directors Special Meeting Minutes of May 31, 2018 Meeting Jun 28, 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: June 28, 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 June 28, 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 (1,505 KB) Subject 7. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Jun 28, 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 (320 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. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 28, 2018 Subject: Accept the occupancy count as presented as 22,594 and direct staff to prepare a warrant to CR&R Environmental Services for $221,317.27 for May 2018 collection Summary Accept the occupancy count as presented using 22,594 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $221,317.27 to be ratified in the June 2018 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,594 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $221,317.27 to be ratified in the June 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 May 31, 2018, total District occupancy was at 22,594, District staff will continue to track the number of new service addresses, twenty (20) accounts have been added since the last billing period. The payment calculation is based on the following: District's Current Rate for May of 2018: 22,594 x $9.7954 = $221,317.27 Subject 8. Accept the occupancy count as presented as 22,594 and direct staff to prepare a warrant to CR&R Environmental Services for $221,317.27 for May 2018 collection Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 22,594 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $221,317.27 to be ratified in the June 2018 warrant list. Goals 2.2 Annual Contract Audits 2.4 Develop Strategies for 75% Waste Diversion 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 June 28, 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 5.2018.pdf (17 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. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 28, 2018 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $197,131.28 for May 2018 recycling and disposal services in the June 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 $197,131.28 for May 2018 recycling and disposal services to be ratified in the June 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 $47.03, but CMSD will be paying what is reflected on the invoice. Costa Mesa Newport Beach Total Residential Waste $141,718.04 $3,802.55 $146,520.59 Organics $48,231.89 $2,378.81 $50,610.69 Total Payment $197,131.28 Tonnage Residential Waste 2727.58 92.41 2819.99 Organics 674.75 33.27 708.02 Total Tonnage 3528.01 Subject 9. Approve the preparation of a warrant to CR Transfer in the amount of $197,131.28 for May 2018 recycling and disposal services in the June 2018 warrant register Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $197,131.28 for May 2018 recycling and disposal services to be ratified in the June 2018 warrant register. 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 with the complete agenda packet for the June 28, 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. File Attachments WARRANT RESO 6- 2018.pdf (218 KB) Subject 10. Adopt Warrant Resolution No. CMSD 2018-12 Approving District Warrant Registers Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2018-12 approving District warrants for the month of May 2018 in the amount of $715,892.20. 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: June 28, 2018 Subject: Payroll Transparency Disclosure for May 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 June 28, 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 May 2018.pdf (940 KB) Subject 11. Approve Payroll Transparency Disclosure for May 2018 Meeting Jun 28, 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: June 28, 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 May 31, 2018: Adopted CCTV Budget $50,000 FY 16-17 Carryover Budget 0 Total Budget $50,000 FY 17-18 New Applications Received = 152 Applications Processed for Payment = 101 $ 21,450 Applications In Process = 51 12,750 Available Spots Based on Funding = 64 15,800 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. Public Notice Process Subject 12. Receive and File Closed Circuit TV (CCTV) Program Report Meeting Jun 28, 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) Copies of this report are on file and will be included with the complete agenda packet for the June 28, 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 From: Marc Davis, District Treasurer Date: June 28, 2018 Subject: Approve the Investment Report for the month of May 2018 Summary Attached is the Investment Report for the month of May 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 May 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 May 31, 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 May 31, 2018, was 1.666%. The yield to maturity of the portfolio was 1.670%. The District’s weighted average interest rate was 9 basis points (0.089%) below the LAIF average monthly rate for May 2018 of 1.755%. The weighted average number of days to maturity for the District’s total portfolio was 655 days (1.79 years). The average duration of the underlying securities in LAIF as of May 31, 2018 was 190 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 May 31, 2018 was 38.63%. 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 13. Approve the Investment Report for the Month of May 2018 Meeting Jun 28, 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 May 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 May 31, 2018, the portfolio has earned a weighted average interest rate of 1.515%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 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 - May 2018.pdf (579 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. Summary On February 6, 2018, the District issued an RFP for independent audit services for the fiscal years ending June 30, 2018, 2019 and 2020. Based on the best value criteria established, the firm Teaman, Ramirez & Smith Inc. was selected and entered into a contract with the District on May 24, 2018. In preparation of the start of the June 30, 2018 audit, the auditors have issued an Auditor Engagement Letter disclosing their responsibilities under U.S. Generally Accepted Auditing Standards and Government Auditing Standards. The audit is scheduled to take place in October 2018 and the report will be issued towards the end of the calendar year. Analysis The District contracted for annual audit services with the firm Teaman, Ramirez & Smith on May 24, 2018. This agreement covers the fiscal years ended June 30, 2018 through June 30, 2020, plus options for two one-year extensions. The purpose of the Auditor Engagement Letter is to define the auditor’s responsibility, as described by professional standards, which is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. Generally Accepted Auditing Standards and Government Auditing Standards. The audit of our financial statements does not relieve you or management of your responsibilities as stated in our engagement letter dated May 25, 2018. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review The cost for the fiscal year 2017-2018 audit per the contract is $9,250 which was included in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2018 Board of Directors regular meeting at District Headquarters and on District website www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff for additional information. File Attachments TRS Engagement Letter.pdf (2,912 KB) Independent Audit Contract - TRS.pdf (4,432 KB) TRS Communication Letter.pdf (882 KB) Subject 14. Approve Auditor Engagement Letter for Fiscal Year 2017-18 Audit Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action The Board of Directors approve and file this 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. D. PUBLIC HEARINGS Summary The District adopted the procedures authorized by Health and Safety Code Section 5470 that allows solid waste and wastewater charges to be collected on the assessment roll. To do so we must adopt a report assessing the charges against the parcels every year. The proposed resolutions make those assessments. Analysis The District has adopted the procedures provided in Health and Safety Code Section 5470 to allow our solid waste and wastewater collection charges to be collected with other taxes on the County assessment roll. To be able to do so, the District went through a mailed notice proceeding and the process was implemented in the early 1990s. Since that implementation, Proposition 218 was passed (Article XIIID of the California Constitution) which required that fees must be justified as proportional and in other ways proper whenever a new fee or increase is needed. That proceeding also requires mailed notice and a protest hearing. This year no fees are being increased for solid waste or wastewater collection. However, we are still required to annually assess both the solid waste and wastewater charges by parcel for the Assessor. The procedure to assess parcels must be adopted after a noticed public hearing, in which notice is published two weeks before in an appropriate newspaper. The District will provide the County with an electronic version of a report which contains a description of each property receiving services and the charges. The real property may be described by reference to the assessor’s parcel map description. The hearing should be held to consider objections or protests to the assessments. Upon conclusion of the hearing, the Board may adopt the resolution approving the assessments to be filed with the Auditor. The Clerk must then file the assessments with the Auditor before August 10. She must confirm that the charges were adopted by the Board. The Auditor must then enter the charges against the parcels on the assessment roll. The charges are then collected by the Assessor and if the charges are not paid, there are procedures for liens, penalties and collections. Legal Review District Counsel reviewed this staff report and resolutions that are attached hereto. 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 assessed rates for both Wastewater and Solid Waste will remain the same as the prior year. See below charts for each individual customer class rate. Wastewater Rates for FY 2018-19 Sold Waste Collection Rates for FY 2018-19 Subject 1. Adopt Resolution No. 2018-909 confirming Wastewater Annual Charges and Resolution No. 2018-910 confirming Solid Waste Annual Charges respectively for FY 2018-19 to be collected with the General Taxes and Direct the Finance Manager to File with the County Auditor. Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action, Procedural Recommended Action The Board of Directors adopt Resolution No. 2018-909 confirming the Wastewater and Resolution No. 2018-910 confirming the Solid Waste Annual Charges respectively for FY 2018-19 to be collected with the general taxes and direct the Finance Manager to file with the County Auditor. Goals 7.0 Finance 7.1 Perform long term solid and liquid waste rate projections Customer Class Rate Customer Class Per Month Per Year Residential (Per Dwelling Unit) Single Family $18.00 $216.00 Single Family Residential $ 92.38 Multi-Family Residential 54.21 Non-Residential (Per 1000 sq. ft. Commercial – Ave Strength $ 41.09 Commercial – High Strength 44.81 Industrial 105.48 Public Notice Process Since neither Wastewater or Solid Waste rates are being increased, this matter does not require mailed protest hearing statements, however is properly noticed with two weeks newspaper notice in accordance with Government Code Section 6066. Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2018 Board of Directors regular meeting at District Headquarters and on the District’s website www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff. File Attachments B Resolution 2018-909 WasteWater.pdf (69 KB) A Resolution 2018-910 Solid Waste.pdf (69 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: June 28, 2018 Subject: Consider Approving CR&R Environmental Services Agreement Summary For over a year, staff and CR&R officials have been negotiating a new contract for residential solid waste and recycling collection services. On March 13, 2018, staff provided the Board with an update on negotiations that included items and programs that were agreed and disagreed upon. There are several items that have reached an impasse and will need Board direction before you consider approving the Agreement with CR&R Environmental Services. Recommendation That the Board of Directors give staff direction regarding the term of the Agreement and then consider approving Agreement with CR&R Environmental Services for residential solid waste and recycling curbside collection services Analysis Since 2006, CR&R Environmental Services has been providing curbside solid waste and recycling collection services to all Costa Mesa residents and a small portion of Newport Beach residents (Santa Ana Heights). CMSD's contract with CR&R expired in 2016 and now the term is on a year to year basis that includes a six-year evergreen clause, which means the contract will expire six years after CR&R receives a cancelation notice from CMSD. For example, if CMSD sent a cancelation notice in 2018, the contract will expire in 2024. CR&R provides a "mixed waste stream" collection program where all refuse and recyclable materials are disposed of in automated carts and then the recyclables are separated at CR&R's transfer station in the City of Stanton. In 2015, CR&R implemented a curbside organics recycling program where green waste and food scraps are delivered to CR&R's anaerobic digestion facility in the City of Perris where the material is converted into Renewable Natural Gas (RNG). In addition, CR&R has provided the following special programs: Alkaline Battery Recycling Program Christmas Tree Recycling Excess Boxes & Household Furnishings Large Item Pickups Door-to-Door Household Hazardous Waste Collection for seniors and disabled residents Lockable trash carts Other programs CR&R is required to perform per the terms of the agreement, include: Tours of CR&R's Recycling and Transfer Station. A monetary contribution of $10,000 per year to assist CMSD with public education. A cash donation of $500 per year to support local recycling efforts, such as the Alkaline Battery Recycling Program. Subject 1. Consider Approving CR&R Environmental Services Agreement Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $5,120,000.00 Budgeted Yes Budget Source Solid Waste Fund Recommended Action That the Board of Directors give staff direction regarding the term of the Agreement and then consider approving Agreement with CR&R Environmental Services for residential solid waste and recycling curbside collection services Goals 2.00 Solid Waste A monetary contribution of $10,000 to provide a Household Hazardous Waste (HHW) collection program. Provide a static display of baled recyclables at the annual Community Run and provide $200 for prizes. A monetary contribution of $5,000 to support anti-scavenging of recyclable materials. Signage on CR&R's collection trucks that promotes recycling programs. On March 13, staff presented to the Board the following items and programs that were agreed upon by both parties and one item (GPS) that was at an impasse. Since March 13, additional items are now at an impasse and needs Board's direction before you consider approving the Agreement with CR&R Environmental Services. 1. A fixed term limit of ten years with two five year extension options. The evergreen clause is removed and now the Board of Directors will have the option to solicit bids towards the end of the ten year term or the Board can extend the agreement for another five years. After March 13, CR&R came back with a revision to the proposed term. CR&R wants the Agreement to extend for another ten years after the Board has reviewed the Agreement prior to its expiration and determined CR&R is complying and performing with the conditions of the Agreement. Staff does not agree with the proposed revision and has offered some alternative suggestions below. Each suggestion has pros and cons for you to consider. 2. District-wide door-to-door household hazardous waste (HHW) collection program. Each household will be allowed three pickups per year with a maximum of 15 gallons or 125 pounds per pickup. 3. Free Mulch Event. Once a year CR&R will provide free mulch to residents in the Spring time. 4. CR&R will reimburse CMSD $30,000 the first year of the contract and $35,000 every year after, along with annual CPI increases, for various programs including public education, anti-scavenging, hiring a consultant to evaluate CR&R's performance, and a donation for the Alkaline Battery Recycling Program. 5. A comprehensive outreach program that will help CMSD achieve 75% diversion. CR&R's Sustainability Coordinator will dedicate approximately 20 hours a week promoting solid waste diversion programs in CMSD. Attached is a description of the plan, one idea is to recognize residents for doing a good job with their recycling efforts by having a photo of them in the newsletter and awarding them a gift card. 6. Free Roll-out assistance to senior/ADA residents, a physicians note will be needed to set up this service. Residents will contact CMSD to request roll-out service and then staff will email CR&R to request said service. 7. Valet Service. For those who are not seniors/ADA residents and cannot provide a physicians note, for $35 a month CR&R will roll-out and service up to three carts on their trash days. The fee of $35 will go directly to CR&R. 8. CPI Increase. CR&R can request a CPI increase using prior years data and the CPI will be implemented for the succeeding years on an individual year basis. The CPI increase will not be automatic and will need Board approval. Some cities have automatic CPI rate increases, but staff believes the District will lose control setting the rates if an automatic adjustment is implemented. CR&R will use the February to February CPI rate for Los Angeles-Long Beach-Anaheim area and they will submit their request by April 1 so Finance can include the increase in the budget, if CPI is approved by the Board. For instance, the first CPI could be implemented in FY20 and FY21 using the February 2018 and February 2019 annual CPI percent changes respectively. 9. Audit - CR&R agrees to allow CMSD to review their financial books to determine their profit margin with CMSD. CR&R has agreed to pay for auditing services. This will help staff determine if CR&R's request for a CPI increase is justifiable. 10. GPS System on CMSD Computers. This item was discussed on March 13. CR&R commented that they are committed to responding to staff requests for GPS information within two hours of the request. The Board unanimously directed staff to include a two hour response rate in the terms of the Agreement and exclude requiring CR&R to share a GPS system with District staff. After March 13 the GPS system was no longer part of the negotiation discussions. 11. Indemnification - To indemnify means to “make whole.” In the contract setting, the party agreeing to indemnify agrees to financial responsibility for loss. The District might be liable to someone, but the contractor would agree to pay for the loss. Indemnity is risk transference. It is backed up by insurance, but it is different than insurance. In our current contract with CR&R they agreed to indemnify CMSD for any and all liability arising out of the contract or the exclusive nature thereof, except for liability caused by the sole active negligence of CMSD. This is very close, in fact it’s bit stronger, to Type I indemnification where CR&R agrees to indemnify CMSD from an entire loss even if CMSD is at fault, unless it is solely CMSD’s fault. CR&R has agreed to keep the existing indemnification language in the new Agreement. Contract Term Options As mentioned above in Item No. 1, staff and CR&R are in disagreement regarding the term the Agreement. Below are options for the Board to consider and staff is seeking direction which option to include in the Agreement. 1. 10 years with two five year extension options (Staff Recommendation) Pros: 1. Gives Board of Directors options to solicit bids or extend existing contract at the end of 10 or 15 year term. 2. Contract has the option to be 10, 15 or 20 year term. 3. CMSD has control of contract term 4. CMSD has flexibility to extend Agreement or not. 5. Possibility of lowering rates from conducting an RFP after ten or fifteen years. Cons: 1. Soliciting bids is time consuming and costly (e.g. Newport Beach spent $197,800 on consulting service). 2. 15 to 20 years is long term 3. Services could be disrupted after 10 or 15 years if CR&R is not approved for contract extension 2. 10 years with 10 year automatic extension as long as CR&R is complying and performing to the conditions of the Agreement (CR&R Recommendation) Pros: 1. Saves money on consulting services for soliciting bids 2. No disruption of services for 20 years Cons: 1. CMSD will not have the option to solicit bids for 20 years 2. CMSD loses control of contract term 3. No opportunity to possibly lowering rates through an RFP process 4. Automatic extension would be similar to an Evergreen and the new Evergreen would be four years longer than existing Evergreen of six years. 3. 10 years with one five year extension option Pros: 1. Gives Board of Directors options to solicit bids or extend existing contract at the end of the ten year term. 2. Contract has the option to be 10 or 15 year term. 3. CMSD has control of contract term 4. CMSD has flexibility to extend Agreement or not. 5. Possibility of lowering rates from conducting an RFP after fifteen years. Cons: 1. Soliciting bids is time consuming and costly (e.g. Newport Beach spent $197,800 on consulting service). 2. 15 years is long term 3. Services could be disrupted after ten years if CR&R is not approved contract extension 4. 10 years with one five year automatic extension Pros: 1. Saves money on consulting services for soliciting bids 2. No disruption of services for 15 years Cons: 1. CMSD will not have the option to solicit bids for 15 years 2. CMSD loses control of contract term 3. No opportunity to possibly lowering rates through an RFP process 4. Automatic extension would be Evergreen but the new Evergreen would be one year less than existing Evergreen of six years. 5. 10 years with no extensions Pros: 1. No evergreen 2. CMSD will solicit bids prior to the end of the contract term 3. Contract is not long term 4. CMSD has control of contract term 5. Possibility of lowering rates from conducting an RFP after ten years. Cons: 1. Soliciting bids is time consuming and costly (e.g. Newport Beach spent $197,800 on consulting service). 2. Services could be disrupted after ten years if CR&R is not awarded the new contract Legal Review The Agreement has been reviewed and approved by District Counsel. Environmental Review Contract negotiations is an administrative matter and is not a disturbance of the environment similar to grading or construction and does not constitute a project under CEQA or the District’s CEQA Guidelines. Financial Review The new contract will result in some enhanced services provided by CR&R such as a District wide door-to-door HHW collection program, free mulch for residents and a strong commitment to public outreach, but without cutting costs and/or finding additional revenue sources rates will most likely increase in the next two years. It will be the first rate increase in nearly fifteen years. In Fiscal Year, 2016-17, CMSD spent approximately $5.2 million on CR&R's contract. The same amount is projected to be spent in FY 2017-18. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2018 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions Refer item back to staff with further instructions. File Attachments Community Outreach Plan.pdf (45 KB) CRR 2018 Agreement.pdf (308 KB) E. GENERAL MANAGER'S REPORTS Summary The attached ordinance for imposing the annual Solid Waste and Wastewater charge collections on the Property Tax Rolls for the fiscal year 2018-19. Legal Review District Counsel has reviewed and approved Ordinance No. 118. 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 There are no fiscal impacts to the District for adopting this ordinance. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 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 A - Ordinance No 118.pdf (94 KB) Subject 2. Adopt Ordinance No. 118 Confirming Annual Charges for Solid Waste and Wastewater for 2018-19 Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action, Procedural Recommended Action The Board of Directors adopt Ordinance No. 118 confirming annual charges for the Solid Waste and Wastewater for fiscal year 2018-2019. Goals 7.1 Perform long term solid and liquid waste rate projections 7.0 Finance E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 28, 2018 Subject: Approve out-of-state travel for Nabila Guzman, to attend SWANA's 2018 Wastecon conference in Nashville, Tennessee Summary The Costa Mesa Sanitary District Operation Code Section 3.02.070 Staff Expenses requires prior Board approval for Staff to travel out- of-state for conferences, meetings, seminars or related matters. Solid Waste Association of North America (SWANA), will hold it's annual Wastecon conference from August 20 to 23, 2018 in Nashville, Tennessee. The adopted budget for fiscal year 2018-2019 includes sufficient funds for Nabila Guzman, Management Analyst I to attend the conference. Recommendation The Board of Directors approves out-of-state travel for Nabila Guzman, to attend SWANA's 2018 Wastecon conference in Nashville, Tennesse Analysis SWANA, the largest solid waste organization in the world holds it's annual Wastecon conference to provide sector updates, introduce new solid waste programs and provide education/networking opportunities for members. Attendance at the conference will offer an excellent opportunity for staff to learn more about what other agencies are doing to comply with various regulations and discuss issues related to solid waste management as well as network with other local governments. The adopted budgeted estimate the cost of attendance is as follows: Registration $850 Lodging $900 Airfare $600 Meals/Misc. $250 $2,600 Legal Review Not applicable Environmental Review Attendance at a conference is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review There are sufficient funds budgeted to cover $2,600 in expenses for the 2018-2019 fiscal year. Public Notice Process Subject 3. Consider Approving Out-of-State Travel for Nabila Guzman, to attend SWANA's 2018 Wastecon conference in Nashville, Tennessee Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action The Board of Directors approves out-of-state travel for Nabila Guzman, to attend SWANA's 2018 Wastecon conference in Nashville, Tennessee Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2018 Board of Directors regular meeting at District Headquarters and on District website www.cmsdca.gov Alternative Actions Refer the matter back to staff E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: June 28, 2018 Subject: Consider Approving Out-of-State Travel for Steve Cano, Wastewater Maintenance Superintendent and Jesse Blakely, Wastewater Maintenance Worker II, to attend the Water Environment Federation Technical Exhibition and Conference (WEFTEC) in New Orleans, Louisiana Summary The Water Environment Federation (WEF) is a not-for-profit technical and educational organization of 23,000 individual members from around the world that is dedicated to bringing awareness of the values and impacts of water and to provide information about cutting edge technology for the water sector. WEF was originally called the Federation of Sewage Works Association when the organization was created in 1928. In 1950 the organization changed its name to the Federation of Sewage and Industrial Wastes Association and then the name was changed again in 1960 to the Water Pollution Control Federation. In 1991, the name was changed to Water Environment Federation to reflect an an expanded focus of non-point and point sources of pollution. Recommendation That the Board of Directors Consider Approving Out-of-State Travel for Steve Cano, Wastewater Maintenance Superintendent and Jesse Blakely, Wastewater Maintenance Worker II, to attend the Water Environment Federation Technical Exhibition and Conference (WEFTEC) in New Orleans, Louisiana Analysis According to their website, the Water Environment Federation's Technical Exhibition and Conference (WEFTEC) is the largest conference of its kind in North America that offers water quality professionals from around the world with the best water quality education and training available today. WEFTEC is also recognized as the largest annual water quality exhibition in the world. WEFTEC offers technical sessions and workshops that addresses wastewater issues and solutions for collection systems, which includes management, operations and maintenance, infrastructure, overflow reduction, wet weather planning, watershed approaches and regulations. This year's WEFTEC is scheduled from September 29 to October 3, 2018 in New Orleans, Louisiana. Staff is recommending Steve Cano, Wastewater Maintenance Superintendent and Jesse Blakely, Wastewater Maintenance Worker II attend this year's WEFTEC. Two wastewater maintenance employees are budgeted to attend WEFTEC in the amount of $4,800. Subject 4. Consider Approving Out-of-State Travel for Steve Cano, Wastewater Maintenance Superintendent and Jesse Blakely, Wastewater Maintenance Worker II, to attend the Water Environment Federation Technical Exhibition and Conference (WEFTEC) in New Orleans, Louisiana Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $4,800.00 Budgeted Yes Recommended Action That the Board of Directors Consider Approving Out-of-State Travel for Steve Cano, Wastewater Maintenance Superintendent and Jesse Blakely, Wastewater Maintenance Worker II, to attend the Water Environment Federation Technical Exhibition and Conference (WEFTEC) in New Orleans, Louisiana Goals 3.00 Partnerships 3.4 Participate in the activities of professional associations 6.0 Personnel/Organizational Management 6.7 Promote high employee satisfaction Legal Review Not applicable Environmental Review The consideration of out-of-state conference attendance is an administrative matter and is not a disturbance of the environment and does not constitute a project under CEQA or the District's CEQA guidelines. Financial Review There is sufficient money in the FY 2018-19 Budget for this expense. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 28, 2018 Board of Directors meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov. Alternative Actions 1. Do not approve out of state travel for Steve Cano and Jesse Blakely. 2. Direct staff to report back with more information. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: June 28, 2019 Subject: Award Noelani Middenway, District Clerk, $100 for her Rewarding Ideas Program submission to Improve Customer Service with CR&R Environmental Services Summary The Rewarding Ideas Program is designed to encourage employees to generate ideas for organizational improvements and provide a system to answering and recognizing adopted ideas. Noelani Middenway, District Clerk, submitted an idea that will improve customer service with CR&R Environmental Services. Recommendation That the Board of Directors approves awarding Noelani Middenway, District Clerk, $100 for her Rewarding Ideas Program submission to Improve Customer Service with CR&R Environmental Services Analysis Residents can submit request for services (e.g. missed trash pick-up, request cart replacement, etc.) on CMSD's website. When requests are submitted it goes directly to staff and then requests are forwarded to CR&R. This process is burdensome and time consuming because a layer of bureaucracy is created when staff is forwarding service requests to CR&R. Noelani's idea removes staff from the process by creating a user account in CMSD's customer service software for CR&R. Now when residents submit request for services it goes directly to CR&R and CR&R will respond directly to residents. The new method suggested by Noelani will hold CR&R accountable because records are created in the software that documents the day and time requests were sent and resolved. Noleani's idea will give staff more accurate data regarding number of complaints logged to CR&R and the length of time it takes to resolve said complaints. CR&R supports Noelani's idea and they believe the new method will improve their customer service as well. Legal Review Not applicable Environmental Review The consideration of monetary rewards for employees for improving customer service 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 There is sufficient money in the budget to award Noelani Middenway $100 for her idea. Subject 5. Award Noelani Middenway, District Clerk, $100 for her Rewarding Ideas Program submission to Improve Customer Service with CR&R Environmental Services Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $100.00 Budgeted Yes Recommended Action That the Board of Directors approves awarding Noelani Middenway, District Clerk, $100 for her Rewarding Ideas Program submission to Improve Customer Service with CR&R Environmental Services Goals 5.0 Administrative Management Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 28, 2018 Board of Directors meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov. Alternative Actions 1. Do not approve this suggestion made by Noelani Middenway 2. Direct staff to report back with more information File Attachments Rewarding Ideas Program 2018 NMiddenway.pdf (214 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: June 28, 2018 Subject: California Special Districts Association Board of Directors Election - Southern Network Seat A Summary The California Special Districts Association (CSDA) is governed by an 18-member Board of Directors. The Board consists of three directors from each of the six networks throughout California. The Costa Mesa Sanitary District is represented by the Southern Network. Seat A in the Southern Network is up for election. Recommendation That the Board of Directors direct staff to cast one vote on CMSD's behalf for one of the following candidates: 1. Jo MacKenzie, Board President, Vista Irrigation District; or 2. Joseph Kelly, Board Director, Big Bear Airport District Analysis CSDA is a not-for-profit association that promotes good governance and improved core local services through professional development, advocacy, and other services for all types of independent special districts. CSDA provides education and training, insurance programs, legal advice, industry-wide litigation and public relations support, legislative advocacy, capital improvement and equipment funding, collateral design services and important information to special districts management and operations. The California Special Districts Association (CSDA) is governed by an 18-member Board of Directors. The Board consists of three directors from each of the six networks throughout California. The Costa Mesa Sanitary District is represented by the Southern Network and Seat A is up for election. There are two candidates running for Seat A; incumbent Jo MacKenzie from Vista Irrigation District and Joseph Kelly from Big Bear Airport District. More information about both candidates are attached hereto. This year, voting will be done electronically and not by mail. Staff has received the electronic ballots by email and a direct link to the secure third-party voting system called Simply Voting. Upon receiving Board direction on the candidate of your choice, staff will cast one vote on CMSD's behalf. The deadline to cast our vote is August 10, 2018. Legal Review Not applicable Environmental Review Selecting and voting for a candidate for CSDA Board of Directors is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review The CSDA Board of Directors election does not any have financial impacts to CMSD. Subject 6. California Special Districts Association Board of Directors Election - Southern Network Seat A Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Board of Directors direct staff to cast one vote on CMSD's behalf for one of the following candidates: 1. Jo MacKenzie, Board President, Vista Irrigation District; or 2. Joseph Kelly, Board Director, Big Bear Airport District Goals 3.00 Partnerships 3.4 Participate in the activities of professional associations Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2018 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information File Attachments Jo MacKenzie.pdf (1,161 KB) Joseph Kelly.pdf (660 KB) F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: June 28, 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 June 28, 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 June 2018.pdf (41 KB) Subject 1. Receive and File Monthly Capital Improvement Projects Status Report Meeting Jun 28, 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: General Manager, Alternate District Engineer From: District Engineer Re: Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 1618 Ohms Way, Costa Mesa/Tenant Improvement/Steve Fortunato, Hospitality Collaborative Please be advised that I have been retained to do private engineering work for the property at 1618 Ohms Way, Costa Mesa, which is owned / developed by Steve Fortunato, Hospitality Collaborative. I have reason to believe that this project or those persons involved in that project may have the need for District engineering approvals in the future. I have been retained by Hospitality Collaborative and will be reporting this relationship as a source of income on my FPPC Statement of Economic Interests Form 700 next year. 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. Robin Hamers District Engineer Subject 2. Declaration of Conflict of Interest - 1618 Ohms Way, Costa Mesa Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: June 28, 2018 Subject: #318 President Pump Station; Consider Sole Source Findings for Direct Purchase of Pumps and Accessories Summary In the past, when a pump station was reconstructed or when a new pump station was proposed, the District made sole source findings for use of Flygt pumps due to the superior operating characteristics of the pumps and for uniformity of new equipment with existing equipment. The result is the use of Flygt pumps in almost all of the District’s 20 pumping stations. Having one type of pump allows the District’s field crews to become familiar with its operation and maintenance resulting in most of the pump work being completed by District personnel, including the once per year comprehensive maintenance. During a heavy rainstorm or during a sewer spill where the pumps are non-operational, it is extremely important that District forces understand how to manually operate the pumps and return them back into automatic service. Due to high pumping rates, every minute lost in an emergency represents a large increase in the volume of the sewer spill. To this end, the District has standardized pump station design and the mechanical and electrical components in the pump stations. Recommendation The Board of Directors approves the following: 1. That the purchase of Flygt pumps is necessary for compatibility of training so that CMSD service personnel can respond to emergencies and be thoroughly knowledgeable on a limited number of standardized pumps. 2. That having a limited number of pump standardizes replacement and repair parts, making the District better equipped to handle emergencies. 3. That having standardized pumps provides for efficiencies of scale for repairs and maintenance. 4. That Flygt pumps are only available from Xylem Water Solutions USA, Inc. 5. Authorize the General Manager and District Engineer to make a sole source purchase in the amount of $52,635.60 for three Flygt pumps and accessories as shown on the attached proposal from Xylem Water Solutions USA, Inc. Analysis Public Contract Code §3400 provides that a district may not specify a public purchase that calls for a trade name unless it is followed by the words “or equal” and the bidder is allowed to qualify a product as an equal. This prohibition does not apply if the awarding authority makes a determination (in pertinent part) that a trade name product is necessary to match other products in use on a public improvement or that the item is only available form a single source. Subject 3. #318 President Pump Station - Consider Sole Source Findings for Direct Purchase of Pumps and Accessories Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action The Board of Directors approves the following: 1. That the purchase of Flygt pumps is necessary for compatibility of training so that CMSD service personnel can respond to emergencies and be thoroughly knowledgeable on a limited number of standardized pumps. 2. That having a limited number of pump standardizes replacement and repair parts, making the District better equipped to handle emergencies. 3. That having standardized pumps provides for efficiencies of scale for repairs and maintenance. 4. That Flygt pumps are only available from Xylem Water Solutions USA, Inc. 5. Authorize the General Manager and District Engineer to make a sole source purchase in the amount of $52,635.60 for three Flygt pumps and accessories as shown on the attached proposal from Xylem Water Solutions USA, Inc. In addition, CMSD informal bidding procedures allow purchasing when the product or service is proprietary in nature and can only be obtained from a certain contractor. This requires the General Manager to make a certification to the Board of those facts. (Dist OpnsCode 4.04.100 (d)(2) and see (e)(1). The Flygt pumps have the following qualities for your consideration: 1. Flygt pumps have an N impeller, which is a patented self-cleaning design due to the configuration of the impeller vanes and other internal parts. 2. Use of hard iron material for extended life expectancy. Hard iron is a cast iron that includes 25% chrome. The impeller and wear ring life is greatly extended vs cast iron. 3. Flygt pumps have Class H trickle impregnated motors that delivers greater than 97% fillrate and results in a cooler running motor. Motor stator life is significantly extended by the cooler operating motor. 4. Pumps can run dry for periods of time. The pumps can be run until the water level is as low as possible and they begin pulling in air (snoring). The snoring strategy is employed to reduce the accumulation of debris and ragging material in the wet well by periodically running the wet well past the low level shutoff point until the pump “snores” then clears out as much of the wet well bottom and debris as possible. 5. The pumps can be run in a reverse direction in order to unclog the impeller when rags have bound the impeller to an unmovable position. 6. CMSD has this same pump in three pump stations thereby reducing the need for backup pumps. 7. The pump stations all use the Flygt double guide rail design to install and remove the pumps from the wet well. This allows interchangeability. 8. District field crews have been trained to understand Flygt pump operation and maintenance. 9. Factory direct service. Flygt maintains a service shop in Mira Loma (45 miles from Costa Mesa) with full time Flygt employed service technicians. Flygt has service trucks based in both Mira Loma and Compton. All critical spare parts are inventoried in a central US warehouse for quick delivery. In the past, Flygt has provided temporary spare pumps when needed by the District. 10. Flygt will send trained technicians to a District pump station if needed. Legal Review The attorney for the District assisted in the preparation of this staff report in order to comply with CMSD ordinances and California law. Environmental Review The replacement of existing pumps in an existing pump station with new pumps of the same size for the same rate of flow in a new pump station as shown on the plans for the project is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c) “Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity“. Financial Review If the District makes a direct purchase of the pumps and accessories, the cost should not be much different than if the contractor makes the purchase of the same items and supplies them for the project. The contractor has to competitively bid the project, which should minimize any markup on the equipment. Either way, the cost of the equipment is covered in the project budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2018 regular Board meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not make a direct purchase of pumps and accessories. Use a standard construction note on the plans. 2. Refer the matter back to staff for additional information. File Attachments 2018-LAB-0109 CMSD President Pumps and Accessories.pdf (137 KB) F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: June 28, 2018 Subject: #319 Canyon Force Main Replacement, #320 Canyon Pump Station Rehabilitation, Consideration of Request to Combine Projects Summary When the west side pump station abandonment program was canceled, a list of projects was developed to rehabilitate the pump stations and force mains that would henceforth remain in service. The top two projects were #317 President Force Main and #318 President Pump Station, and the next two most important projects are #319 Canyon Force Main Replacement and #320 Canyon Pump Station Rehabilitation, which are the subject of this staff report. Because the proposed improvements for the pump station and for the force main each include work in the middle of Wilson Street in the same location, traffic will have to be diverted and parking will be restricted on two separate occasions. Both projects include a sewer bypass system, which also takes up additional area in the street. However, if the projects are combined, work can occur on the force main concurrently with work on the pump station. This will minimize impacts to the local residents and shorten the overall construction time frame. Under normal circumstances, having a separate force main project and a separate pump station project is preferred because pipeline construction is one specialty and pump station work is a different specialty. There is, however, a local firm that can perform both of these types of construction without hiring additional subcontractors. Recommendation That the Board of Directors approve the following: 1. Combine the projects and budgets and have engineering staff prepare one set of construction plans and specifications. 2. Direct the General Manager to insure impacts to traffic and parking are minimized and provide advance notification to the city and the residents in the area. Analysis The District will be installing the new force main using horizontal directional drilling (HDD). Horizontal directional drilling minimizes noise, dust, and other impacts to residents and has been successfully used by the District on three previous force main projects. The pump station equipment that will be replaced with new equipment is as follows: 1. Check valves and plug valves 2. One pump 3. Pump discharge bases and guide bars 4. Piping inside the pump station and valve vault 5. Wet well protective lining 6. Electrical enclosure 7. Motor saver, breakers, starters, elapsed time meter, transducer, electronic level controller The estimated cost of the improvements inside the pump station as listed above is approximately $193,000. The preliminary estimate of the new force main work is $450,000. The original capital improvement plan allocation for the projects is as follows: Subject 4. #319 Canyon Force Main Replacement, #320 Canyon Pump Station Rehabilitation, Consideration of Request to Combine Projects Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the following: 1. Combine the projects and budgets and have engineering staff prepare one set of construction plans and specifications. 2. Direct the General Manager to insure impacts to traffic and parking are minimized and provide advance notification to the city and the residents in the area. #319 Canyon Force Main Replacement $620,000 #320 Canyon Pump Station Rehabilitation $225,000 Total $845,000 Legal Review Not required. Environmental Review The replacement of a force main with a new force main of the same size and the replacement of equipment inside the pump station with identical equipment are categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c) “Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity“. Financial Review The engineering fee for Project #320 is $7,350 (3.8% of construction costs) and the estimated construction cost of the improvements for this portion of the project is $193,000. This change will not cause an increase in project's total budget and combining the projects will likely result in greater efficiencies which ultimately should lower the combined cost for construction. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2018 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not combine the projects 2. Refer the matter back to staff for additional information H. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: June 28, 2018 Subject: Consider approving Amendment to General Manager’s Employment Agreement that includes a one percent increase to his annual compensation. Summary General Manager, Scott Carroll, was hired by the District on January 4, 2010. In accordance with his Agreement, Mr. Carroll is entitled to an annual performance evaluation. On May 24, 2018, the Board of Directors directed President Scheafer to meet with Mr. Carroll to negotiate the evaluation terms. Recommendation That the Board of Director consider approving an amendment to the General Manager’s Employment Agreement and a one percent increase for a total annual compensation of $191,380.41. Analysis On January 25, 2018, the Board of Directors received the achievement status of Mr. Carroll's 2017 Performance Goals and the organization's accomplishments in 2017. On March 22, April 26 and May 24, 2018, the Board of Directors met in closed session to discuss Mr. Carroll's performance evaluation and on May 24, the Board of Directors directed President Scheafer to meet with Mr. Carroll to negotiate the evaluation terms. Mr. Carroll requested that any compensation increase the Board is considering should be limited to no more than one percent. Attached is an amendment to Mr. Carroll's Employment Agreement that includes a one percent increase to his annual compensation. Legal Review District Counsel prepared the Amendment to Mr. Carroll's 2017 Employment Agreement. Environmental Review Approving the Amendment to the General Manager's Employee Agreement is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review Approving the Amendment will increase Mr. Carroll's annual compensation by $1,894.85. His annual compensation will be $191,380.41. The increase compensation will be paid retroactively from January 1, 2018. There is sufficient funds in the existing budget for this increase. Subject 1. Consider approving Amendment to General Manager’s Employment Agreement and a one percent increase for a total annual compensation of $191,380.41. Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $1,894.85 Budgeted No Budget Source Wastewater and Solid Waste Fund Recommended Action That the Board of Director consider approving an Amendment to General Manager’s Employment Agreement and a one percent increase for a total annual compensation of $191,380.41. Goals 6.0 Personnel/Organizational Management Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2018 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Do not approve the Amendment 2. Direct staff to report back with more information File Attachments General Manager 2018 Amendment.pdf (166 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 Jun 28, 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 Jun 28, 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 Jun 28, 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 Jun 28, 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 Jun 28, 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 Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Information K. NEW BUSINESS To: Board of Directors Via: Scott Carroll, General Manager From: The Honorable Arlene Schafer, Board Secretary Date: June 28, 2018 Subject: Consider Submitting 2018 California Special Districts Association (CSDA) Award Nominations Summary Each year, CSDA presents various awards during their Annual Conference & Exhibitor Showcase. There are several different categories to enter, which are described in more details below. Recommendation That the Board of Directors give staff direction for submitting 2018 California Special Districts Association (CSDA) Award Nominations Analysis Nominations for the following awards will be accepted by July 20, 2018 Individual Awards Board Member of the Year Nominations may be submitted for Board Member of the Year based on experience, effectiveness and leadership. Examples must be submitted that illustrate the rationale for the nomination. General Manager of the Year Nominations will be accepted for the general manager believed to have exhibited exceptional experience, effectiveness and leadership in his or her district. Illustrative examples must be submitted with the nomination demonstrating how the individual has excelled and brought substantial benefit to the district and/or public. Staff Member of the Year Selected from nominations by special district board members/trustees or district management staff. Nominations should include length of service to the district and specific accomplishments during employment. Ralph Heim Exceptional Outreach & Advocacy (The 2018 winner has been selected and will be presented at Legislative Days. This award will open for nominations again in 2019 and will continue to be presented with all other awards at the Annual Conference.) The criteria for this award include a demonstration of exceptional engagement with the public, Legislature, and/or other key stakeholders to promote the individual’s district and the entire special district community, particularly on matters related to CSDA’s grassroots advocacy and public outreach efforts. Additionally, the individual may have initiated or contributed to significant grassroots or public outreach communications efforts that are appealing and include creative, thorough, and highly relevant content. As CSDA's long-time contract lobbyist, Ralph Heim contributed significantly to CSDA and special district advocacy efforts for well over 20 years. As someone that Subject 1. Consider Submitting 2018 California Special Districts Association (CSDA) Award Nominations Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Board of Directors give staff direction for submitting 2018 California Special Districts Association (CSDA) Award Nominations Goals 3.00 Partnerships 3.4 Participate in the activities of professional associations 4.0 Community Outreach & Communications 4.6 Submit award applications always represented CSDA and its members extremely well and with strong integrity, Mr. Heim and his work in outreach and advocacy serves as a great example of excellence in this area. William Hollingsworth Award of Excellence The criteria for this award includes a demonstration of significant leadership for special districts regionally or statewide over time. Individual must be actively identifying and implementing programs and/or partnerships that benefit special districts regionally or statewide, dedicating time, efforts, and/or career toward the advancement of special districts, and advocating on behalf of special districts regionally or statewide over time. William Hollingsworth was one of the “founding fathers” of CSDA and an advocate for special districts in the Capitol from the 1970s to his retirement in 1990. Mr. Hollingsworth served the Olivenhain Municipal Water District for over 22 years, was instrumental in the formation of CSDA, and has helped to establish and perpetuate the finest tradition of public service and the special district form of government during his long career. While this award is open for nominations from CSDA Members, selection of the recipient will be by the CSDA Board of Directors. The CSDA Board reserves the right to not award each year if they so choose. In addition, active CSDA Board Members and staff are not eligible to receive the award. Chapter Awards CSDA Chapter of the Year Chapters are an integral part of communication, advocacy and education efforts throughout the State. CSDA will present an award to one affiliated chapter nominated for its effectiveness in outreach, involvement and creativity with activities on behalf of all districts in the chapter’s territory and/or an ongoing commitment to continuing education. District Awards Innovative Program/Project of the Year The criteria for this award includes originality of program/project, tangible and positive results produced and a documented decrease in district costs or a demonstrated improvement in the district’s quality of service without significantly increasing costs. Additionally, the program/project should be easily adaptable and serve a best practices example for other districts. Exceptional Public Outreach & Advocacy The criteria for this award include a demonstration of an increase in the district’s visibility with the public, Legislature and/or other key stakeholders. Additionally, the program may include improvement in district-constituent communication and evidence of communication pieces that are appealing and include creative, thorough and appropriate content relevant in communicating the districts business and/or program(s)/service(s). Additional consideration will be provided to nominees that have actively participated in CSDA’s Grassroots Advocacy efforts. CMSD is submitting a nomination for Exceptional Public Outreach & Advocacy for the District's Citizens Environmental Protection Academy. Legal Review Not applicable Environmental Review The consideration for submitting 2018 CSDA Award Nominations 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 There are no financial impacts to the District for submitting awad nominations. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 28, 2018 Board of Directors meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Discussion M. ADJOURN TO CLOSED SESSION Subject 1. Conference with Legal Counsel - Existing Litigation Government Code §54956.9(d)(1) -- The Costa Mesa Sanitary District v. Mesa Water District; OCSC No. 30-2017-00923819-CU-PT-CJC. Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type M. ADJOURN TO CLOSED SESSION Subject 2. Conference with Legal Counsel-Anticipated Litigation -- Significant exposure to litigation pursuant to Government Code Section 54956.9(2)- (1 case). The “existing facts and circumstances” creating a significant exposure to litigation are set forth in a letter from Attorney Kevin Shenkman dated March 26, 2018 and received March 29, 2018. Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Procedural N. RECONVENE TO OPEN SESSION Subject 1. Reconvene to Open Session and Report Out of any Reportable Action Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type O. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON JULY 26, 2018 IN THE DISTRICT'S BOARD ROOM, LOCATED AT 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Jun 28, 2018 - Board of Directors Regular Meeting Access Public Type Procedural