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2013_03_28 Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District …an Independent Special District AGENDA James Ferryman President Michael Scheafer Arthur Perry Vice President Secretary Robert Ooten Arlene Schafer Assistant Secretary Director Public Comments. Any member of the public may address the Board. Speakers on agenda items should identify themselves to the Deputy Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to three minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 628 W. 19th Street, Costa Mesa, California. The Deputy Clerk of the District may be contacted at (949) 645-8400. In Compliance with ADA: Contact Noelani Middenway, (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). Regular Meeting – Thursday, March 28, 2013 I. CALL TO ORDER – 5:30 p. m. – 628 W. 19th Street, Costa Mesa II. PLEDGE OF ALLEGIANCE – President Ferryman III. INVOCATION – Vice President Scheafer IV. ROLL CALL (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) V. Ceremonial Matters and Presentations – VI. Announcement of Late Communications NOTE: Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Costa Mesa Sanitary District March 28, 2013 AGENDA Page 2 VII. 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. VIII. 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. Board of Directors Special Meeting Minutes of February 4, 2013 Recommendation: That the Board of Directors approve and file. 2. Board of Directors Special Meeting Minutes of February 19, 2013 Recommendation: That the Board of Directors approve and file. 3. Operations Committee Minutes of February 19, 2013 Recommendation: That the Board of Directors approve and file. 4. Board of Directors Special Meeting Minutes of February 22, 2013 Recommendation: That the Board of Directors approve and file. 5. Board of Directors Regular Meeting Minutes of February 27, 2013 Recommendation: That the Board of Directors approve and file. 6. Occupancy Report and payment to Costa Mesa Disposal Recommendation: That the Board of Directors approves the occupancy report and payment to Costa Mesa Disposal for the month of February 2013. 7. Contract Payment to CR Transfer for Recycling & Disposal Services Recommendation: That the Board of Directors approves payment to CR Transfer for recycling and disposal services for the month of February 2013. 8. Adoption of a Resolution Approving District Warrant Registers Recommendation: That the Board of Directors adopt a resolution approving District warrants for the Month of February 2013 in the amount of $578,982.43. 9. Directors’ Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approves Directors’ compensation and reimbursement of expenses for the month of February 2013. 10. Investment Report for the Month of February 2013 Recommendation: That the Board of Directors approve the Investment Report for the month of February 2013 Costa Mesa Sanitary District March 28, 2013 AGENDA Page 3 11. Annual Health Benefit Broker Fees and Commissions Disclosure Recommendation: That the Board of Directors receive and file the report for calendar year 2012 12. Third Amendment to Employment Agreement (General Manager) Recommendation: That the Board of Directors approves amending the General Manager agreement. ---------------------------------------------END OF CONSENT CALENDAR------------------------------------- IX. PUBLIC HEARINGS – None X. GENERAL MANAGER / DISTRICT CLERK REPORTS 13. Appeal to the Sewer Lateral Assistance Program (SLAP) Guidelines Recommendation: That the Board of Directors: 1. Deny Ms. Slick’s appeal to request reimbursement from the Sewer Lateral Assistance Program because it will set precedent for not complying with SLAP Guidelines. 2. Direct staff to work with the City of Newport Beach Building Department to ensure city staff directs residents within CMSD service area to District headquarters to obtain sewer permits. 14. Proposed FY 2013/14 & 2014/15 Spending Plan Recommendation: That the Board of Directors give staff directions on the proposed two year spending plan for the District’s Solid and Liquid Waste Funds. 15. Proposed FY 2013/14 & 2014/15 CIP Recommendation: That the Board of Directors give staff directions on the proposed Capital Improvement Plan. 16. City of Costa Mesa 60th Anniversary Recommendation: That the Board of Directors: 1. Discuss ideas to help promote the anniversary and special events; 2. Approve allocating the necessary funds for promotional programs; and 3. Direct staff to work with the Anniversary Celebration Planning Committee to implement the ideas approved by the Board at tonight’s meeting. 17. City of Costa Mesa Mayor’s Celebration – The Art of Leadership Recommendation: That the Board of Directors: 1. Considers being a Bronze Sponsor to the Mayor’s Celebration – The Art of Leadership. 2. Approve budget adjustment in the amount of $2,500 to provide adequate funding for the sponsorship. 18. Notice of Nominations for the Special District Risk Management Authority (SDRMA) Board of Directors 2013 Election Costa Mesa Sanitary District March 28, 2013 AGENDA Page 4 Recommendation: That the Board of Directors considers nominating a representative from CMSD to serve on SDRMA Board of Directors and direct staff to prepare a resolution for the April 18, 2013 Board of Directors meeting. XI. OPERATIONS COMMITTEE 19. Tuesday March 19, 2013, 9:30 a.m. - (Vice President Scheafer and President Ferryman) Recommendation: That the Board of Directors accepts and files report. Note: The Operations Committee will meet on the above date and time to discuss the matters on a separate agenda which is posted and made a part of this agenda. Members of the public should refer to that separate agenda for the items discussed and to be discussed. The Board may take action on any of those items on this agenda. Other Board members may attend but only as observers. XII. ENGINEER’S REPORTS 20. Project Status Report Recommendation: That the Board of Directors receive and file the report. 21. Proposed OCSD Transfer of Fairview Trunk – Condition Assessment and Engineer’s Estimate to Rehabilitate Recommendation: That the Board of Directors considers the Engineer’s Report and directs the General Manager to conduct a soils test. XIII. TREASURER’S REPORTS - None XIV. ATTORNEY’S REPORTS 22. Deletion of Attorney’s Fees Provisions in Standard CMSD Agreements Recommendation: That the Board of Directors approves deleting the attorney’s fees provisions from standard CMSD agreements. XV. 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.) A. Orange County Sanitation District (OCSD) – (President Ferryman) Recommendation: That the Board of Directors accepts oral report. B. Santa Ana River Flood Protection Agency (SARFPA) – (Secretary Perry) Recommendation: That the Board of Directors accepts oral report. C. Independent Special Districts of Orange County (ISDOC) – (Vice President Scheafer) Recommendation: That the Board of Directors accepts oral report. D. California Special Districts Association (CSDA) Costa Mesa Sanitary District March 28, 2013 AGENDA Page 5 Recommendation: That the Board of Directors accepts oral report. E. California Association of Sanitation Agencies (CASA) Recommendation: That the Board of Directors accepts oral report. F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Recommendation: That the Board of Directors accepts oral report. XVI. OLD BUSINESS - None XVII. NEW BUSINESS - None XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XIX. ADJOURNMENT TO CLOSED SESSION 21. Pursuant to Government Code Section 54956.9(b): CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION One potential case. Weisenberger vs. Costa Mesa Sanitary District XX. RECONVENE TO OPEN SESSION XXI. ADJOURNMENT THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON APRIL 18, 2013 AT 5:30 P.M. IN THE DISTRICTS BOARD ROOM, 628 W. 19TH STREET. A LOOK AHEAD – Upcoming Meetings, Events and Tentative Agenda items  Special Meeting – Zero Waste Plan, April 1, 2013 at 9:30 a.m.  Review rates and other revenue sources – April 18, 2013  Public hearing to consider adoption of proposed sewer rates – April 18, 2013  Draft FY2013-14/2014-15 Budget – May 23, 2013  Adopt FY2013-14/2014-15 Budget – June 27, 2013  Adopting Zero Waste Plan – June 27, 2013, tentatively  Thursday, April 25, 2013 at 5:30 p.m. City of Costa Mesa Mayor’s Celebration – The Art of Leadership – Samueli Theater at Segerstrom Center for the Arts.  Saturday, April 27, 2013 at 10:00 a.m. – Free Composting Workshop at Fairview Park (next to Estancia High School). Don’t forget to bring your lawn chairs.  Sunday, June 2, 2013 – Costa Mesa Community Run – Estancia High School.  Free Door-to-Door Household Hazardous Waste Collection Program for Seniors and Immobile Residents – Contact CR&R Environmental Services at (949) 646-4617 to schedule a free collection. UPCOMING CMSD EVENTS AND ACTIVITIES Costa Mesa Sanitary District March 28, 2013 AGENDA Page 6  Sewer Lateral Assistance Program (SLAP) – The SLAP is a financial incentive program to encourage residents to maintain their lateral sewer line. The program will contribute 50% of the resident’s cost up to a maximum of $1,800. For more information visit www.cmsdca.gov or call (949) 645-8400.  Large Item Collection Program – Residents are eligible for three (3) complimentary pick-ups per year. There is a limit of ten items per call or collections can be combined for a total of thirty items per calendar year. For more information visit www.cmsdca.gov or call (949) 646-4617 to schedule an appointment. ITEM NO. 01 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING FEBRUARY 4, 2013 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in special session on February 4, 2013 at 9:30 a.m. at 628 W. 19th Street, Costa Mesa. ROLL CALL DIRECTORS PRESENT: James Ferryman, Art Perry, Mike Scheafer, Robert Ooten STAFF PRESENT: Scott Carroll, General Manager; Noelani Middenway, Deputy District Clerk; Alan Burns, District Counsel OTHERS PRESENT: Al Morelli, Resident; Trudy Hall, Resident; Rick Kapko, Resident PUBLIC COMMENT President Ferryman invited members of the public to address the Board. There were no public comments. President Ferryman reported that the Board of Director's had 60 days to decide how to fill the vacant Director position. President Ferryman stated that today’s meeting is to discuss the application process. President Ferryman opened discussion with the Board. Director Scheafer noted that he and Director Ooten had been charged with developing potential interview questions for the candidates. He noted that he and Director Ooten met twice and were able devise the following questions: 1. What does the candidate envision the future of the District to be? 2. What can the candidate do to help the District achieve the strategic plan goals? COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD FEBRUARY 4, 2013 ________________________________________________________________ 3. How do the candidates see themselves fitting in their role as a Director and as a collective body? 4. Can the candidate devote time to the District and attend all meetings? 5. What does the candidate know about the District in particular and the structure of Special Districts? Director Scheafer expressed concern that the candidates may tend to focus on past achievements and their involvement in the community, and while he and Director Ooten have an appreciation for that, they are looking for candidates with a vision for the future. Director Ooten suggested that the application include the following: 1. A candidate statement noting the candidate’s vision of the District's operating plan for the future. 2. A resume oriented toward how it would be helpful to the Board and ratepayers. 3. Describe the candidate’s role and responsibilities to the Board. 4. Describe the candidate’s vision for dealing with sewer and trash and his/her responsibility to rate payers. 5. Identify two cost saving measures in either sewer or solid waste. 6. Describe why the candidate’s qualifications would be important to the citizens and Board and how they would be beneficial to the residents. Director Ooten suggested consideration of creating a citizens group of three members of the public to help with the review of applications and to provide a recommendation to the Board. Director Perry noted that he would like a basic application form as the first page; followed by a second page that included a candidate statement of no more than 200 words, followed by a resume. He added that he liked the idea of requesting the candidate’s qualifications in the areas of sewer and solid waste and stated that he didn't see it necessary to form a citizens group to review the applications as time was of the essence. Discussion followed regarding the timeline to advertise the vacancy, setting a deadline, posting the applicants, and establishing timeline to nominate and appoint the Director. President Ferryman noted that the goal is to have the nominated candidate seated at the February 27, 2013 Board meeting. Discussion followed regarding the process of swearing in the new Board member, and whether or not a candidate could be nominated without conducting an interview. District Counsel Burns indicated that the Board would be able to select a candidate on any basis it so chose. He noted that the selection process would need to be conducted in public and not informally. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD FEBRUARY 4, 2013 ________________________________________________________________ Discussion followed regarding the establishment of a special meeting to conduct interviews, how the application process is to be circulated for publication, increasing the candidate statement from 200 to 250 words, and the outreach method for advertising applications. The Board requested the public notice be circulated in the Orange County Register and the Daily Pilot and for the notice to direct potential applicants to the District’s website or the District office to obtain the application and supplemental questionnaire. General Manager Carroll clarified the following items must be included - application, resume, candidate statement, vision for the district, role as a board member. President Ferryman indicated that he felt it was important for the candidates to identify their impression of a Board Member’s role along with their responsibilities. He noted that the role of a Board Member is to hire and fire the General Manager and to set policy and not to cross the line into management. Discussion followed regarding setting the date to schedule interviews. It was the consensus of the board to meet at 9:00 a.m. on February 22, 2013. The Board decided that a Special Meeting will follow at the conclusion of the Operations Committee meeting on February 19th to review the applications. President Ferryman provided an opportunity for public comment. Ms. Trudy Hall made comments about reviewing and interviewing the applications in public. Director Perry inquired if the vacancy notice is complete to date. Ms. Middenway indicated that the legal posting requirements had been met by posting the notice of vacancy at District Headquarters, the Neighborhood Community Center, and Mesa Water District, as well as the District’s website. Director Perry confirmed that a special meeting will be held following the Operations Committee meeting on February 19, 2013. Mr. Richard Kapko inquired if the interview process to be held in open session. District Counsel Burns clarified that applicants will be interviewed, at random, in open session. Discussion followed regarding how the interview questions would be incorporated into the application. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD FEBRUARY 4, 2013 ________________________________________________________________ District Counsel Burns suggested that the Board authorize President Ferryman or the Ad Hoc Committee to make minor adjustments to the questionnaire. The Board approved the deadline for submitting applications as Friday, February 15, 2013 at 3:00 p.m. ADJOURN TO CLOSED SESSION WITH LEGAL COUNSEL TO DISCUSS PUBLIC EMPLOYEE PERFORMANCE EVALUATION (GOV. CODE SECTION 54957) – TITLE: GENERAL MANAGER President Ferryman adjourned to closed session at 10:04 a.m. to discuss General Manager Carroll’s past performance and goals for the future. RECONVENE TO OPEN SESSION AND MAKE ANY APPROPRIATE ANNOUNCEMENTS President Ferryman reconvened into open session at 10:17 a.m. and reported out that General Manager Carroll successfully completed all of his goals of the past year and noted that other aspects of his performance. ADJOURNMENT There being nothing further to report, President Ferryman adjourned the meeting at 10:18 a.m. _________________________ _________________________ Art Perry James Ferryman Secretary President ITEM NO. 2 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING FEBRUARY 19, 2013 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in special session on February 19, 2013 at 11:00A.M. at 628 W. 19th Street, Costa Mesa. ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: James Ferryman, Art Perry, Mike Scheafer, Robert Ooten None STAFF PRESENT: Scott Carroll, General Manager; Noelani Middenway, Deputy Clerk of the District OTHERS PRESENT: Jim Mosher, Resident; Al Morelli, Resident; Geoff West, Resident; Trudy Hall, Resident, Mark Harris, Resident President Ferryman noted that the purpose of the special meeting was to discuss the selection process to fill the vacant Director seat that is due to expire in December, 2014. He indicated that 19 applications had been received and expressed gratitude to the applicants for their commitment to the community. President Ferryman indicated that the Board will select five candidates that will be interviewed at a special meeting on February 22, 2013. He noted that the appointment of the successful candidate would be contingent upon the results of a background check and with the anticipated seating of the new Director at the regularly scheduled Board of Directors meeting of February 27, 2013. President Ferryman requested that each board member provide the names of their top five candidates to the General Manager Scott Carroll who would then count the number of votes each applicant received. President Ferryman said applicants receiving four votes will be the optimum for determining which candidates will be interviewed. In the case of a tie for the fifth and final interview slot, the Board will vote again for fifth interview slot. He emphasized that each board member had reviewed all applications thoroughly and has a clear understanding of the qualifications of each candidate. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________ PUBLIC COMMENT President Ferryman invited members of the public to address the Board. Mr. Jim Mosher provided public comment regarding the procedure of interviewing the selected candidates to ensure compliance with the Brown Act. He suggested the option of possibly leaving the position vacant until November 2014, and provided potential questions to ask the selected candidates. Ms. Trudy Hall requested confirmation of the February 22, 2013 meeting time. President Ferryman responded to Ms. Hall’s inquiry and indicated that the meeting will begin at 9:30 a.m. President Ferryman closed public comments. Director Scheafer provided a response to the public comment that was received. President Ferryman requested that the members of the Board provide the names of their selected candidates to General Manager Carroll. Director Perry noted his selection of Jeff Harlan, Dan Worthington, Arlene Schafer, Rick Kapko, and Mark Harris. Director Ooten noted his selection of Shivaji Deshmuk, Linda Dixon, Mike Harmanoz, Al Morelli, and Arlene Schafer. Director Scheafer noted his selection of Tamara Alee, Shivaji Deshmuk, Jeff Harlan, Al Morelli, and Arlene Schafer. President Ferryman noted his selection of Dan Worthington, Shivaji Deshmuk, Linda Dixon, Al Morelli, and Arlene Schafer. General Manager Carroll noted the vote count per applicant as follows:  Arlene Schafer – 4  Al Morelli – 3  Shivaji Deshmuk – 3  Dan Worthington – 2  Jeff Harlan – 2  Linda Dixon – 2  Tamara Alee – 1  Mike Harmanoz – 1  Rick Kapko – 1 COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________ Arlene Schafer, Al Morelli, and Shivaji Deshmuk were noted as the top three candidates by number of votes received. Discussion followed to determine whether it was necessary for the Board to enter into discussion to break the tie between Dan Worthington, Jeff Harlan and Linda Dixon or to allow all three candidates to interview. It was the consensus of the Board to interview all six candidates at the February 22nd special meeting. Discussion followed regarding the questions to be asked during the interviews, and the process in which the candidates would be interviewed. The Board determined to sequester the candidates in General Manager Carroll’s office, then select a candidate’s name at random, and then interview the candidate individually during the open meeting. It was noted that each Director will ask two questions to each candidate. General Manager Carroll noted that Deputy District Clerk Noelani Middenway would notify the selected candidates about the interview date and time of February 22, 2013 at 9:30 a.m. Discussion followed regarding the possibility of holding the interviews during an evening special meeting. Ms. Trudy Hall questioned what time the meetings are normally held. President Ferryman responded that the regularly scheduled meetings at 5:30 p.m. and that Operations Committee meeting are held at 9:30 a.m. Mr. Mark Harris provided comment regarding the selection process he participated in for the City of Costa Mesa’s Parks & Recreation Committee. Mr. Jim Mosher provided comment regarding an alternative interviewing process. President Ferryman thanked the candidates for their applications and expressed appreciation for their participation. Director Scheafer commented about the language on the agenda regarding the Director appointment. General Manager Carroll clarified that the agenda was written in such a way to allow for flexibility. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________ ADJOURNMENT President Ferryman adjourned the meeting at 11:32AM. _________________________ _________________________ Art Perry James Ferryman Secretary President ITEM NO. 03 CMSD BOARD OF DIRECTORS OPERATIONS COMMITTEE MINUTES Board of Directors Schedule for Attendance Chairman Scheafer and Director Ooten Alternate: President Ferryman February 19, 2013 _____________________________________________________________________ CALL TO ORDER The Operations Committee of the Costa Mesa Sanitary District met in regular session on February 19, 2013 at 9:30 a.m. at 628 W. 19th Street, Costa Mesa. ROLL CALL MEMBERS PRESENT: Mike Scheafer, Bob Ooten, Art Perry (Director Perry was present as an observer and did not participate in the discussions) STAFF PRESENT: Scott Carroll, General Manager; Noelani Middenway, Deputy Clerk of the District; Robin B. Hamers, District Engineer; Javier Ochiqui, Management Analyst, Elizabeth Pham, Management Intern OTHERS PRESENT: Jim Herberg, OCSD; Lorenzo Tyner, OCSD; Michael White, OCSD; Angela Brandt, OCSD; David Ronnenberg, CR&R; Lawrence Jones, CR&R; Royden Fujimori, CR&R; Jim Mosher, Resident Chairman Scheafer announced that Item No. 14 will be heard at this time. NEW DISCUSSION ITEMS – SEWER SYSTEM 14. Orange County Sanitation District Sewer Rate Methodology – Oral Report  Representatives from OCSD will share with the committee their methodology for setting sewer rates. Lorenzo Tyner, OCSD provided an overview of the organization noting that they are an around-the-clock, 24/7 operation. He addressed the agency's budget, details of the rate COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________ program, the rate-approval timeline, consultant assistance and rate study, issuance of a Proposition 218 notice, ranking with comparable agencies, internal operational efficiencies, reduction of reserve levels and the agency's debt program. He noted that most of the agency's costs are inflationary and addressed proposed future increases. Michael White, OCSD, reported that the agency's sewer service fee structure is based on the single-family resident rate. He noted that there are approximately 540,000 parcels billed and that about 40,000 of those are non-residential. He addressed user codes established for each non-residential parcel as well as for the multi-family use residential rate. As single-family residential rates are adjusted, other rates are adjusted accordingly as a percentage of the single-family residential rate. Mr. White addressed industrial users who are billed based on the strength of flow and the three components that make up the single-family residential rate. He reported that the agency does not have a utility billing program but rather uses the Orange County Property Tax bill to collect fees on behalf of the OCSD. Regarding Master Planning, he reported that updates are based on a need or perception that the current Master Plan is not valid or current. Discussion followed regarding rate proportionality and it was noted that CMSD's rate for multi-family residences is lower than for single-family residences. Director Ooten stated that the CMDS consultant used I and I as a factor in the rate study. District Engineer Robin Hamers indicated that the CMSD uses total suspended solids and biological demand, similar to OCSD. These items are a measure of strength of the effluent meanings. He added that the CMSD consultants went into every level of detail to find proportionality, including I and I. Chairman Scheafer commented on similarities between CMSD and OCSD and inquired regarding the costs related to provide meters. Mr. Tyner reported that the costs are within the $7,000 range to install effluent meters, for the equipment only. Discussion followed regarding the use of I and I in the CMSD study. It was noted that the studies were done appropriately and that I and I was related to industry averages. Jim Mosher inquired regarding the meaning of I and I. It was noted that I and I is "inflow and infiltration" and that it measures how much water gets in the sewers by flowing in the manhole or flowing through the sewer pipes. Mr. Hamers reported that one of the reasons the CMSD consultant used I and I was that the rate was heavily towards single-family and that CMSD doesn't have much infiltration but rather has inflow from rain water. He added that the only real true way of measurement is a meter. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________ There were no additional questions or comments and the report was received. General Manager Scott Carroll noted the attendance of CR&R representatives and requested moving Item No. 8 to this juncture in the meeting. NEW DISCUSSION ITEMS – RECYCLING 8. GPS on CR&R Trucks – Oral Report  Receive an oral report from CR&R on how Global Positioning System (GPS) technology works on trash trucks. General Manager Scott Carroll introduced the item and deferred to CR&R representatives for a report. Royden Fujimori, CR&R, presented information regarding the organization's GPS technology for reporting and tracking trash trucks. He addressed elements of the system including the use of on-board computers, hardware, accuracy, testing, placement of the antennas on the trucks, tracking intervals, elements of measurements including speed and location and confirmation of service. He reported that video is used for service confirmation as well and addressed views of video capture for violations and other information. Discussion followed regarding the process for overloaded containers and the possibility of using RFID (Radio Frequency Identification) technology. In addition, there was discussion about related challenges and the possibility of having the GPS information on the CMSD website or on CMSD staff computers and related challenges. CR&R commented that it would not be impossible to place the GPS on the District’s website, but the software was created internally and the company has patent on software. There were no additional questions or comments and the report was received. STANDING REPORTS 1. Recycling Report – January 2013  Update on how CMSD is meeting AB 939 goals  Recycling Report correction requested by CR&R (Review the attached letter and backup info) Management Analyst Javier Ochiqui presented details of the report noting the tonnages, recycling percentages and the amounts taken to the landfill. He noted that CR&R submitted a Recycling Report correction clarifying the diversion rate. There were no questions or comments and the report was received. 2. Waste Diversion Report – January 2013 COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________  Update on the amount of recycling materials diverted from the landfill Jim Mosher expressed appreciation to District staff for posting the agenda in the correct format and opined that the report is deceptive in terms of the correct recycling percentages reported presently and in previous years. Mr. Ochiqui noted that the report presents a waste characterization summary which is standard practice in the industry. He addressed the sampling process used and application of the data for the years, noting that the practice is allowed by the State of California. He stated that tracking daily tonnage would be expensive and have a negative effect on the rates. Mr. Carroll indicated that if the Board so directs, staff can contact CR&R regarding the possibility of doing a more thorough waste characterization study. Discussion followed regarding the related costs and seasonal deviations of solid waste generated and it was noted that CMSD is currently meeting the standards set by the State and there is no reason to deviate from the procedure. There were no additional questions or comments and the report was received. 3. Ordinance Enforcement Officer’s January 2013 Report  Review OEO enforcement activities for trash cans, graffiti and scavenging Mr. Carroll noted no significant items to report and offered to respond to questions from the Committee. Discussion followed regarding the possibility of increasing the hours of work for the Ordinance Enforcement Officer. Mr. Carroll reported that most of the activities occur in the morning and staff would need to conduct an internal analysis to determine the effectiveness of a full-time position. There were no additional questions or comments and the report was received. 4. Scavenging Report – January 2013  Review scavenging activities reported to CMPD Mr. Carroll noted no significant items to report and offered to respond to questions from the Committee. There were no questions or comments and the report was received. 5. Solid Waste Facts & Figures – January 2013  Review and discuss facts and figures regarding solid waste in CMSD COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________  City Commercial tonnage information (Quarterly Reports) Mr. Carroll noted no significant items to report and offered to respond to questions from the Committee. There were no questions or comments and the report was received. NEW DISCUSSION ITEMS – RECYCLING 6. Large Item Collection Program  Discuss and review the results of the program Mr. Ochiqui reported that the Large Item Collection Program is gaining in popularity with residents and is projected to increase by 25% from last year. It was noted that people like the flexibility to schedule pick-ups as needed. CR&R representatives affirmed the success of the program. There were no additional questions or comments and the report was received. 7. Christmas Tree Recycling Program  Discuss and review the results of the program Management Intern Elizabeth Pham reported on the program and noted the number of trees collected in 2012 compared with previous years. She stated that the number of trees collected has decreased but reported there has been an increase in total tonnage by 1.7%. There were no questions or comments and the report was received. 8. GPS on CR&R Trucks – Oral Report  Receive an oral report from CR&R on how Global Positioning System (GPS) technology works on trash trucks. The aforementioned item was heard earlier on the agenda. 9. Recycling Coordinators Meeting  Receive and discuss report from staff. Mr. Ochiqui reported the aforementioned is a summary of the OC Recycling Coordinators meeting attended by staff. He addressed the Governor's budget regarding regulations on composting, CalRecycle’s proposal for streamlining the reporting COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________ process, additional workshops for AB 341 and the beverage and container program. He reported there will be a Household Hazardous Waste (HHW) grant available for local governments, and the deadline is coming up soon. Mr. Ochiqui reported that CMSD will be applying for the grant. Brief discussion followed regarding the requirements for use of grant funds and a description of a slurry organics program. Mr. Ochiqui continued reporting on the status of the County as well as what other cities are doing in terms of technology improvements. There were no questions or comments and the report was received. 10. Sustainable Events Guidebook – Oral Report  Review and discuss concepts for promoting a sustainable events guidebook. Director Ooten reported that he is on the City's 60th Anniversary Committee’s, Sustainability Sub-Committee and referenced a flyer on how to plan a sustainable event. He reported that the Committee developed a list of criteria and checklist which will be made available to other committees in hope that the Sanitary District takes the initiative in producing a Sustainable Event Planning Guidebook oriented to local events. He suggested distributing the flyer on memory sticks along with placing it on the City's and the CMDS websites. He addressed the possibility of Mesa Water District participating in a water conservation project including a toilet retrofit. Discussion followed regarding CMSD participating in local events. ACTION ITEMS – RECYCLING 11. Telephone Book Recycling Program  Receive a report from staff on how schools promoted the program. Mr. Carroll reported that staff recommends that the Committee recommend to the Board a minimum amount of $300 to schools that have demonstrated a good-faith effort in promoting the Telephone Book Recycling Program. Members of the Committee concurred to direct staff accordingly. STANDING REPORTS – SEWER SYSTEM 12. Monthly Spill Statistics – No SSOs occurred in January COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________ Mr. Carroll noted no significant items to report and offered to respond to questions from the Committee. 13. Sewer Facts and Figures  Review and discuss facts and figures regarding CMSD’s sewer system Mr. Carroll noted no significant items to report and offered to respond to questions from the Committee. NEW DISCUSSION ITEMS – SEWER SYSTEM 14. Orange County Sanitation District Sewer Rate Methodology – Oral Report  Representatives from OCSD will share with the committee their methodology for setting sewer rates. The aforementioned item was heard earlier on the agenda. ACTION ITEMS – SEWER SYSTEM 15. None CMSD PROJECTS 16. A. Project #101 West Side Pumping Station Abandonment – Status  The District Engineer is continuing work on the preliminary engineering. B. Project #192 System Wide Sewer Reconstruction Phase 2 – Status  Construction is approximately 85% complete. C. Project #193 Pumping Station Seismic Study and Retrofit – Status  Additional funding will be necessary to complete the project or the project will need to be scaled back. D. Project #196 Installation of Backup Power and Pumping Capability Phase I – Status  The District Engineer and General Manager are working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency equipment. E. Project #197 – System Wide Sewer Reconstruction Phase 3 – Status  The plans and specs are approximately 75% complete and nearly ready to be submitted for first plan review. F. Project #198 Condition Assessments of Force Mains - Status COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________  Field crew is determining valve locations on the Harbor force mains. G. OCSD Proposed Transfer of Fairview Trunk  The District Engineer is reviewing videos of the Fairview Trunk as a first step in the condition assessment of the line. Review is 80% complete. Mr. Hamers addressed Item G above and reported that it is complete, except for one item. He reported that the amount to rehabilitate the trunk is approximately $374,000, based on the amount of calcium deposits and it would need to be realigned from end to end. He addressed next steps. Chairman Scheafer reported receiving a letter from Pro Serve offering video sewer inspections and inquired if this would qualify for reimbursement by CMSD. Mr. Hamers indicated that it would qualify for 50% reimbursement for televising. He addressed requirements and restrictions. Mr. Carroll suggested sending Pro Serve a letter to ensure that they promote the program accurately. Upcoming CMSD Events and Activities 17. A. Project #101 West Side Pumping Station Abandonment – Status to Estancia High School). Don’t forget to bring your lawn chairs B. Sewer Lateral Assistance Program (SLAP) – The SLAP is a financial incentive program to encourage residents to maintain their lateral sewer line. The program will contribute 50% of the resident’s cost up to a maximum of $1,800. For more information visit www.cmsdca.gov or call (949) 645-8400. C. Large Item Collection Program – Residents are eligible for three (3) complimentary pick-ups per year. There is a limit of ten items per call or collections can be combined for a total of thirty items per calendar year. For more information visit www.cmsdca.gov or call (949) 646-4617 to schedule an appointment. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD FEBRUARY 19, 2013 ________________________________________________________________ PUBLIC COMMENTS 17. This is the time to receive any comments from members of the public. Jim Mosher commended staff for promoting the e-waste event a Mariner's School. 18. Discuss items for next Operations Committee meeting. ADJOURNMENT There being no further business to come before the CMSD Operations Committee, President Ooten adjourned the meeting at 10:42 a.m. Next Meeting Date: March 19, 2013 ________________________ _________________________ Secretary Chair ITEM NO. 04 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING FEBRUARY 22, 2013 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in special session on February 22, 2013 at 9:30 a.m. at 628 W. 19th Street, Costa Mesa. ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: James Ferryman, Art Perry, Mike Scheafer, Robert Ooten None STAFF PRESENT: Scott Carroll, General Manager; Noelani Middenway, Deputy District Clerk OTHERS PRESENT: Jim Mosher, Resident; Trudy Hall, Resident; Shivaji Deshmuk, Resident/Candidate; Dan Worthington, Resident/Candidate; Arlene Schafer, Resident/Candidate; Jeff Harlan, Resident/Candidate; Al Morelli, Resident/Candidate; Linda Dixon, Resident/Candidate President Ferryman opened the meeting and thanked each of the candidates for the willingness to participate in the interview process. General Manager Scott Carroll discussed the procedure by which each candidate would be interviewed. He further explained that the candidates would be sequestered in his office and a name would be drawn at random to determine who is interviewed. PUBLIC COMMENT President Ferryman invited members of the public to address the Board. COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD FEBRUARY 22, 2013 ________________________________________________________________ Mr. Jim Mosher provided comment suggesting an alternative method of conducting the interview process. The Board concurred to continue with the process that was previously decided upon. The six candidates were escorted to Mr. Carroll’s office at this point in the meeting. President Ferryman drew names at random and interviewed the candidates in the following order:  Mr. Al Morelli  Mr. Dan Worthington  Mr. Jeff Harlan  Ms. Arlene Schafer  Mr. Shivaji Deshmuk  Ms. Linda Dixon The following questions were asked of each candidate:  Why are you the best candidate?  What interested you about this position?  What is your knowledge of the CR&R trash hauler contract?  What do you think are the three main responsibilities of a Board Member?  What do you consider to be your top five strengths?  How should the District employ the strategic plan?  What are your thoughts on consolidating the Districts?  Will you have the time to commit to the District and to attend the California Special Districts Association (CSDA) trainings? At the conclusion of the interviews, discussion ensued regarding the voting process. It was determined that each Board Member would place their names in a hat and the individual whose name is drawn would provide their nomination. If the nomination received a second, the Board would then take a vote on the nomination. Should the nomination not receive a second then the nomination dies and another Board Member’s name would be drawn for their nomination. President Ferryman drew Director Ooten’s name and requested his nomination. Director Ooten nominated Linda Dixon. The nomination died for lack of a second. President Ferryman drew his own name and provided his nomination of Arlene Schafer. Director Perry seconded the nomination and noted that Ms. Schafer’s vast experience COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD FEBRUARY 22, 2013 ________________________________________________________________ would be an asset to the District. Director Scheafer commented that in looking at the District’s goals for the next two years, there is an expediency need to have things accomplished. Director Scheafer indicated he had two candidates that he felt would help the Board move quickly into the transition and noted that Ms. Schafer was one of the two candidates. He questioned if it would be appropriate to request that two candidates be nominated and for the Board to enter into a discussion. General Manager Carroll indicated that there was a motion on the floor and suggested that the Board vote on the current motion. He noted that if the motion did not pass then another name would need to be drawn from the hat and another nomination would be made. Director Ooten commented that he felt it was important to have a candidate with past election experience, knowledge and background of special districts, and is willing to research the processes. Director Ooten felt that Ms. Schafer possessed those qualities. President Ferryman called for the vote. The motion carried 4-0. President Ferryman thanked everyone for attending. General Manager Carroll noted that Ms. Schafer would complete a background check following the meeting at 1:40 p.m. ADJOURNMENT There being no further business to come before the Board, President Ferryman adjourned the meeting at 11:15 a.m. _________________________ _________________________ Art Perry James Ferryman Secretary President ITEM NO. 05 COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING FEBRUARY 27, 2013 ______________________________________________________________________ I. CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on February 27, 2013 at 5:30 p.m. at 628 W. 19th Street, Costa Mesa. II. PLEDGE OF ALLEGIANCE President Ferryman led the Pledge of Allegiance. III. INVOCATION Director Scheafer led the Invocation. IV. ROLL CALL DIRECTORS PRESENT: James Ferryman, Mike Scheafer, Robert Ooten, Art Perry, Arlene Schafer DIRECTORS ABSENT: None STAFF PRESENT: Scott Carroll, General Manager; Anna Sanchez, Administrative Service Manager; Noelani Middenway, Deputy Clerk of the District; Robin B. Hamers, District Engineer; Alan Burns, District Counsel; Marc Davis, District Treasurer; Javier Ochiqui, Management Analyst OTHERS PRESENT: Jim Mosher, Resident; Debbie Morris, HF&H Consultants, Laith Ezzet, HF&H Consultants; Dean Ruffridge, CR&R V. CEREMONIAL MATTERS AND PRESENTATIONS – Board of Director Oath of Office The Oath of Office was administered to new Board Director Arlene Schafer. VI. ANNOUNCEMENT OF LATE COMMUNICATIONS VII. PUBLIC COMMENTS Regarding the Consent Calendar Item 10, the TRC contract, Jim Mosher referenced rules regarding public funds noting that local government bodies may not grant extra compensation or allowance to a public officer, employee or contractor after a service COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2013 ________________________________________________________________ has been rendered or the contract entered into. He added that the public must know, in advance what was agreed to be done. It was noted that Mr. Mosher provided written comments regarding Items 1, 2 and 3 and that corrections will be completed after adoption by the Board. General Manager Scott Carroll reported that the corrections suggested by Mr. Mosher were valid. VIII. CONSENT CALENDAR 1. Board of Directors Minutes of Special Meeting Minutes of January 10, 2013 The Board of Directors Special Meeting Minutes of January 10, 2013, was approved as presented. 2. Board of Directors Special Meeting Minutes of January 14, 2013 The Board of Directors Special Meeting Minutes of January 14, 2013, was approved as presented. 3. Operations Committee Minutes of January 15, 2013 The Operations Committee Minutes of January 15, 2013, was approved as presented. 4. Board of Directors Regular Meeting Minutes of January 24, 2013 The Board of Directors Regular Meeting Minutes of January 24, 2013, was approved as presented. 5. Occupancy report and payment to Costa Mesa Disposal The Board of Directors approved the occupancy report and payment to Costa Mesa Disposal for the month of January 2013. 6. Contract Payment to CR Transfer for Recycling and Disposal Services The Board of Directors approved payment to CR Transfer for recycling and disposal services for the month of January 2013. 7. Adoption of a Resolution Approving District Warrant Registers The Board of Directors adopted a resolution approving District warrants for the Month of January 2013 in the amount of $671,187.15. 8. Directors' Compensation and Reimbursement of Expenses The Board of Directors approved Directors' compensation and reimbursement of expenses for the month of January 2013. 9. Investment Report as of January 31, 2013 The Board of Directors received and filed the report. COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2013 ________________________________________________________________ 10. Fifth Amendment to Agreement with Technology Resource Center The Board of Directors approved the Fifth Amendment to Agreement. 11. Budget Adjustment – Fairview Trunk The Board of Directors approved the budget adjustment of $5,000. 12. Resolution No. 2012-829 Ordering that Ordinance No. 96 has been Published The Board of Directors adopted Resolution No. 2012-829. 13. Claim No. 13-001-Weisenberger Item pulled for separate discussion and consideration. END OF CONSENT CALENDAR Director Ooten moved for approval of the Consent Calendar as amended and except for the item pulled for a separate vote (Item No. 13). Director Schafer seconded the motion. District Counsel Alan Burns clarified Item 10 regarding the TRC contract and reported that the amount is within the General Manager's contracting authority. The motion carried 5-0. In response to an inquiry from Director Scheafer regarding Claim No. 13-001- Weisenberger, Administrative Service Manager Anna Sanchez reported that the claim was for alleged damage to a vehicle that had driven over the concrete encasement to one of the CMSD manholes. The Costa Mesa Police Department as well as the Public Works Department responded to the scene, but CMSD was never notified of any occurrence. Staff reviewed the status of the street and maintenance records to determine if the District had been on notice to determine whether there was a hazardous condition at the site. The District had not been on notice until it was notified by the claimant thirty days after the incident had occurred. Therefore, staff is recommending rejection of the claim. She reported that the dollar amount falls under the threshold of the premium and SDRMA recommended that the District can take action at this time. She stated that the claimant indicated that he may pursue further options. Director Scheafer noted that since this was a single-car accident, the claimant is technically at fault. He expressed concerns that crews working in the field may want to review situations that may cause potential problems in the future and communicate back to the Board. Mr. Burns will provide a memo to the Board and will be providing information to the attorney-client. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2013 ________________________________________________________________ Mr. Burns suggested having a Closed Session on the matter. Director Scheafer indicated the need to be proactive with any potential problems. Ms. Sanchez added that when the City responded with their Public Works Department, they made the repairs. She added that the claimant submitted a claim to the City. Director Schafer moved to continue Consent Calendar Item VIII. 13. Director Perry seconded the motion. The motion carried 5-0. IX. PUBLIC HEARINGS - None X. GENERAL MANAGER/DISTRICT CLERK REPORTS 14. CalPERS Annual Valuation Report as of June 30, 2011 Recommendation: Direct staff to implement one of the recommendations pertaining to CMSD's unfunded liability. Mr. Carroll deferred to District Treasurer Marc Davis for a report. Mr. Davis noted this informational item relates to the transference of the valuation account as related to the District's portion of the pool retirement plan. He referenced a new accounting standard that will be effective with fiscal year ended June 30, 2015 and addressed previous discussions by the Board regarding its unfunded liability. He reported this is the first report from CalPERS that identifies the District’s unfunded liability as of June 30, 2011, which is approximately $201,000. He presented options for the Board to consider in addressing the District's unfunded liability. Mr. Davis presented details of the standards and reported that the District will be required to report its unfunded liabilities on its financial statements in the future and addressed details of the related options, included funding the unfunded liability in full, setting aside funds to make that payment in the future or waiting to see what occurs. He presented recommendations for the latter option. Discussion followed regarding previous direction to staff to begin a reserve account, CMSD's separate retirement and other post-employment benefits plans and the establishment of an irrevocable trust. It was noted that the post-employment benefits trust does not play into the retirement account at all. Mr. Davis reported that the $201,000 is a reflection of previous retirees and current employees and their projections for retirement. In a few years, CMSD will be required to report the unfunded liabilities as a liability within its financial statements and that CMSD is under no obligation to pre-fund it. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2013 ________________________________________________________________ Director Scheafer moved to direct staff to wait and see what occurs with CalPERS (Option 3) and report back to the Board in a future. Director Perry seconded the motion. The motion carried 5-0. 15. CR&R Environmental Services Performance Audit Recommendation: That the Board of Directors receive and file the report regarding the General Manager awarding a contract. General Manager Carroll presented the report noting it requires the appropriation of $21,000 from the Solid Waste Reserve Fund to fund an audit for CR&R Environmental Services. Staff has received three proposals, evaluated each and determined the best value is Michael Balliet Consultants. Mr. Carroll reported that he will be executing the contract and that the funds will be reimbursed by CR&R under the contract terms with CR&R. Debbie Morris, Costa Mesa resident, representing HF&H Consultants, addressed their proposal for the audit and referenced a sewer rate study conducted by her firm for CMSD thus proving the quality of their work. She reported that the firm only works for public jurisdictions in order to avoid any perceived or actual conflicts of interest. She referred to Laith Ezzet, HF&H Senior Director. Mr. Ezzet distributed printed information to the Board and addressed the results of CMSD staff's evaluation of the proposal. Mr. Ezzet presented HF&H's qualifications, proposed versus actual costs and scores given based on costs. He felt that there was no proportionality given to the points and added their auditor is a Certified Public Accountant (CPA) that specializes in performing solid waste audits whereas the competitor is not. He stressed the importance of getting the job done right versus getting it done at a lower cost and added that if CMSD does not require a CPA, HF&H Consultants can do the job for $20,000 with non-certified personnel and still do it right. President Ferryman stated that the Board is relying on the General Manager's review and recommendation. Mr. Carroll reported that any of the three firms are well qualified to perform the work and that the decision came down to cost. Members of the Board indicated the importance of supporting the General Manager on his decision. Director Ooten moved to accept the General Manager's recommendation to appropriate $21,000 for the CR&R Environmental Services audit. Director Schafer seconded the motion. The motion carried 5-0. 16. Schedule a Special Meeting for Strategic Plan Review – Oral Report Recommendation: That the Board of Directors schedule a special meeting in the first week of March 2013. COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2013 ________________________________________________________________ Mr. Carroll requested that the Board schedule a special meeting to discuss the progress made on achieving the Strategic Plan goals. Members of the Board concurred to schedule a special meeting on March 12, 2013 at 9:30 a.m. 17. Schedule a Special Meeting for Zero Waste Plan – Oral Report Recommendation: That the Board of Directors schedule a special meeting in March or April 2013. Mr. Carroll requested that the Board schedule a special meeting to discuss the Zero Waste Plan. Members of the Board concurred to schedule a special meeting on April 10, 2013 at 9:30 a.m. 18. Adopt Ordinance No. 97 Pertaining to Records and Resolution No. 2013- 827 - Update to Records Retention Schedule Recommendation: That the Board of Directors adopt Ordinance No. 97 pertaining to Records; adopt Resolution No. 2013-827 and the updated Records Retention Schedules. Mr. Carroll presented the report noting that the proposed ordinance and resolution will update the agency's records retention program. Director Ooten moved to adopt Ordinance No. 97. Director Scheafer seconded the motion. Mr. Carroll noted a member of the public would like to comment on this item. Jim Mosher requested clarification regarding those authorized to change the retention policy noting that it should not be delegated, but rather is a responsibility of the Board. He questioned the policy of retaining certain records for less than thirty days. District Counsel Burns affirmed that the ordinance and resolutions establish that the Board shall set the timelines for records retention. In response to an inquiry from the Board, Mr. Carroll reported that the timeline for retaining records depends on the retention schedule adopted by the Board and varies, depending on the type of record. Director Scheafer moved adoption of 2013-827 and the updated Records Retention Schedules. Director Schafer seconded the motion. The motion carried 5-0. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2013 ________________________________________________________________ 19. Telephone Book Recycling Program Recommendation: That the Board of Directors approves awarding a minimum of $300 to schools that have demonstrated a good faith effort to promoting the District’s Telephone Book Recycling Program. Mr. Carroll presented the report noting previous direction by the Board that if a school has demonstrated good faith efforts to promote the District's Telephone Book Recycling Program, it would be awarded a minimum of $300 regardless of the number of books collected. He reported that the item was reviewed by the Operations Committee and recommended that the Board approve the item accordingly. He added that twelve schools demonstrated good-faith efforts that will total $3,600. Discussion followed regarding the schools that made no efforts to promote the program. Director Ooten moved to approve awarding a minimum of $300 to schools that have demonstrated a good faith effort to promoting the District’s Telephone Book Recycling Program. Director Perry seconded the motion. The motion carried 5-0. 20. Rewarding Ideas Program Recommendation: That the Board of Directors approves rewarding District employee Noelani Middenway $1,000.00 for her suggestion to save over $13,000 annually on printing costs. Mr. Carroll reported that the program was approved by the Board during the last budget review process to encourage staff to develop innovative and creative ideas that would save money or demonstrate improved efficiencies. He announced that Noelani Middenway submitted a proposal that would save the District over $13,000 in annual printing costs by no longer printing staff reports for preparing agenda packets. Instead, staff will send to reports electronically to the Deputy Clerk’s office where the agenda packet will be prepared and reviewed electronically. Director Ooten moved to approve rewarding District employee Noelani Middenway $1,000.00 for her suggestion to save over $13,000 annually on printing costs. Director Scheafer seconded the motion. Mr. Carroll reported that the program runs continuously and that this is the second award since its start. Members of the Board congratulated Ms. Middenway on her idea. The motion carried 5-0. Discussion followed regarding the need to have a program in place for at least one year before an award is made and the possibility of revising the program in the future to revise the maximum award depending on the level of savings realized by the CMSD. It COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2013 ________________________________________________________________ was noted this would be an appropriate item to discuss at the upcoming Strategic Planning meeting. XI. OPERATIONS COMMITTEE 21. Tuesday, February 19, 2013, 9:30 a.m. - (Director Scheafer and Director Ooten) Recommendation: That the Board of Directors accepts and files report. Director Scheafer highlighted the report from CR&R regarding their GPS technology and the OCSD update. Discussion followed regarding the timing for sending out CMSD Prop 218 notices compared with OCSD and the possibility of coordinating the matter with them. Director Ooten commented about his participation on the City's Sustainability Sub- Committee and he mentioned the subcommittee is developing a list of criteria and checklist to sponsor sustainable community events which will be made available to other committees. The City will produce a Sustainable Event Planning Guidebook oriented to local events for the public and he reported that he will be asking the District to support the program by promoting the guide and educational materials on memory sticks along with placing it on the City and CMSD websites. Discussion followed regarding funds available in the budget to promote the City’s 60th Anniversary events. Members of the Board directed staff to place the item on the Operations Committee agenda for its next meeting and the possibility of placing banners on CR&R trucks in support of the anniversary events. XII. ENGINEER'S REPORTS 22. Project Status Report Recommendation: That the Board of Directors receive and file the report. Mr. Hamer's noted nothing to report at this time. XIII. TREASURER'S REPORT - None XIV. ATTORNEY'S REPORT - None XV. LOCAL MEETINGS A. Orange County Sanitation District (OCSD) – (President Ferryman) Recommendation: That the Board of Directors accepts oral report. President Ferryman reported that the meeting is currently in progress and that they will be considering an initial vote on a proposed rate increase. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2013 ________________________________________________________________ B. Santa Ana River Flood Protection Agency (SARFPA) – (Secretary Perry) Recommendation: That the Board of Directors accepts oral report. Director Perry noted he provided a report during the last Board meeting and that the next meeting of SARFPA will be next month. C. Independent Special Districts of Orange County (ISDOC) – (Director Scheafer) Recommendation: That the Board of Directors accepts oral report. Director Scheafer presented an update on the recent ISDOC meeting noting that the OCCOG has a new Executive Director and that ISDOC considered the draft presentation on By-Laws Amendments and those documents will be circulated to CMSD soon. D. California Special Districts Association (CSDA) Recommendation: That the Board of Directors accepts oral report. No reports at this time. E. California Association of Sanitation Agencies (CASA) Recommendation: That the Board of Directors accepts oral report. No reports at this time. F. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Recommendation: That the Board of Directors accepts oral report. XVI. OLD BUSINESS - None XVII. NEW BUSINESS - None XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Mr. Carroll confirmed upcoming meetings with the Liaison Committees. President Ferryman reported that CSDA is calling for nominations for a Regional Board seat and that he is considering running. Additionally, he stated that Director Scheafer would like to run for a CSDA Finance Corporation seat. He requested placing the items on the Board's agenda for next month's meeting. Mr. Carroll noted a vacant seat at the SDRMA and Director Scheafer indicated that he COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD FEBRUARY 27, 2013 ________________________________________________________________ would be interested in running for that seat rather than CSDA Finance Corporation. Director Schafer hoped that a discussion will occur during the Strategic Plan meeting on telephone directories. XIX. ADJOURNMENT TO CLOSED SESSION – 6:47 p.m. 23. Public Employee Performance Evaluation (Gov. Code §54957) - Title: General Manager Conference with Labor Negotiator (Gov. Code §54957.6) Agency Negotiator: President Ferryman Unrepresented Employee: General Manager XX. RECONVENE TO OPEN SESSION – 7:00 p.m. District Counsel Burns reported that the Board authorized President Ferryman to negotiate with the General Manager on a salary increase in which they have reached an agreement on a 7% merit salary increase, and the General Manager will pay 2.5% of his share of CalPERS pension cost and for the following two years the General Manager will be asked to pay an additional 2.5% in 2014 and an additional 2% in 2015 so that he will be paying his full 7% share of pension cost by 2015. It was noted that the agreement will be formalized at the Board's meeting in March. XXI. ADJOURNMENT President Ferryman adjourned the meeting at 7:05 p.m. to the next regular meeting of the Costa Mesa Sanitary District Board of Directors on March 28, 2013 at 5:30 p.m. in the District's Board Room, 628 W. 19th Street. _________________________ _________________________ Secretary President Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum ITEM NO. 06 To: Board of Directors Via: Scott Carroll, General Manager From: Javier Ochiqui, Management Analyst Date: March 28, 2013 Subject: OCCUPANCY REPORT AND PAYMENT TO COSTA MESA DISPOSAL Summary The total occupancy count for February 2013 billing is 21,492, with no new accounts added since the last billing period. Staff Recommendation Staff recommends the following: 1. The Board of Directors accepts the occupancy count as presented using 21,492 as the correct number of units. 2. The Board of Directors directs staff to prepare a warrant to Costa Mesa Disposal for February 2013 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement. Said payment in the amount of $196,767.85 to be ratified in the March 2013 warrant list. Costa Mesa Sanitary District Occupancy Report February 2013 Total Accounts 21,492 35 gallon carts 634 60 gallon carts 28,52390 gallon carts 14,645 Total Carts 43,802 Cart Delivery Information/Start Standard Service Telephone #Service Address Delivered No new accounts ITEM NO. 07 ITEM NO. 07 COSTA MESA SANITARY DISTRICT Warrant Resolution No. CMSD 2013-9 A RESOLUTION OF THE COSTA MESA SANITARY DISTRICT RATIFYING THE PAYMENT OF CERTAIN CLAIMS AND DEMANDS, AND SPECIFYING THE FUNDS OUT OF WHICH THE SAME WERE PAID. THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT DOES HEREBY ORDER AND RESOLVE AS FOLLOWS: Section 1. That the attached claims and demands totaling $578,982.43 have been audited as required by law and that the same were paid out of respective funds as hereinafter set forth. Section 2. That the Clerk of the District shall certify to the adoption of this Resolution and shall retain a certified copy thereof in his own records. PASSED AND ADOPTED this 28th day of March 2013. ATTEST: Secretary President STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss COSTA MESA SANITARY DISTRICT ) I, SCOTT CARROLL, General Manager/District Clerk of the Costa Mesa Sanitary District, hereby certify that the foregoing Warrant Resolution No. CMSD 2013-9 was duly adopted by the Costa Mesa Sanitary District at a regular meeting held on the 28th day of March 2013. ITEM NO. 08 AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the Costa Mesa Sanitary District on this 28th day of March 2013. District Clerk of the Costa Mesa Sanitary District Accounts PayableChecks for ApprovalUser: ktranPrinted: 03/01/2013 - 9:49 AMCheck Number Check Date Fund Name Account Name Vendor NameAmount0 02/06/2013 Liquid Waste Fund Federal Withholding Taxes Internal Revenue Service 4,922.540 02/06/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 518.520 02/06/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 518.52Check Total: 5,959.580 02/06/2013 Liquid Waste Fund State Withholding Taxes Employment Development Departm 1,637.47Check Total: 1,637.470 02/06/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 97.450 02/06/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 153.690 02/06/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 1,392.000 02/06/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 876.350 02/06/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 3,266.000 02/06/2013 Liquid Waste Fund PERS Survivor Benefit Cal Pers Employee Ret System 11.160 02/06/2013 Liquid Waste Fund PERS - Employer Cal Pers Employee Ret System -0.02Check Total: 5,796.630 02/20/2013 Liquid Waste Fund Federal Withholding Taxes Internal Revenue Service 4,968.450 02/20/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 35.860 02/20/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 35.860 02/20/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 525.770 02/20/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 525.77Check Total: 6,091.710 02/20/2013 Liquid Waste Fund State Withholding Taxes Employment Development Departm 1,636.09Check Total: 1,636.09AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 1 Check Number Check Date Fund Name Account Name Vendor NameAmount0 02/20/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 97.420 02/20/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 153.640 02/20/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 1,391.580 02/20/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 876.350 02/20/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 3,265.330 02/20/2013 Liquid Waste Fund PERS Survivor Benefit Cal Pers Employee Ret System 11.160 02/20/2013 Liquid Waste Fund PERS - Employer Cal Pers Employee Ret System -0.03Check Total: 5,795.450 02/20/2013 Liquid Waste Fund Federal Withholding Taxes Internal Revenue Service 208.920 02/20/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 24.230 02/20/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 24.23Check Total: 257.380 02/20/2013 Liquid Waste Fund State Withholding Taxes Employment Development Departm 51.54Check Total: 51.540 02/20/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 2.840 02/20/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 4.480 02/20/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 40.590 02/20/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 64.010 02/20/2013 Liquid Waste Fund PERS Survivor Benefit Cal Pers Employee Ret System 0.930 02/20/2013 Liquid Waste Fund PERS - Employer Cal Pers Employee Ret System 0.01Check Total: 112.860 02/28/2013 Liquid Waste Fund Federal Withholding Taxes Internal Revenue Service 1.440 02/28/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 14.500 02/28/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 14.50Check Total: 30.440 02/15/2013 Solid Waste Fund Investment Earnings Bank of America 378.98Check Total: 378.980 02/06/2013 Liquid Waste Fund Benefits Admin Costs Cal PERS 155.250 02/06/2013 Liquid Waste Fund Benefit Administration Cal PERS 51.750 02/06/2013 Solid Waste Fund Benefits Admin Costs Cal PERS 2.300 02/06/2013 Liquid Waste Fund Benefits Admin Costs Cal PERS 20.72AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 2 Check Number Check Date Fund Name Account Name Vendor NameAmount0 02/06/2013 Solid Waste Fund Cafeteria Plan Cal PERS 29.520 02/06/2013 Liquid Waste Fund Cafeteria Plan Cal PERS 118.100 02/06/2013 Liquid Waste Fund PERS Medical Cal PERS 6,166.89Check Total: 6,544.5310794 02/08/2013 Liquid Waste Fund Employee Insurance AFLAC 1,135.38Check Total: 1,135.3810795 02/08/2013 Liquid Waste Fund Sewer Maint-Staff Development Alex Arreola 90.49Check Total: 90.4910796 02/08/2013 Solid Waste Fund Telephone AT&T 37.7210796 02/08/2013 Liquid Waste Fund Telephone AT&T 339.5010796 02/08/2013 Liquid Waste Fund Sewer Maint-Telephone AT&T 127.1210796 02/08/2013 Liquid Waste Fund Sewer Maint-Telephone AT&T 140.5610796 02/08/2013 Liquid Waste Fund EOC Equipment & Supplies AT&T 76.54Check Total: 721.4410797 02/08/2013 Solid Waste Fund Public Info/Ed/Community Promo The Badge Company 11.3310797 02/08/2013 Liquid Waste Fund Public Info/Ed/Community Promo The Badge Company 2.83Check Total: 14.1610798 02/08/2013 Solid Waste Fund Recycling Grant AB 939 Beanstalk Logopromotions 973.5510798 02/08/2013 Solid Waste Fund Recycling Grant AB 939 Beanstalk Logopromotions 450.87Check Total: 1,424.4210799 02/08/2013 Solid Waste Fund Investment Earnings Bank of America -15.0010799 02/08/2013 Solid Waste Fund Staff Development Bank of America 7.1510799 02/08/2013 Liquid Waste Fund Staff Development Bank of America 64.3010799 02/08/2013 Liquid Waste Fund Staff Development Bank of America 79.0010799 02/08/2013 Solid Waste Fund Office Supplies Bank of America 42.8710799 02/08/2013 Liquid Waste Fund Office Supplies Bank of America 385.8610799 02/08/2013 Solid Waste Fund Staff Development Bank of America 6.9010799 02/08/2013 Liquid Waste Fund Staff Development Bank of America 62.1010799 02/08/2013 Solid Waste Fund Equipment Maintenance Bank of America 2.4010799 02/08/2013 Liquid Waste Fund Equipment Maintenance Bank of America 21.6010799 02/08/2013 Solid Waste Fund Board Travel/Meals/Lodging Bank of America 1.70AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 3 Check Number Check Date Fund Name Account Name Vendor NameAmount10799 02/08/2013 Liquid Waste Fund Board Travel/Meals/Lodging Bank of America 15.3010799 02/08/2013 Liquid Waste Fund Sewer Maint-Material/Supplies Bank of America 107.7810799 02/08/2013 Liquid Waste Fund Sewer Maint-Bldg Maint Bank of America 69.0410799 02/08/2013 Liquid Waste Fund Sewer Maint-Equipment Maint Bank of America 27.5210799 02/08/2013 Liquid Waste Fund Sewer Maint-Material/Supplies Bank of America 202.1810799 02/08/2013 Liquid Waste Fund Sewer Maint-Bldg Maint Bank of America 83.1110799 02/08/2013 Liquid Waste Fund Sewer Maint-Small Tools/Eq Bank of America 463.2510799 02/08/2013 Solid Waste Fund Equipment Maintenance Bank of America 12.5010799 02/08/2013 Liquid Waste Fund Building Maintenance Bank of America 112.5010799 02/08/2013 Solid Waste Fund Office Supplies Bank of America 2.0010799 02/08/2013 Liquid Waste Fund Office Supplies Bank of America 17.9610799 02/08/2013 Solid Waste Fund Staff Development Bank of America 8.5610799 02/08/2013 Liquid Waste Fund Staff Development Bank of America 76.99Check Total: 1,857.5710800 02/08/2013 Solid Waste Fund Legal Services Alan R. Burns 1,165.6410800 02/08/2013 Liquid Waste Fund Legal Services Alan R. Burns 2,164.7610800 02/08/2013 Liquid Waste Fund Legal Services Alan R. Burns 977.4010800 02/08/2013 Solid Waste Fund Legal Services Alan R. Burns 728.5310800 02/08/2013 Liquid Waste Fund Legal Services Alan R. Burns 1,352.9710800 02/08/2013 Liquid Waste Fund Legal Services Alan R. Burns 778.3010800 02/08/2013 Liquid Waste Fund Legal Services Alan R. Burns 1,448.0010800 02/08/2013 Liquid Waste Fund Legal Services Alan R. Burns 163.85Check Total: 8,779.4510801 02/08/2013 Solid Waste Fund Legal Services Alan R. Burns 823.5510801 02/08/2013 Liquid Waste Fund Legal Services Alan R. Burns 1,529.45Check Total: 2,353.0010802 02/08/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Justin Cable 1,150.00Check Total: 1,150.0010803 02/08/2013 Liquid Waste Fund Sewer Maint-Staff Development Steve Cano 200.00Check Total: 200.0010804 02/08/2013 Solid Waste Fund Fiscal Services CBIZ ATA Orange County LLC 635.0410804 02/08/2013 Liquid Waste Fund Fiscal Services CBIZ ATA Orange County LLC 1,179.36AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 4 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 1,814.4010805 02/08/2013 Liquid Waste Fund Sewer Maint-Equipment Maint City of Costa Mesa 219.6010805 02/08/2013 Liquid Waste Fund Sewer Maint-Equipment Maint City of Costa Mesa 488.76Check Total: 708.3610806 02/08/2013 Solid Waste Fund Prof Membership/Dues Costa Mesa Chamber of Commerce 230.0010806 02/08/2013 Liquid Waste Fund Prof Membership/Dues Costa Mesa Chamber of Commerce 230.00Check Total: 460.0010807 02/08/2013 Solid Waste Fund Container Collection Costs CR&R Incorporated 3,414.89Check Total: 3,414.8910808 02/08/2013 Liquid Waste Fund Sewer Maint-Pump Stn Contract C&R Drains Inc. 1,358.99Check Total: 1,358.9910809 02/08/2013 Liquid Waste Fund Office Supplies Cross Media Resources 58.3210809 02/08/2013 Solid Waste Fund Office Supplies Cross Media Resources 6.4810809 02/08/2013 Solid Waste Fund Office Supplies Cross Media Resources 19.6210809 02/08/2013 Liquid Waste Fund Office Supplies Cross Media Resources 176.62Check Total: 261.0410810 02/08/2013 Solid Waste Fund Recycling/Disposal CR Transfer, Inc. 166,332.2210810 02/08/2013 Solid Waste Fund Recycling/Disposal CR Transfer, Inc. 5,984.41Check Total: 172,316.6310811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 112.5010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 100.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 100.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 139.5010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC -25.0010811 02/08/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0010811 02/08/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 81.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 27.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 100.00AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 5 Check Number Check Date Fund Name Account Name Vendor NameAmount10811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 100.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC -25.0010811 02/08/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0010811 02/08/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 90.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 45.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 75.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 75.0010811 02/08/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC -25.0010811 02/08/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 95.0010811 02/08/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 95.0010811 02/08/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0010811 02/08/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.00Check Total: 1,760.0010812 02/08/2013 Liquid Waste Fund GIS System #188 Contr Svc Environmental Engr & Cont, Inc 11,706.2510812 02/08/2013 Liquid Waste Fund Sewer Maint-GIS Environmental Engr & Cont, Inc 6,085.0010812 02/08/2013 Liquid Waste Fund Sewer Maint-FOG Prog Contract Environmental Engr & Cont, Inc 18,548.61Check Total: 36,339.8610813 02/08/2013 Liquid Waste Fund Sewer Maint-Material/Supplies Ferguson Enterprises, Inc #603 1,091.34Check Total: 1,091.3410814 02/08/2013 Solid Waste Fund Gas - Building The Gas Company 10.4910814 02/08/2013 Liquid Waste Fund Gas - Building The Gas Company 94.4310814 02/08/2013 Liquid Waste Fund Sewer Maint-Gas Bldg The Gas Company 36.91Check Total: 141.8310815 02/08/2013 Solid Waste Fund Equipment Maintenance GE Capital 19.2810815 02/08/2013 Liquid Waste Fund Equipment Maintenance GE Capital 173.56Check Total: 192.8410816 02/08/2013 Liquid Waste Fund Engineering/Architectual Serv Robin B. Hamers & Assoc., Inc. 1,400.0010816 02/08/2013 Liquid Waste Fund Engineering/Architectual Serv Robin B. Hamers & Assoc., Inc. 2,557.2510816 02/08/2013 Liquid Waste Fund Plan Ck/Inspection-Inside Robin B. Hamers & Assoc., Inc. 530.7510816 02/08/2013 Liquid Waste Fund Plan Ck/Inspection-Inside Robin B. Hamers & Assoc., Inc. 7,578.7510816 02/08/2013 Liquid Waste Fund Plan Ck/Inspection-Outside Robin B. Hamers & Assoc., Inc. 627.2510816 02/08/2013 Liquid Waste Fund Plan Ck/Inspection-Outside Robin B. Hamers & Assoc., Inc. 483.7510816 02/08/2013 Liquid Waste Fund Plan Ck/Inspection-Swr Lateral Robin B. Hamers & Assoc., Inc. 386.00AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 6 Check Number Check Date Fund Name Account Name Vendor NameAmount10816 02/08/2013 Liquid Waste Fund Plan Ck/Inspection-Swr Lateral Robin B. Hamers & Assoc., Inc. 709.5010816 02/08/2013 Liquid Waste Fund Westside Aband#101-Cont Svc Robin B. Hamers & Assoc., Inc. 6,658.5010816 02/08/2013 Liquid Waste Fund System Wide Swr Recon Ph2 #192 Robin B. Hamers & Assoc., Inc. 627.2510816 02/08/2013 Liquid Waste Fund System Wide Swr Recon Ph2 #192 Robin B. Hamers & Assoc., Inc. 1,064.2510816 02/08/2013 Liquid Waste Fund System Wide Swr Recon Ph3 #197 Robin B. Hamers & Assoc., Inc. 9,215.7510816 02/08/2013 Liquid Waste Fund PICA Analysis #198 Robin B. Hamers & Assoc., Inc. 627.2510816 02/08/2013 Liquid Waste Fund PICA Analysis #198 Robin B. Hamers & Assoc., Inc. 258.00Check Total: 32,724.2510817 02/08/2013 Liquid Waste Fund Staff Development Timothy K. Henson 100.00Check Total: 100.0010818 02/08/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Rosario Herrera 450.00Check Total: 450.0010819 02/08/2013 Liquid Waste Fund Professional Services HF&H Consultants, LLC 4,828.3310819 02/08/2013 Liquid Waste Fund Professional Services HF&H Consultants, LLC 4,842.30Check Total: 9,670.6310820 02/08/2013 Liquid Waste Fund Sewer Maint-Equipment Maint HUB Auto Supply 81.72Check Total: 81.7210821 02/08/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Nate Justice 772.50Check Total: 772.5010822 02/08/2013 Solid Waste Fund Equipment Maintenance Konica Minolta 47.7910822 02/08/2013 Liquid Waste Fund Equipment Maintenance Konica Minolta 430.07Check Total: 477.8610823 02/08/2013 Liquid Waste Fund Sewer Maint-Equipment Maint Lifecom Inc. 65.00Check Total: 65.0010824 02/08/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Kathleen Lovell 1,800.00AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 7 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 1,800.0010825 02/08/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 19.0010825 02/08/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 19.0010825 02/08/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 22.00Check Total: 60.0010826 02/08/2013 Solid Waste Fund Legal Services Meyers Nave 30.3810826 02/08/2013 Liquid Waste Fund Legal Services Meyers Nave 56.42Check Total: 86.8010827 02/08/2013 Solid Waste Fund Public Info/Ed/Community Promo County of Orange Auditor-Cont 1.5010827 02/08/2013 Liquid Waste Fund Public Info/Ed/Community Promo County of Orange Auditor-Cont 13.50Check Total: 15.0010828 02/08/2013 Liquid Waste Fund Due to OCSD Orange County Sanitation Distr 14,402.3410828 02/08/2013 Liquid Waste Fund OCSD Fees-CMSD Share Orange County Sanitation Distr -720.12Check Total: 13,682.2210829 02/08/2013 Solid Waste Fund Office Supplies Office Depot 0.8410829 02/08/2013 Liquid Waste Fund Office Supplies Office Depot 7.5810829 02/08/2013 Solid Waste Fund Office Supplies Office Depot 6.8310829 02/08/2013 Liquid Waste Fund Office Supplies Office Depot 61.4410829 02/08/2013 Solid Waste Fund Office Supplies Office Depot 1.2910829 02/08/2013 Liquid Waste Fund Office Supplies Office Depot 11.6610829 02/08/2013 Solid Waste Fund Office Supplies Office Depot 6.7110829 02/08/2013 Liquid Waste Fund Office Supplies Office Depot 60.4010829 02/08/2013 Solid Waste Fund Building Maintenance Office Depot 1.0110829 02/08/2013 Liquid Waste Fund Building Maintenance Office Depot 9.08Check Total: 166.8410830 02/08/2013 Solid Waste Fund Other Reimbursements Brian Pharris 10.00Check Total: 10.0010831 02/08/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Viola Reese 1,800.00AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 8 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 1,800.0010832 02/08/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Frank Renn 786.75Check Total: 786.7510833 02/08/2013 Liquid Waste Fund Staff Development SARBS - CWEA 50.0010833 02/08/2013 Liquid Waste Fund Sewer Maint-Staff Development SARBS - CWEA 200.0010833 02/08/2013 Liquid Waste Fund Board Travel/Meals/Lodging SARBS - CWEA 50.00Check Total: 300.0010834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 344.6710834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 247.3410834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 280.8310834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 76.4610834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 37.6010834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 71.2710834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 284.7010834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 212.6510834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 702.1510834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 85.5710834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 84.5410834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 133.1010834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 58.0910834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 412.5110834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 382.1610834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 272.9010834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 953.2510834 02/08/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 79.9810834 02/08/2013 Solid Waste Fund Electric - Building Southern California Edison 57.8410834 02/08/2013 Liquid Waste Fund Electric - Building Southern California Edison 520.56Check Total: 5,298.1710835 02/08/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Wade Stark 1,660.00Check Total: 1,660.0010836 02/08/2013 Liquid Waste Fund EOC Equipment & Supplies TelePacific Communications 299.24AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 9 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 299.2410837 02/08/2013 Liquid Waste Fund Contract Services Underground Service Alert/SC 82.00Check Total: 82.0010838 02/08/2013 Liquid Waste Fund Sewer Maint-Small Tools/Eq USA bluebook 116.15Check Total: 116.1510839 02/08/2013 Liquid Waste Fund Deferred Compensation - 457 VantagePoint Transfer Agents 1,023.07Check Total: 1,023.0710840 02/08/2013 Liquid Waste Fund Deferred Medical-RHS-Employee VantagePoint Transfer Agents 627.58Check Total: 627.5810842 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Adams School 300.00Check Total: 300.0010843 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program California Elementary School 300.00Check Total: 300.0010844 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Christ Lutheran 300.00Check Total: 300.0010845 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program College Park School 300.00Check Total: 300.0010846 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Davis School 300.00Check Total: 300.0010847 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Estancia High School 700.00AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 10 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 700.0010848 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Harper Preschool Center 300.00Check Total: 300.0010849 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Kaiser Elementary School 300.00Check Total: 300.0010850 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Killybrooke School 300.00Check Total: 300.0010851 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Kline School 1,200.00Check Total: 1,200.0010852 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Mariners Christian School 300.00Check Total: 300.0010853 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Newport Heights Elementary Sch 300.00Check Total: 300.0010854 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Orange Coast Recycling Center 300.00Check Total: 300.0010855 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Paularino School 300.00Check Total: 300.0010856 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Pomoma School 300.00Check Total: 300.0010857 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Rea Elementary School 300.00AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 11 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 300.0010858 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Sonora Elementary School 300.00Check Total: 300.0010859 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program St.Joachim School 300.00Check Total: 300.0010860 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program St John The Baptist School 300.00Check Total: 300.0010861 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Wilson Elementary School 300.00Check Total: 300.0010862 02/13/2013 Solid Waste Fund Telephone Bk Recycling Program Woodland Elementary School 300.00Check Total: 300.0010863 02/25/2013 Solid Waste Fund Building Maintenance GECRB/AMAZON 7.3510863 02/25/2013 Liquid Waste Fund Building Maintenance GECRB/AMAZON 66.15Check Total: 73.5010864 02/25/2013 Solid Waste Fund Telephone AT&T 35.8210864 02/25/2013 Liquid Waste Fund Telephone AT&T 322.35Check Total: 358.1710865 02/25/2013 Solid Waste Fund Equipment Maintenance C3 Office Solutions LLC 10.9310865 02/25/2013 Liquid Waste Fund Equipment Maintenance C3 Office Solutions LLC 98.33Check Total: 109.2610866 02/25/2013 Liquid Waste Fund Sewer Maint-Equipment Maint City of Costa Mesa 183.20Check Total: 183.20AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 12 Check Number Check Date Fund Name Account Name Vendor NameAmount10867 02/25/2013 Solid Waste Fund Public Info/Ed/Community Promo City of Costa Mesa 250.00Check Total: 250.0010868 02/25/2013 Liquid Waste Fund Sewer Maint- Water Pumps City of Newport Beach 30.22Check Total: 30.2210869 02/25/2013 Solid Waste Fund Public Info/Ed/Community Promo Costa Mesa Community Run 25.0010869 02/25/2013 Liquid Waste Fund Public Info/Ed/Community Promo Costa Mesa Community Run 225.00Check Total: 250.0010870 02/25/2013 Solid Waste Fund Trash Hauler Costa Mesa Disposal 196,822.79Check Total: 196,822.7910871 02/25/2013 Solid Waste Fund Capital Outlay CoreLogic Solutions, LLC 75.0010871 02/25/2013 Liquid Waste Fund Capital Outlay CoreLogic Solutions, LLC 75.00Check Total: 150.0010872 02/25/2013 Liquid Waste Fund Capital Outlay CPC Fabrication, Inc. 3,060.00Check Total: 3,060.0010873 02/25/2013 Solid Waste Fund Household Hazardous Waste CR&R Incorporated 980.00Check Total: 980.0010874 02/25/2013 Solid Waste Fund Board Travel/Meals/Lodging California Special Dist Assoc 22.5010874 02/25/2013 Liquid Waste Fund Board Travel/Meals/Lodging California Special Dist Assoc 202.50Check Total: 225.0010875 02/25/2013 Liquid Waste Fund Sewer Maint-Staff Development CWEA-TCP 347.0010875 02/25/2013 Liquid Waste Fund Staff Development CWEA-TCP 42.0010875 02/25/2013 Liquid Waste Fund Board Travel/Meals/Lodging CWEA-TCP 72.00Check Total: 461.0010876 02/25/2013 Liquid Waste Fund Prof Membership/Dues CWEA-TCP 140.00AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 13 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 140.0010877 02/25/2013 Liquid Waste Fund Prof Membership/Dues CWEA-TCP 140.00Check Total: 140.0010878 02/25/2013 Solid Waste Fund Medical/Employment Services Department of Justice 39.2010878 02/25/2013 Liquid Waste Fund Medical/Employment Services Department of Justice 9.80Check Total: 49.0010879 02/25/2013 Solid Waste Fund Educational Programs Discovery Science Center 688.4810879 02/25/2013 Solid Waste Fund Educational Programs Discovery Science Center 832.0010879 02/25/2013 Solid Waste Fund Educational Programs Discovery Science Center 400.00Check Total: 1,920.4810880 02/25/2013 Solid Waste Fund Professional Services ECS Imaging, Inc. 89.0610880 02/25/2013 Liquid Waste Fund Professional Services ECS Imaging, Inc. 801.57Check Total: 890.6310881 02/25/2013 Liquid Waste Fund Board Travel/Meals/Lodging Jim Ferryman 720.00Check Total: 720.0010882 02/25/2013 Solid Waste Fund Staff Development Fred Pryor Seminars 159.2010882 02/25/2013 Liquid Waste Fund Staff Development Fred Pryor Seminars 39.80Check Total: 199.0010883 02/25/2013 Solid Waste Fund Professional Services GovDelivery, Inc. 35.0010883 02/25/2013 Liquid Waste Fund Professional Services GovDelivery, Inc. 315.00Check Total: 350.0010884 02/25/2013 Solid Waste Fund Postage Mail Finance Inc. 7.6710884 02/25/2013 Liquid Waste Fund Postage Mail Finance Inc. 69.01Check Total: 76.6810885 02/25/2013 Liquid Waste Fund Contract Services HF&H Consultants, LLC 525.00AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 14 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 525.0010886 02/25/2013 Solid Waste Fund Building Maintenance Hydrex Pest Control Company of 12.8010886 02/25/2013 Liquid Waste Fund Building Maintenance Hydrex Pest Control Company of 115.20Check Total: 128.0010887 02/25/2013 Solid Waste Fund Professional Services Iron Mountain 18.2310887 02/25/2013 Liquid Waste Fund Professional Services Iron Mountain 164.00Check Total: 182.2310888 02/25/2013 Liquid Waste Fund Sewer Maint- Water Pumps Irvine Ranch Water District 9.3010888 02/25/2013 Liquid Waste Fund Sewer Maint- Water Pumps Irvine Ranch Water District 9.30Check Total: 18.6010889 02/25/2013 Solid Waste Fund Recycling Grant AB 939 Francene E. Kaplan PH.D. 200.0010889 02/25/2013 Solid Waste Fund Recycling Grant AB 939 Francene E. Kaplan PH.D. 200.00Check Total: 400.0010890 02/25/2013 Solid Waste Fund Staff Development Maureen Kane & Associates, Inc 150.0010890 02/25/2013 Liquid Waste Fund Staff Development Maureen Kane & Associates, Inc 1,350.00Check Total: 1,500.0010891 02/25/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 19.00Check Total: 19.0010892 02/25/2013 Liquid Waste Fund Sewer Maint-Equipment Maint Morgan Company 301.83Check Total: 301.8310893 02/25/2013 Liquid Waste Fund Capital Outlay Municipal Maintenance Equipmen 271.8610893 02/25/2013 Liquid Waste Fund Capital Outlay Municipal Maintenance Equipmen 110.00Check Total: 381.8610894 02/25/2013 Liquid Waste Fund Sewer Maint-Sewer Line Maint National Plant Services, Inc. 598.9510894 02/25/2013 Liquid Waste Fund Sewer Maint-Sewer Line Tele National Plant Services, Inc. 4,035.12AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 15 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 4,634.0710895 02/25/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Terryn Obrien 125.00Check Total: 125.0010896 02/25/2013 Solid Waste Fund Medical/Employment Services Occu-Med, Ltd 4.5010896 02/25/2013 Liquid Waste Fund Medical/Employment Services Occu-Med, Ltd 40.5010896 02/25/2013 Solid Waste Fund Medical/Employment Services Occu-Med, Ltd 23.5010896 02/25/2013 Liquid Waste Fund Medical/Employment Services Occu-Med, Ltd 211.50Check Total: 280.0010897 02/25/2013 Solid Waste Fund Building Maintenance Office Depot 0.6110897 02/25/2013 Liquid Waste Fund Building Maintenance Office Depot 5.5010897 02/25/2013 Solid Waste Fund Building Maintenance Office Depot 5.1210897 02/25/2013 Liquid Waste Fund Building Maintenance Office Depot 46.0410897 02/25/2013 Solid Waste Fund Office Supplies Office Depot 7.8810897 02/25/2013 Liquid Waste Fund Office Supplies Office Depot 70.9410897 02/25/2013 Solid Waste Fund Office Supplies Office Depot 5.4010897 02/25/2013 Liquid Waste Fund Office Supplies Office Depot 48.5910897 02/25/2013 Solid Waste Fund Office Supplies Office Depot 1.2710897 02/25/2013 Liquid Waste Fund Office Supplies Office Depot 11.4010897 02/25/2013 Solid Waste Fund Building Maintenance Office Depot 1.7710897 02/25/2013 Liquid Waste Fund Building Maintenance Office Depot 15.9510897 02/25/2013 Solid Waste Fund Building Maintenance Office Depot 0.4110897 02/25/2013 Liquid Waste Fund Building Maintenance Office Depot 3.6810897 02/25/2013 Solid Waste Fund Board Travel/Meals/Lodging Office Depot 3.2710897 02/25/2013 Liquid Waste Fund Board Travel/Meals/Lodging Office Depot 29.4110897 02/25/2013 Solid Waste Fund Board Travel/Meals/Lodging Office Depot 1.2010897 02/25/2013 Liquid Waste Fund Board Travel/Meals/Lodging Office Depot 10.7910897 02/25/2013 Solid Waste Fund Building Maintenance Office Depot 0.4710897 02/25/2013 Liquid Waste Fund Building Maintenance Office Depot 4.2710897 02/25/2013 Solid Waste Fund Building Maintenance Office Depot 6.7910897 02/25/2013 Liquid Waste Fund Building Maintenance Office Depot 61.1210897 02/25/2013 Solid Waste Fund Building Maintenance Office Depot 7.6410897 02/25/2013 Liquid Waste Fund Building Maintenance Office Depot 68.7610897 02/25/2013 Solid Waste Fund Building Maintenance Office Depot 0.8410897 02/25/2013 Liquid Waste Fund Building Maintenance Office Depot 7.57Check Total: 426.6910898 02/25/2013 Liquid Waste Fund Board Travel/Meals/Lodging Bob Ooten 834.81AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 16 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 834.8110899 02/25/2013 Solid Waste Fund Building Maintenance Ortiz Landscaping & Maintenanc 16.0010899 02/25/2013 Liquid Waste Fund Building Maintenance Ortiz Landscaping & Maintenanc 144.00Check Total: 160.0010900 02/25/2013 Solid Waste Fund Building Maintenance Commercial Cleaning Systems 37.8010900 02/25/2013 Liquid Waste Fund Building Maintenance Commercial Cleaning Systems 340.20Check Total: 378.0010901 02/25/2013 Liquid Waste Fund Board Travel/Meals/Lodging Art Perry 195.42Check Total: 195.4210902 02/25/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Andrew Rowlett 1,461.92Check Total: 1,461.9210903 02/25/2013 Liquid Waste Fund Sewer Maint-Annual Sewer Maint Santa Ana Blue Print 53.56Check Total: 53.5610904 02/25/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 920.2810904 02/25/2013 Liquid Waste Fund Sewer Maint-Elec Bldg Southern California Edison 449.82Check Total: 1,370.1010905 02/25/2013 Liquid Waste Fund Board Travel/Meals/Lodging Michael Scheafer 698.76Check Total: 698.7610906 02/25/2013 Solid Waste Fund Staff Development Springbrook Software Inc. 59.5010906 02/25/2013 Liquid Waste Fund Staff Development Springbrook Software Inc. 535.50Check Total: 595.0010907 02/25/2013 Solid Waste Fund Professional Services Technology Resource Cntr, Inc. 90.6210907 02/25/2013 Liquid Waste Fund Professional Services Technology Resource Cntr, Inc. 815.6310907 02/25/2013 Liquid Waste Fund Professional Services Technology Resource Cntr, Inc. 815.6310907 02/25/2013 Solid Waste Fund Professional Services Technology Resource Cntr, Inc. 90.62AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 17 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 1,812.5010908 02/25/2013 Solid Waste Fund Recycling Grant AB 939 Los Angeles Times 192.75Check Total: 192.7510909 02/25/2013 Solid Waste Fund Household Hazardous Waste Uline 408.24Check Total: 408.2410910 02/25/2013 Liquid Waste Fund Deferred Compensation - 457 VantagePoint Transfer Agents 627.58Check Total: 627.5810911 02/25/2013 Liquid Waste Fund Deferred Medical-RHS-Employee VantagePoint Transfer Agents 1,023.07Check Total: 1,023.0710912 02/25/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Gary Wong 1,174.98Check Total: 1,174.98Report Total: 578,982.43AP - Checks for Approval ( 03/01/2013 - 9:49 AM )Page 18 Jan-13 Vendors Amount Mar Vac Electronics 107.78$ Smart And Final 69.04$ Fleet Services 27.52$ The Home Depot 202.18$ The Home Depot 83.11$ Long Beach Hose & Coupling Co. 463.25$ VSN*Dotgovregistration 125.00$ Office Depot 19.96$ Yard House 85.55$ Paypal *Municipalwa 17.00$ Yard House 71.45$ Certification Partners 79.00$ Quikship Toner, Inc. 428.73$ Surveymonkey.com 24.00$ California Special District 69.00$ Credit Card Fee (15.00)$ CMSD Check #10799 (2/8/2013)1,857.57$ ITEM NO. 09 Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum ITEM NO. 10 To: Board of Directors Via: Scott Carroll, General Manager From: Marc Davis, Treasurer Date: March 28, 2013 Subject: Investment Report for the Month of February 2013 Summary Attached is the Investment Report for the month of February 2013. As required by the District’s Statement of Investment Policy, the Investment Report delineates all investment activity during the month. Staff Recommendation That the Board of Directors approve the Investment Report for the month of February 2013. Analysis This report lists the types of securities held in the District’s portfolio, the institutions from which the securities were purchased, maturity dates and interest rates as of February 28, 2013. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the July 26, 2012 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party custodian, Bank of New York, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer’s Office. It does not represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw. This reporting practice is consistent with industry standard practices for similar funds. The weighted average stated rate of return (current yield) for the District’s investment portfolio as of February 28, 2013, was 0.666%. The yield to maturity of the portfolio was Board of Directors March 28, 2013 Page 2 of 3 0.666%. The District’s weighted average interest rate was 38 basis points (0.380%) above the daily effective yield of LAIF, which was 0.286% as of February 28, 2013. The weighted average number of days to maturity for the District’s total portfolio was 914 days (2.50 years). The average duration of the underlying securities in LAIF as of February 28, 2013, which is the most current information available, was 217 days. The District’s investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than one year as of February 28, 2013 was 42.38%. During the month of January 2013, the District had 3 securities called. The proceeds from the calls were transferred to the sweep account held by the District’s custodian. This resulted in a temporary non-compliance of the portfolio whereby the investments in a money market mutual fund exceeded 10.00% in any one fund and 20.00% in total. As of February 28, 2013, the District had 12.52% of its portfolio in the sweep account with the Bank of New York. Two new securities were purchased and settled in February 2013. A third replacement security has been purchased and will settle in March 2013. Once this last replacement investment is settled, the balance in the sweep account will be reduced to below 10.00% of the portfolio. As of February 28, 2013, the District has adequate operating reserves necessary to meet its obligations for the next six months. Strategic Plan Element & Goal This item supports achieving Strategic Element No. 7.0, Finances, by ensuring the short and long-term fiscal health of the District. Legal Review Legal review is not required. Financial Review The portfolio was budgeted to earn an average rate of 0.900% for the year ending June 28, 2013. Through February 28, 2013, the portfolio has earned a weighted average interest rate of 0.797%. Staff anticipates that the District will be close to budget with its estimated investment earnings. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2013 Board of Directors regular meeting at District Headquarters (628 W. 19th Street) and on the District’s website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff Board of Directors March 28, 2013 Page 3 of 3 Attachments Attachment A: Treasurer’s Report of Pooled Cash and Investments as of February 28, 2013 Deposits Outstanding Bank Balance In Transits Checks Book Balance Active Accounts: Bank of America 356,130.61$ 26,350.40 220,951.84 161,529.17$ Total Active Accounts 356,130.61 26,350.40 220,951.84 161,529.17 Market Value Increase Decrease Cost Investments: Local Agency Investment Fund 5,181,443.80$ - - 5,181,443.80$ Money Market/Sweep Account 2,174,337.47 - - 2,174,337.47 Federal Agency Securities 10,010,810.00 - 10,810.00 10,000,000.00 Total Investments 17,366,591.27 - 10,810.00 17,355,781.27 Total Pooled Cash & Investments 17,722,721.88$ 26,350.40$ 231,761.84$ 17,517,310.44$ Market Adjustment C O S T A M E S A S A N I T A R Y D I S T R I C T Treasurer's Report of Pooled Cash and Investments February 28, 2013 Costa Mesa Sanitary District Pooled Cash and Investments by Fund February 28, 2013 Solid Waste Fund: Operating Reserve 801,000.00$ Unreserved 4,724,858.14 Liquid Waste Fund: Operating Reserve 371,000.00 Reserved for Earthquakes/Emergencies 1,000,000.00 Reserved for Capital Outlay 2,774,665.00 Unreserved 2,260,188.92 Sewer Construction Fund 100,000.00 Facilities Revolving Fund 101,293.32 Asset Replacement Fund 244,013.31 Asset Management Fund 5,140,291.75 Total Pooled Cash & Investments 17,517,310.44$ Treasurer DateMarcus D. Davis February 28, 2013 3/19/13 1 Total investments outstanding as of January 31, 2013 17,655,755.84$ Additions: Gain on sale of investment - Investment purchases 2,000,000.00 Deductions: Investments called - Net increase (decrease) in Sweep Account (1,989,974.57) Net increase (decrease) in LAIF (310,000.00) Total investments outstanding as of February 28, 2013 17,355,781.27$ C O S T A M E S A S A N I T A R Y D I S T R I C T Investment Activity Summary February 28, 2013 2 InterestCUSIPPurchase Maturity Coupon Investment Earned atNumberInvestmentDateDateRateCost02/28/13n/a Local Agency Investment Fund n/a n/a 0.286% 5,181,443.80$ n/a **n/a Bank of New York-Sweep Acct n/a n/a 0.000% 2,174,337.47 n/a3133EAPB8 Federal Farm Credit Bank 05/02/12 05/02/17 1.230% 1,000,000.00 4,065.83 3136G0GX3 Federal National Mortgage Assn 05/30/12 08/24/16 1.000% 1,000,000.00 194.44 3135G0MA8 Federal National Mortgage Assn 06/28/12 06/28/17 1.200% 1,000,000.00 2,100.00 3134G3ZR4 Federal Home Loan Mortgage 08/07/12 08/07/171.000% 1,000,000.00 666.66 3136G0L58 Federal National Mortgage Assn 10/18/12 10/18/17 1.000% 1,000,000.00 3,694.44 3135G0RQ8 Federal National Mortgage Assn 11/15/12 11/15/17 1.000% 1,000,000.00 2,944.44 313381LC7 Federal Home Loan Mortgage 12/28/12 12/28/170.950% 1,000,000.00 1,662.50 3136G17A1 Federal National Mortgage Assn 12/31/12 12/30/15 0.450% 1,000,000.00 762.50 3133823B7 Federal Home Loan Mortgage 02/22/13 02/22/181.150% 1,000,000.00 287.50 3133826D0 Federal Home Loan Mortgage 02/28/13 02/28/181.100%1,000,000.00 - Totals17,355,781.27$ 16,378.31$ **Represents the LAIF daily rate at 2/28/13CommentsCOSTA MESA SANITARY DISTRICTInvestment and Investment EarningsFebruary 28, 2013 3 Current % of Market Value 02/28/13 Maximum % U.S. Treasury Bills 0.00% Unlimited U.S. Treasury Notes 0.00% Unlimited Federal Agency Issues: FICB 0.00% Unlimited FLB 0.00% Unlimited FHLB 0.00% Unlimited FHLMC 23.03% Unlimited FNMA 28.84% Unlimited FFCB 5.77% Unlimited Other *0.00% Unlimited Banker's Acceptances 0.00% 25% (1) Certificates of Deposit 0.00% 25% Negotiable Certificates of Deposits 0.00% 25% (1) Commercial Paper 0.00% 25% (1) Medium Term Corporate Notes 0.00% 20% (1) LAIF (Local Agency Investment Fund) 29.84% 40,000,000 Shares of Benefical Interest 0.00% 20% Money Market/Mutual Funds (Sweep Acct) 12.52% 10% per fund (2) Total 100.00% % of portfolio maturing under one year 42.38% no less than 20% % of portfolio maturing over one year 57.62% 100.00% (1) Further limited to 10% in any single issuer (2) Also limited to 20% in total. *These securities are not considered for purchases: SBA, GNMA, TVA and SALLIEMAE COSTA MESA SANITARY DISTRICT Summary of Policy Limitations February 28, 2013 Description 4 Purchase Maturity Coupon Investment % of Market % ofDescriptionBroker/DealerDateDateRateCostPortfolioValuePortfolioCommentsState Treasurer's Pool LAIF n/a Continuous 0.286% ** 5,181,443.80$ 5,181,443.80$ POOL Total State Treasurer's Pool5,181,443.80 29.85% 5,181,443.80 29.84%Money Market Mutual Fund Bank of New York n/a Continuous 0.000% 2,174,337.47 2,174,337.47 SWEEP Total Money Market Mutual Fund2,174,337.47 12.53% 2,174,337.47 12.52%Federal Home Loan Mortgage E.J. De La Rosa 08/07/12 08/07/17 1.000% 1,000,000.00 996,050.00 FHLMCFederal Home Loan Mortgage E.J. De La Rosa 12/28/12 12/28/17 0.950% 1,000,000.00 997,400.00 FHLMCFederal Home Loan Mortgage E.J. De La Rosa 02/22/13 02/22/18 1.150% 1,000,000.00 1,002,380.00 FHLMCFederal Home Loan Mortgage E.J. De La Rosa 02/28/13 02/28/18 1.100% 1,000,000.00 1,004,080.00 FHLMC Total Federal Home Loan Mortgage4,000,000.00 23.05% 3,999,910.00 23.03%Federal National Mortgage Association Union Banc 05/30/12 08/24/16 1.000% 1,000,000.00 1,001,680.00 FNMAFederal National Mortgage Association Union Banc 06/28/12 06/28/17 1.200% 1,000,000.00 1,002,920.00 FNMAFederal National Mortgage Association E.J. De La Rosa 10/18/12 10/18/17 1.000% 1,000,000.00 1,003,320.00 FNMAFederal National Mortgage Association E.J. De La Rosa 11/15/12 11/15/17 1.000% 1,000,000.00 1,001,230.00 FNMAFederal National Mortgage Association Union Banc 12/31/12 12/30/15 0.450% 1,000,000.00 1,000,110.00 FNMA Total Federal National Mortgage Association5,000,000.00 28.81% 5,009,260.00 28.84%Federal Farm Credit Bank E.J. De La Rosa 05/02/12 05/02/17 1.230% 1,000,000.00 1,001,640.00 FFCB Total Federal Farm Credit Bank1,000,000.00 5.76% 1,001,640.00 5.77%Total Investments17,355,781.27$ 100.00%17,366,591.27$ 100.00%**Represents the LAIF daily rate at 2/28/13COSTA MESA SANITARY DISTRICTSchedule of Investments by Instrument TypeFebruary 28, 2013 5 Investment Purchase Maturity Days to Coupon Yield to InvestmentBroker/DealerTypeDate DateMaturityRateMaturityCostLocal Agency Investment Fund Pool1 0.286% ** 0.286% 5,181,443.80$ Bank of New York Sweep1 0.000% 0.000% 2,174,337.47 E.J. De La Rosa FFCB 05/02/12 05/02/17 1,524 1.230% 1.230% 1,000,000.00 UnionBanc FNMA 05/30/12 08/24/16 1,273 1.000% 1.000% 1,000,000.00 UnionBanc FNMA 06/28/12 06/28/17 1,581 1.200% 1.200% 1,000,000.00 E.J. De La Rosa FHLM 08/07/12 08/07/17 1,621 1.000% 1.000% 1,000,000.00 E.J. De La Rosa FNMA 10/18/12 10/18/17 1,693 1.000% 1.000% 1,000,000.00 E.J. De La Rosa FNMA 11/15/12 11/15/17 1,721 1.000% 1.000% 1,000,000.00 E.J. De La Rosa FHLM 12/28/12 12/28/17 1,764 0.950% 0.950% 1,000,000.00 UnionBanc FNMA 12/31/12 12/30/15 1,035 0.450% 0.450% 1,000,000.00 E.J. De La Rosa FHLM 02/22/13 02/22/18 1,820 1.150% 1.150% 1,000,000.00 E.J. De La Rosa FHLM 02/28/13 02/28/18 1,826 1.100% 1.100% 1,000,000.00 Total Investment Portfolio17,355,781.27$ Total PortfolioWeighted Avg Interest Rate 0.666 %Weighted Avg Yield to Maturity 0.666 %Weighted Avg Days to Maturity 914 Days 2.50 Years**Represents the LAIF daily rate at 2/28/13COSTA MESA SANITARY DISTRICTInvestment PortfolioFebruary 28, 2013 6 NetPurchase Maturity Intuition Investment Coupon Investment Market Accrued Gain/(Loss)DateDateBroker/DealerTypeParRateCostValueInterestIf Soldn/a Continuous LAIF POOL 5,181,443.80$ 0.286% ** 5,181,443.80 5,181,443.80 - - n/a Continuous Bank of New York SWEEP 2,174,337.47 0.000% 2,174,337.47 2,174,337.47 - - 05/02/12 05/02/17 E.J. De La Rosa FFCB 1,000,000.00 1.230% 1,000,000.00 1,001,640.00 4,065.83 1,640.00 05/30/17 08/24/16 UnionBanc FNMA 1,000,000.00 1.000% 1,000,000.00 1,001,680.00 194.44 1,680.00 06/28/12 06/28/17 UnionBanc FNMA 1,000,000.00 1.200% 1,000,000.00 1,002,920.00 2,100.00 2,920.00 08/07/12 08/07/17 E.J. De La Rosa FHLM 1,000,000.00 1.000% 1,000,000.00 996,050.00 666.66 (3,950.00) 10/18/12 10/18/17 E.J. De La Rosa FNMA 1,000,000.00 1.000% 1,000,000.00 1,003,320.00 3,694.44 3,320.00 11/15/12 11/15/17 E.J. De La Rosa FNMA 1,000,000.00 1.000% 1,000,000.00 1,001,230.00 2,944.44 1,230.00 12/28/12 12/28/17 E.J. De La Rosa FHLM 1,000,000.00 0.950% 1,000,000.00 997,400.00 1,662.50 (2,600.00) 12/31/12 12/30/15 UnionBanc FNMA 1,000,000.00 0.450% 1,000,000.00 1,000,110.00 762.50 110.00 02/22/13 02/22/18 E.J. De La Rosa FHLM 1,000,000.00 1.150% 1,000,000.00 1,002,380.00 287.50 2,380.00 02/28/13 02/28/18 E.J. De La Rosa FHLM 1,000,000.00 1.100% 1,000,000.00 1,004,080.00 - 4,080.00 Total Investments17,355,781.27$ 17,355,781.27 17,366,591.27 16,378.31 10,810.00 **Represents the LAIF daily rate at 2/28/13C O S T A M E S A S A N I T A R Y D I S T R I C TFor all Maturities with Market ValuesFebruary 28, 2013 7 Type of Purchase Maturity Coupon InvestmentInvestmentDateDateRatePar ValueCostFFCB 05/02/12 05/02/17 1.230% 1,000,000.00 1,000,000.00 Callable 5/2/13 w/5 days notice and anytime afterFNMA 05/30/12 08/24/16 1.000% 1,000,000.00 1,000,000.00 Callable 5/30/13 w/10 days notice, thereafter 8,11,2,5FNMA 06/28/12 06/28/17 1.200% 1,000,000.00 1,000,000.00 Callable 6/28/13 w/10 days notice, monthly thereafterFHLMC 08/07/12 08/07/17 1.000% 1,000,000.00 1,000,000.00 Callable 8/7/14 w/5 days notice, thereafter 11,2,5,8FNMA 10/18/12 10/18/17 1.000% 1,000,000.00 1,000,000.00 Callable 5/15/13 w/10 days notice, thereafter 8,11,2,5FNMA 11/15/12 11/15/17 1.000% 1,000,000.00 1,000,000.00 Callable 5/15/13 w/10 days notice, thereafter 8,11,2,5FHLMC 12/28/12 12/28/17 0.950% 1,000,000.00 1,000,000.00 Callable 12/28/13 w/5 days notice, monthly thereafterFNMA 12/30/12 12/31/15 0.450% 1,000,000.00 1,000,000.00 Callable 12/30/13, w/10 days notice, thereafter 3, 6, 9FHLMC 02/22/13 02/22/18 1.150% 1,000,000.00 1,000,000.00 Callable 8/22/13, w/5 days notice, thereafter 8,11,2,5FHLMC 02/28/13 02/28/18 1.100% 1,000,000.00 1,000,000.00 Callable 2/28/14, w/5 days notice, annually thereafterTotals10,000,000.00$ 10,000,000.00$ COSTA MESA SANITARY DISTRICTCall ScheduleFebruary 28, 2013Call Features 8 Cost50,136.76 In Thousands1 - 180 Days 7,355$ 181 - 365 Days - 1 - 2 Years - ##########6,562.50 2 - 3 Years- COSTA MESA SANITARY DISTRICTMATURITIES DISTRIBUTIONFebruary 28, 201330%40%50%60%70%42.38%46.10%6,562.50 2 - 3 Years- ##########3 - 4 Years 2,000 4 - 5 Years 8,000 TOTAL17,355$ 0%10%20%30%1 - 180 Days181 - 365 Days1 - 2 Years2 - 3 Years3 - 4 Years4 - 5 Years0 0 0 0 0 00.00%0.00%0.00%11.52% 9 Costa Mesa Sanitary DistrictPortfolio Interest Rate Informationas of February 28, 20130.20%0.40%0.60%0.80%1.00%1.20%3 month T-Bill6 month T-Bill2 year T-Note3 year T-Note5 year T-NoteCMSD-monthlyLAIF-monthlyOC Pool-monthly0.00%10 Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum ITEM NO. 11 To: Board of Directors Via: Scott Carroll, General Manager From: Anna Sanchez, Administrative Service Manager Date: March 28, 2013 Subject: Annual Health Benefit Broker Fees and Commission Disclosure Summary As required by Section 1367.08 of the California Health and Safety Code and Section 10604.5 of the California Insurance Code, the Costa Mesa Sanitary District must disclose any group health insurance premiums, fees, and commissions paid to all agents, providers, and brokers. Staff Recommendation Staff recommends the Board receive and file the report for calendar year 2012. Analysis Section 1367.08 of the Health and Safety Code A health care service plan shall annually disclose to the governing board of a public agency that is the subscriber of a group contract, the name and address of, and amount paid to, any agent, broker, or individual to whom the plan paid fees or commissions related to the public agency's group contract. As part of this disclosure, the health care service plan shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. Section 10604.5 of the Insurance Code An insurer shall annually disclose to the governing board of a public agency that is the policyholder of a group health insurance policy, the name and address of, and amount paid to, any agent, broker, or individual to whom the insurer paid fees or commissions Board of Directors March 28, 2013 Page 2 of 3 related to the public agency's group health insurance policy. As part of this disclosure, the insurer shall include the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist under law. Summary of Health Benefits CalPERS administers and negotiates rates and coverage for all District medical plans. Services provided by CalPERS includes: plan design, negotiating with medical and pharmaceutical carriers, developing and printing plan summaries, outlines and brochures, billing, claims processing, hosting an online database for enrollments and changes, participant appeals and grievances, website design and maintenance, and free workshops/seminars for employers, employees, and retirees. All non-medical health plans which include dental, vision, life, long-term disability, voluntary AD&D, and other individual plans such as cancer, and short-term disability are brokered by SDRMA and Aflac. Services provided by SDRMA and Aflac includes: plan design options, negotiating rates and benefits with carriers, legal and compliance updates and advice, open enrollment support, assistance with claims processing and resolution, free workshops and seminars to staff. Although the District obtains non-medical health plans through SDRMA, the disclosure codes do not apply because the agency only administers the non-medical programs through the California State Associations of Counties Excess Insurance Authority (CSAC- EIA Health) and do not contract directly with brokers or insurance carriers of the Health Benefit Programs. Agents/ Brokers of Record Medical Broker/ Administrator Non-Medical Broker California Public Employee Retirement Services (CalPERS) American Family Life Assurance Company of Columbus (Aflac) 400 Q Street P.O. Box 15879 Sacramento, CA 94229 San Diego, CA 92175 Strategic Plan Element & Goal Not applicable Board of Directors March 28, 2013 Page 3 of 3 Legal Review Not applicable Financial Review Plan Year Broker Administrator Coverage Premiums Total Fees/ Commissions Percent of Fees to Premiums 2012 CalPERS Medical $ 98,993.98 $ 394.97 0.40% 2012 Aflac Non-Medical $ 9,485.92 $ 2,885.10 30.41% Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Refer the matter back to staff 1 THIRD AMENDMENT TO EMPLOYMENT AGREEMENT (GENERAL MANAGER) (SCOTT CARROLL) This Third Amendment to Agreement is made this 4th day of January, 2013, by and between the Costa Mesa Sanitary District, a sanitary district established pursuant to Health and Safety Code Section 6400 et seq., (“District”) and Scott Carroll (“General Manager”) with reference to the following facts: RECITALS WHEREAS, District hired General Manager after a competitive search and entered into an employment agreement dated January 4, 2010 with General Manager (hereinafter referred to as “Agreement”); and WHEREAS, in subsequent years thereafter the Board has reviewed the General Manager’s agreement and provided increases in his salary and also provided an increase in his severance pay; and WHEREAS, the Board does hereby desire to again increase the General Manager’s salary in recognition of his achievements but to provide that the General Manager is to contribute to his pension plan by paying the percentage hereinafter mentioned; and WHEREAS, it is also the Board’s intent that the General Manager begin paying greater percentages of his retirement in the future until he is paying the full employee share; and WHEREAS, to accomplish these purposes, the Board does hereby agree to pay General Manager an increase in salary of seven percent (7%), provided General Manager pays two-and-one-half percent (2.5%) of his employee’s share of PERS pension costs; and WHEREAS, it is the Board’s intention that for the following two years General Manager will be asked to pay an additional two-and-one-half percent (2.5%) in 2014, and an additional two percent (2%) in 2015, so that the total employee share of retirement is being paid by General Manager in that year; and WHEREAS, the parties agree that General Manager shall not be entitled to cost of living raises in addition to said increase; NOW, THEREFORE, in consideration of the above, the parties do now AGREE as follows: ITEM NO. 12 2 AGREEMENT Section 1. That Section 4 of the Agreement is hereby amended to read: “4. SALARY A. Effective January 4, 2013, District agrees to pay Manager for his services rendered hereunder a base salary of One Hundred Seventy- Seven Thousand Seven Hundred Nineteen Dollars and Seventy-Two Cents ($177,719.72) per year in installments at the same time as other employees of the District are paid. B. In addition, the District agrees that the Board of Directors shall annually evaluate Manager’s performance and may consider adjustments to said base salary and/or other benefits of Manager in such amounts and to such extent as the Board of Directors may determine desirable and appropriate.” Section 2. That except as expressly modified herein, the terms and conditions of the Agreement, as modified by the First Amendment in so far as increased severance pay is provided, shall remain in effect and govern the rights of the parties. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to Agreement to be executed the day and year first above written. COSTA MESA SANITARY DISTRICT SCOTT CARROLL __________________________ __________________________ President Signature __________________________ Secretary APPROVED AS TO FORM: __________________________ District Counsel ITEM NO. 12 Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum ITEM NO. 13 To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2013 Subject: Appeal to the Sewer Lateral Assistance Program (SLAP) Guidelines Summary A CMSD resident that resides in the City of Newport Beach is requesting reimbursement from the District’s Sewer Lateral Assistance Program (SLAP). The resident did not follow program guidelines because she learned about SLAP seven months after the improvements were completed. Staff Recommendation That the Board of Directors: 1. Deny Ms. Slick’s appeal to request reimbursement from the Sewer Lateral Assistance Program because it will set precedent for not complying with SLAP Guidelines. 2. Direct staff to work with the City of Newport Beach Building Department to ensure city staff directs residents within CMSD service area to District headquarters to obtain sewer permits. Analysis Attachment A is the guidelines to the Sewer Lateral Assistance Program. Two key components in the guidelines are that “before” videos must not be older than three months and the improvements must be completed within six months from the SLAP application date. Ms. Maureen Slick, a CMSD resident that resides in the City of Newport Beach, submitted a SLAP application seven months after improvements were performed on her sewer lateral. Because the application did not meet the SLAP guidelines, staff denied the reimbursement. Board of Directors March 28, 2013 Page 2 of 3 Attachment B is a written request letter from Ms. Slick. Approving Ms. Slick’s request will set precedent and could encourage more homeowners to request reimbursement from the program after their sewer improvements have been completed. Since program implementation, staff has come across some issues that needed further clarification. The General Manager has discretion over all decisions regarding SLAP and has made the following clarifications. If the Board disagrees with the decisions below, please advise staff. 1. When residents are reimbursed and don’t meet the maximum $1,800, can they reapply within five years to receive the remainder of funds? A. Yes. After a resident is reimbursed the maximum amount, he/she cannot reapply to the program for five years. 2. How does staff proceed when an application is submitted and approved, but the work is not completed? A. If work is not completed within six months, the application will be closed and the resident will not be reimbursed. However, before the six month deadline, residents can request an extension for up to an additional six months. If the extension has been approved and the work is still not completed after a year, than the application will be closed and the resident will not be reimbursed. 3. If a plumber is caught performing improvements without a permit, does staff penalize the resident and not allow him/her to participate in SLAP? A. No. However, the plumber will be charged the District’s permit fee and be required to participate in the District’s SLAP seminar. 4. Can a resident still participate in the SLAP program after the improvements have been completed? A. Yes, if the work was performed within six months and the resident can demonstrate why the work was needed and an “after” video was submitted. Strategic Plan Element & Goal This item adheres to Strategic Element 1.0, Sewer Infrastructure, and Strategic Goal No. 1.9, Sewer Lateral Assistance Program. Legal Review Not applicable Board of Directors March 28, 2013 Page 3 of 3 Financial Review Ms. Slick is requesting the District reimburse her $1,800 for the improvements made on her sewer lateral. Committee Recommendation Not applicable Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Approve Ms. Slick’s appeal and direct staff to reimburse her $1,800. Attachments A: Sewer Lateral Assistance Program Guidelines B: Letter from Ms. Maureen Slick RESIDENTIAL SEWER LATERAL AND CLEAN OUT FINANCIAL ASSISTANCE PROGRAM Purpose: To assist and encourage residents to regularly clean and maintain their sewer lateral line. Homeowners are responsible for the entire sewer lateral from the building to the point of connection (including the connection) with Costa Mesa Sanitary District’s (CMSD) main line. Why: To prevent sewer backups and spills. Sewer spills cause very expensive damage to the interior of a house and the environment, particularly the beaches. What causes sewer spills: Laterals that are not regularly maintained become inoperable because tree roots enter the line and block the flow or misalign the pipe joints. Without regular maintenance, the damage becomes severe and excavation of the lateral is necessary. Regular maintenance will also remove other blockages including debris, rocks and grease. Contribution by the CMSD: CMSD will contribute 50% of the resident’s or Homeowners Association costs up to a maximum of $1,800 total per residential parcel as follows: • Up to 50% of televising the lateral interior • Up to 50% of cleaning the lateral • Up to 50% of the cost of installing a clean out • Up to 50% of lateral reconstruction costs Effective Date of Program: CMSD residents performing work after July 15, 2007 are eligible for the program. The program is only available for residential property, not for commercial or industrial property. How do I apply: Submit application to Costa Mesa Sanitary District, 628 W. 19th Street, Costa Mesa, 92627. (949) 645-8400 Program Limitations: Residents may only apply for participation in the program once every five years. CMSD’s General Manager has discretion over all decisions. Residents must cooperate by adhering to the Program Requirements shown on the Application. APPLICATION RESIDENTIAL SEWER LATERAL AND CLEANOUT FINANCIAL ASSISTANCE PROGRAM Property Address: ________________________________________________________________ City: __________________________ Zip Code: ____________________ Owner’s First & Last Name: Owner’s Phone Number: _______________________________ _________________________ Owner’s Address If Different from Property Address: (Check mailed to this address) ________________________________________________________________ Is property part of a Homeowners Association? Yes No Occupant’s Name: Occupant’s Phone number: ______________________________ _____________________________ Description of Sewer Lateral Problem: ______________________________________________________________ ______________________________________________________________ 1. Receiving financial assistance REQUIRES PRIOR APPROVAL OF THE WORK by CMSD. A “before” video of the sewer lateral interior must be submitted PRIOR to CMSD granting approval of the work and an “after” video is required prior to reimbursement. ALL REPAIR work requires a PERMIT (NO COST if resident is eligible for the Sewer Lateral Assistance Program). APPLICATION (CONTINUED) 2. Video of the sewer lateral interior MUST have the date shown on the screen and a footage counter. The video must include the entire lateral line (house to main in the middle of the street). The camera must be moved through the line at a uniform rate but in no case at a speed greater than 30 feet per minute. The camera should be stopped for a minimum of 5 seconds at broken sections, root intrusion, misaligned joints or other defects. CMSD reserves the right to request a re-video of any video not sufficiently clear enough to determine need for lateral repair. 3. Cleanouts shall be installed just inside the private property line at the right-of-way, unless another location is approved by CMSD. 4. Inspection of the work by CMSD is required. Call Joe Limon at (714) 290-6831 at least two (2) hours in advance to schedule inspections. Work must be completed within six months. 5. If it is determined from television inspection that the homeowner’s lateral line is defective, it is recommended the owner solicit bids from at least three licensed plumbing contractors to ensure a fair competitive bid (C-42 or A for work in public right of way or C-36 for work on private property). 6. CMSD Staff will review lateral inspection videos within five (5) working days of receipt. Videos/DVD’s will be held at CMSD’s office for fifteen (15) days after reimbursement for pick up by property owner. Videos/DVD’s not claimed will be destroyed. As the owner of the above listed property, I agree to indemnify, defend and hold the Costa Mesa Sanitary District and its officers, employees and agents harmless from any and all claims or liability arising out of the work performed and actions taken in connection with the Sewer Lateral Assistance Program. Property Owner Signature: Date: _________________________________ ____________________________ VHS/DVD Pick Up Signature & Date ______________________________________________ BEFORE BEGINNING WORK ↓ 2. Property owner submits application & CCTV (VHS/DVD)  Submit a completed application & a “before” video of sewer lateral to CMSD.  Videos older than three months are not acceptable.  Work must be completed within six months from application date. 1. Property owner calls a plumber for closed circuit television (CCTV)  Must have date and footage counter shown on the video screen.  Narration (of address, date, company) is required.  Must include the entire lateral line (house to CMSD main line in the middle of the street).  Camera must be moved through the line at a uniform speed less than 30 feet per minute to enable independent review and evaluation.  THERE ARE NO EMERGENCY REPAIRS - Snake a hole for drainage and CCTV for review. 3. Costa Mesa Sanitary District Staff reviews video  District Staff reviews videos & contacts property owner/manager to discuss. 4. Contractor obtains permit from CMSD before beginning repairs  Permits are free under the Sewer Lateral Assistance Program. 5. Contractor calls CMSD for inspection  Call (714) 290-6831 for inspection. 6. Property owner submits an after video & receipts to the District  Property owner obtains an “after” video from contractor and submits to CMSD  Property owner submits copy of paid-in-full invoices for work contractor performed.  CMSD reimburses 50% of cost, up to $1800 to property owner/manager or Homeowners Association(HOA) covering all four categories. (For properties subject to an HOA, either the HOA applies or the HOA must grant the property owner written permission for the property owner to apply.) 7. Property owner picks up “before” & “after” video from CMSD.  Videos not claimed after 15 days of reimbursement will be destroyed. BEFORE COMPLETING WORK AFTER WORK IS COMPLETED Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum ITEM NO. 14 To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2013 Subject: Proposed 2013/14 & 2014/15 Spending Plan Summary The following is staff’s proposed spending plan for the next two fiscal years (2013-14 & 2014-15). On April 18, 2013, staff will present to the Board projected revenues for the next two fiscal years along with proposed rates for solid waste and liquid waste funds. Staff Recommendation That the Board of Directors give staff directions on the proposed two year spending plan for the District’s Solid and Liquid Waste Funds. Analysis The proposed spending plan for Fiscal Year 2013-14, which includes personnel along with maintenance & operations, is $10,868,290. This spending plan is flat from this years adopted budget. The proposed spending plan for Fiscal Year 2014-15 Budget is $10,994,400, which represents a 1.2% increase from FY 2013-14 due to a Cost of Living Adjustment (COLA) to salaries and an increase in pension cost from CalPERS. The following is a breakdown of the proposed spending plan for personnel and each department within the District. Personnel – FY 2013-14 The proposed spending plan for personnel for FY 2013-14 is $1,824,960. This plan represents a 20% increase due to a proposed reorganization of the Finance Department and the conversion of an existing part-time employee (Maintenance Assistant) to full time status. Board of Directors March 28, 2013 Page 2 of 14 General Manager Accounting Manager Accounting Specialist II District Treasurer Currently, the Finance Department consist of an Accounting Manager (currently vacant) that reports directly to the general manager. The accounting manager has one subordinate, the Accounting Specialist II position. Below is the organization chart for the Finance department. After a review of the current workload in the Finance Department, a survey of surrounding special districts as well as reviewing a copy of the latest function and compensation survey offered by the California Special District Association (CSDA), staff determined that an Accounting Manager position was not a typical occurrence among other special district organizations. Instead, the position that performs all of the functions of the existing Accounting Manager position is performed by a Finance Manager. This classification change would put CMSD in alignment with other special districts in California. The Finance Manager will continue to perform all of the functions the previous incumbent had performed with a focus on providing public finance administration. The position will be a highly responsible supervisory and administrative position, which includes planning, organizing, and directing the activities of the Finance Department. The Finance Manager will be responsible for financial planning, budgeting, accounting, data processing, revenue administration, purchasing, special assessments, and service charges for the District. This position will provide financial support and analysis related to District operations to the General Manager. This proposal would eliminate the Accounting Manager classification. Additional staffing changes in the Finance Department include the following. Accountant Series: This classification series will include a Senior Accountant, Accountant, and Associate Accountant. The Accountant Series provides increasing levels of responsibility in the Finance Department, which will alleviate many day to day accountant activities from the Finance Manager’s role and eliminate the need for the Treasurer’s office to provide internal controls by reviewing the Finance Manager’s accounting work. Implementation of this series classification will provide growth opportunities within the organization by enabling existing staff, the Accounting Board of Directors March 28, 2013 Page 3 of 14 General Manager Finance Manager Accountant Series District Treasurer Senior Accountant Associate Accountant Accountant Account Clerk (PT) Specialist II, to grow into higher levels of responsibility. If approved by the Board, the Accounting Specialist II will fill this series at the Associate Accountant level. During the course of the next twelve to eighteen months, staff anticipates being able to promote the Associate Accountant into the Accountant position. This proposal would eliminate the Accounting Specialist classification. Account Clerk (PT): The Account Clerk will serve to provide technical support to the Accountant. This position is proposed as a part-time position whose only focus of responsibility will be performing payroll and accounts payable activities. It is anticipated that once the Associate Accountant assumes the role of Accountant, given the work load, a need will exist to assist the Accountant in performing routine, non- varied, accounting activities. The proposed Finance Department structure will enable the Treasurer to focus on the District’s investment portfolio since he will no longer be needed to implement internal control of the District’s daily financial transactions during the Finance Manager vacancy. Additionally, this structure will provide growth opportunity for staff and meet the management demands of the General Manager. A salary survey for all the positions identified above was conducted that included surveying special districts in similar size to CMSD, as well as surveying accounting positions in the private sector. The additional cost for reorganizing the Finance Department will be $50,900 annually. The proposed salary structure for the positions in the Finance Department is consistent with the public and private sectors. Copies of the salary survey along with the job descriptions are available in this report as Attachment “A”. Below is the organization chart for the proposed restructuring of the Finance Department. Board of Directors March 28, 2013 Page 4 of 14 Maintenance Assistant: The increased frequency in main line cleaning by the District sewer maintenance staff has created a scheduling conflict for pump station maintenance. Since staff took over half of the routine line cleaning maintenance, staff’s goal is to have a crew of two out cleaning the sewer system on a daily basis to complete the footage. Because of this, it leaves one maintenance worker to perform routine checks and repairs at pump stations. Some of the tasks that are done at the stations require assistance to complete as well as for safety purposes. While at the stations, the worker is exposed to high voltage and open wells. If an incident were to occur, a second worker will be on site to notify emergency services. A part-time maintenance worker would suit this purpose. Staff would be able to schedule the tasks that need to be completed with two staff at the stations without interfering with the sewer cleaning crew. The part-time maintenance worker would also gain knowledge and skills and learn the many aspects of the pump stations and can be more helpful. Staff estimates there is a need for additional assistance on a part-time basis, for approximately 20 hours per week for pump station maintenance. The District currently has a Maintenance Assistant position that provides building and facilities maintenance on a part-time basis, 20 hours per week. Upgrading this position to full-time would fill the void the sewer maintenance staff has realized. The Maintenance Assistant can provide buildings and facilities maintenance as well as assist with pump station maintenance. This proposal identified above will provide growth opportunity for staff and will cost the District an additional $111,400 annually, which is broken down as follows:  Staff proposes to re-align the Finance Manager’s salary range to be equivalent to that of the Administrative Service Manager. This would incur an additional annual cost of approximately $7,500.  The creation of the Accountant series would include re-classifying the Accounting Specialist position to the Associate Accountant position, which would incur an additional annual cost of approximately $4,200.  The Accountant salary range would remain at the current range as the District currently has this classification within its organizational structure. The Senior Accountant position would incur an additional annual cost of approximately $26,900; however, this cost is not budgeted and will not incur in the next two fiscal years.  Creation of the part-time Account Clerk position would incur an additional annual cost of approximately $30,400  Re-classifying the part-time Maintenance Assistant position to a full-time Maintenance Assistant position would incur an additional annual cost of approximately $42,400 annually, which includes benefits. Board of Directors March 28, 2013 Page 5 of 14 The Accountant Series and Maintenance Assistant position is consistent with District’s Strategic Plan Element No. 6.0, Personnel/Organizational Management, which states the following: “Objective: To employ and retain a high quality and motivated workforce. Strategy: We will do this by utilizing sound policies and personnel practices, offering competitive compensation and benefits, providing opportunities for training, development and professional growth, while ensuring a safe and secure workplace.” District Salaries: Salaries account for a Cost of Living adjustment (COLA) of 2% (February to February Consumer Price Index for Los Angeles, Orange and Riverside Counties). Every employee, except the general manager will receive the COLA on July 1, 2013, as reaffirmed by the Board on April 27, 2011. There are no proposed adjustments for the Board of Director salaries, which currently receive $221.00 per attended meeting not to exceed six meetings in a month. District Benefits: There are no adjustments to health benefits. Employees will receive $799 a month for single and $1,199 a month for family to cover health related expenses. Expenses over this allotted amount are paid by the employee. Board members are eligible to participate in the District’s health benefit plan, but must reimburse the District 80% of health benefit premiums. Currently, only one Board of Director is signed up on the District’s health benefit plan. District Retirement: On June 23, 2011 the Board of Directors approved a two tier pension program where new employees will be on the 2% @ 60 formula and pay their 7% share of employee pension cost. Currently, five district employees are on the 2% @ 60 formula that is saving the District $35,000 a year on pension costs. On January 1, 2013, the District implemented Governor Brown’s Pension Reform Act that requires new employee to be on a 2% @ 62 formula and pay their full share of employee pension cost. Currently, the District has three vacant positions (Accounting Manager, Permit Clerk, and Management Assistant). If these positions are filled by applicants from the private sector or have not worked in the public sector for more than six months, these applicants will be on the 2% @ 62 formula. However, if the applicants are currently employed in the public sector that has a reciprocity agreement with CalPERS or has been unemployed from the public sector for less than six months than these applicants will be on the District’s 2% @ 60 formula. There are five District employees that are on the District’s original retirement plan of 2% at 55. The District pays the employee shared cost (7%) for four of the employees. Board of Directors March 28, 2013 Page 6 of 14 The general manager is currently paying 2.5% of the 7% employee shared cost and is expected to pay his full 7% by 2014-15, which is a savings of approximately $12,000 annually. Personnel – FY 2014-15 The proposed spending plan for personnel for FY 2014-15 is $1,965,600. This plan represents an 8% increase due to a COLA assumption and CalPERS rate increases for pension cost. The spending plan also takes into account the hiring of a part-time Account Clerk, if needed. Maintenance & Operations – 2013-14 The maintenance & operations spending plan consist of six departments. The proposed total cost for all six departments is $9,043,330, which is a 3% decrease or $329,181 less than this year adopted budget. The following is a proposed spending plan for each department. Administration: This department is the budget for the General Manager’s Office, District Counsel, personnel, risk management, emergency preparedness, HQ building, permit Clerk and the front office. The proposed spending plan is $694,730, which is 9% increase from this year’s adopted budget. The following are significant changes in the proposed spending plan:  Building Maintenance – The proposed spending plan is increasing from $16,000 (FY 2012-13) to $24,800, which is an increase of 55%. The increase is due to building neglect in years past. The hiring of a part-time maintenance assistance has identified on-going maintenance to ensure the life expectancy of the building is met.  EOC Equipment and Supplies – The proposed spending plan is decreasing from $9,900 to $4,000, which is a decrease of 60%. The District’s EOC is stocked with necessary supplies and equipment. The $4,000 is for redundant wireless internet.  Sewer Lateral Assistance Program – Due to the growing popularity of this program, staff is recommending funding for this program be increased from $200,000 to $225,000.  Professional Services – The proposed spending plan is decreasing from $124,680 (FY 2012-13) to $68,000, which represents a 45% decrease. The decrease is due to several studies that were budgeted in 2012-13 such as the Zero Waste Plan and the Knowledge Transfer Program. Next fiscal year staff is proposing implementing wireless capabilities from HQ to the Yard that will enable District maintenance staff to access GIS and work order system from the field.  Contract Services – This expense is planned for a 100% increase of $27,000. Of this amount, $22,000 is due to continual use of a consultant for permitting services until staff can complete it’s analysis of this position. In addition, $5,000 is budgeted for temporary staff in case additional help is needed at HQ. Board of Directors March 28, 2013 Page 7 of 14  Staff Development – The proposed spending plan is increasing from $11,320 to $16,230, which is an increase of 43%. This spending plan adheres to the District’s Strategic Plan Element No. 6.0, Personnel/Organizational Management. A breakdown and description of the proposed training opportunities is described in the attachment.  Capital Outlay - This expense is planned for a 100% increase of $65,000 due to replacing the parking lot at HQ for $50,000 and performing exterior improvements to the building for $15,000. In addition, $6,750 is budgeted for three computer workstations. District Clerk - This department is the budget for the District Clerk’s Office that is administered by the deputy Clerk position. This office is responsible for the maintenance of official District records for public, private and government use, adheres to the District’s records retention schedule, maintains Board schedules and meetings and is responsible for arranging travel plans for the Board. In addition, the deputy Clerk serves as Notary Public for the District as well certifying and validating all District documents, administers the oath of office to newly-elected/appointed Directors; handle subpoenas and public records requests. This budget also funds Board development and training at professional organizations such as the California Special Districts Association (CSDA). The proposed spending plan is $186,600, which is a 27% decrease from this year’s adopted budget. The following are significant changes in the proposed spending plan:  Election Costs – There are no District elections in 2013-14, which is a savings of $60,000.  Postage – The spending plan for postage has significantly decreased from $41,300 to $15,000 because the newsletter is now budgeted out of the Solid Waste budget.  Contract Services – Contract services is increasing 100% to $30,000 to hire a consultant for scanning approved plans into the District’s GIS. Having plans in the GIS will assist staff when they are in the field.  Equipment Maintenance – This line item will increase 100% to $8,500 for LaserFiche software annual support. LaserFiche software is used for the Board agenda packets on District iPads and it’s used to download documents on the District’s website.  Public Info/Ed/Community Promo – This budget is planned to be significantly reduced from $34,420 to $5,000 because of shifts in responsibilities. In the past, this office was responsible for developing and disseminating the District newsletter, but now that is being performed in the Solid Waste budget. Finance – This department is responsible for accounts payable, purchasing, payroll, preparing the budget and the Comprehensive Annual Financial Report (CAFR). The Board of Directors March 28, 2013 Page 8 of 14 department also performs expenditure and revenue forecasting, data processing and oversees the District’s credit card purchasing program. In addition, this department contracts investment services with CBIZ, which is serving as the District Treasurer. The proposed spending plan is $2,068,100, which is flat from this year’s adopted budget. The following are significant changes in the proposed spending plan:  Fiscal Services – This line item is being reduced by 13% from $48,000 to $42,000; however, the District’s contract with CBIZ is increasing from $22,000 to $30,000 to continue serving as interim accounting manager until this position is filled permanently.  Asset Replacement Charge – This is an internal charge to fund assets such as vehicles, computers, fax machines, etc. The asset replacement charge for solid waste is increasing from $12,900 to $30,000 because the District recently purchased a Chevrolet Volt for code enforcement. In addition, the liquid waste asset replacement charge is increasing from $132,700 to $175,000 because of the new sewer combination truck the District recently acquired.  Transfer Out – This is money transferred from the District’s Sewer Fund to the Asset Management Fund as the annual contribution for asset management. A total of $1,748,000 is being proposed for transfer out, which is the same amount transferred out in the FY 2012-13 budget. Engineering – This department is responsible for engineering and design services for sewer infrastructure, construction inspections, Fats Oil & Grease (FOG) program for restaurants and the District’s inflow reduction program. The District contracts engineering, design and construction inspections with Robin B. Hamers & Associates (RBH). RBH serves as the District Engineer. The proposed spending plan for Engineering is $347,200, which is a 10% decrease from this year’s adopted budget. The following are significant changes in the proposed spending plan:  Contract Services – Staff is proposing a significant increase from $2,500 to $23,000. The proposed spending plan includes $15,000 for a Ductile Iron Pipe (DIP) analysis to determine the condition of these pipes for possible repair and/or replacement. In addition, $7,500 is budgeted for the District’s hydraulic modeling.  Inside Inspections – This service involves inspecting projects from outside agencies (e.g. City of Costa Mesa, Irvine Ranch Water District, Southern California Edison, etc.) that are working nearby District sewer pipes. The proposed spending plan is being reduced by 49% from $89,900 to $46,000 to accommodate projected increases in inspections services for outside inspections and sewer lateral assistance program. Board of Directors March 28, 2013 Page 9 of 14  Outside Inspections – This service involves inspecting projects from new construction and/or development where the cost is recovered through District fees. There have been signs that the economy is improving and staff believes development within the District service area will pick up. Therefore, the proposed spending plan is to increase this line item from $26,800 to $42,000, which is an increase of 57%.  Inflow Reduction – The Board adopted a policy to plug and seal 1,008 manhole covers. This objective will be complete this fiscal year. Occasionally, the manhole covers will need to be plugged again and staff is planning to purchase manhole covers without pick holes. Staff is proposing to reduce this line time expense from $26,000 to $10,000. Solid Waste – This department is responsible for ensuring that solid waste is collected from residents on a weekly basis and the District is doing its part to comply with state mandates of diverting at least 50% of the waste from the landfill. This department is also responsible for administering the District’s many solid waste programs such as sharps, household hazardous waste and pharmaceutical collections. The department is also responsible for implementing the District’s composting program, telephone book recycling collection program, and many school education programs. The proposed spending plan for Solid Waste is $4,698,900, which is a decrease of nearly 2% from this year’s adopted budget. The following are significant changes in the proposed spending plan:  Trash Hauler – 50% of the proposed budget for this department is for trash hauling services with CR&R Environmental Services. CMSD is considered built out, so staff is not anticipating any changes in this budget line item of $2,370,000.  Recycling/Disposal – 44% of the proposed budget for this department is for recycling and diversion efforts at CR&R’s Material Recovery Facility (MRF) in Stanton. In 2012, the District experienced the lowest amount of tonnage collected at 39,851 tons. The District is also experiencing the highest diversion rate of nearly 58%. The proposed spending plan for this line item is slightly less than this year’s budget from $2,100,000 to $2,081,000.  Household Hazardous Waste – This is the door-to-door collection program for senior and disabled residents. On August 20, 2012, the Board appropriated $75,000 into this line item to expand the program. The program is not experiencing the success staff anticipated probably because the District needs to do a better job on promoting the program. However, staff believes $50,000 will be adequate enough to fund several hundred collections.  Catalog Choice (Junk Mail Program) – Staff is proposing to no longer fund this program. The company, Catalog Choice, is no longer promoting this program because it is not profitable enough and therefore, staff believes the service to Board of Directors March 28, 2013 Page 10 of 14 our residents will diminish. Staff will continue to search for other options and/or new programs to promote reducing junk mail.  Professional Services – Staff is proposing to decrease this line item from $30,700 to $17,600 because Catalog Choice is no longer being funded and GovDelvery is funded in the Administration Budget. In addition, In FY 2012-13, the District funded $20,000 for website design. The District’s grant to purchase composting bins will expire on December 31, 2013. Money is budgeted ($15,000) to continue purchasing these bins and offering them to residents.  Contract Services – This line item is proposed to increase by 100% to $28,000 because the District’s grant for composting workshops will expire at the end of 2013. $5,000 is budgeted to continue this program for the remainder of the fiscal year. In addition, the District is planning to sponsor another Household Hazardous Collection event at Orange Coast College. Staff has budgeted $23,000, which is 50% of the cost. The other 50% of the cost will be incurred by the County’s OC Waste & Recycling Department.  Public Info/Ed/Community Promo – The proposed spending plan for this line item will increase from $13,224 to $30,200 because the grant with OC Waste and Recycle will expire at the end of 2013 and this department is now responsible for preparing and disseminating the District’s newsletter, “One Person’s Trash”, which is not being distributed four times a year.  Staff Development – This line item is being proposed to increase from $2,000 to $6,300 because there are now two staff members (Management Analyst and Management Assistant) responsible for managing and administering this department. Sewer Operations – This department is responsible for maintaining and repairing 224 miles of sewer pipelines, 20 pump stations and over 4,650 manhole covers. The proposed spending plan for Sewer Operations is $1,047,800, which is a 17% decrease from this year’s adopted budget. The following are significant changes in the proposed spending plan:  Capital Outlay – The proposed spending plan for this line item is $296,000, which is a 48% decrease from this years budget. In FY 2012-13 Budget $564,230 was budgeted. Of this amount over $300,000 was for a new sewer combination truck that is now in service. In FY 2013-14, staff is proposing to replace the utility truck for $150,000. The existing utility truck is more than ten years old and past its replacement schedule. In addition, the crane on the existing utility truck cannot pickup the District’s large pumps out of wet wells. This service is contracted out. The new utility truck will have the capability of removing large pumps. In addition, staff is proposing to purchase additional smart covers ($20,000) that can detect high water before reaching the pump stations. This will give staff additional time to respond before a sewer overflow Board of Directors March 28, 2013 Page 11 of 14 occurs. Other items proposed to be purchased in Capital Outlay include toughtop laptops ($27,000, which includes licensing) that will allow staff to access GIS and work orders in the field. A temporary electrical panel for $7,000 is being proposed that will the pumps to continue operating while staff performs maintenance and/or repairs to the existing electrical panel. The temporary panel will not require a temporary by-pass pump to be dispatched and hooked up, which can be time consuming. Also included is replacing equipment at pump stations ($62,000) that adhere to the replacement schedule of the District’s Asset Management Plan. Maintenance & Operations – 2014-15 The proposed maintenance & operations spending plan is $9,046,550, which is flat from the proposed spending plan for 2013-14 and a 3% decrease or $325,961 less than this year’s adopted budget. The following is a proposed spending plan for each department. Administration - The proposed spending plan is $619,580 which is 11% decrease from the proposed spending plan in FY 2013-14 and a 2% decrease from this year’s adopted budget. The following are significant changes in the proposed spending plan.  Professional Services – The proposed spending plan for this line item is $38,000, which is a decrease of 44% from the proposed spending plan in 2013- 14 because the wireless connection from HQ to the Yard will be complete and staff will then have access to GIS and CMMS in the field.  Contract Services – $30,000 is proposed for contract services. Of this amount, $25,000 is for a classification and salary/benefits survey to determine if current job titles are consistent with the workload and the salaries are competitive in both the public and private sectors.  Capital Outlay – Staff is proposing to reduce capital outlay expenses from the proposed $65,000 (FY 2013-14) to $17,750 because the parking lot at HQ will be finished. In addition, $6,750 is budgeted for three computer workstations. District Clerk - The proposed spending plan is $229,100 which is 23% increase from the proposed spending plan in FY 2013-14 because $50,000 is budgeted for District elections. Finance – The proposed spending plan is $2,145,270, which is a 4% increase from the proposed spending plan in FY 2013-14 because the asset replacement charge for liquid waste is increasing to $201,000 because of the District acquiring a new utility truck. In addition, Transfer Out is increasing to $1,801,000 because the asset management model is projecting a 3% increase in funding to accommodate asset replacements. Board of Directors March 28, 2013 Page 12 of 14 Engineering - The proposed spending plan is a 2% decrease from the proposed spending plan for 2013-14. Staff is proposing to spend $341,700 in 2014-15 compared to $347,200 in 2013-14 and $386,950 in 2012-13. There are no significant changes in the 2014-15 proposed spending plan. July 23, 2014 will be the fifth year of the Agreement between RBH and the District. In accordance with the Agreement, the following rates will go into effect on July 24, 2014. 1st 4 Years Year 5 Increase % Market Rate Retainer 1,400/mo 1,530/mo 1.8 N/A Engineer 96.50/hr 105.00/hr 1.8 175.00/hr Draftsman 65.00/hr 71.00/hr 1.8 105.00/hr Inspector 64.50/hr 70.00/hr 1.8 75.00-85.00/hr Solid Waste – The proposed spending plan is $4,773,900 which is a 2% increase from the 2013-14 proposed spending plan and relatively no change in the 2012-13 adopted budget. Staff is assuming trash hauling and recycling/disposal costs will remain constant; however, the following line items are proposed to have significant changes.  Professional Services – FY 2014-15 will be the first full year since the grant with OC Waste & Recycling has expired. Funding is needed to purchase composting bins and offer free workshops to the community. Staff is budgeting $30,000 for composting bins. Sewer Operations – The proposed spending plan for this department is $937,000, which is 11% decrease from the proposed spending plan for FY 2013-14 and a 26% decrease from the adopted 2012-13 Budget. The following line items are proposed to have significant changes.  Professional Services – The spending plan for this line item will increase to $44,400 because the District will conduct an internal audit of its Sewer System Management Plan (SSMP) that has to be done once every two years.  Equipment Maintenance – Staff is proposing the increase the spending for equipment maintenance because the District’s fleet is aging and due to the volatility of diesel gasoline.  Capital Outlay – No vehicles are planned for replacement in 2014-15, so staff is proposing a decrease in spending from $296,000 in FY 2013-14 to $157,200 in FY 2014-15. Strategic Plan Element & Goal Board of Directors March 28, 2013 Page 13 of 14 This item adheres to the objective and strategy of Strategic Element 7.0, Finance, which states: “Objective: To ensure the short and long-term fiscal health of the District. Strategy: The District will forecast and plan revenue and expenditures and maintain appropriate reserves and investments to provide financial resources to fund current and planned operations and projects.” Legal Review Not applicable Financial Review Personnel FY 2012-13 Adopted FY 2013-14 Proposed FY 2014-15 Proposed Salaries & Benefits 1,522,670 1,824,960 1,965,600 M&O Administration 632,940 694,730 619,580 District Clerk 257,120 186,600 229,100 Finance 2,055,660 2,068,100 2,145,270 Engineering 386,950 347,200 341,700 Solid Waste 4,776,586 4,698,900 4,773,900 Sewer Operations 1,263,255 1,047,800 937,000 Subtotal: 9,372,511 9,043,330 9,046,550 Grand Total: $10,895,181 $10,868,290 $11,012,150 Committee Recommendation Not applicable Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Direct staff to report back with more information. Attachments A: Salary Survey and Job Descriptions for Finance Department B: Proposed Spending Plan for Fiscal Years 2013/14-15 Reviewed by: Board of Directors March 28, 2013 Page 14 of 14 Marc Davis District Treasurer/Interim Accounting Manager Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum ITEM NO. 15 To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2013 Subject: Proposed 2013/14-15 CIP Summary The following is staff’s proposed Capital Improvement Plan (CIP) for the next two fiscal years (2013-14 & 2014-15). On April 18, 2013, staff will present to the Board projected revenues for the next two fiscal years, which will consist of the District’s Asset Management Fund. Staff Recommendation That the Board of Directors give staff directions on the proposed Capital Improvement Plan. Analysis Staff defines CIP projects as projects that are identified in the District’s Asset Management Plan and/or exceeds $100,000 in costs. Projects that are less than $100,000 are funded out of Capital Outlay, with exception of replacing vehicles in the District’s fleet. Purchasing vehicles are not considered public works projects and are funded out of the District’s Asset Replacement Fund, which is an internal fund for replacing vehicles and office equipment (e.g. computers, printers, copy machines, etc.). The following are more details for the District’s proposed CIP. CIP 2013-14 1. Project #101 Westside Pump Station Abandonment - $400,000 is budgeted for this project, which brings the total amount to $2,083,475. Six CMSD sewer pump stations will be abandoned after OCSD completes a new trunk that can accommodate sewage flow from CMSD. OCSD’s project is expected to begin in 2016-17 in which time, the District should have a total nearly $3 million for the abandonment project. In 2013-14, the District Engineer will prepare a detail Board of Directors March 28, 2013 Page 2 of 4 analysis of the projected actual cost for this project to determine if staff’s estimate is on target or needs additional money. 2. Force Main Upgrades – Due to the success of the assessment and rehabilitation at 23rd and Santa Ana force mains, staff is continuing to use the PICA technology to assess Harbor, Victoria, Mendoza and South Coast Plaza force mains. Staff is anticipating some, if not all, of the force mains identified will need rehabilitation. Staff is proposing to budget $1,000,000 to rehabilitate 1,200 feet of force mains, if needed. 3. Replace Equipment at Pump Stations – According to the District’s Asset Management Plan, the life expectancy for certain equipment at some pump stations are at an end. Rather then being reactive to replacing equipment when it fails, thus, increasing the risk of a sanitary sewer overflow (SSO), staff believes we should follow the Asset Management Plan and be proactive to reducing the risk of SSOs. Staff is proposing to spend $260,000 on replacing equipment at pump stations. 4. Pipe & Valve Replacement at Elden Pump Station – Staff has assessed the pipes and valves inside Elden Pump Station and determined they need replacement or risk failure and a possible SSO. Staff is proposing $150,000 to complete this work. 5. Emergency Generator at the Yard – The District Yard serves as the alternate Emergency Operations Center (EOC) if the EOC at HQ becomes inhabitable or unable to function as an EOC. A generator is needed at the Yard to ensure power is restored so staff can utilize necessary equipment such as computers, televisions, fax machines, etc. Staff is proposing $150,000 for installing a generator at the Yard. The total CIP Budget for FY 2013-14 is $1,960,000. CIP 2014-15 1. Project #101 Westside Pump Station Abandonment - $400,000 is budgeted for this project, which brings the total amount to $2,483,475. 2. Project #194 Pump Station Coating & Manhole Rehabilitation - This project will rehabilitate the coating in three pumping stations (Corporation Yard, Mendoza, and South Coast Plaza), and will also rehabilitate 20 sewer manholes with interior structural problems, including deteriorated channels, benches, and walls. Manholes with drop structures needing repair will also be rehabilitated. Staff is proposing $300,000 for this project. 3. Grade 4 Sewer Rehabilitation - For the past three years, the District has been rehabilitating Grade 5 sewer sections because failure was eminent. Soon, all the Grade 5’s will be rehabilitated and it will be time to rehabilitate Grade 4 sections before they become Grade 5’s. Staff is proposing to rehabilitate 183 sections at a cost of $568,000. Board of Directors March 28, 2013 Page 3 of 4 4. Generator at Harbor Pump Station – This is part of Phase II for installing permanent emergency equipment at critical pump stations. There is inadequate space to install a by-pass pump at this station, so staff is recommending a generator be installed to ensure power is immediately restored in the event of a power outage. Staff is proposing to spend $178,500 for this project. 5. Manhole Rehabilitation Project – According to the District’s Asset Management Plan, many manholes that are brick layered are coming to the end of their life expectancy. Staff is proposing to rehabilitate 36 brick manholes with spray-on cementitious material that is reinforced with fiberglass strips at a cost of $360,500. 6. Hotspot 44 (Bristol & Randolph) – This hot spot location is currently being cleaned four times a year because there are multiple sags along 155 feet of pipe that is located underneath Bristol Street. In addition, this pipe is 63 years old. Staff believe it will be more cost effective to replace the 155 feet of pipe to reduce the maintenance frequency and the chance of an SSO occurring. Staff is proposing to budget $150,000 to replace this pipe. The total CIP Budget for FY 2014-15 is $1,957,000. Strategic Plan Element & Goal This item adheres to the objective and strategy of Strategic Element 7.0, Finance, which states: “Objective: To ensure the short and long-term fiscal health of the District. Strategy: The District will forecast and plan revenue and expenditures and maintain appropriate reserves and investments to provide financial resources to fund current and planned operations and projects.” Legal Review Not applicable Financial Review Funding for the CIP Budget is from the District’s Asset Management Fund. The fund currently has a balance of $5,140,000 for FY 2013-14 and is projected to have a balance of $5,138,000 for FY 2014-15. Committee Recommendation Not applicable Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Board of Directors March 28, 2013 Page 4 of 4 Alternative Actions 1. Direct staff to report back with more information. Reviewed by: Marc Davis District Treasurer/Interim Accounting Manager Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum ITEM NO. 16 To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2013 Subject: City of Costa Mesa 60th Anniversary Summary The City of Costa Mesa 60th Anniversary Celebration Planning Committee is currently planning special events to commemorate the City’s incorporation sixty years ago. Several CMSD officials are actively participating on the committee. The Board of Directors requested this item be placed on the agenda to discuss possible ways for CMSD to promote the celebration. Staff Recommendation That the Board of Directors: 1. Discuss ideas to help promote the anniversary and special events; 2. Approve allocating the necessary funds for promotional programs; and 3. Direct staff to work with the Anniversary Celebration Planning Committee to implement the ideas approved by the Board at tonight’s meeting. Analysis Starting in June 2013, the City of Costa Mesa will be sponsoring many festivities to commemorate the 60th Anniversary of cityhood. On December 11, 2012, the City’s Anniversary Celebration Planning Committee had its first meeting. The committee is comprised of residents and members of the community that is working to plan, promote, and facilitate activities related to the anniversary celebration. Several CMSD officials are participating on the planning committee including Vice President Scheafer as Committee Chair, Director Ooten as the Sustainability Subcommittee Chair, and Dyana Wick, CMSD Administrative Assistant, is serving on the Marketing, Branding, Advertising and Public Relations Subcommittee. Some promotional ideas to consider include: Board of Directors March 28, 2013 Page 2 of 3  Banners on CR&R truck.  Sustainable tote bags that will have the both the 60th Anniversary and CMSD logos.  Promote CMSD programs in the City’s 60th Anniversary Celebration Magazine. Money paid for advertising CMSD programs in the magazine will help fund the celebration activities. The magazine will have a circulation of 55,000. The costs to place an ad in the magazine are as follows: o Full page ad - $2,500 o Half page ad - $1,500 o Quarter page ad - $900 Strategic Plan Element & Goal This item adheres to Strategic Element 3.0, Partnerships, and Strategic Goal No. 3.2., Strengthen our ties with Cities of Costa Mesa, Newport Beach and the County of Orange. Legal Review Not applicable Financial Review Funding promotional programs for the anniversary celebration is not budgeted. Adequate funds are available from the Solid Waste and/or Liquid Waste Funds should the Board decide to move forward. Once total costs have been determined, staff will bring back the appropriate budget adjustment. Committee Recommendation On March 19, 2013, the Operations Committee discussed placing anniversary banners on CR&R trucks. The Committee is recommending that the Board considers approving placing anniversary banners on CR&R trucks. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not approve funding promotional programs and continue participating on the Anniversary Celebration Planning Committee. Reviewed by: Marc Davis Board of Directors March 28, 2013 Page 3 of 3 District Treasurer/Interim Accounting Manager Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum ITEM NO. 17 To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2013 Subject: Mayor’s Celebration – The Art of Leadership Summary On April 25, 2013, the first annual Costa Mesa Mayor’s Celebration will be at the Segerstrom Center for the Arts to communicate the necessity of arts education as a critical component of a complete and successful education. The Art of Leadership is seeking sponsorships to raise $10,000 each for the arts program at Costa Mesa High School and Estancia High School Arts as well as $5,000 each for education programs of PBS SoCal and Segerstrom Center of the Arts. Staff Recommendation That the Board of Directors: 1. Considers being a Bronze Sponsor to the Mayor’s Celebration – The Art of Leadership. 2. Approve budget adjustment in the amount of $2,500 to provide adequate funding for the sponsorship. Analysis The mayor and the City of Costa Mesa has partnered with the Costa Mesa Chamber of Commerce and South Coast Metro Alliance in collaboration with PBS SoCal and with the support of Segerstrom Center of the Arts to provide visual and performing arts education programs to Costa Mesa high schools as well as providing a fundraising opportunity to support these programs. The group is seeking different levels of sponsorships that range from Platinum Sponsor ($15,000) to Bronze Sponsor ($2,500). The goal is to raise $10,000 for each high school as well as $5,000 each for education programs of PBS SoCal and Segerstrom Center of the Arts Board of Directors March 28, 2013 Page 2 of 3 Bronze Sponsors receive the following:  Preferred Seating: Four tickets  Introduction at Celebration  Advertisement in Program: Name listed with logo  Logo/Name on Event-Sponsor Signs placed throughout the Celebration  Acknowledgement on invitations  On-screen Recognition  Listed in media releases  Recognized on Costa Mesa Chamber of Commerce and South Coast Metro websites Strategic Plan Element & Goal This item adheres to Strategic Element 3.0, Partnerships, and Strategic Goal No. 3.2., Strengthen our ties with Cities of Costa Mesa, Newport Beach and the County of Orange. Legal Review Not applicable Financial Review To be a Bronze Sponsor will cost $2,500. This cost is not currently budgeted. In order to provide adequate funding, the following budget adjustment is required. Solid Waste Fund Account Account Number Increase Decrease Public Info/Ed/Community Promo 10-100000-4420 $1,250 Retained Earnings 10-000000-2900 $1,250 Liquid Waste Fund Account Account Number Increase Decrease Public Info/Ed/Community Promo 20-200000-4420 $1,250 Contingency 20-200000-4995 $1,250 Committee Recommendation Not applicable Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Board of Directors March 28, 2013 Page 3 of 3 Alternative Actions 1. Do not sponsor the Mayor’s Celebration – The Art of Leadership Reviewed by: Marc Davis District Treasurer/Interim Accounting Manager Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum ITEM NO. 18 To: Board of Directors From: Scott Carroll, General Manager Date: March 28, 2013 Subject: Notice of Nominations for the Special District Risk Management Authority (SDRMA) Board of Directors 2013 Election Summary Four SDRMA Board of Directors seats are up for election. The nomination filing deadline is Friday, May 3, 2013. Staff Recommendation That the Board of Directors considers nominating a representative from CMSD to serve on SDRMA Board of Directors and direct staff to prepare a resolution for the April 18, 2013 Board of Directors meeting. Analysis SDRMA is a public entity Joint Powers Authority that provides cost effective property/liability, workers’ compensation, health benefit coverage and comprehensive risk management programs for special districts. SDRMA is governed by a Board of Directors elected from the membership by the programs’ members. SDRMA Board of Directors role is to provide effective governance by supporting a unified vision, and ensuring accountability, setting direction based on the organization’s mission and purpose. Directors also establish and approve policies to ensure SDRMA meets its obligations and commitment to its members. The Directors seats that are up for election serves a four year term beginning on January 1, 2014 and ends on December 31, 2017. Nominations must be a member of the agency’s governing body or full-time management employee and be an active member agency of both SDRMA’s property/liability and workers’ compensation programs. Board of Directors March 28, 2013 Page 2 of 2 Strategic Plan Element & Goal This item complies with Strategic Plan Element 3.0, Partnerships and Strategic Plan Goal No. 3.4, “Participate in the activities of professional associations.” Legal Review Not applicable Financial Review There are no financial impacts to serving on SDRMA’s Board of Directors because all travel and lodging is reimbursed by SDRMA. Committee Recommendation Not applicable Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not nominate a representative from CMSD to serve on SDRMA Board of Directors. Attachments 1. SDRMA Notification of Nominations – 2013 Election CMSD BOARD OF DIRECTORS OPERATIONS COMMITTEE MEETING Board of Directors Schedule for Attendance Chairman Scheafer and President Ferryman Alternate: Director Perry AGENDA Tuesday, March 19, 2013 - 9:30 a.m. Costa Mesa Sanitary District 628 W 19th Street Costa Mesa, CA 92627 STANDING REPORTS - RECYCLING 01. Recycling Report – February 2013 • Update on how CMSD is meeting AB 939 goals 02. Waste Diversion Report – February 2013 • Update on the amount of recycling materials diverted from the landfill 03. Ordinance Enforcement Officer’s February 2013 Report • Review OEO enforcement activities for trash cans, graffiti and scavenging 04. Scavenging Report – February 2013 • Review scavenging activities reported to CMPD 05. Solid Waste Facts & Figures – February 2013 • Review and discuss facts and figures regarding solid waste in CMSD • City Commercial tonnage information (Quarterly Reports) NEW DISCUSSION ITEMS - RECYCLING 06. School Recycling Bottle Program • Receive a report from staff on how schools can benefit from having a plastic bottles and cans recycling program. 07. City of Costa Mesa 60th Anniversary Banners on CR&R Trucks – Oral Report • Discuss ideas to promote 60th Anniversary events on CR&R trucks. ACTION ITEMS – RECYCLING 08. None STANDING REPORTS – SEWER SYSTEM 09. Monthly Spill Statistics – No SSOs occurred in February 10. Sewer Facts and Figures • Review and discuss facts and figures regarding CMSD’s sewer system NEW DISCUSSION ITEMS – SEWER SYSTEM 11. WDR Monitoring and Reporting Program Modifications – Oral Report • Update on proposed modifications and the role played by CASA in negotiations. 12. Sewer Lateral Assistance Program – Update • Discuss and review the status of this program 13. Project #196 – Installation of Backup Power and Pumping Capability – Phase I – Oral Report • Discuss and review the status of this project. ITEM NO. 19 ACTION ITEMS – SEWER SYSTEM – 14. None CMSD PROJECTS: 15. A. Project #101 West Side Pumping Station Abandonment – Status • The District Engineer is continuing work on the preliminary engineering including providing a narrative and map for the EIR NOP. B. Project #192 System Wide Sewer Reconstruction Phase 2 – Status • Construction will be complete by the end of the month. C. Project #193 Pumping Station Seismic Study and Retrofit – Status • Additional funding will be necessary to complete the project or the project will need to be scaled back. D. Project #196 Installation of Backup Power and Pumping Capability Phase I - Status • The District Engineer and General Manager are working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency equipment. E. Project #197 – System Wide Sewer Reconstruction Phase 3 – Status • The plans and specs will be submitted for first plan review to Costa Mesa and Newport Beach by the end of the month. F. Project #198 Condition Assessments of Force Mains - Status • Field crew is determining valve locations on the Harbor force mains. G. OCSD Proposed Transfer of Fairview Trunk • The District Engineer has completed the condition assessment with the exception of determining whether there are any adverse construction conditions in Fairview Road. Upcoming CMSD Events and Activities 16. A. Thursday, April 25, 2013 at 5:30 p.m. City of Costa Mesa Mayor’s Celebration – The Art of Leadership – Samueli Theater at Segerstrom Center for the Arts. B. Saturday, April 27 at 10:00 a.m. – Free Composting Workshop at Estancia Park, 1900 Adams Ave. (off Adams Ave. and W. Mesa Verde Dr.). Don’t forget to bring your lawn chairs C. Sunday, June 2, 2013 – Costa Mesa Community Run – Estancia High School. D. Free Door-to-Door Household Hazardous Waste Collection Program for Seniors and Immobile Residents – Contact CR&R Environmental Services at (949) 646-4617 to schedule a free collection. E. Sewer Lateral Assistance Program (SLAP) – The SLAP is a financial incentive program to encourage residents to maintain their lateral sewer line. The program will contribute 50% of the resident’s cost up to a maximum of $1,800. For more information visit www.cmsdca.gov or call (949) 645-8400. F. Large Item Collection Program – Residents are eligible for three (3) complimentary pick-ups per year. There is a limit of ten items per call or collections can be combined for a total of thirty items per calendar year. For more information visit www.cmsdca.gov or call (949) 646-4617 to schedule an appointment. PUBLIC COMMENTS 17. This is the time to receive any comments from members of the public. 18. Discuss items for next Operations Committee meeting. Next Meeting Date: April 16, 2013 ITEM NO. 19 COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2012-2013 PROJECT: PROJECT MANAGER: DESCRIPTION: BEGIN DESIGN: CONSTRUCTION COMPLETION DATE: STATUS REPORT: 12/20/10 - No change. 01/27/11 - No change. 5/26/11 - Staff met with another potential OCSD consultant to review OCSD's scope of work. OCSD will soon be publishing their RFP. 10/27/11 - OCSD selected Dudley as its consultant and is finalizing the consultant contract. 11/30/11 - No change. 8/20/12 - OCSD's surveyors are working on the topogaphy. 3/28/13 - The District Engineer provided a narrative and map explaining the District's work to be included in the EIR NOP. Account Number Encumbrances Balance #101 1,765,000 23,374 50,237 - 1,691,390 20 Total 1,765,000 23,374 50,237 - 1,691,390 1/24/13 - The District Engineer is continuing work on the preliminary engineering. 2/28/13 - The District Engineer is continuing work on the preliminary engineering. 11/18/10 - No change. 9/22/11 - OCSD is evaluating consultant proposals. 8/25/11 - No change. 12/20/12 - The District Engineer is continuing work on the preliminary engineering. 02/24/11 - No change. Staff will be contacting OCSD to review their status. 7/28/11 - OCSD's preliminary schedule reflects completion of construction of OCSD's sewer facilities on 3/25/2019. 6/23/11 - No change. 9/20/12 - The District Engineer has begun working with the topography provided by OCSD's surveyors and aerial photogrammist. Approved Proj Budget June 30, 2012 Accumulated Cost Current Year Expenditures 1/26/12 - Kickoff meeting for OCSD's consultant Dudek scheduled for 1/11/12. Consultant has placed flow meters in CMSD lines to confirm flows. 2/23/12 - CMSD District Engineer is providing scope of work for preliminary engineering for Board consideration. #101 West Side Pumping Station Abandonment 7/1/2012 3/25/2019 Rob Hamers, District Engineer 11/15/12 - The District Engineer is continuing working with the topography provided by OCSD's surveyors. 10/25/12 - The District Engineer is continuing working with the topography provided by OCSD's surveyors. 6/28/12 - District Engineer is working with OCSD consultant on confluence point for CMSD/CNB/OCSD sewers. 7/26/12 - CMSD will be obtaining topographic informatin from OCSD's consultant and will sve $4,500 in the process due to cost sharing. 12/15/11 - OCSD staff attended CMSD SSC meeting on 11/8/11 to discuss project timeline. 3/22/12 - CMSD District Engineer is providing preliminary engineering fee for Board consideration. 5/24/12 - The Board approved the District's Engineer's proposal for the Preliminary Engineering. 4/16/12 - The Board is considering the District Engineer's proposal to perform the Prelimanary Engineering. 10/26/10 - OCSD requested copies of all CMSD pumping station plans, which were provided. OCSD anticipates hiring a consultant to prepare an EIR and alignment study in 2011. CMSD requested a joint EIR. 9/23/10 - OCSD was provided with plans, maps and flow figures for their review. OCSD will be hiring a consultant to prepare the design for their facilities. 4/28/11 - Staff met with 3 proposed OCSD consultants to explain the project. OCSD's first phase of work will be an EIR and alignment study and the CMSD requested the OCSD EIR cover the CMSD work. 03/24/11 - Staff met with OCSD Project Managers on 3/8/11 to review OCSD's scope of work and project timing. 8/26/10 CMSD staff and two Directors met with OCSD staff on 8/4/10 to discuss the framework of the project. OCSD will be constructing its own gravity sewer to accept the CMSD and CNB flows and send it under the Santa Ana River to OCSD Plant No. 2. OCSD Abandon 6 CMSD pumping stations, abandon the CNB station in the CNB island on W. 19th Street, and abandon the private pumping station on W. 18th Street by constructing new gravity lines. The project would also alleviate the north half of the Banning Ranch. A preliminary engineer's estimate is $3 million. ITEM NO. 20 COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2012-2013 PROJECT: PROJECT MANAGER: DESCRIPTION: BEGIN DESIGN: APPROX. CONSTRUCTION COMPLETION DATE: STATUS REPORT: 12/15/11 - The design phase is continuing. 8/20/12 - The low bidder, Charles King Co., is executing the contract for Board consideration. 3/28/13 - Construction will be completed by the end of March 2013. FINANCIAL STATUS through 1/31/13: Account Number Encumbrances Balance #192 1,175,000 59,639 62,137 - 1,053,224 20 Total 1,175,000 59,639 62,137 - 1,053,224 #192 System Wide Sewer Reconstruction - Phase II Rob Hamers, District Engineer October-11 Jun-12 Phase 2 of Grade 5 repairs. Grade 5s are pipe problems ready for failure and were found during the 2006-2009 District-wide CCTV project. Due to low bids received in Phase 1 and the addition of 22 Frade 5s as extra work in Phase 1, there may only be three phases instead of four phases. 10/27/2011 - The design phase is underway; videos are being viewed and plans are being prepared and engineers are studying the bypass operations. Approved Proj Budget June 30, 2012 Accumulated Current Year Expenditures 12/20/12 - Work has begun. 01/24/13 - Work is approximately 30% complete. 05/24/12 - Engineering staff is awaiting for plan check response prior to finalizing the plans and specs. 6/28/12 - Final review of the plans and specs is occurring proir to placing the project out to bid. 9/20/12 - The project was awarded to the low bidder, Charles King Co., at the August regular Board meeting. 7/26/12 - The project went out to bid on June 26, 2012 with bid opening scheduled for August 1, 2012. 02/27/13 - Construction is approximately 85% complete. 11/30/11 - The design phase is continuing. 1/26/12 - The design phase is 30% complete. 02/23/12 - The plans and specifications are 60% complete. 4/16/12 - Plans and specs are 90% complete and have been submitted for plan check at the City of Costa Mesa and City of Newport Beach. 03/22/12 - The plans and specifications are 90% complete. 11/15/12 - The first day of work on the project was 11/5/12. 10/25/12 - The preconstruction meeting was held 10/01/12 and the contractor is developing his schedule. ITEM NO. 20 COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2012-2013 PROJECT: PROJECT MANAGER: DESCRIPTION: BEGIN DESIGN: APPROX. CONSTRUCTION COMPLETION DATE: STATUS REPORT: 8/20/12 - Engineering staff is performing final review prior to submitting the plans for plan check. FINANCIAL STATUS through 1/31/13: Account Number Encumbrances Balance #193 100,000 65,825 2,832 - 31,343 Total 100,000 65,825 2,832 - 31,343 2/27/13 - Additional funding will be necessary to complete the project or the project will need to be scaled back. 11/15/12 - The District Engineer is awaiting comments from the City of Costa Mesa. The City of Newport Beach has approved the plans. 10/25/12 - The District Engineer is awaiting comments from the City of Costa Mesa. The City of Newport Beach has approved the plans. 01/24/13 - Plans and specs are complete and staff is examining the construction budget. 12/15/11 - The District Engineer is preparing a scope of work for the design phase. 9/20/12 - The plans were submitted to the cities of Costa Mesa and Newport Beach on 8/30/12 for 1st plan check. 7/26/12 - Plans and specs are 70% complete. 02/23/12 - The structural engineer will have the electrical enclosure anchor details ready in late March 2012. The District Engineer will have the remaining plans ready at that time, and all plans willl then be submitted for plan check. 1/26/12 - The design phase is 10% complete. Structural engineering consultant is working on anchor details for the electrical enclosures. 11/30/11 - Consultant and staff agree Priority I, II, and III as shown in the consultant report should be implemented as soon as feasible. 03/22/12 - The plans and specs are approximately 50% complete. Approved Proj Budget June 30 2012 Accumulated Current Year Expenditures 4/16/12 - District Engineer's office is awaiting the anchorage details from the consultant structural engineer. 05/24/12 - The anchorage details from the structural engineer have been received and design work is continuing. 06/28/12 - Plans and specs are 30% complete. 12/20/12 - The District Engineer is finalizing the installation method of the short sections of pipe liner with the manufacturer prior to placing the project out to bid. 3/28/13 - Additional funding will be necessary to complete the project or the project will need to be scaled back. #193 Pumping Station Seismic Study and Retrofit Scott Carroll, General Manager March 31, 2011 Retain a Structural Engineer to prepare a report on the possible effects of a 6.0 magnitude earthquake on 14 of the District's pumping stations (the other 6 are scheduled for abandonment). Implement recommendations at all 20 of the District's stations subject to allocated funds. 10/27/2011 - Staff review of draft report occurred on 10/5/11 with subsequent meeting with consultant to be scheduled. Immediate to long term upgrades included in project. ITEM NO. 20 COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2012-2013 PROJECT: PROJECT MANAGER: DESCRIPTION: BEGIN DESIGN: APPROX. CONSTRUCTION COMPLETION DATE: STATUS REPORT: 3/28/13 - The District Engineer and General Manager are working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency equpment. FINANCIAL STATUS through 1/31/13: Account Number Encumbrances Balance #196 1,060,000 22,806 31,297 - 1,005,897 Total 1,060,000 22,806 31,297 - 1,005,897 02/27/13 - The District Engineer and General Manager are working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency equipment. 01/24/13 - The District Engineer and General Manager are working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency equipment. 12/20/12 - The District Engineer and General Manager are working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency equipment. #196 Installation of Backup Power and Pumping Capability Rob Hamers, District Engineer Install backup standby disel generator at two pumping stations and install backup pumping systems at four pumping stations. April 23, 2012 Jan-13 Approved Proj Budget June 30 2012 Accumulated Cost Current Year Expenditures 05/24/12 - District's Engineer's office is in design of the backup pumping systems while another consultant, PDE, is in design on the standby diesel generators.6/28/12 - Plans and specs are 30% complete. 7/26/12 - Plans and specs are 60% complete. 8/20/12 - Engineering staff is performing final review prior to submitting the plans for plan check. 9/20/12 - Plans were submitted to the cities of Costa Mesa and Newport Beach for first plan check. 10/25/12 - The District Engineer is working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency equipment. 11/15/12 - The District Engineer is working with the cities of Costa Mesa and Newport Beach regarding above-ground emergency equipment. ITEM NO. 20 COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2012-2013 PROJECT: PROJECT MANAGER: DESCRIPTION: BEGIN DESIGN: APPROX. CONSTRUCTION COMPLETION DATE: STATUS REPORT: 11/15/12 - The design phase is continuing. 3/28/13 - The plans and specifications will be submitted for first plan check by the end of March 2013. FINANCIAL STATUS through 1/31/13: Account Number Encumbrances Balance #197 670,000 - 45,645 - 624,356 20 Total 670,000 - 45,645 - 624,356 #197 System Wide Sewer Reconstruction Phase III Rob Hamers, District Engineer Sep-12 Nov-13 01/24/12 - The plans and specs are approximately 50% complete. Phase 3 of Grade 5 repairs. Grade 5s are pipe problems ready for failure that were found during the 2006-2009 District-wide televising project. There are approximately 69 pipe segments with one or more Grade 5s that will be repaired in the project. 12/20/12 - The design is continuing. Approved Proj Budget June 30, 2012 Accumulated Cost Current Year Expenditures 10/25/12 - The design phase is underway. 02/27/13 - The plans and specs are approximately 75% complete. ITEM NO. 20 COSTA MESA SANITARY DISTRICT CAPITAL IMPROVEMENT PROGRAM FY2012-2013 PROJECT: PROJECT MANAGER: DESCRIPTION: BEGIN DESIGN: APPROX. CONSTRUCTION COMPLETION DATE: STATUS REPORT: 3/28/13 - Field crew is determining valve locations on the Harbor force mains. FINANCIAL STATUS through 1/31/13: Account Number Encumbrances Balance #198 176,185 885 175,300 20Total 176,185 - 885 - 175,300 1/24/2013 - Field crew, engineering staff & the District's pigging contractor met on 1/9/13 to discuss the Harbor, Victoria, Mendoza, and South Coast Plaza force mains. Approved Proj Budget June 30, 2012 Accumulated Cost Current Year Expenditures 02/27/13 -Field crew is determining valve locations on the Harbor force mains. #198 PICA Analysis of Force Mains Rob Hamers, District Engineer Clean force mains by "pigging" and then electronically inspect using PICA technology. January-13 January-14 ITEM NO. 20 Protecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum ITEM NO. 21 To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: March 28, 2013 Subject: Proposed OCSD Transfer of Fairview Trunk to CMSD – Condition Assessment and Engineer’s Estimate to Rehabilitate Summary Staff has been reviewing and analyzing CCTV video of the Fairview Trunk to determine its current condition and a cost estimate to bring the trunk up to industry standards. The following are staff’s findings. Staff Recommendation That the Board of Directors considers the Engineer’s Report and direct the General Manager to conduct a soils test. Analysis Reason for Transfer Orange County Sanitation District (OCSD) is a “sanitation district”, as opposed to a “sanitary district,” and a sanitation district is a regional agency that owns large trunk sewers, treatment plants, wastewater recycling facilities, and ocean outfall facilities. OCSD sewer lines are large (96” diameter) while a “sanitary district”, which is a local sewer agency, owns small diameter sewers (8”, 10”, 12”, etc.) OCSD has found itself owning multiple small diameter sewers that have caused OCSD to own and operate small diameter cleaning equipment in addition to their large-scale equipment. OCSD, therefore, desires to transfer the smaller sewers to the local agencies in which they reside. OCSD and the Costa Mesa Sanitary District (CMSD) have to date Board of Directors March 28, 2013 Page 2 of 4 entered into four phases of sewer line transfers. The proposed Fairview Trunk transfer would be Phase V and consists of 10” and 12” diameter sewers. Development of the Home Ranch The proposed development of the Home Ranch (bounded by South Coast Drive, Ikea, 405 Freeway, and Fairview Road) presented OCSD with the opportunity to transfer the Fairview Trunk to CMSD. OCSD has historically mandated that new development be sewered northerly to the Sunflower Trunk instead of southerly to the Gisler Red Hill Trunk due to the possibility that future widening of the 405 freeway may cause abandonment of the Gisler Red Hill Trunk. Indications from OCTA are the future widening of the 405 will not negatively impact the Gisler Red Hill Trunk, therefore, OCSD is taking the position that sewering the Home Ranch by the Fairview Trunk or the CMSD Ikea Trunk in a southerly direction is conditioned upon transfer of the Fairview Trunk. Sewering in the northerly direction is expensive and requires a new pumping station. Portion of Sewer Under 405 Freeway During the previous transfer (Phase IV), in accordance with CMSD’s request, OCSD retained ownership of the portion of the sewers that lie under the 405 freeway due to the large financial liability associated with these portions of the lines. For this transfer, OCSD originally stated the transfer of the Fairview Trunk would include the portion under the 405 freeway, however, then CMSD President Bob Ooten and current President Jim Ferryman successfully negotiated with OCSD to have them retain this portion. Benefits of the Transfer to CMSD Benefits to the CMSD include:  Continuing the mutually beneficial and friendly relationship with OCSD.  Collection of connection charges and yearly fees from developments connected directly to the Fairview Trunk. CMSD ordinances exempt developments connected directly to an OCSD trunk because CMSD has no facilities involved and provides no cleaning or maintenance. Based on a build-out of approximately 1 million square feet in the Home Ranch development, an estimate of one-time CMSD connection charges is $40,000 and the on-going yearly fee is approximately $39,000. Staff has not yet studied other existing and potential connections to the Fairview Trunk.  Additional infrastructure helps spread CMSD capital and maintenance costs.  OCSD states there have been no sanitary sewer overflows (SSOs) from the Fairview Trunk. Board of Directors March 28, 2013 Page 3 of 4 Risks to CMSD  Additional sewers provide additional possibilities of SSOs.  As CMSD Board and Staff are aware, the South Coast Drive sewer transferred to CMSD as part of Phase IV transfer is surrounded by partially compacted, moist, soil, including sandy areas that make reconstruction very difficult. District Staff is unsure of the soil conditions surrounding the Fairview Trunk.  Ownership of the Fairview Trunk may cause additional monies to be contributed to the CMSD asset management fund. Due Diligence Steps Due diligence includes developing the cost to repair existing deficiencies and bringing the sewer up to industry standards. These steps include:  Review the 2004, 2007, and 2012 CCTV of the trunk as provided by OCSD to determine needed repairs.  Compare the 2004, 2007, and 2012 videos to determine whether deterioration is occurring.  Inspect the manhole interiors.  Prepare an Engineer’s Estimate of needed repairs and rehabilitation.  Research soil conditions, ground water levels, and utility projects in and around the Fairview Trunk.  Interview city and water district engineers and inspectors to ascertain field conditions and results of projects in Fairview Road. Attachment A is the District Engineer’s report identifying the conditions and recommendations for improvement. This area is close proximity to the OCSD sewer transfer on South Coast Drive where the District experienced significant wet soil conditions that caused the soil to collapse during excavation. From the lessons learned at South Coast Drive, staff is recommending an extensive soil test be conducted to determine the soil conditions and ground water levels. Strategic Plan Element & Goal This item adheres to Strategic Element 1.0, Infrastructure, and Strategic Goal No. 1.4., System wide Sewer Replacement and Repair Program. Legal Review Not applicable Financial Review Staff is estimating $347,000 is needed to bring the Fairview Trunk back up to industry standards; however, that cost may increase after the soils test is conducted. Board of Directors March 28, 2013 Page 4 of 4 Attachment B is an itemized summary of the rehabilitation that includes condition assessment, engineering design, and contract administration and inspection fees. Committee Recommendation On March 19, 2013, the Operations Committee discussed this item and recommends that the Board directs the General Manager to conduct a soils test and report back to the Committee and Board of Directors with its findings. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not conduct a soils test. 2. Do not consider the transfer of Fairview Trunk from OCSD. Attachment A: Engineer’s Report B: Engineer’s Estimate C: OCSD Map of Fairview Trunk Attachment A District Engineer Report Fairview Trunk Transfer & Rehabilitation Project TRANSFER SEGMENT NO. 2 10” Sewer Location: Manholes BKR0020-0565-BKR0020-0560 (954.9’) Deficiencies: Calcium buildup at 41.6’, 188.5’, 203.5’, 228.9’, 244.1’, 259.2’, 324.9’, 329.9’, 335.0’, 355’5’, 365.5’, 390.2, 400.5’, 441.3’, 517.3’, 552.8’, 563.1’, 603.5’, 639.0’, 654.1, 694.8’, 745.3’, 765.4’, 790.6’, 800.5’, 810.7’, 826.1’, 851.0’, 866.6’, 891.6’, 902.0’, 917.0’, 951.3’ Slight calcium buildup at 100-124’, 236-280’, 451-456’, 467-474’, 487-493’, 497-502’, 629-635’, 640’, 645’, 659’, 665-670’, 674’, 684’, 802-808’, 813’, 824’, 847-850’, 864’, 869-887’, 891-900’, 904-910’, 913’, 915’ Infiltration Weepers at 355.5’, 517.3’, 552.8’, 563.1’ Infiltration Dripper at 891.6’ Work: 1) Remove calcium deposits by chemical and mechanical methods. 2) Clean entire line. 3) Use a packer to terminate weepers and dripper. 4) Install Cured in Place Pipe (CIPP) for entire segment to prevent future calcium buildup. 5) Recoat manhole BKR0020-0560 (17.4’ deep) due to failure of existing lining. Apply new lining to manhole walls, bottom, and channels. 6) Install an intermediate manhole; 954.9’ exceeds standards for MH spacing. 7) Grind “OCSD” off downstream MH cover. TRANSFER SEGMENT NO. 3 12” Sewer Location: Manholes BKR0020-0560-BKR0020-0555 (164.9’) Deficiencies: Calcium buildup at 3.2’, 72.1’, 123.3’ 157.8’ (heavy) Slight calcium buildup at 79-113’ Infiltration Dripper at 157.8’ Work: 1) Remove calcium deposits by chemical and mechanical methods. 2) Clean entire line. 3) Use a packer to terminate dripper. 4) Install Cured in Place Pipe (CIPP) for entire segment to prevent future calcium buildup. 5) Recoat manhole BKR0020-0555 (18.6’ deep) due to failure of existing lining. Apply new lining to manhole walls, bottom, and channels. 6) Grind “OCSD” off downstream MH cover. TRANSFER SEGMENT NO. 4 12” Sewer Location: Manholes BKR0020-0555-BKR0020-0550 (499.1’) Deficiencies: Calcium buildup at 3.0’, 12.6’, 37.6’, 44.1’ , 82.5-84.5’, 108.2’, 173.8’ Slight calcium deposits at 20-69’, 97-105’, 139-174’, 200-240’, 330-435’, 464’ Infiltration Runner at 3.0’ Infiltration Dripper at 44.1’ Work: 1) Remove calcium deposits by chemical and mechanical methods. 2) Clean entire line. 3) Use a packer to terminate runner and dripper. 4) Install Cured in Place Pipe (CIPP) for entire segment to prevent future calcium buildup. 5) Downstream MH BKR0020-0550 to remain under OCSD ownership. SEGMENT NOT TO BE TRANSFERED (under 405 Freeway) 12” Sewer Location: Manholes BKR0020-0550-BKR0020-0100 (651.8’) Deficiencies: Calcium Buildup at 4.0’, 10.4’, 40.9’, 60.6’, 63.7’, 77.8’, 86.1’, 141.6’, 191.4’, 348.6’-353.7’, 413.7’, 443.7’, 579.9’, 613.2’, 614.1’, 631.0’, 635.6’, 643.7’ Slight calcium deposits at 148’, 303’, 320’, 474’, 600’ Infiltration Gusher at 70.5’ Infiltration Dripper at 614.1’ Crack Circumferential at 71.0’ Crack Longitudinal at 637.6’ Recommendations: 1) Remove calcium buildup by chemical and mechanical methods. 2) Clean entire line. 3) Use a packer to terminate gusher (immediately) and dripper. 4) Install Cured in Place Pipe (CIPP) for entire segment to prevent future calcium buildup. Recoat both upstream and downstream manholes File: Macintosh HD:Users:robhamers:Desktop:CMSD Fairview Trunk estimate.xlsx Worksheet: CMSD Budget COSTA MESA SANITARY DISTRICT Print: 2/18/13 Engineer's Estimate Client/Owner:COSTA MESA SANITARY DISTRICT Project:OCSD SEWER TRANSFER TO CMSD- FAIRVIEW TRUNK Bid Date Engineer's Estimate Item No.Unit Cost Total Cost 1 Remove calcium deposits by chemical & mechanical methods 1 LS 2,000.00$ 2,000.00$ Clean entire line 1 LS 500.00$ 500.00$ Use packer to terminate dripper 1 LS 1,500.00$ 1,500.00$ Install Cured in Place Pipe (CIPP) for entire segment 1 LS 70,000.00$ 70,000.00$ Recoat manholes BKR0020-0565 (15.0’ deep) 1 LS 8,000.00$ 8,000.00$ Install an intermediate manhole 1 LS 10,000.00$ 10,000.00$ Grind "OCSD" off downstream manhole cover 1 LS 300.00$ 300.00$ 2 Remove calcium deposits by chemical & mechanical methods 1 LS 4,000.00$ 4,000.00$ Clean entire line 1 LS 600.00$ 600.00$ Use packer to terminate weepers and dripper 1 LS 5,000.00$ 5,000.00$ Install Cured in Place Pipe (CIPP) for entire segment 1 LS 72,000.00$ 72,000.00$ Recoat manhole BKR0020-0560 (17.4’ deep) 1 LS 10,000.00$ 10,000.00$ Install an intermediate manhole 1 LS 10,000.00$ 10,000.00$ Grind "OCSD" off downstream manhole cover 1 LS 300.00$ 300.00$ 3 Remove calcium deposits by chemical & mechanical methods 1 LS 2,000.00$ 2,000.00$ Clean entire line 1 LS 500.00$ 500.00$ Use packer to terminate dripper 1 LS 1,500.00$ 1,500.00$ Install Cured in Place Pipe (CIPP) for entire segment 1 LS 14,000.00$ 14,000.00$ Recoat manholes BKR0020-0555 (18.6’ deep) 1 LS 11,000.00$ 11,000.00$ Grind "OCSD" off downstream manhole cover 1 LS 300.00$ 300.00$ 4 Remove calcium deposits by chemical & mechanical methods 1 LS 2,000.00$ 2,000.00$ Clean entire line 1 LS 500.00$ 500.00$ Use packer to terminate dripper 1 LS 2,000.00$ 2,000.00$ Install Cured in Place Pipe (CIPP) for entire segment 1 LS 40,000.00$ 40,000.00$ Sub Total $268,000.00 15% Contingency including mobilization, bonding, traffic control 40,500.00$ Condition Assessment Engineering Fee 3,500.00$ Engineering Design (10%)31,000.00$ Contract Admin/Inspection (10%)31,000.00$ TOTAL AMOUNT $374,000.00 TRANSFER SEGMENT NO. 4-Manholes BKR0020-0555-BKR0020-0550 (499’ 12" sewer) TRANSFER SEGMENT NO. 3-Manholes BKR0020-0560-BKR0020-0555 (165’ 12" sewer) QuantityDescription TRANSFER SEGMENT NO. 2-Manholes BKR0020-0565-BKR0020-0560 (955' 10" sewer) TRANSFER SEGMENT NO. 1-Manholes BKR0020-0570-BKR0020-0565 (929’ 10" sewer) FAIRVIEWBKR0020-0565 BKR0020-0560 BKR0020-0550 BKR0020-0555 SUN0050-0000SUN0045-0000 SUN0060-0000 BKR0020-0107BKR0020-0095 SUN0055-0005 BKR0020-0110BKR0020-0105BKR0020-0090 SUN0040-0005 SUN0040-0000 SUN0055-0000 BKR0020-0570 BKR0020-0100 250 0 250 500 FEET Disclaimer: Map prepared by Orange County Sanitation District. This map is intended for graphical representation only. No levelof accuracy is claimed for the base mapping shown hereon and graphics should not be used to obtain coordinate values, bearingsor distances. Portions of this derived product contain geographical information copyrighted by Thomas Brothers.All Rights Reserved. Source: OCSD GIS Data, Thomas Brothers 2010. Created: February 2012 Orange County Sanitation DistrictProposed Sewer Transferto Costa Mesa Sanitary District /-- Fairview Avenue -- %&l( OCSD manholes to be retained Proposed manholes to be transfered OCSD sewers to be retained Proposed sewers to be transfered Proposed sewer transfer H:\apps\gis.dta\740_data\AI-Projects\Sewer Transfers\2011 Costa Mesa\Fairview Ave Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum ITEM NO. 22 To: Board of Directors Via: Scott Carroll, General Manager From: Alan R. Burns, District Counsel Date: March 28, 2013 Subject: Deletion of Attorney’s Fees Provisions in Standard CMSD Agreements Summary By agreement, the parties can determine that the prevailing party shall be entitled to attorney’s fees in the event of a lawsuit to interpret or enforce the agreement. We have generally included attorney’s fees provisions in our agreements. Staff is now recommending deleting the attorney’s fees provisions in standard CMSD agreements. Staff Recommendation That the Board of Directors approves deleting the attorney’s fees provisions from standard CMSD agreements. Analysis Ordinarily, attorney’s fees are not recoverable as costs or damages in a lawsuit, absent statutory authority or an agreement which authorizes attorney’s fees to the prevailing party. The District has generally included attorney’s fees provisions in its agreement under the assumption that the District will generally be in the right and will prevail. However, there are compelling reasons not to include attorney’s fees in such agreements. One reason is that fact that a party filing a lawsuit will have to pay an attorney out of pocket for the recovery, making it important that the damages at stake will justify bringing such an action and paying an attorney to pursue it. If we assume that the District will most Board of Directors March 28, 2013 Page 2 of 2 likely be a defendant, it would work in our favor if the District did not have an attorney’s fees provision so that the plaintiff would be forced to consider if the recovery would justify the litigation costs without being awarded attorney’s fees. This may reduce the number of times the District is sued, which is not often. Another reason, and perhaps the most significant reason, is the disparity between what a public lawyer bills and what a plaintiff’s lawyer bills. A general counsel public lawyer bills lower and assume he will be paid. A plaintiff’s lawyer usually bills at substantially higher rates and has a higher rate of not being paid. This is a big factor in settlement discussions, and over 80% of cases settle. In many of the cases District Counsel has been involved in (most pertaining to construction), the plaintiff’s attorney tells the settlement judge he has billed his client several hundred thousand dollars, while District Counsel bill is substantially less. Even assuming that the District has a 75% chance of prevailing, with that disparity in the attorney’s fees at risk, it levels out the positions of the parties since the public agency has the bigger dollar exposure. Of course, there are advantages in retaining the attorney’s fees provisions. For instance, if no settlement occurs, or the District prevails in settlement, then the attorney’s fees are paid to the District. Strategic Plan Element & Goal This item adheres to the objective and strategy of Strategic Element 5.0, Administrative Management, which states: “Objective: To create, maintain and implement policies and procedures to ensure sound management of the District. Strategy: We will conduct periodic reviews, refine and implement policies and procedures, and assure the General Manager has the direction and tools necessary for successful District operations.” Legal Review District Counsel prepared this report and recommends deletion of the attorney’s fees provision. While agreement revisions are not usually brought to the Board, this one is a significant policy decision. Financial Review There is no financial impact to the District for deleting the attorney’s fees provision. Deleting this provision could, in the future, save the District money for paying attorney’s fees to the prevailing party; however the actual amount of money saved is undetermined. Committee Recommendation Not applicable. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the March 28, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Stay with having attorney’s fees provisions in all agreements. 2. Selectively incorporate attorney’s fees provisions in some agreements depending on parties and subject matter.