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2013_06_27 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, June 27, 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 – Present a proclamation congratulating the City of Costa Mesa on its 60th anniversary. 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 June 27, 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. Operations Committee Minutes of May 21, 2013 Recommendation: That the Board of Directors approve and file. 2. Board of Directors Regular Meeting Minutes of May 23, 2013 Recommendation: That the Board of Directors approve and file. 3. Board of Directors Special Board Meeting Minutes of May 28, 2013 Recommendation: That the Board of Directors approve and file. 4. Occupancy Report and payment to Costa Mesa Disposal – May 2013 Recommendation: That the Board of Directors approves the occupancy report and payment to Costa Mesa Disposal for the month of May 2013. 5. Contract Payment to CR Transfer for Recycling & Disposal Services – May 2013 Recommendation: That the Board of Directors approves payment to CR Transfer for recycling and disposal services for the month of May 2013. 6. Adoption of Warrant Resolution No. CMSD 2013-12 Approving District Warrant Registers Recommendation: That the Board of Directors adopts Warrant Resolution No. CMSD 2013-12 approving District warrants for the Month of May 2013 in the amount of $920,037.15 7. Directors’ Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approves Directors’ compensation and reimbursement of expenses for the month of May 2013. 8. Investment Report – May 2013 Recommendation: That the Board of Directors receive and file the report. 9. Adoption of Resolution No. 2013-832 Ordering the Publication of Ordinance No. 97 Recommendation: That the Board of Directors adopt Resolution No. 2013-832 ordering the publication of Ordinance No. 97. 10. Claim No. 13-004 - Ohlaker Recommendation: That the Board of Directors reject the claim Costa Mesa Sanitary District June 27, 2013 AGENDA Page 3 11. Refund of Sanitary Assessment Overpayment – 2990 Airway Avenue Recommendation: In accordance with District Operations Code and State Law, staff recommends the Board of Directors approves a refund for the previous year assessment 2012-13 in the amount of $4,509.75. ---------------------------------------------END OF CONSENT CALENDAR------------------------------------- IX. PUBLIC HEARINGS – To begin at 6:00 p.m. 12. Consideration of Solid Waste Annual Charges for FY 2013-14 & FY 2014-15 to be Collected with the General Taxes A. Presentation of Report B. Reconvene Public Hearing C. Close Public Hearing D. Recommendation: That the Board of Directors Approves Resolution No. 2013-833 Confirming and Adopting the Report and directing Clerk to File with County Auditor. 13. Consideration of Liquid Waste Annual Charges for FY 2013-14 & FY 2014-15 to be Collected with the General Taxes A. Presentation of Report B. Reconvene Public Hearing C. Close Public Hearing D. Determination Regarding Protests E. Recommendation: That the Board of Directors Approves Resolution No. 2013-834 Confirming and Adopting the Report and directing Clerk to File with County Auditor. X. GENERAL MANAGER / DISTRICT CLERK REPORTS 14. Adopt FY 2013-14 & 2014-15 Budget Recommendation: That the Board of Directors approves Resolution No. 2013-835 adopting the Budget for Fiscal Years 2013-14 and 2014-15. 15. FOG Enforcement Appeal at 2590 Newport Blvd Recommendation: That the Board of Directors denies the appeal to reduce the invoice amount of $2,019.62 for Fats Oil Grease (FOG) enforcement. 16. Sewer System Management Plan (SSMP) Self Audit Recommendation: That the Board of Directors: 1. Accepts the SSMP self-audit performed by EEC; and 2. Direct staff to report back with an implementation plan for the minor corrective actions identified in the audit; and 3. Direct staff to bring back the SSMP with amendments for recertification approval. Costa Mesa Sanitary District June 27, 2013 AGENDA Page 4 17. Memorandum of Understanding with the County of Orange - AlertOC Notification System Recommendation: That the Board of Directors authorize the General Manager to enter into a Memorandum of Understanding (MOU) between the County of Orange and Costa Mesa Sanitary District for use of AlertOC, a countywide mass notification system. 18. Rewarding Ideas Program Recommendation: That the Board of Directors approves rewarding District employees Steve Cano, Joel Ortiz and Alex Arreola $75.00 each, a total of $225.00 for their idea to enhance safety on the sewer combination truck. 19. Contract Administration for Project # 197 – System Wide Sewer Reconstruction – Phase III Recommendation: That the Board of Directors receive and file this report. The General Manager is approving the contract administration proposal from Robin B. Hamers & Associates (RBH) for $15,979. RBH will perform said services under his existing contract with the District. 20. CR&R Audit Implementation Plan Recommendation: That the Board of Directors approves CR&R Audit Implementation Plan. XI. OPERATIONS COMMITTEE 21. Tuesday June 18, 2013, 9:30 a.m. - (Vice President Scheafer and Director Ooten) 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 22. Project Status Report Recommendation: That the Board of Directors receive and file the report. 23. Encroachment Agreement at 1661 Indus Street, Newport Beach Recommendation: That the Board of Directors approves the agreement. 24. Project #197 – System Wide Sewer Reconstruction – Phase III – Awarding Contract Recommendation: That the Board of Directors: 1. Award a contract to the lowest responsible bidder, Charles King Co., Inc., of Signal Hill, in the amount of $228,700.00. 2. Approve a 10% contingency budget of $22,870. XIII. TREASURER’S REPORTS 25. Statement of Investment Policy for Fiscal Year 2013-14 Recommendation: That the Board of Directors adopt Resolution No. 2013-836 approving the Policy and delegating the investment function to the District Treasurer for Fiscal Year 2013-14 Costa Mesa Sanitary District June 27, 2013 AGENDA Page 5 XIV. ATTORNEY’S REPORTS 26. Dissolving Operations Committee and Instituting Study Session Special Meeting Procedures That the Board of Directors adopts the following: 1. Resolution No. 2013-838 dissolving the Operations Committee and directing that periodic study sessions be held of the full Board. 2. Ordinance No. 98 amending Operations Code Section 3.01.110 pertaining to procedures for placing an item on the agenda. 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) 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 27. Special District Risk Management Authority (SDRMA) 2013 Board of Directors Election Recommendation: That the Board of Directors adopts Election Resolution No. 2013-837 for the selection of up to four (4) candidates to the SDRMA Board of Directors. XVII. NEW BUSINESS 28. CSDA Board of Directors Elections Recommendation: That the Board of Directors approves casting a ballot for Open Seat B of Region 6 for the California Special Districts Association Board of Directors XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS XIX. ADJOURNMENT Costa Mesa Sanitary District June 27, 2013 AGENDA Page 6 THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON JULY 25, 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  Adopting Zero Waste Plan – To be determined  City of Costa Mesa 60th Anniversary, three day musical festival on Fair Drive adjacent to City Hall, Friday, June 28th through Sunday, June 30th.  City of Costa Mesa Concerts in the Park, July 2, 9, 16 & 23 at Fairview Park from 5:30 – 7:45 pm.  Special Costa Mesa 60th Anniversary Concert in the Park, July 30th at Fairview Park from 5:30 – 7:45 pm.  City of Newport Beach Concerts in the Park, June 30, July 28 and August 11 at 100 Civic Center Drive from 6:00 – 7:30 pm  City of Newport Beach Shakespeare by the Sea, July 20 & 21 at 1990 Ford Road from 7:00 – 9:00 pm.  OC Fair, July 12 through August 10, 2013  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.  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 $1,600. 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. UPCOMING CMSD & COMMUNITY EVENTS AND ACTIVITIES CMSD BOARD OF DIRECTORS OPERATIONS COMMITTEE MINUTES Board of Directors Schedule for Attendance Chairman Scheafer and Director Perry Alternate: Director Ooten May 21, 2013 _____________________________________________________________________ CALL TO ORDER The Operations Committee of the Costa Mesa Sanitary District met in regular session on May 21, 2013 at 9:30 a.m. at 628 W. 19th Street, Costa Mesa. ROLL CALL MEMBERS PRESENT: Mike Scheafer, Art Perry, Arlene Schafer, Jim Ferryman, and Bob Ooten (Directors Ferryman, Perry, and Ooten were present as observers and did not participate in the discussions) STAFF PRESENT: Scott Carroll, General Manager; Noelani Middenway, Deputy Clerk of the District; Elizabeth Pham, Management Intern OTHERS PRESENT: Lawrence Jones, CR&R; Mike Carey, OCC; Jim Mosher, Resident; Morgan Cook, Orange County Register; Mike Balliet, MBC, LLC; Bradley Zint, Daily Pilot; Jim Fitzpatrick, Resident; Ruth Zintzun, Resident Chairman Scheafer requested that due to the large number of items on the agenda, that Item 1 through Item 5 be considered received after the member of the public presented comment on Item 1. Director Perry concurred. Chairman Scheafer invited members of the public to address the Committee. Seeing none, Chairman Scheafer closed public comments. ITEM NO. 01 COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD MAY 21, 2013 ________________________________________________________________ STANDING REPORTS 1. Recycling Report – April 2013  Update on how CMSD is meeting AB 939 goals Public comment was received from Mr. Jim Mosher regarding the District’s contribution towards the diversion threshold and expressed concern regarding the figures reported. General Manager Carroll responded to the public comment received, discussed the disposal per capita and noted that the data provided is inclusive of all disposal activity within the City and indicated that the District is unable to extract sole information. Mr. Mike Balliet responded to the public comment received and discussed the per capita disposal rate is meeting the 50 percent threshold established by AB 939. There were no additional questions or comments and the report was received. 2. Waste Diversion Report – April 2013  Update on the amount of recycling materials diverted from the landfill There were no questions or comments and the report was received. 3. Ordinance Enforcement Officer’s Report - April 2013  Review OEO enforcement activities for trash cans, graffiti and scavenging There were no questions or comments and the report was received. 4. Scavenging Report – April 2013  Review scavenging activities reported to CMPD There were no questions or comments and the report was received. 5. Solid Waste Facts & Figures – April 2013  Review and discuss facts and figures regarding solid waste in CMSD  City Commercial tonnage information (Quarterly Reports) There were no questions or comments and the report was received. NEW DISCUSSION ITEMS – RECYCLING 6. Orange Coast College (OCC) Recycling Center Expansion Project – Oral Report  Receive an oral report from Mr. Carey regarding the status of their expansion project COSTA MESA SANITARY DISTRICT PAGE 3 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD MAY 21, 2013 ________________________________________________________________ Mr. Mike Carey provided a presentation of the conceptual Orange Coast College (OCC) Recycling Center, discussed the details of the proposed new center site and facility, and noted that construction is scheduled to begin in 2014. Discussion followed regarding the Green Waste facility and the District’s interest in partnering with OCC to provide composting workshops. Mr. Carey indicated OCC’s intent to construct a green waste facility is to partner with CMSD for hosting composting workshops. There were no additional questions or comments and the report was received. 7. MUZEO TrashArtist Challenge Contest Winner – Oral Report  Receive an oral report from staff regarding the MUZEO contest winner from Costa Mesa General Manager Carroll provided report details of the Anaheim Muzeo’s TrashArtist Challenge and noted that the International Christian Academy of Costas Mesa won second place in the challenge and will be recognized at the May 23, 2013 Board meeting. There were no questions or comments and the report was received. 8. Signage on CR&R Trucks  Update on the amount of signs left per the Agreement General Manager Carroll provided report details and discussed the rotation of signs on the CR&R trucks and noted that the District potentially has two signs left per the agreement with CR&R. He wanted the committee to be aware that after the 60th Anniversary, the District will only be able to use two signs until September 2014. The two signs include Christmas Tree Recycling Program and Large Item Collection Program. Discussion followed regarding the timeframe of the sign placement advertising the City of Costa Mesa’s 60th Anniversary. Mr. Lawrence Jones noted that the City is in the process of finalizing the design for the 60th Anniversary and will follow up with CR&R’s Public Affairs Department. Chairman Scheafer indicated that he would also provide follow up as he is the Chairman for the 60th Anniversary Committee. There were no additional questions or comments and the report was received. 9. CR&R Audit Results  Discuss and review the results of the audit Chairman Scheafer invited members of the public to address the Committee. COSTA MESA SANITARY DISTRICT PAGE 4 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD MAY 21, 2013 ________________________________________________________________ Mr. Jim Mosher provided public comment and suggested that the Committee recommend to the Board that the CR&R contract be posted on the District’s website and identified various elements that he did not feel were in compliance with the CR&R contract. Mr. Jim Fitzpatrick provided public comment regarding the CR&R contract and questioned as to why no formal action had been taken to notify CR&R that they were not in contract compliance and discussed the issue of recycling revenue. Mr. Fitzpatrick strongly urged the committee to solicit bids for refuse collection services. Mr. Mike Balliet provided report details and indicated that the audit was comprised of 31 questions broken into four categories. Mr. Balliet noted that 25 of 28 review questions were clearly in compliance and that three noted areas of non-compliance were resolved during the review process. Discussion followed regarding areas of unclear compliance including the reasonability of CR&R's rates and the county average net to hauler rate. Mr. Balliet noted that the District's rate would be considered reasonable as it is not the highest. Mr. Balliet discussed the definition of the term 'most favorable rate' and made a comparison of the District's rates versus a mixed waste hauler rate. Mr. Balliet suggested that CR&R alter their methodology to address the points of concerns raised in the report and to address problematic agreement terminology and unclear compliance areas. Discussion followed regarding the frequency of updating the master manifest. General Manager Carroll noted that Mr. Balliet provided excellent recommendations and that an implementation plan will be created upon the Board's approval of the CR&R audit results. There were no additional questions or comments and the report was received. ACTION ITEMS – RECYCLING - There were no action items to discuss at this time. STANDING REPORTS – SEWER SYSTEM 10. Monthly Spill Statistics – No SSOs occurred in April. There were no questions or comments and the report was received. 11. Sewer Facts and Figures  Review and discuss facts and figures regarding CMSD’s sewer system. There were no questions or comments and the report was received. COSTA MESA SANITARY DISTRICT PAGE 5 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD MAY 21, 2013 ________________________________________________________________ NEW DISCUSSION ITEMS – SEWER SYSTEM There were no items for discussion. ACTION ITEMS – SEWER SYSTEM 12. Project #192 – Acceptance of Work  Consider recommending to the Board acceptance of work for System Wide Sewer Reconstruction, Phase II General Manager Carroll provided report details. There were no questions or comments. The Operations Committee recommended to the Board of Directors the acceptance of work for Project #192 - System Wide Sewer Reconstruction, Phase II. 13. Project #196 – Sole Source the Acquisition of Permanent By-Pass Pumps  Consider recommending to the Board approving a sole source contract for acquiring permanent by-pass pumps at critical pump stations. The District will solicit bids for installation services. General Manager Carroll provided report details. Mr. Jim Mosher provided public comment and inquired if the companies selected had merged. There were no additional questions or comments. The Operations Committee recommended to the Board of Directors approval of a sole source contract for acquiring permanent by-pass pumps at critical pump stations with the caveat that research be done to find other competitive bidders. 14. Project #199 – Soils Report for Fairview Trunk  Consider recommending to the Board acceptance of new Engineer’s Estimate based on soils investigation and direct staff to finalize negotiations with OCSD officials for acquisition of the Fairview Trunk. General Manager Carroll provided report details and discussed the soils investigation COSTA MESA SANITARY DISTRICT PAGE 6 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD MAY 21, 2013 ________________________________________________________________ results. There were no questions or comments. The Operations Committee recommended to the Board of Directors to accept the new Engineer’s Estimate based on soils investigation and direct staff to finalize negotiations with OCSD officials for acquisition of the Fairview Trunk. 15. Industrial Flow Data  Review and discuss data from Orange County Sanitation District. General Manager Carroll provided report details and stated that OCSD’s flow data from Costa Mesa’s industrial customers is too small of a sample size to derive a conclusion. Mr. Jim Mosher provided public comment. There were no additional questions or comments and the report was received. CMSD PROJECTS 16. A. Project #101 West Side Pumping Station Abandonment – Status  Engineer’s estimates for the work are being prepared. B. Project #192 System Wide Sewer Reconstruction Phase 2 – Status  Construction was completed on 04/19/2013. The Board will accept improvements on 05/23/2013. C. Project #193 Pumping Station Seismic Study and Retrofit – Status  No change in status.  D. Project #196 Installation of Backup Power and Pumping Capability Phase I – Status  A soils investigation is being performed for the 23rd Pumping Station location in the right-of-way slope. Two other locations will be housed in prefabricated buildings. E. Project #197 System Wide Sewer Reconstruction Phase 3 – Status  The project went out to bid on May 3, 3013 and bid opening is June 4, 2013. F. Project #198 Condition Assessments of Force Mains - Status  The District Engineer is working on Engineer’s Estimates for lining the four force mains. COSTA MESA SANITARY DISTRICT PAGE 7 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD MAY 21, 2013 ________________________________________________________________ G. Project #199 OCSD Proposed Transfer of Fairview Trunk  The Board discussed this item at their regular meeting on March 28, 2013 and gave staff direction to obtain a soils report to check for adverse construction conditions. A new staff report is provided with the results of the soils investigation. General Manager Carroll reported that a report on projects 16 A, C, and D will be provided at the next Operations Committee meeting. Mr. Jim Mosher provided public comment regarding the placement of a portable generator at the 23rd pumping station. General Manager Carroll responded to public comment and stated that the generator was placed as a preventative measure because Southern California Edison was performing infrastructure upgrades in the neighborhood. There were no additional questions or comments and the report was received. NEW DISCUSSION ITEMS – OTHER 17. CMSD Website Usage Report  Update on how many visitors the CMSD website is receiving. Ms. Elizabeth Pham provided report details of the District's website usage. Discussion followed regarding the frequency of views and timeframe of highest usage. There were no additional questions or comments and the report was received. ACTION ITEMS – OTHER 18. Board of Directors Study Sessions – Oral Report  Consider replacing the Operations Committee meetings with Board of Directors Study Sessions. General Manager Carroll introduced the item. Discussion followed regarding the possibility of dissolving the Operations Committee to be replaced with a Board of Directors Study Session to allow all members of the Board the opportunity to participate in discussions. There were no additional questions or comments and the report was received. The Operations Committee recommended that the Board consider replacing the Operations Committee meetings with Board of Directors Study Sessions. COSTA MESA SANITARY DISTRICT PAGE 8 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD MAY 21, 2013 ________________________________________________________________ 19. California Legislative Analysis  Consider recommending to the Board of Directors supporting SB 254 (Hancock) and opposing AB 323 (Chesbro) and AB 1333 (Hernandez). Ms. Elizabeth Pham provided report details of the California Legislative Analysis. General Manager Carroll provided details of the proposed bills and discussed his reasons to support SB 254 and oppose AB 323 and AB 1333. Mr. Jim Mosher provided public comment regarding the letter stating the Board's position on the Bills. General Manager Carroll responded to public comment and confirmed that the letter would be send on behalf of the Board of Directors. There were no additional questions or comments and the report was received. Upcoming CMSD Events and Activities 20. A. Sunday, June 2, 2013 – Costa Mesa Community Run – Estancia High School. B. 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. C. 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 $1,600. For more information visit www.cmsdca.gov or call (949) 645-8400. D. 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. Director Perry questioned if the District would have a booth at the Lion's Club Fish Fry. General Manager Carroll confirmed that the District would be represented at the Fish Fry. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE OPERATIONS COMMITTEE REGULAR MEETING HELD MAY 21, 2013 ________________________________________________________________ PUBLIC COMMENTS 21. Mr. Jim Mosher provided public comment regarding how the District received its authority to collect the solid waste within its service area and questioned the process to change trash service to be part of a larger contract. General Manager Carroll responded to the public comment and indicated that LAFCO is the governing body that provides the authority to the District. 22. Discuss items for next Operations Committee meeting – None. ADJOURNMENT There being no further business to come before the CMSD Operations Committee, Chairman Scheafer adjourned the meeting at 10:50 a.m. Next Meeting Date: June 18, 2013 _____________________________ Mike Scheafer Chair Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS REGULAR MEETING MAY 23, 2013 ______________________________________________________________________ I. CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in regular session on May 23, 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 Ooten led the Invocation. IV. ROLL CALL DIRECTORS PRESENT: James Ferryman, Robert Ooten, Art Perry, Arlene Schafer DIRECTORS ABSENT: Mike Scheafer (entered into the meeting at 6:10 p.m.) 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 OTHERS PRESENT: Michael Balliet, Michael Balliet Consulting; Dean Ruffridge, CR&R; Lawrence Jones, CR&R; Jim Mosher, Resident; Patrick Ibarra, Mejorando Group; Bill Nelson, CSDA; Cecila Maida, International Christian Montessori Academy of Costa Mesa V. CEREMONIAL MATTERS AND PRESENTATIONS – The Board recognized the International Christian Academy of Costa Mesa for winning their category and placing second Countywide for the MUZEO TrashArtist Challenge. VI. ANNOUNCEMENT OF LATE COMMUNICATIONS - General Manager Carroll indicated that Mr. Jim Mosher had submitted written public comments and have been provided to the Board for review. ITEM NO. 02 Costa Mesa Sanitary District May 23, 2013 AGENDA Page 2 VII. PUBLIC COMMENTS President Ferryman invited members of the public to address the Board. Mr. Bill Nelson, Trustee of the Orange County Cemetery District and Board of Director of the California Special Districts Association (CSDA) provided public comment regarding his reelection to CSDA’s Board of Directors and requested the support of the Board by voting for him in the upcoming CSDA 2013 Election. Seeing no one further, President Ferryman closed public comments. VIII. CONSENT CALENDAR 1. Board of Directors Special Meeting Minutes of April 3, 2013 The Board of Directors Special Meeting Minutes of April 3, 2013, was approved as presented. 2. Board of Directors Special Meeting Minutes of April 10, 2013 3. Operations Committee Minutes of April 16, 2013 The Board of Directors Special Meeting Minutes of April 10, 2013, was approved as presented. The Operations Committee Minutes of April 16, 2013, was approved as presented. 4. Board of Directors Regular Meeting Minutes of April 18, 2013 The Board of Directors Regular Meeting Minutes of April 18, 2013, was approved as presented. 5. Occupancy report and payment to Costa Mesa Disposal 6. Contract Payment to CR Transfer for Recycling and Disposal Services The Board of Directors approved the occupancy report and payment to Costa Mesa Disposal for the month of April 2013. The Board of Directors approved payment to CR Transfer for recycling and disposal services for the month of April 2013. 7. Adoption of a Resolution Approving District Warrant Registers The Board of Directors approved adoption of Warrant Resolution No. CMSD 2013-11 approving District warrant registers for the month of April in the amount of $784,932.22. 8. Directors' Compensation and Reimbursement of Expenses The Board of Directors approved Directors' compensation and reimbursement of expenses for the month of April 2013. 9. Claim - Oestreicher The Board of Directors rejected the claim. Costa Mesa Sanitary District May 23, 2013 AGENDA Page 3 10. Claim – Mercury Insurance The Board of Directors rejected the claim. 11. 3rd Quarter Budget Report The Board of Directors received and filed the report. END OF CONSENT CALENDAR Director Schafer moved for approval of the Consent Calendar. Director Ooten seconded the motion. The motion carried 4-0-1, with Vice President Scheafer absent. General Manager Carroll noted that Mr. Jim Mosher had noted a typographical error in one set of the minutes and that the error had been corrected prior to the approval of the Consent Calendar. X. GENERAL MANAGER/DISTRICT CLERK REPORTS 12. Knowledge Transfer Program Recommendation: That the Board of Directors receives and files the District’s Knowledge Transfer Program. Mr. Patrick Ibarra, Co-Founder and Partner of The Mejorando Group will be giving a presentation to the Board about the program. General Manager Carroll introduced the item and deferred to Mr. Patrick Ibarra to discuss the Knowledge Transfer Program. Mr. Ibarra provided a presentation on the Knowledge Transfer Program, discussed the importance of being able to extract staff’s tacit knowledge and explained in detail the process by which the information was gathered and compiled. Mr. Ibarra also discussed the expert interview process that he conducted, explained the position summaries, the outcome, and the integrated workforce strategy. Director Perry commented on the usefulness of the position summaries in assisting the Board in understanding the functions of the District’s staff. There were no additional questions or comments and the report was received. 13. CR&R Performance Audit Results Recommendation: Receive report from Michael Balliet Consulting, LLC and direct staff to implement recommendations cited in the report. General Manager Carroll introduced the item and deferred to Mr. Michael Balliet to discuss the results of the CR&R performance audit. Mr. Balliet provided report details and discussed his summary of compliance. Mr. Balliet indicated that CR&R was in full compliance in 25 of 28 areas and noted that three areas of non-compliance were resolved during the time of the review. Mr. Balliet provided details of the areas of non-compliance and how those matters were resolved. Costa Mesa Sanitary District May 23, 2013 AGENDA Page 4 Director Ooten expressed appreciation of staff and Mr. Balliet’s involvement in conducting the performance audit and requested that staff return with an implementation plan. Discussion followed regarding the term ‘fairly unique with mixed processing’, subsidies, and the need to focus on the areas of non-compliance. Mr. Jim Mosher provided public comment concerning CR&R’s areas of non-compliance and commented on the stated recycling percentages. Mr. Dean Ruffridge commented that the results of the audit have helped to make material data and reports more accurate. Discussion followed regarding the waste characterization method and CalRecycle’s mandate to audit cities. General Manager Carroll noted that staff will work with CR&R to resolve non-compliance issues. There were no additional questions or comments and the report was received. 14. Proposed FY 2013/14 & 2014/15 Budget Recommendation: That the Board of Directors give staff directions on the proposed budget and direct staff to bring back a final budget on June 27, 2013 for adoption. General Manager Carroll provided report details of the proposed budgets for Fiscal Year 2013-14 and 2014-15 and discussed lowering the solid waste rate to $18.00. Discussion followed regarding the removal of items from the budget. Director Ooten felt it important to purchase the field staff’s toughtops and that it should not be removed from the budget. General Manager Carroll commented that the toughtop purchase would come out of the sewer fund. Director Ooten requested that the Board salary budget be reduced by $7,000 as he will not be requesting that amount of money as his repayment of legal fees for the Quo Warranto litigation. Director Perry commented on exterior improvements and felt that the expenditure of $15,000 as a precaution was worth it. Vice President Scheafer expressed appreciation of the consideration to lower the solid waste rates to $18 and appreciated General Manager Carroll’s comments regarding working with CR&R. Vice President Scheafer felt that the District is providing the ratepayers a great service. Discussion followed regarding the cost and frequency of manhole inspections. There were no additional questions or comments and the report was received. Costa Mesa Sanitary District May 23, 2013 AGENDA Page 5 15. Public Records Act Request Policy and Adoption of Resolution 2013-831 Establishing Fees for Services Rendered by the Office of the District Clerk Recommendation: That the Board of Directors: 1. Receive and file Administrative Regulation No. 60.00 establishing the Public Records Act Request policy and procedures to facilitate accessibility of information to members of the public. 2. Adopt Resolution No. 2013-831 setting fees and charges for duplicating District information. General Manager Carroll introduced the item and deferred to Ms. Noelani Middenway. Ms. Middenway provided report details and discussed the Public Records Act Request Policy and purpose of establishing a fee schedule. Ms. Middenway provided details regarding the proposed fees and explained the content of the Administrative Regulation No. 60.00. Mr. Jim Mosher provided public comment regarding the proposed fee schedule. There were no further questions or comments. Director Ooten moved to receive and file Administrative Regulation No. 60.00 establishing the Public Records Act Request policy and procedures to facilitate accessibility of information to members of the public. Director Schafer seconded the motion, which carried 5-0. Vice President Scheafer moved to adopt Resolution No. 2013-831 setting fees and charges for duplicating District information. Director Schafer seconded the motion, which carried 5-0. 16. Adopting Ordinance No. 97 Adding Section 6.04.085 to the Operations Code Establishing Plumbing Fixture Fee Credits Recommendation: That the Board of Directors adopt Ordinance No. 97 adding Section 6.040.085 to the Operations Code establishing plumbing fixture fee credits. General Manager Carroll introduced the item and deferred to Ms. Anna Sanchez. Ms. Sanchez provided report details regarding the establishing of plumbing fixture fee credits. Director Ooten moved to adopt Ordinance No. 97 adding Section 6.040.085 to the Operations Code establishing plumbing fixture fee credits. Vice President Scheafer seconded the motion, which carried 5-0. 17. California Legislative Analysis Report Recommendation: That the Board of Directors approve supporting SB 254 (Hancock) and opposing AB 323 (Chesbro) and AB 1333 (Hernandez). General Manager Carroll provided report details and discussed the new legislative analysis report to be provided to the Board on a quarterly basis. Mr. Carroll provided detail on the bills that staff recommend the District support and oppose. Costa Mesa Sanitary District May 23, 2013 AGENDA Page 6 There were no questions or comments. Director Schafer moved to approve supporting SB 254 (Hancock) and opposing AB 323 (Chesbro) and AB 1333 (Hernandez). Director Ooten seconded the motion, which carried 5-0. XI. OPERATIONS COMMITTEE 18. Tuesday May 21, 2013, 9:30 a.m. - (Vice President Scheafer and Director Perry) Recommendation: That the Board of Directors accepts and files report. Vice President Scheafer discussed the CR&R audit results. There were no questions or comments and the report was received. XII. ENGINEER’S REPORTS 19. Project Status Report Recommendation: That the Board of Directors receive and file the report. The report was received and filed as presented. 20. Project #192 – System Wide Sewer Reconstruction, Phase 2 – Acceptance of Improvements Recommendation: That the Board of Directors approves the following action: 1. Accept improvements as completed and file a Notice of Completion. 2. Authorize payment of 5% retention 35 days after Notice of Completion is recorded. 3. Exonerate Labor and Material Bond after Notice of Completion is recorded and exonerate Faithful Performance Bond one year of Notice of Completion is recorded. District Engineer Hamers noted that this item is of standard procedure. Director Ooten moved to approve staff’s recommendation. Vice President Scheafer seconded the motion, which carried 5-0. 21. Project #196 – Installation of Backup Power and Pumping Capability, Phase 1 – Sole Source the Acquisition of Permanent By-Pass Pumps Recommendation: That the Board of Directors approves the following action: 1. Find that for reasons of conformity, uniformity, compatibility, simplification of maintenance and emergency response, it is in the best interests of the public for the District to approve the sole source of Godwin Pumps for the purchase of four (4) complete backup pumping station units at the Elden, 23rd, Mendoza, and Victoria Pumping Stations. 2. Authorize the General Manager to negotiate directly with Xylem to purchase the four Godwin backup pumping units that will be installed as part of the construction contract Costa Mesa Sanitary District May 23, 2013 AGENDA Page 7 for the above referenced Project #196 at an estimated cost of $300,000. The District will solicit bids to install the pumping units. District Engineer Hamers provided report details and discussed the installation of backup power and pumping capabilities. District Counsel Burns noted that he has provided his findings under the legal review of the staff report. There were no additional questions or comments. Director Schafer moved to approve staff’s recommendation. Director Ooten seconded the motion, which carried 5-0. 22. Project #199 – Transfer of Fairview Trunk from OCSD – Condition of Assessment, Engineer’s Estimate to Rehabilitate & Results of Soils Investigation Recommendation: That the Board of Directors approves the following action: 1. Direct the General Manager to request OCSD review and accept the revised Engineer’s Estimate of $427,600 for rehabilitation work to bring the Fairview Trunk up to industry standards. 2. Authorize the General Manager to work with OCSD in preparing a transfer agreement for Board of Directors approval that includes payment of the Engineer’s Estimate for rehabilitation work. 3. Direct the General Manager to contact C.J. Segerstrom & Sons and apprise them of the status of the transfer and sewer service for the Home Ranch property. District Engineer Hamers provided report details and discussed the results of the soils report. Director Perry questioned if the District will take over the line once this item was approved. District Engineer Hamers responded to Director Perry’s question and noted that a transfer agreement would first need to be prepared by the Orange County Sanitation District and reviewed by CMSD staff. There were no additional questions or comments. Director Ooten moved to approve staff’s recommendation. Vice President Scheafer seconded the motion, which carried 5-0. XIII. TREASURER’S REPORTS 23. Investment Report Recommendation: That the Board of Directors approves the Investment Report for the month of April 2013 District Treasurer Davis provided details of the investment report for the month of April. Costa Mesa Sanitary District May 23, 2013 AGENDA Page 8 There were no questions or comments and the report was received. XIV. ATTORNEY’S REPORTS - None XV. LOCAL MEETINGS A. Orange County Sanitation District (OCSD) – (President Ferryman) Recommendation: That the Board of Directors accepts oral report. Director Ooten reported on OCSD’s chemical suppliers and informed the Board of an upcoming special meeting. B. Santa Ana River Flood Protection Agency (SARFPA) – (Secretary Perry) Recommendation: That the Board of Directors accepts oral report. Director Perry reported on flood zone policies and the anticipated completion of the SARI line by the end of 2013. C. Independent Special Districts of Orange County (ISDOC) – (Vice President Scheafer) Recommendation: That the Board of Directors accepts oral report. Vice President Scheafer informed the Board that the ISDOC Quarterly meeting will be held on May 30. D. California Special Districts Association (CSDA) Recommendation: That the Board of Directors accepts oral report. General Manager Carroll reported on his and President Ferryman’s attendance of the CSDA Legislative Days Conference in Sacramento and provided details of their meetings with Assemblyman Mansoor and Senator Walters. Vice President Scheafer commented on the panel discussions at the CSDA Legislative Days Conference. E. California Association of Sanitation Agencies (CASA) Recommendation: That the Board of Directors accepts oral report. Nothing to report 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. Director Schafer reported on her attendance of the ISDOC meeting, the District’s Strategic Planning, Zero Waste, Operations, and Board meetings, and the CASA conference. COSTA MESA SANITARY DISTRICT PAGE 9 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2013 ________________________________________________________________ Director Perry reported on his attendance of the City of Costa Mesa Council meeting. XVI. OLD BUSINESS - None XVII. NEW BUSINESS 24. Board of Directors Study Session – Oral Report Recommendation: That the Board of Directors consider replacing the Operations Committee meetings with Board of Directors Study Session and direct staff to report back with a revision to the Operations Code General Manager Carroll introduced the item and indicated that the Board expressed interest in replacing the Operations Committee meetings with study sessions to allow all members of the Board to participate in discussions. Discussion followed regarding the ability to take action at the study sessions, controlling the size of the agenda, time allotted for public comment, and the format of the study sessions. District Counsel Burns clarified the Board’s intent to bring this item back with the intent to disband the Operations Committee and to create the study sessions. The Board concurred with District Counsel. General Manager Carroll confirmed that the Ordinance would be revised to disband the Operations Committee and be brought before the Board at the June 27, 2013 Board meeting. 25. 2013 CSDA Award Nominations – Oral Report Recommendation: That the Board of Directors consider submitting award nominations to the California Special Districts Association (CSDA). Director Schafer made a motion to nominate General Manager Scott Carroll for General Manager of the Year. President Ferryman seconded the motion, which carried 5-0. XVIII. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Director Perry inquired if the District should publish District’s accomplishments in the paper. Discussion followed regarding publications and editorials highlighting the District. Director Ooten commented on Newport Coast’s trash contract. Director Scheafer questioned if the District would provide trash cans for the Orange County Fair. Vice President Scheafer commented that the Lion’s Club’s 66th Annual Fish Fry will be held the weekend after Memorial Day and that the District will have a presence at the event. Vice President Scheafer also announced the birth of his grandson Logan David Scheafer. COSTA MESA SANITARY DISTRICT PAGE 10 MINUTES OF THE BOARD OF DIRECTORS REGULAR MEETING HELD MAY 23, 2013 ________________________________________________________________ XIX. ADJOURNMENT President Ferryman adjourned the meeting at 8:00 p.m. to the next regular meeting of the Costa Mesa Sanitary District Board of Directors on June 27, 2013 at 5:30 p.m. in the District’s Board Room, 628 W. 19th Street. _________________________ _________________________ Art Perry James Ferryman Secretary President COSTA MESA SANITARY DISTRICT MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING MAY 28, 2013 ______________________________________________________________________ CALL TO ORDER The Board of Directors of the Costa Mesa Sanitary District met in special session on May 28, 2013 at 9:30A.M. at 628 W. 19th Street, Costa Mesa. ROLL CALL DIRECTORS PRESENT: DIRECTORS ABSENT: James Ferryman, Robert Ooten, Art Perry, Arlene Schafer, Mike Scheafer None STAFF PRESENT: Scott Carroll, General Manager; Rob Hamers, District Engineer; Anna Sanchez, Administrative Service Manager; Noelani Middenway, Deputy Clerk of the District; Steve Cano, Maintenance Supervisor OTHERS PRESENT: None PUBLIC COMMENT President Ferryman invited members of the public to address the Board. Seeing none, President Ferryman closed public comments. General Manager Scott Carroll presented the finalized version of the Strategic Plan to the Board and noted that he added a work plan to identify specific elements necessary to achieve a series of actions. Discussion followed regarding work plan timelines, the importance of identifying hot spots and timeline for abatement, and partnering with the City of Costa Mesa on developing a waste reduction plan. Director Perry moved approval of the Costa Mesa Sanitary District Strategic Plan as revised. Vice President Scheafer seconded the motion, which carried 5-0. ITEM NO. 03 COSTA MESA SANITARY DISTRICT PAGE 2 MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING HELD MAY 28, 2013 ________________________________________________________________ ADJOURNMENT There being no further business to come before the Board, President Ferryman adjourned the meeting at 10:35 a.m. _________________________ _________________________ Art Perry James Ferryman 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 To: Board of Directors Via: Scott Carroll, General Manager From: Javier Ochiqui, Management Analyst Date: June 27, 2013 Subject: OCCUPANCY REPORT AND PAYMENT TO COSTA MESA DISPOSAL Summary The total occupancy count for May 2013 billing is 21,502, 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 21,502 as the correct number of active units. 2. The Board of Directors directs staff to prepare a warrant to Costa Mesa Disposal for May 2013 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement. Said payment in the amount of $196,859.41 to be ratified in the June 2013 warrant list. ITEM NO. 04 Costa Mesa Sanitary District Occupancy Report May 2013 Total Accounts 21,502 35 gallon carts 635 60 gallon carts 28,51490 gallon carts 14,672 Total Carts 43,821 Cart Delivery Information/Start Standard Service Telephone #Service Address Delivered No new accounts ITEM NO. 05 COSTA MESA SANITARY DISTRICT Warrant Resolution No. CMSD 2013-12 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 $920,037.15 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 27th day of June 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 2013-12 was duly adopted by the Costa Mesa Sanitary District at a regular meeting held on the 27th day of June 2013. ITEM NO. 06 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 27th day of June 2013. District Clerk of the Costa Mesa Sanitary District Accounts PayableChecks for ApprovalUser: ktranPrinted: 05/31/2013 - 10:59 AMCheck Number Check Date Fund Name Account Name Vendor NameAmount0 05/01/2013 Liquid Waste Fund Federal Withholding Taxes Internal Revenue Service 4,865.710 05/01/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 35.430 05/01/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 35.430 05/01/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 505.640 05/01/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 505.64Check Total: 5,947.850 05/01/2013 Liquid Waste Fund State Withholding Taxes Employment Development Departm 1,622.09Check Total: 1,622.090 05/01/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 7.690 05/01/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 71.380 05/01/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 124.690 05/01/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 1,129.480 05/01/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 1,052.720 05/01/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 3,128.200 05/01/2013 Liquid Waste Fund PERS Survivor Benefit Cal Pers Employee Ret System 10.230 05/01/2013 Liquid Waste Fund PERS - Employer Cal Pers Employee Ret System -0.05Check Total: 5,524.340 05/15/2013 Liquid Waste Fund Federal Withholding Taxes Internal Revenue Service 4,943.790 05/15/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 35.860 05/15/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 35.860 05/15/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 509.480 05/15/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 509.48Check Total: 6,034.470 05/15/2013 Liquid Waste Fund State Withholding Taxes Employment Development Departm 1,648.94AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 1 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 1,648.940 05/15/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 7.690 05/15/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 71.200 05/15/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 124.410 05/15/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 1,126.920 05/15/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 1,052.720 05/15/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 3,124.160 05/15/2013 Liquid Waste Fund PERS Survivor Benefit Cal Pers Employee Ret System 10.230 05/15/2013 Liquid Waste Fund PERS - Employer Cal Pers Employee Ret System -0.03Check Total: 5,517.300 05/29/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 6.200 05/29/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 6.200 05/29/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 1.450 05/29/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 1.45Check Total: 15.300 05/29/2013 Liquid Waste Fund Federal Withholding Taxes Internal Revenue Service 4,999.380 05/29/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 35.860 05/29/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 35.860 05/29/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 512.020 05/29/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 512.02Check Total: 6,095.140 05/29/2013 Liquid Waste Fund State Withholding Taxes Employment Development Departm 1,666.51Check Total: 1,666.510 05/29/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 7.690 05/29/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 71.260 05/29/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 124.500 05/29/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 1,127.770 05/29/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 1,052.720 05/29/2013 Liquid Waste Fund PERS Retirement Cal Pers Employee Ret System 3,125.510 05/29/2013 Liquid Waste Fund PERS Survivor Benefit Cal Pers Employee Ret System 10.230 05/29/2013 Liquid Waste Fund PERS - Employer Cal Pers Employee Ret System -0.02AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 2 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 5,519.660 05/29/2013 Liquid Waste Fund Federal Withholding Taxes Internal Revenue Service 495.310 05/29/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 323.760 05/29/2013 Liquid Waste Fund FICA - Employee Internal Revenue Service 323.760 05/29/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 75.710 05/29/2013 Liquid Waste Fund Medicare - Employee Internal Revenue Service 75.71Check Total: 1,294.2511121 05/03/2013 Liquid Waste Fund Employee Insurance AFLAC 950.41Check Total: 950.4111122 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Kim Anderson 225.00Check Total: 225.0011123 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Elizabeth Barnes 1,438.64Check Total: 1,438.6411124 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog William Borthwick 1,800.00Check Total: 1,800.0011125 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Michael Bowman 1,800.00Check Total: 1,800.0011126 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Dean Bradley 1,600.00Check Total: 1,600.0011127 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Jason Buckley 825.00Check Total: 825.0011128 05/03/2013 Solid Waste Fund Legal Services Alan R. Burns 2,622.6911128 05/03/2013 Liquid Waste Fund Legal Services Alan R. Burns 4,870.7111128 05/03/2013 Liquid Waste Fund Legal Services Alan R. Burns 1,212.7011128 05/03/2013 Solid Waste Fund Legal Services Alan R. Burns 126.70AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 3 Check Number Check Date Fund Name Account Name Vendor NameAmount11128 05/03/2013 Liquid Waste Fund Legal Services Alan R. Burns 235.3011128 05/03/2013 Liquid Waste Fund Legal Services Alan R. Burns 90.5011128 05/03/2013 Liquid Waste Fund Legal Services Alan R. Burns 54.3011128 05/03/2013 Solid Waste Fund Legal Services Alan R. Burns 89.2511128 05/03/2013 Liquid Waste Fund Legal Services Alan R. Burns 165.75Check Total: 9,467.9011129 05/03/2013 Liquid Waste Fund Mileage Reimbursement Steve Cano 115.82Check Total: 115.8211130 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Mike Charle 1,800.00Check Total: 1,800.0011131 05/03/2013 Solid Waste Fund Recycling Grant AB 939 City of Costa Mesa 90.00Check Total: 90.0011132 05/03/2013 Liquid Waste Fund Sewer Maint- Water Pumps City of Newport Beach 39.18Check Total: 39.1811133 05/03/2013 Liquid Waste Fund Sewer Maint-Staff Development Community Education Orange Coa 350.0011133 05/03/2013 Liquid Waste Fund Sewer Maint-Staff Development Community Education Orange Coa 350.00Check Total: 700.0011134 05/03/2013 Solid Waste Fund Container Collection Costs CR&R Incorporated 3,634.41Check Total: 3,634.4111135 05/03/2013 Liquid Waste Fund Sewer Maint-Pump Stn Contract C&R Drains Inc. 2,635.0011135 05/03/2013 Liquid Waste Fund Sewer Maint-Pump Stn Contract C&R Drains Inc. 647.00Check Total: 3,282.0011136 05/03/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 100.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 54.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 58.5011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 100.00AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 4 Check Number Check Date Fund Name Account Name Vendor NameAmount11136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC -25.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 135.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 100.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC -25.0011136 05/03/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0011136 05/03/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0011136 05/03/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 95.0011136 05/03/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 95.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 193.5011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 75.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 75.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC -25.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC -25.0011136 05/03/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 108.0011136 05/03/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0011136 05/03/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.00Check Total: 1,589.0011137 05/03/2013 Liquid Waste Fund Sewer Maint-Staff Development SARBS - CWEA 160.0011137 05/03/2013 Liquid Waste Fund Sewer Maint-Staff Development SARBS - CWEA 140.0011137 05/03/2013 Liquid Waste Fund Sewer Maint-Staff Development SARBS - CWEA 160.00Check Total: 460.0011138 05/03/2013 Liquid Waste Fund Sewer Maint-GIS Environmental Engr & Cont, Inc 650.00Check Total: 650.0011139 05/03/2013 Solid Waste Fund Equipment Maintenance Elluma Discovery, Inc. 55.3711139 05/03/2013 Liquid Waste Fund Equipment Maintenance Elluma Discovery, Inc. 221.46Check Total: 276.8311140 05/03/2013 Solid Waste Fund Recycling Grant AB 939 Enrecos 150.0011140 05/03/2013 Solid Waste Fund Recycling Grant AB 939 Enrecos 60.0011140 05/03/2013 Solid Waste Fund Recycling Grant AB 939 Enrecos 150.0011140 05/03/2013 Solid Waste Fund Recycling Grant AB 939 Enrecos 150.0011140 05/03/2013 Solid Waste Fund Recycling Grant AB 939 Enrecos 60.0011140 05/03/2013 Solid Waste Fund Recycling Grant AB 939 Enrecos 100.0011140 05/03/2013 Solid Waste Fund Recycling Grant AB 939 Enrecos 60.0011140 05/03/2013 Solid Waste Fund Recycling Grant AB 939 Enrecos 363.80AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 5 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 1,093.8011141 05/03/2013 Solid Waste Fund Public Info/Ed/Community Promo Estancia High School 150.00Check Total: 150.0011142 05/03/2013 Solid Waste Fund Postage FedEx 45.3911142 05/03/2013 Liquid Waste Fund Postage FedEx 408.51Check Total: 453.9011143 05/03/2013 Solid Waste Fund Gas - Building The Gas Company 2.5511143 05/03/2013 Liquid Waste Fund Gas - Building The Gas Company 22.9311143 05/03/2013 Liquid Waste Fund Sewer Maint-Gas Bldg The Gas Company 20.83Check Total: 46.3111144 05/03/2013 Solid Waste Fund Equipment Maintenance GE Capital 19.2811144 05/03/2013 Liquid Waste Fund Equipment Maintenance GE Capital 173.56Check Total: 192.8411145 05/03/2013 Liquid Waste Fund Engineering/Architectual Serv Robin B. Hamers & Assoc., Inc. 1,400.0011145 05/03/2013 Liquid Waste Fund Engineering/Architectual Serv Robin B. Hamers & Assoc., Inc. 2,364.2511145 05/03/2013 Liquid Waste Fund Plan Ck/Inspection-Inside Robin B. Hamers & Assoc., Inc. 337.7511145 05/03/2013 Liquid Waste Fund Plan Ck/Inspection-Inside Robin B. Hamers & Assoc., Inc. 8,368.8811145 05/03/2013 Liquid Waste Fund Plan Ck/Inspection-Outside Robin B. Hamers & Assoc., Inc. 1,737.0011145 05/03/2013 Liquid Waste Fund Plan Ck/Inspection-Outside Robin B. Hamers & Assoc., Inc. 2,193.0011145 05/03/2013 Liquid Waste Fund Plan Ck/Inspection-Swr Lateral Robin B. Hamers & Assoc., Inc. 96.5011145 05/03/2013 Liquid Waste Fund Plan Ck/Inspection-Swr Lateral Robin B. Hamers & Assoc., Inc. 1,338.3811145 05/03/2013 Liquid Waste Fund Engineering/Architectual Serv Robin B. Hamers & Assoc., Inc. 1,399.2511145 05/03/2013 Liquid Waste Fund Engineering/Architectual Serv Robin B. Hamers & Assoc., Inc. 1,306.1311145 05/03/2013 Liquid Waste Fund Westside Aband#101-Cont Svc Robin B. Hamers & Assoc., Inc. 14,330.2511145 05/03/2013 Liquid Waste Fund System Wide Swr Recon Ph2 #192 Robin B. Hamers & Assoc., Inc. 916.7511145 05/03/2013 Liquid Waste Fund System Wide Swr Recon Ph2 #192 Robin B. Hamers & Assoc., Inc. 774.0011145 05/03/2013 Liquid Waste Fund System Wide Swr Recon Ph3 #197 Robin B. Hamers & Assoc., Inc. 1,447.5011145 05/03/2013 Liquid Waste Fund PICA Analysis #198 Robin B. Hamers & Assoc., Inc. 820.2511145 05/03/2013 Liquid Waste Fund Fairview Trunk #199 Robin B. Hamers & Assoc., Inc. 1,013.2511145 05/03/2013 Liquid Waste Fund Fairview Trunk #199 Robin B. Hamers & Assoc., Inc. 983.63Check Total: 40,826.77AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 6 Check Number Check Date Fund Name Account Name Vendor NameAmount11146 05/03/2013 Liquid Waste Fund Professional Services HF&H Consultants, LLC 4,699.37Check Total: 4,699.3711147 05/03/2013 Liquid Waste Fund Sewer Maint-Annual Sewer Maint Mike Kilbride, LTD 1,485.00Check Total: 1,485.0011148 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Greg Levanas 725.00Check Total: 725.0011149 05/03/2013 Solid Waste Fund Staff Development Liebert Cassidy Whitmore 8.1011149 05/03/2013 Liquid Waste Fund Staff Development Liebert Cassidy Whitmore 72.9011149 05/03/2013 Solid Waste Fund Legal Services Liebert Cassidy Whitmore 16.5411149 05/03/2013 Liquid Waste Fund Legal Services Liebert Cassidy Whitmore 30.71Check Total: 128.2511150 05/03/2013 Liquid Waste Fund Sewer Maint-Equipment Maint Lifecom Inc. 126.0011150 05/03/2013 Liquid Waste Fund Sewer Maint-Equipment Maint Lifecom Inc. 58.50Check Total: 184.5011151 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Thomas Lightvoet 900.00Check Total: 900.0011152 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Lulu J. LLC 1,600.00Check Total: 1,600.0011153 05/03/2013 Solid Waste Fund Professional Services Management Partners 1,018.4011153 05/03/2013 Liquid Waste Fund Professional Services Management Partners 4,073.60Check Total: 5,092.0011154 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Lynn McMaster 1,800.00Check Total: 1,800.0011155 05/03/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 19.0011155 05/03/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 19.00AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 7 Check Number Check Date Fund Name Account Name Vendor NameAmount11155 05/03/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 19.0011155 05/03/2013 Solid Waste Fund Water - Building Mesa Water District 23.6011155 05/03/2013 Liquid Waste Fund Water - Building Mesa Water District 212.40Check Total: 293.0011156 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Michael Steiner 1,800.00Check Total: 1,800.0011157 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Ilene Moritz 1,600.00Check Total: 1,600.0011158 05/03/2013 Liquid Waste Fund Sewer Maint-Sewer Line Maint National Plant Services, Inc. 2,416.8511158 05/03/2013 Liquid Waste Fund Sewer Maint-Sewer Line Maint National Plant Services, Inc. 4,804.85Check Total: 7,221.7011159 05/03/2013 Liquid Waste Fund Board Travel/Meals/Lodging O.C. Water Summit 115.00Check Total: 115.0011160 05/03/2013 Solid Waste Fund Building Maintenance Office Depot 4.4711160 05/03/2013 Liquid Waste Fund Building Maintenance Office Depot 40.2811160 05/03/2013 Solid Waste Fund Building Maintenance Office Depot 0.4711160 05/03/2013 Liquid Waste Fund Building Maintenance Office Depot 4.2711160 05/03/2013 Solid Waste Fund Office Supplies Office Depot 2.5711160 05/03/2013 Liquid Waste Fund Office Supplies Office Depot 23.1611160 05/03/2013 Solid Waste Fund Office Supplies Office Depot 3.4811160 05/03/2013 Liquid Waste Fund Office Supplies Office Depot 31.3611160 05/03/2013 Solid Waste Fund Building Maintenance Office Depot 2.6811160 05/03/2013 Liquid Waste Fund Building Maintenance Office Depot 24.17Check Total: 136.9111161 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog OK Bonner LLC 1,600.00Check Total: 1,600.0011162 05/03/2013 Liquid Waste Fund Sewer Maint-Bldg Maint Ortiz Landscaping & Maintenanc 50.0011162 05/03/2013 Solid Waste Fund Building Maintenance Ortiz Landscaping & Maintenanc 11.0011162 05/03/2013 Liquid Waste Fund Building Maintenance Ortiz Landscaping & Maintenanc 99.00AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 8 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 160.0011163 05/03/2013 Solid Waste Fund Mileage Reimbursement CMSD Petty Cash 40.1211163 05/03/2013 Solid Waste Fund Mileage Reimbursement CMSD Petty Cash 28.2511163 05/03/2013 Solid Waste Fund Mileage Reimbursement CMSD Petty Cash 1.9211163 05/03/2013 Liquid Waste Fund Mileage Reimbursement CMSD Petty Cash 17.2911163 05/03/2013 Liquid Waste Fund Sewer Maint-MultiMed/Blueprint CMSD Petty Cash 1.9411163 05/03/2013 Liquid Waste Fund Sewer Maint-MultiMed/Blueprint CMSD Petty Cash 1.9411163 05/03/2013 Solid Waste Fund Building Maintenance CMSD Petty Cash 0.1911163 05/03/2013 Liquid Waste Fund Building Maintenance CMSD Petty Cash 1.7411163 05/03/2013 Solid Waste Fund Recycling Grant AB 939 CMSD Petty Cash 7.5611163 05/03/2013 Liquid Waste Fund Building Maintenance CMSD Petty Cash 32.8611163 05/03/2013 Liquid Waste Fund Sewer Maint-MultiMed/Blueprint CMSD Petty Cash 43.7411163 05/03/2013 Liquid Waste Fund Sewer Maint-MultiMed/Blueprint CMSD Petty Cash 1.9411163 05/03/2013 Solid Waste Fund Staff Development CMSD Petty Cash 3.1511163 05/03/2013 Liquid Waste Fund Staff Development CMSD Petty Cash 28.3111163 05/03/2013 Solid Waste Fund Building Maintenance CMSD Petty Cash 3.8411163 05/03/2013 Liquid Waste Fund Building Maintenance CMSD Petty Cash 34.5911163 05/03/2013 Solid Waste Fund Equipment Maintenance CMSD Petty Cash 20.0011163 05/03/2013 Solid Waste Fund Building Maintenance CMSD Petty Cash 1.6111163 05/03/2013 Liquid Waste Fund Building Maintenance CMSD Petty Cash 14.51Check Total: 285.5011164 05/03/2013 Liquid Waste Fund Sewer Maint-Small Tools/Eq Plumbers Depot Inc. 214.74Check Total: 214.7411165 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Christina Rinkler 1,600.00Check Total: 1,600.0011166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 315.5011166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 298.4311166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 82.3311166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 38.9311166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 76.6311166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 294.5511166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 221.7411166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 744.0311166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 84.9411166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 87.1411166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 133.19AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 9 Check Number Check Date Fund Name Account Name Vendor NameAmount11166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 408.1011166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 362.1211166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 260.0011166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 790.9611166 05/03/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 78.9411166 05/03/2013 Solid Waste Fund Electric - Building Southern California Edison 46.3611166 05/03/2013 Liquid Waste Fund Electric - Building Southern California Edison 417.20Check Total: 4,741.0911167 05/03/2013 Solid Waste Fund Cafeteria Plan Spec Dist Risk Mgt Authority 42.0511167 05/03/2013 Liquid Waste Fund Cafeteria Plan Spec Dist Risk Mgt Authority 48.0711167 05/03/2013 Liquid Waste Fund Swr Maint - Cafeteria Plan Spec Dist Risk Mgt Authority 60.0811167 05/03/2013 Liquid Waste Fund Dental Insurance Spec Dist Risk Mgt Authority 537.4711167 05/03/2013 Solid Waste Fund Cafeteria Plan Spec Dist Risk Mgt Authority 82.4911167 05/03/2013 Liquid Waste Fund Cafeteria Plan Spec Dist Risk Mgt Authority 98.0711167 05/03/2013 Liquid Waste Fund Swr Maint - Cafeteria Plan Spec Dist Risk Mgt Authority 99.4611167 05/03/2013 Solid Waste Fund Benefits Admin Costs Spec Dist Risk Mgt Authority 8.5611167 05/03/2013 Liquid Waste Fund Benefits Admin Costs Spec Dist Risk Mgt Authority 22.0411167 05/03/2013 Liquid Waste Fund Vision Insurance Spec Dist Risk Mgt Authority 70.56Check Total: 1,068.8511168 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Maureen Slick 1,800.00Check Total: 1,800.0011169 05/03/2013 Liquid Waste Fund Equipment Maintenance Springbrook Software Inc. 175.00Check Total: 175.0011170 05/03/2013 Liquid Waste Fund Sewer Maint-Swr Lateral Prog Joy Starlof 1,800.00Check Total: 1,800.0011171 05/03/2013 Liquid Waste Fund EOC Equipment & Supplies TelePacific Communications 299.23Check Total: 299.2311172 05/03/2013 Liquid Waste Fund Public Info/Ed/Community Promo Los Angeles Times 105.0011172 05/03/2013 Liquid Waste Fund Public Info/Ed/Community Promo Los Angeles Times 87.5011172 05/03/2013 Liquid Waste Fund Public Info/Ed/Community Promo Los Angeles Times 87.5011172 05/03/2013 Solid Waste Fund Public Info/Ed/Community Promo Los Angeles Times 37.50AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 10 Check Number Check Date Fund Name Account Name Vendor NameAmount11172 05/03/2013 Liquid Waste Fund Public Info/Ed/Community Promo Los Angeles Times 337.5011172 05/03/2013 Solid Waste Fund Public Info/Ed/Community Promo Los Angeles Times 12.8011172 05/03/2013 Liquid Waste Fund Public Info/Ed/Community Promo Los Angeles Times 115.20Check Total: 783.0011173 05/03/2013 Solid Waste Fund Staff Development Kaitlin Tran 116.5211173 05/03/2013 Liquid Waste Fund Staff Development Kaitlin Tran 1,048.65Check Total: 1,165.1711174 05/03/2013 Liquid Waste Fund Deferred Compensation - 457 VantagePoint Transfer Agents 5.0011174 05/03/2013 Liquid Waste Fund Deferred Compensation - 457 VantagePoint Transfer Agents 1,023.07Check Total: 1,028.0711175 05/03/2013 Liquid Waste Fund Deferred Medical-RHS-Employee VantagePoint Transfer Agents 603.24Check Total: 603.2411176 05/03/2013 Liquid Waste Fund Sewer Maint-Annual Sewer Maint Walters Wholesale Electric Co. 170.63Check Total: 170.6311177 05/03/2013 Solid Waste Fund Contract Services Willdan Engineering 1,683.0011177 05/03/2013 Liquid Waste Fund Contract Services Willdan Engineering 6,732.00Check Total: 8,415.0011178 05/17/2013 Liquid Waste Fund Sewer Maint-Telephone AT&T 127.0111178 05/17/2013 Liquid Waste Fund Sewer Maint-Telephone AT&T 140.8011178 05/17/2013 Solid Waste Fund Telephone AT&T 39.2211178 05/17/2013 Liquid Waste Fund Telephone AT&T 352.9311178 05/17/2013 Liquid Waste Fund EOC Equipment & Supplies AT&T 76.4411178 05/17/2013 Solid Waste Fund Telephone AT&T 35.8211178 05/17/2013 Liquid Waste Fund Telephone AT&T 322.35Check Total: 1,094.5711179 05/17/2013 Solid Waste Fund Equipment Maintenance Bank of America 2.4011179 05/17/2013 Liquid Waste Fund Equipment Maintenance Bank of America 21.6011179 05/17/2013 Solid Waste Fund Investment Earnings Bank of America 0.2611179 05/17/2013 Solid Waste Fund Equipment Maintenance Bank of America 3.20AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 11 Check Number Check Date Fund Name Account Name Vendor NameAmount11179 05/17/2013 Liquid Waste Fund Equipment Maintenance Bank of America 28.8011179 05/17/2013 Solid Waste Fund Public Info/Ed/Community Promo Bank of America 5.0011179 05/17/2013 Liquid Waste Fund Public Info/Ed/Community Promo Bank of America 45.0011179 05/17/2013 Liquid Waste Fund Sewer Maint-Office Supplies Bank of America 7.8711179 05/17/2013 Liquid Waste Fund Sewer Maint-Staff Development Bank of America 26.5011179 05/17/2013 Liquid Waste Fund Sewer Maint-Staff Development Bank of America 16.1711179 05/17/2013 Liquid Waste Fund Sewer Maint-Staff Development Bank of America 423.9411179 05/17/2013 Liquid Waste Fund Sewer Maint-Equipment Maint Bank of America 55.0411179 05/17/2013 Liquid Waste Fund Sewer Maint-Material/Supplies Bank of America 198.8011179 05/17/2013 Liquid Waste Fund Sewer Maint-Equipment Maint Bank of America 8.5511179 05/17/2013 Solid Waste Fund Board Travel/Meals/Lodging Bank of America 6.0011179 05/17/2013 Liquid Waste Fund Board Travel/Meals/Lodging Bank of America 54.0011179 05/17/2013 Solid Waste Fund Office Supplies Bank of America 3.1711179 05/17/2013 Liquid Waste Fund Office Supplies Bank of America 28.4911179 05/17/2013 Solid Waste Fund Postage Bank of America 2.6011179 05/17/2013 Liquid Waste Fund Postage Bank of America 23.3511179 05/17/2013 Solid Waste Fund Prof Membership/Dues Bank of America 17.0011179 05/17/2013 Liquid Waste Fund Prof Membership/Dues Bank of America 17.0011179 05/17/2013 Solid Waste Fund Staff Development Bank of America 24.9811179 05/17/2013 Liquid Waste Fund Staff Development Bank of America 224.8211179 05/17/2013 Solid Waste Fund Board Travel/Meals/Lodging Bank of America 24.9811179 05/17/2013 Liquid Waste Fund Board Travel/Meals/Lodging Bank of America 224.8211179 05/17/2013 Solid Waste Fund Board Travel/Meals/Lodging Bank of America 2.5011179 05/17/2013 Liquid Waste Fund Board Travel/Meals/Lodging Bank of America 22.5011179 05/17/2013 Liquid Waste Fund Staff Development Bank of America 22.5011179 05/17/2013 Solid Waste Fund Staff Development Bank of America 2.5011179 05/17/2013 Solid Waste Fund Board Travel/Meals/Lodging Bank of America 22.4411179 05/17/2013 Liquid Waste Fund Board Travel/Meals/Lodging Bank of America 201.9911179 05/17/2013 Solid Waste Fund Equipment Maintenance Bank of America 8.0611179 05/17/2013 Liquid Waste Fund Equipment Maintenance Bank of America 72.5811179 05/17/2013 Solid Waste Fund Building Maintenance Bank of America 107.5711179 05/17/2013 Liquid Waste Fund Building Maintenance Bank of America 968.1111179 05/17/2013 Solid Waste Fund Staff Development Bank of America 60.0011179 05/17/2013 Liquid Waste Fund Staff Development Bank of America 540.0011179 05/17/2013 Solid Waste Fund Equipment Maintenance Bank of America 1.6111179 05/17/2013 Liquid Waste Fund Equipment Maintenance Bank of America 14.5211179 05/17/2013 Solid Waste Fund Public Info/Ed/Community Promo Bank of America 107.6211179 05/17/2013 Solid Waste Fund Recycling Grant AB 939 Bank of America 107.6311179 05/17/2013 Solid Waste Fund Public Info/Ed/Community Promo Bank of America 25.0011179 05/17/2013 Liquid Waste Fund Public Info/Ed/Community Promo Bank of America 225.0011179 05/17/2013 Solid Waste Fund Public Info/Ed/Community Promo Bank of America 45.0011179 05/17/2013 Liquid Waste Fund Public Info/Ed/Community Promo Bank of America 405.0011179 05/17/2013 Solid Waste Fund Office Supplies Bank of America 1.0811179 05/17/2013 Liquid Waste Fund Office Supplies Bank of America 9.70AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 12 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 4,467.2511180 05/17/2013 Liquid Waste Fund Sewer Maint-MultiMed/Blueprint C2 Reprographics 77.76Check Total: 77.7611181 05/17/2013 Solid Waste Fund Equipment Maintenance C3 Office Solutions LLC 10.7911181 05/17/2013 Liquid Waste Fund Equipment Maintenance C3 Office Solutions LLC 97.13Check Total: 107.9211182 05/17/2013 Solid Waste Fund Fiscal Services CBIZ ATA Orange County LLC 1,687.0011182 05/17/2013 Liquid Waste Fund Fiscal Services CBIZ ATA Orange County LLC 3,133.00Check Total: 4,820.0011183 05/17/2013 Liquid Waste Fund System Wide Swr Recon Ph2 #192 Charles King Company 20,729.00Check Total: 20,729.0011184 05/17/2013 Solid Waste Fund Public Info/Ed/Community Promo City of Costa Mesa 250.00Check Total: 250.0011185 05/17/2013 Liquid Waste Fund Sewer Maint-Equipment Maint City of Costa Mesa 128.32Check Total: 128.3211186 05/17/2013 Solid Waste Fund Capital Outlay CoreLogic Solutions, LLC 75.0011186 05/17/2013 Liquid Waste Fund Capital Outlay CoreLogic Solutions, LLC 75.00Check Total: 150.0011187 05/17/2013 Solid Waste Fund Household Hazardous Waste CR&R Incorporated 686.00Check Total: 686.0011188 05/17/2013 Liquid Waste Fund Sewer Maint-Pump Stn Contract C&R Drains Inc. 531.00Check Total: 531.00AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 13 Check Number Check Date Fund Name Account Name Vendor NameAmount11189 05/17/2013 Solid Waste Fund Recycling/Disposal CR Transfer, Inc. 174,674.3311189 05/17/2013 Solid Waste Fund Recycling/Disposal CR Transfer, Inc. 8,890.45Check Total: 183,564.7811190 05/17/2013 Liquid Waste Fund Sewer Maint-Staff Development SARBS - CWEA 150.00Check Total: 150.0011191 05/17/2013 Solid Waste Fund Educational Programs Discovery Science Center 417.06Check Total: 417.0611192 05/17/2013 Solid Waste Fund Unemployment Employment Development Departm 138.0011192 05/17/2013 Liquid Waste Fund Unemployment Employment Development Departm 552.00Check Total: 690.0011193 05/17/2013 Liquid Waste Fund GIS System #188 Contr Svc Environmental Engr & Cont, Inc 2,020.50Check Total: 2,020.5011194 05/17/2013 Solid Waste Fund Board Travel/Meals/Lodging Jim Ferryman 15.82Check Total: 15.8211195 05/17/2013 Solid Waste Fund Building Maintenance Franco's Safe & Vault, Inc. 45.0011195 05/17/2013 Liquid Waste Fund Contract Services Franco's Safe & Vault, Inc. 405.00Check Total: 450.0011196 05/17/2013 Liquid Waste Fund Fairview Trunk #199 Geo-ETKA, Inc. 4,800.00Check Total: 4,800.0011197 05/17/2013 Liquid Waste Fund Sewer Maint-Material/Supplies Golden Bell Products, Inc. 345.60Check Total: 345.6011198 05/17/2013 Solid Waste Fund Professional Services GovDelivery, Inc. 35.0011198 05/17/2013 Liquid Waste Fund Professional Services GovDelivery, Inc. 315.0011198 05/17/2013 Liquid Waste Fund Professional Services GovDelivery, Inc. 315.0011198 05/17/2013 Solid Waste Fund Professional Services GovDelivery, Inc. 35.00AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 14 Check Number Check Date Fund Name Account Name Vendor NameAmount11198 05/17/2013 Liquid Waste Fund Professional Services GovDelivery, Inc. 315.0011198 05/17/2013 Solid Waste Fund Professional Services GovDelivery, Inc. 35.00Check Total: 1,050.0011199 05/17/2013 Liquid Waste Fund Sewer Maint-Equipment Maint HUB Auto Supply 24.08Check Total: 24.0811200 05/17/2013 Solid Waste Fund Professional Services Iron Mountain 14.1111200 05/17/2013 Liquid Waste Fund Professional Services Iron Mountain 127.02Check Total: 141.1311201 05/17/2013 Liquid Waste Fund Sewer Maint-Equipment Maint Jimni Systems, Inc 1,197.60Check Total: 1,197.6011202 05/17/2013 Solid Waste Fund Public Info/Ed/Community Promo Jobs Available 47.2511202 05/17/2013 Liquid Waste Fund Public Info/Ed/Community Promo Jobs Available 425.25Check Total: 472.5011203 05/17/2013 Solid Waste Fund Recycling Grant AB 939 Francene E. Kaplan PH.D. 200.0011203 05/17/2013 Solid Waste Fund Recycling Grant AB 939 Francene E. Kaplan PH.D. 200.0011203 05/17/2013 Solid Waste Fund Recycling Grant AB 939 Francene E. Kaplan PH.D. 200.00Check Total: 600.0011204 05/17/2013 Solid Waste Fund Professional Services Theresa Kasprzyk 57.7511204 05/17/2013 Liquid Waste Fund Professional Services Theresa Kasprzyk 519.7511204 05/17/2013 Solid Waste Fund Professional Services Theresa Kasprzyk 84.7511204 05/17/2013 Liquid Waste Fund Professional Services Theresa Kasprzyk 762.75Check Total: 1,425.0011205 05/17/2013 Liquid Waste Fund Pump Stn Emerg. Eqpt. #196 Mike Kilbride, LTD 850.0011205 05/17/2013 Liquid Waste Fund Pump Stn Emerg. Eqpt. #196 Mike Kilbride, LTD 536.00Check Total: 1,386.0011206 05/17/2013 Solid Waste Fund Equipment Maintenance Konica Minolta 47.7911206 05/17/2013 Liquid Waste Fund Equipment Maintenance Konica Minolta 430.07AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 15 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 477.8611207 05/17/2013 Solid Waste Fund Staff Development Maureen Kane & Associates, Inc 156.0011207 05/17/2013 Liquid Waste Fund Staff Development Maureen Kane & Associates, Inc 1,404.00Check Total: 1,560.0011208 05/17/2013 Solid Waste Fund Professional Services Patrick Ibarra 800.0011208 05/17/2013 Liquid Waste Fund Professional Services Patrick Ibarra 7,200.00Check Total: 8,000.0011209 05/17/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 23.0011209 05/17/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 19.0011209 05/17/2013 Liquid Waste Fund Sewer Maint-Water Bldg Mesa Water District 54.0011209 05/17/2013 Liquid Waste Fund Sewer Maint-Water Bldg Mesa Water District 56.5011209 05/17/2013 Liquid Waste Fund Sewer Maint-Water Bldg Mesa Water District 104.50Check Total: 257.0011210 05/17/2013 Solid Waste Fund Professional Services Michael Balliet 10,605.00Check Total: 10,605.0011211 05/17/2013 Liquid Waste Fund Sewer Maint-MultiMed/Blueprint Mouse Graphics 160.10Check Total: 160.1011212 05/17/2013 Liquid Waste Fund Capital Outlay Municipal Maintenance Equipmen 947.6511212 05/17/2013 Liquid Waste Fund Sewer Maint-Equipment Maint Municipal Maintenance Equipmen 60.93Check Total: 1,008.5811213 05/17/2013 Liquid Waste Fund Sewer Maint-Sewer Line Tele National Plant Services, Inc. 6,819.79Check Total: 6,819.7911214 05/17/2013 Liquid Waste Fund Due to OCSD Orange County Sanitation Distr 246,470.0011214 05/17/2013 Liquid Waste Fund OCSD Fees-CMSD Share Orange County Sanitation Distr -12,323.50Check Total: 234,146.50AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 16 Check Number Check Date Fund Name Account Name Vendor NameAmount11215 05/17/2013 Solid Waste Fund Office Supplies Office Depot 0.8411215 05/17/2013 Liquid Waste Fund Office Supplies Office Depot 7.5811215 05/17/2013 Solid Waste Fund Board Travel/Meals/Lodging Office Depot 4.4711215 05/17/2013 Liquid Waste Fund Board Travel/Meals/Lodging Office Depot 40.2111215 05/17/2013 Solid Waste Fund Office Supplies Office Depot 8.0311215 05/17/2013 Liquid Waste Fund Office Supplies Office Depot 72.2511215 05/17/2013 Solid Waste Fund Building Maintenance Office Depot 30.6711215 05/17/2013 Liquid Waste Fund Building Maintenance Office Depot 276.0311215 05/17/2013 Solid Waste Fund Building Maintenance Office Depot 2.3711215 05/17/2013 Liquid Waste Fund Building Maintenance Office Depot 21.2911215 05/17/2013 Solid Waste Fund Office Supplies Office Depot 16.2211215 05/17/2013 Liquid Waste Fund Office Supplies Office Depot 145.95Check Total: 625.9111216 05/17/2013 Liquid Waste Fund Board Travel/Meals/Lodging Bob Ooten 115.26Check Total: 115.2611217 05/17/2013 Solid Waste Fund Recycling Grant AB 939 Pauline's Professional Potpour 327.0411217 05/17/2013 Solid Waste Fund Recycling Grant AB 939 Pauline's Professional Potpour 153.68Check Total: 480.7211218 05/17/2013 Liquid Waste Fund Board Travel/Meals/Lodging Art Perry 146.90Check Total: 146.9011219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 133.8111219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 282.8711219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 59.1611219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 30.1611219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 218.6211219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 164.7711219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 545.8611219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 42.9311219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 43.5111219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 65.0711219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 204.0511219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 147.8811219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 112.6511219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 59.9811219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 262.9111219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 75.96AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 17 Check Number Check Date Fund Name Account Name Vendor NameAmount11219 05/17/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 893.7311219 05/17/2013 Liquid Waste Fund Sewer Maint-Elec Bldg Southern California Edison 382.73Check Total: 3,726.6511220 05/17/2013 Solid Waste Fund Board Travel/Meals/Lodging Arlene Schafer 3.8211220 05/17/2013 Liquid Waste Fund Board Travel/Meals/Lodging Arlene Schafer 34.33Check Total: 38.1511221 05/17/2013 Solid Waste Fund Board Travel/Meals/Lodging Michael Scheafer 2.7111221 05/17/2013 Liquid Waste Fund Board Travel/Meals/Lodging Michael Scheafer 24.41Check Total: 27.1211222 05/17/2013 Liquid Waste Fund Sewer Maint-Annual Sewer Maint Schuler Engineering Corp. 4,701.00Check Total: 4,701.0011223 05/17/2013 Solid Waste Fund Prof Membership/Dues Solid Waste Association of Nor 270.00Check Total: 270.0011224 05/17/2013 Liquid Waste Fund Board Travel/Meals/Lodging Solid Waste Association of Nor 225.00Check Total: 225.0011225 05/17/2013 Solid Waste Fund Public Info/Ed/Community Promo Los Angeles Times 7.5011225 05/17/2013 Liquid Waste Fund Public Info/Ed/Community Promo Los Angeles Times 67.50Check Total: 75.0011226 05/17/2013 Liquid Waste Fund Medical/Employment Services Tustin Irvine Medical Grp 80.00Check Total: 80.0011227 05/17/2013 Liquid Waste Fund Contract Services Underground Service Alert/SC 54.00Check Total: 54.0011228 05/17/2013 Liquid Waste Fund Deferred Compensation - 457 VantagePoint Transfer Agents 1,023.07AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 18 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 1,023.0711229 05/17/2013 Liquid Waste Fund Deferred Medical-RHS-Employee VantagePoint Transfer Agents 603.24Check Total: 603.2411230 05/17/2013 Liquid Waste Fund Sewer Maint-Telephone Verizon Wireless 13.12Check Total: 13.1211231 05/17/2013 Liquid Waste Fund Sewer Maint-Annual Sewer Maint Walters Wholesale Electric Co. 51.4011231 05/17/2013 Liquid Waste Fund Sewer Maint-Annual Sewer Maint Walters Wholesale Electric Co. 15.13Check Total: 66.5311232 05/17/2013 Liquid Waste Fund Sewer Maint-Annual Sewer Maint Xylem Water Solutions USA, Inc 800.0011232 05/17/2013 Liquid Waste Fund Sewer Maint-Material/Supplies Xylem Water Solutions USA, Inc 1,861.10Check Total: 2,661.1011240 05/31/2013 Liquid Waste Fund Employee Insurance AFLAC 950.42Check Total: 950.4211241 05/31/2013 Solid Waste Fund Staff Development GECRB/AMAZON 18.5411241 05/31/2013 Liquid Waste Fund Staff Development GECRB/AMAZON 166.86Check Total: 185.4011242 05/31/2013 Solid Waste Fund Building Maintenance Bay Alarm 21.1711242 05/31/2013 Liquid Waste Fund Building Maintenance Bay Alarm 190.48Check Total: 211.6511243 05/31/2013 Solid Waste Fund Trash Hauler Costa Mesa Disposal 196,831.94Check Total: 196,831.9411244 05/31/2013 Solid Waste Fund Office Supplies Cross Media Resources 21.3911244 05/31/2013 Liquid Waste Fund Office Supplies Cross Media Resources 192.5111244 05/31/2013 Liquid Waste Fund Public Info/Ed/Community Promo Cross Media Resources 70.24AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 19 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 284.1411245 05/31/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0011245 05/31/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 108.0011245 05/31/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 100.0011245 05/31/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC -25.0011245 05/31/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 99.0011245 05/31/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 100.0011245 05/31/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC -25.0011245 05/31/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 100.0011245 05/31/2013 Solid Waste Fund Sharps Program WM Curbside, LLC 190.0011245 05/31/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 243.0011245 05/31/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC 75.0011245 05/31/2013 Solid Waste Fund Pharmaceutical Program WM Curbside, LLC -25.00Check Total: 1,040.0011246 05/31/2013 Liquid Waste Fund Prof Membership/Dues SARBS - CWEA 77.00Check Total: 77.0011247 05/31/2013 Liquid Waste Fund Sewer Maint-FOG Prog Contract Environmental Engr & Cont, Inc 8,194.48Check Total: 8,194.4811248 05/31/2013 Solid Waste Fund Gas - Building The Gas Company 1.9111248 05/31/2013 Liquid Waste Fund Gas - Building The Gas Company 17.1911248 05/31/2013 Liquid Waste Fund Sewer Maint-Gas Bldg The Gas Company 20.07Check Total: 39.1711249 05/31/2013 Solid Waste Fund Postage Mail Finance Inc. 15.5111249 05/31/2013 Liquid Waste Fund Postage Mail Finance Inc. 139.57Check Total: 155.0811250 05/31/2013 Liquid Waste Fund Sewer Maint- Water Pumps Irvine Ranch Water District 18.60Check Total: 18.6011251 05/31/2013 Solid Waste Fund Board Travel/Meals/Lodging Independent Special Dist of OC 1.7011251 05/31/2013 Liquid Waste Fund Board Travel/Meals/Lodging Independent Special Dist of OC 15.30AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 20 Check Number Check Date Fund Name Account Name Vendor NameAmount11251 05/31/2013 Solid Waste Fund Board Travel/Meals/Lodging Independent Special Dist of OC 1.7011251 05/31/2013 Liquid Waste Fund Board Travel/Meals/Lodging Independent Special Dist of OC 15.3011251 05/31/2013 Liquid Waste Fund Board Travel/Meals/Lodging Independent Special Dist of OC 15.3011251 05/31/2013 Solid Waste Fund Board Travel/Meals/Lodging Independent Special Dist of OC 1.7011251 05/31/2013 Solid Waste Fund Board Travel/Meals/Lodging Independent Special Dist of OC 1.7011251 05/31/2013 Liquid Waste Fund Board Travel/Meals/Lodging Independent Special Dist of OC 15.3011251 05/31/2013 Liquid Waste Fund Staff Development Independent Special Dist of OC 15.3011251 05/31/2013 Solid Waste Fund Staff Development Independent Special Dist of OC 1.70Check Total: 85.0011252 05/31/2013 Liquid Waste Fund Sewer Maint-Pump Stn Contract Jimni Systems, Inc 612.0011252 05/31/2013 Liquid Waste Fund Sewer Maint-Pump Stn Contract Jimni Systems, Inc 290.00Check Total: 902.0011253 05/31/2013 Solid Waste Fund Public Info/Ed/Community Promo Jobs Available 23.6211253 05/31/2013 Liquid Waste Fund Public Info/Ed/Community Promo Jobs Available 212.63Check Total: 236.2511254 05/31/2013 Liquid Waste Fund Sewer Maint-Annual Sewer Maint Mike Kilbride, LTD 2,500.00Check Total: 2,500.0011255 05/31/2013 Solid Waste Fund Legal Services Liebert Cassidy Whitmore 31.5011255 05/31/2013 Liquid Waste Fund Legal Services Liebert Cassidy Whitmore 58.50Check Total: 90.0011256 05/31/2013 Solid Waste Fund Professional Services Patrick Ibarra 90.6911256 05/31/2013 Liquid Waste Fund Professional Services Patrick Ibarra 816.21Check Total: 906.9011257 05/31/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 22.0011257 05/31/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 19.0011257 05/31/2013 Liquid Waste Fund Sewer Maint- Water Pumps Mesa Water District 19.00Check Total: 60.0011258 05/31/2013 Liquid Waste Fund Sewer Maint-Annual Sewer Maint Orange Coast Electric 5,925.0011258 05/31/2013 Liquid Waste Fund Sewer Maint-Annual Sewer Maint Orange Coast Electric 5,785.00AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 21 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 11,710.0011259 05/31/2013 Liquid Waste Fund Sewer Maint-FOG Prog Contract Orange County Sanitation Distr 2,408.72Check Total: 2,408.7211260 05/31/2013 Solid Waste Fund Office Supplies Office Depot 2.0211260 05/31/2013 Liquid Waste Fund Office Supplies Office Depot 18.1511260 05/31/2013 Solid Waste Fund Building Maintenance Office Depot 3.7311260 05/31/2013 Liquid Waste Fund Building Maintenance Office Depot 33.5711260 05/31/2013 Solid Waste Fund Building Maintenance Office Depot 1.6711260 05/31/2013 Liquid Waste Fund Building Maintenance Office Depot 15.0311260 05/31/2013 Solid Waste Fund Board Travel/Meals/Lodging Office Depot 2.8811260 05/31/2013 Liquid Waste Fund Board Travel/Meals/Lodging Office Depot 25.9011260 05/31/2013 Solid Waste Fund Office Supplies Office Depot 15.5211260 05/31/2013 Liquid Waste Fund Office Supplies Office Depot 139.6711260 05/31/2013 Solid Waste Fund Board Travel/Meals/Lodging Office Depot 2.5711260 05/31/2013 Liquid Waste Fund Board Travel/Meals/Lodging Office Depot 23.10Check Total: 283.8111261 05/31/2013 Liquid Waste Fund Pump Stn Emerg. Eqpt. #196 Pacific Data Electric, Inc. 1,000.00Check Total: 1,000.0011262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 270.3611262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 287.8211262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 74.1111262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 36.1211262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 285.8411262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 213.8411262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 697.4011262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 83.3811262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 85.6511262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 124.4211262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 382.8211262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 321.5311262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 244.7511262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 84.6111262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 216.8111262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 59.9111262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 811.9711262 05/31/2013 Liquid Waste Fund Sewer Maint-Electric Pumps Southern California Edison 75.04AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 22 Check Number Check Date Fund Name Account Name Vendor NameAmountCheck Total: 4,356.3811263 05/31/2013 Solid Waste Fund Cafeteria Plan Spec Dist Risk Mgt Authority 42.0511263 05/31/2013 Liquid Waste Fund Cafeteria Plan Spec Dist Risk Mgt Authority 48.0711263 05/31/2013 Liquid Waste Fund Swr Maint - Cafeteria Plan Spec Dist Risk Mgt Authority 45.0611263 05/31/2013 Liquid Waste Fund Dental Insurance Spec Dist Risk Mgt Authority 487.8411263 05/31/2013 Solid Waste Fund Cafeteria Plan Spec Dist Risk Mgt Authority 82.4911263 05/31/2013 Liquid Waste Fund Cafeteria Plan Spec Dist Risk Mgt Authority 98.0711263 05/31/2013 Liquid Waste Fund Swr Maint - Cafeteria Plan Spec Dist Risk Mgt Authority 74.3411263 05/31/2013 Solid Waste Fund Benefits Admin Costs Spec Dist Risk Mgt Authority 8.5611263 05/31/2013 Liquid Waste Fund Benefits Admin Costs Spec Dist Risk Mgt Authority 18.9811263 05/31/2013 Liquid Waste Fund Vision Insurance Spec Dist Risk Mgt Authority 70.56Check Total: 976.0211264 05/31/2013 Liquid Waste Fund Deferred Compensation - 457 VantagePoint Transfer Agents 5.0011264 05/31/2013 Liquid Waste Fund Deferred Compensation - 457 VantagePoint Transfer Agents 1,242.55Check Total: 1,247.5511265 05/31/2013 Liquid Waste Fund Deferred Medical-RHS-Employee VantagePoint Transfer Agents 603.24Check Total: 603.2411266 05/31/2013 Solid Waste Fund Contract Services Willdan Engineering 1,368.0011266 05/31/2013 Liquid Waste Fund Contract Services Willdan Engineering 5,472.00Check Total: 6,840.00Report Total: 920,037.15AP - Checks for Approval ( 05/31/2013 - 10:59 AM )Page 23 Bank of America April 2013 Statements Vendors Descriptions Amount Aaron Brothers Plaque stands for award case 10.78 Authsmtp.com Email Email Upgrades 128 Boxwood Tech Advertisement for Finance Manager 450 California Special District Leadership Summit Registeration General Manager 600 Corner Deli CWEA Conference- Meal 16.17 Costa Mesa Chamber Costa Mesa Chamber of Commerce Breakfast 60 Fleet Services Diesel Fluid 55.04 International Fee Bank Fees 1.03 JK Electronics Pump Station Electrical Maintenance 8.55 Jobtarget LLC Advertisement for Finance Manager 300 LA Times Advertisement for composting workshop and HHW Collect 215.25 Lowes HQ Backyard Storage Sheds 1075.68 National Notary Association Notary Seal/Stamp/Shipping fee 57.61 OC Clerk Recorder Notary Commission County Filing Fee 34 Office Depot Office Supplies 7.87 Renaissance Palm Springs CWEA Conference Lodging 423.94 Sheraton CSDA Conference Directors Logding 224.43 Southwest Air CSDA Conference Flights 499.6 SuperShuttle CSDA Conference Shuttle 50 Survey Monkey Online Survey Instrument Montly Subscription Fee 24 The Crazy Coconut CWEA Conference- Meal 26.5 Unisafe Inc Materials/Supplies -Latex Gloves 198.8 CMSD Check number 11179 (5/17/2013)4,467.25$ ITEM NO. 07 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 To: Board of Directors Via: Scott Carroll, General Manager From: Marc Davis, Treasurer Date: June 27, 2013 Subject: Investment Report for the Month of May 2013 Summary Attached is the Investment Report for the month of May 2013. As required by the District’s Statement of Investment Policy, the Investment Report delineates all investment activity during the month. Staff Recommendation Approve the Investment Report for the month of May 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 May 31, 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. ITEM NO. 08 Board of Directors June 27, 2013 Page 2 of 3 The weighted average stated rate of return (current yield) for the District’s investment portfolio as of May 31, 2013, was 0.646%. The yield to maturity of the portfolio was 0.646%. The District’s weighted average interest rate was 40 basis points (0.401%) above the daily effective yield of LAIF, which was 0.245% as of May 31, 2013. The weighted average number of days to maturity for the District’s total portfolio was 948 days (2.60 years). The average duration of the underlying securities in LAIF as of May 31, 2013, which is the most current information available, was 249 days. The District’s investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in less than one year as of May 31, 2013 was 40.15%. During May 2013, the District had 2 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. As of May 31, 2013, the District had 13.18% of its portfolio in the sweep account with the Bank of New York. Replacement securities have been purchased and will settle during June 2013. Once these replacement investments are settled, the balance in the sweep account will be reduced to below 10.00% of the portfolio. As of May 31, 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 31, 2013. Through May 31, 2013, the portfolio has earned a weighted average interest rate of 0.769%. Staff anticipates that the District will fall short of its estimated investment earnings. Board of Directors June 27, 2013 Page 3 of 3 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2013 Board of Directors regular meeting at District Headquarters (631 W. 19th Street) and on the District’s website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff Attachments Treasurer’s Report of Pooled Cash and Investments as of May 31, 2013 Deposits Outstanding Bank Balance In Transits Checks Book Balance Active Accounts: Bank of America 3,359,097.56$ - 246,004.85 3,113,092.71$ Total Active Accounts 3,359,097.56 - 246,004.85 3,113,092.71 Market Value Increase Decrease Cost Investments: Local Agency Investment Fund 4,515,151.99$ - - 4,515,151.99$ Money Market/Sweep Account 2,193,044.88 - - 2,193,044.88 Federal Agency Securities 9,933,930.00 - (66,070.00) 10,000,000.00 Total Investments 16,642,126.87 - (66,070.00) 16,708,196.87 Total Pooled Cash & Investments 20,001,224.43$ -$ 179,934.85$ 19,821,289.58$ 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 May 31, 2013 Costa Mesa Sanitary District Pooled Cash and Investments by Fund May 31, 2013 Solid Waste Fund: Operating Reserve 801,000.00$ Unreserved: Designated for working capital 1,494,000.00 Undesignated 4,148,224.41 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: Designated for working capital 2,467,300.00 Undesignated 1,097,043.04 Sewer Construction Fund 100,000.00 Facilities Revolving Fund 183,752.07 Asset Replacement Fund 244,013.31 Asset Management Fund 5,140,291.75 Total Pooled Cash & Investments 19,821,289.58$ Treasurer DateMarcus D. Davis 6/16/13 1 Total investments outstanding as of April 30, 2013 17,014,537.23$ Additions: Gain on sale of investment - Investment purchases 1,000,000.00 Deductions: Investments called (2,000,000.00) Net increase (decrease) in Sweep Account 1,013,659.64 Net increase (decrease) in LAIF (320,000.00) Total investments outstanding as of May 31, 2013 16,708,196.87$ 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 May 31, 2013 2 InterestCUSIPPurchase Maturity Coupon Investment Earned atNumberInvestmentDateDateRateCost05/31/13n/a Local Agency Investment Fund n/a n/a 0.245% 4,515,151.99$ n/a **n/a Bank of New York-Sweep Acct n/a n/a 0.000% 2,193,044.88 n/a3135G0MA8 Federal National Mortgage Assn 06/28/12 06/28/17 1.200% 1,000,000.00 5,100.00 3134G3ZR4 Federal Home Loan Mortgage 08/07/12 08/07/171.000% 1,000,000.00 3,166.66 3136G0L58 Federal National Mortgage Assn 10/18/12 10/18/17 1.000% 1,000,000.00 1,194.44 3135G0RQ8 Federal National Mortgage Assn 11/15/12 11/15/17 1.000% 1,000,000.00 444.44 313381LC7 Federal Home Loan Mortgage 12/28/12 12/28/170.950% 1,000,000.00 4,037.50 3136G17A1 Federal National Mortgage Assn 12/31/12 12/30/15 0.450% 1,000,000.00 1,887.50 3133823B7 Federal Home Loan Mortgage 02/22/13 02/22/181.150% 1,000,000.00 3,162.50 3133826D0 Federal Home Loan Mortgage 02/28/13 02/28/181.100% 1,000,000.00 2,841.66 313382HR7 Federal Home Loan Mortgage 03/27/13 03/27/181.130% 1,000,000.00 2,008.88 3136G1L31 Federal National Mortgage Assn 05/15/13 05/15/17 0.700%1,000,000.00 311.11 Totals16,708,196.87$ 24,154.69$ **Represents the LAIF daily rate at 5/31/13CommentsCOSTA MESA SANITARY DISTRICTInvestment and Investment EarningsMay 31, 2013 3 Current % of Market Value 05/31/13 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 29.85% Unlimited FNMA 29.85% Unlimited FFCB 0.00% 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) 27.13% 40,000,000 Shares of Benefical Interest 0.00% 20% Money Market/Mutual Funds (Sweep Acct) 13.18% 10% per fund (2) Total 100.00% % of portfolio maturing under one year 40.15% no less than 20% % of portfolio maturing over one year 59.85% 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 May 31, 2013 Description 4 Purchase Maturity Coupon Investment % of Market % ofDescriptionBroker/DealerDateDateRateCostPortfolioValuePortfolioCommentsState Treasurer's Pool LAIF n/a Continuous 0.245% ** 4,515,151.99$ 4,515,151.99$ POOL Total State Treasurer's Pool4,515,151.99 27.02% 4,515,151.99 27.13%Money Market Mutual Fund Bank of New York n/a Continuous 0.000% 2,193,044.88 2,193,044.88 SWEEP Total Money Market Mutual Fund2,193,044.88 13.13% 2,193,044.88 13.18%Federal Home Loan Mortgage E.J. De La Rosa 08/07/12 08/07/17 1.000% 1,000,000.00 992,640.00 FHLMCFederal Home Loan Mortgage E.J. De La Rosa 12/28/12 12/28/17 0.950% 1,000,000.00 989,320.00 FHLMCFederal Home Loan Mortgage E.J. De La Rosa 02/22/13 02/22/18 1.150% 1,000,000.00 994,150.00 FHLMCFederal Home Loan Mortgage E.J. De La Rosa 02/28/13 02/28/18 1.100% 1,000,000.00 995,330.00 FHLMCFederal Home Loan Mortgage E.J. De La Rosa 03/27/13 03/27/18 1.130% 1,000,000.00 995,640.00 FHLMC Total Federal Home Loan Mortgage5,000,000.00 29.93% 4,967,080.00 29.85%Federal National Mortgage Association Union Banc 06/28/12 06/28/17 1.200% 1,000,000.00 987,770.00 FNMAFederal National Mortgage Association E.J. De La Rosa 10/18/12 10/18/17 1.000% 1,000,000.00 996,000.00 FNMAFederal National Mortgage Association E.J. De La Rosa 11/15/12 11/15/17 1.000% 1,000,000.00 995,510.00 FNMAFederal National Mortgage Association Union Banc 12/31/12 12/30/15 0.450% 1,000,000.00 999,070.00 FNMAFederal National Mortgage Association Union Banc 05/15/13 05/15/17 0.700% 1,000,000.00 988,500.00 FNMA Total Federal National Mortgage Association5,000,000.00 29.93% 4,966,850.00 29.85%Total Investments16,708,196.87$ 100.00%16,642,126.87$ 100.00%**Represents the LAIF daily rate at 5/31/13COSTA MESA SANITARY DISTRICTSchedule of Investments by Instrument TypeMay 31, 2013 5 Investment Purchase Maturity Days to Coupon Yield to InvestmentBroker/DealerTypeDate DateMaturityRateMaturityCostLocal Agency Investment Fund Pool1 0.245% ** 0.245% 4,515,151.99$ Bank of New York Sweep1 0.000% 0.000% 2,193,044.88 UnionBanc FNMA 06/28/12 06/28/17 1,520 1.200% 1.200% 1,000,000.00 E.J. De La Rosa FHLMC 08/07/12 08/07/17 1,560 1.000% 1.000% 1,000,000.00 E.J. De La Rosa FNMA 10/18/12 10/18/17 1,632 1.000% 1.000% 1,000,000.00 E.J. De La Rosa FNMA 11/15/12 11/15/17 1,660 1.000% 1.000% 1,000,000.00 E.J. De La Rosa FHLMC 12/28/12 12/28/17 1,703 0.950% 0.950% 1,000,000.00 UnionBanc FNMA 12/31/12 12/30/15 974 0.450% 0.450% 1,000,000.00 E.J. De La Rosa FHLMC 02/22/13 02/22/18 1,759 1.150% 1.150% 1,000,000.00 E.J. De La Rosa FHLMC 02/28/13 02/28/18 1,765 1.100% 1.100% 1,000,000.00 E.J. De La Rosa FHLMC 03/27/13 03/27/18 1,792 1.130% 1.130% 1,000,000.00 UnionBanc FNMA 05/15/13 05/15/17 1,476 0.700% 0.700% 1,000,000.00 Total Investment Portfolio16,708,196.87$ Total PortfolioWeighted Avg Interest Rate 0.646 %Weighted Avg Yield to Maturity 0.646 %Weighted Avg Days to Maturity 948 Days 2.60 Years**Represents the LAIF daily rate at 5/31/13COSTA MESA SANITARY DISTRICTInvestment PortfolioMay 31, 2013 6 NetPurchase Maturity Intuition Investment Coupon Investment Market Accrued Gain/(Loss)DateDateBroker/DealerTypeParRateCostValueInterestIf Soldn/a Continuous LAIF POOL 4,515,151.99$ 0.245% ** 4,515,151.99 4,515,151.99 - - n/a Continuous Bank of New York SWEEP 2,193,044.88 0.000% 2,193,044.88 2,193,044.88 - - 06/28/12 06/28/17 UnionBanc FNMA 1,000,000.00 1.200% 1,000,000.00 987,770.00 5,100.00 (12,230.00) 08/07/12 08/07/17 E.J. De La Rosa FHLMC 1,000,000.00 1.000% 1,000,000.00 992,640.00 3,166.66 (7,360.00) 10/18/12 10/18/17 E.J. De La Rosa FNMA 1,000,000.00 1.000% 1,000,000.00 996,000.00 1,194.44 (4,000.00) 11/15/12 11/15/17 E.J. De La Rosa FNMA 1,000,000.00 1.000% 1,000,000.00 995,510.00 444.44 (4,490.00) 12/28/12 12/28/17 E.J. De La Rosa FHLMC 1,000,000.00 0.950% 1,000,000.00 989,320.00 4,037.50 (10,680.00) 12/31/12 12/30/15 UnionBanc FNMA 1,000,000.00 0.450% 1,000,000.00 999,070.00 1,887.50 (930.00) 02/22/13 02/22/18 E.J. De La Rosa FHLMC 1,000,000.00 1.150% 1,000,000.00 994,150.00 3,162.50 (5,850.00) 02/28/13 02/28/18 E.J. De La Rosa FHLMC 1,000,000.00 1.100% 1,000,000.00 995,330.00 2,841.66 (4,670.00) 03/27/13 03/27/18 E.J. De La Rosa FHLMC 1,000,000.00 1.130% 1,000,000.00 995,640.00 2,008.88 (4,360.00) 05/15/13 05/15/17 UnionBanc FNMA 1,000,000.00 0.700% 1,000,000.00 988,500.00 311.11 (11,500.00) Total Investments16,708,196.87$ 16,708,196.87 16,642,126.87 24,154.69 (66,070.00) **Represents the LAIF daily rate at 5/31/13C 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 ValuesMay 31, 2013 7 Type of Purchase Maturity Coupon InvestmentInvestmentDateDateRatePar ValueCostFNMA 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 thereafterFHLMC 03/27/13 03/27/18 1.130% 1,000,000.00 1,000,000.00 Callable 3/27/15, w/5 days notice, thereafter 3,6,9,12FNMA 05/15/13 05/15/17 0.700% 1,000,000.00 1,000,000.00 Callable 5/15/14 w/10 days notice, qtrly thereafterTotals10,000,000.00$ 10,000,000.00$ COSTA MESA SANITARY DISTRICTCall ScheduleMay 31, 2013Call Features 8 Cost50,136.76 In Thousands1 - 180 Days 6,708$ 181 - 365 Days - 1 - 2 Years - ##########6,562.50 2 - 3 Years1,000 COSTA MESA SANITARY DISTRICTMATURITIES DISTRIBUTIONMay 31, 201330%40%50%60%70%40.15%53.87%6,562.50 2 - 3 Years1,000 ##########3 - 4 Years - 4 - 5 Years 9,000 TOTAL16,708$ 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%5.99%0.00% 9 Costa Mesa Sanitary DistrictPortfolio Interest Rate Informationas of May 31, 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 RESOLUTION NO. 2012-832 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 97 ESTABLISHING FEES FOR SERVICES RENDERED BY THE OFFICE OF THE DISTRICT CLERK WHEREAS, the Board of Directors on May 23, 2013 adopted Ordinance No. 97 establishing fees for services rendered by the Office of the District Clerk. WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on May 31, 2013, and WHEREAS, Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE, the Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 97 establishing fees for services rendered by the Office of the District Clerk has occurred. PASSED and ADOPTED on this 27th day of June 2013. ________________________________ ________________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors ITEM NO. 09 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, Scott Carroll, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2012-832 duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the 27th day of June 2013. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this 27th day of June 2013. _________________________________ Scott Carroll Clerk of the Costa Mesa Sanitary District 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 To: Board of Directors Via: Scott Carroll, General Manager From: Anna Sanchez, Administrative Service Manager Date: June 27, 2013 Subject: Claim No. 13-004- Ohlaker Summary The Costa Mesa Sanitary District received a third party claim on May 28, 2013 for alleged damages to a vehicle from a sewer manhole. Staff Recommendation Staff recommends the Board of Directors reject the claim. Analysis Attached is a claim form along with supporting documentation from Allstate Insurance regarding their claim for alleged damages to their insured’s, Ms. Joneen Ohlaker’s, vehicle from a sewer manhole on the afternoon of March 24, 2013. This claim has been forwarded to the Special District Risk Management Authority (SDRMA), the District’s third party administrator, to process. The claimant alleges the damages were caused by a manhole at the location of Newport Boulevard and Bristol Road. Staff inspected the location and found the nearest manhole to this intersection is located underneath the 55 Freeway. Attached please find photos of the manhole inspected. The photos indicate the manhole is in near perfect condition. Upon review of District maintenance records, this manhole was last assessed when the sewer mainline was cleaned, on March 4, 2013. There are no records on file that indicate this area contained a hazardous condition, therefore, the District was never on notice. ITEM NO. 10 Board of Directors June 27, 2013 Page 2 of 2 Rejection of the claim does not preclude the possibility of settlement of the claim but sets the statute of limitations so resolution can be reached in a reasonable time. Strategic Plan Element & Goal This item complies with 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 SDRMA will represent the District if the claimant pursues to recover costs for damages after the Board rejects the claim. Financial Review There is no financial impact for rejecting the claim. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 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 Attachment A: Claim No. 2013-004 Attachment B: Photos of manhole located closest to Newport Boulevard and Bristol Road 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 To: Board of Directors Via: Scott Carroll, General Manager From: Anna Sanchez, Administrative Service Manager Date: June 27, 2013 Subject: Refund of Sanitary Assessment Overpayment- 2990 Airway Avenue Summary The sanitary assessment charged on parcel number 427-161-15, 2990 Airway Avenue, Costa Mesa has been incorrectly calculated based on the square footage for this industrial zoned property. The land area square footage was mistakenly used to calculate the assessment charge instead of the building square footage. Staff Recommendation In accordance with District Operations Code and State Law, staff recommends the Board of Directors approve a refund for the previous year assessment 2012-13 in the amount of $4,509.75. Analysis Attached is a request to the CMSD Board of Directors to refund erroneously calculated sanitary assessment fees charged on assessor’s parcel number 427-161-15, using the land area square footage instead of the building area square footage for this industrial zoned property. The property owner has been in contact with staff regarding issuing a refund of overpayments. The property owner has provided his request in writing for the Board to consider a refund, including annual interest accrual, which is attached, hereto. The District’s policy for refunds as stated in Chapter 9.02 of the Operations Code states: “For all claims for refunds for sewer or trash service for which a special rule (set forth below) does not apply, refund procedures and time limitations will be governed by the Tort Claims Act (Government Code Section 900 et seq.) including, but not limited to, the requirements ITEM NO. 11 Board of Directors June 27, 2013 Page 2 of 3 that the claimant present a written request for a refund from the Board within one year of the accrual of the cause of action. Refunds will be allowed if the claimant's request satisfies the procedures of the Tort Claims Act and if the claimant establishes that his or her claim is meritorious. (b) For amounts "paid under protest", refunds may be allowed for up to four years provided that the procedures of the Health and Safety Code and Revenue and taxation Code were followed. (See Health and Safety Code Section 5472; Revenue and Taxation Code Sections 5097 and 5140 et seq.) (c) Persons who have paid sewer service fees but who have received no service and have not been connected to the District's system shall be eligible for a refund depending on when the fees were collected as follows: (1) If the fees were collected before January 1, 1992, there is no statute of limitations and the claimant may submit a claim for such amount that he can prove that he paid and for which he received no service. (2) If the fees were paid after January 1, 1992, a claim must have been filed within 180 days of the date of the payment.” Strategic Plan Element & Goal This item complies with 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 concurs that the 2012/2013 sanitary assessment should be refunded. District Counsel opines that since the statute of limitations ran on previous years, refunds of overpayments for years prior to 2012/2013 could constitute a gift of public funds and should not be issued. Financial Review The refund for property tax year 2012/13 in the amount of $4,509.75 has been prepared to be sent to the County. The tax roll will be corrected with the appropriate square footage moving forward. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2013 Board of Directors regular meeting at District headquarters and on District’s website. Board of Directors June 27, 2013 Page 3 of 3 Alternative Actions 1. Direct staff to report back with more information Reviewed by: Marc Davis Acting Accounting Manager Attachment A: Letter Dated May 30, 2013 from Ms. Monica Rios on behalf of the property owner, E.C. Alsenz/ Land Associates Trust Public Hearing – Solid Waste Annual Charges Board of Directors Meeting June 27, 2013 ITEM NO. 12 Solid Waste Annual Charge 5 key expenses 1. Hauler Rate - $9.1554 per household Household Rate Monthly Cost Annual Cost 21,571 X 9.1554 $197,491 X 12 = $2,369,892 Solid Waste Annual Charge 5 key expenses 2. Recycling/Disposal Rate - $52.22 per ton Transfer Station Fee: $41.22 Recycling Fee: Landfill tipping fee – 50% Diversion ($22 -$11) = $11 $41.22 + $11.00 = $52.22 Solid Waste Annual Charge 5 key expenses 2. Recycling/Disposal Rate - $52.22 per ton Tonnage Rate Annual Cost 39,850 X 52.22 = $2,080,967 Solid Waste Annual Charge 5 key expenses 3. Salaries and Benefits Proposed FY 2013-14 - $517,400 4. Operations and Maintenance (O&M) Proposed FY 2013-14 - $254,560. Solid Waste Annual Charge 5 key expenses 5. Programs Proposed FY 2013-14 - $130,900 Solid Waste Annual Charge 5 key expenses 1. Hauler $2,369,892 2. Recycling/Disposal 2,080,967 3. Salaries & Benefits 517,400 4. O&M 254,560 5. Programs 130,900 TOTAL: $5,353,719 Solid Waste Annual Charge Revenues Additional Container Charge 100,000 Property Taxes 200,000 Investment Earnings 50,000 Other 100,000 TOTAL: $450,000 Solid Waste Annual Charge Revenues 5,353,719 – 450,000 = $4,903,719 1. The proposed charge will not exceed the funds required to provide the service ($5,353,719) Solid Waste Annual Charge Revenues Annual Charge 4,903,719 / 21,571 = 227.33 12 = $18.94 The proposed annual charge per residential parcel FY 2013-14: $227.33 or $18.64 a month FY 2014-15: $232.76 or $19.40 a month Solid Waste Annual Charges Revenues Proposed Annual Charge FY 2013-14: $216.00 or $18.00 a month FY 2014-15: $216.00 or $18.00 a month 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Expenses 5,353,860 5,474,190 5,638,415 5,807,568 5,981,795 6,161,249 6,346,086 Annual Charge 4,659,000 4,659,000 4,659,000 4,659,000 4,659,000 4,659,000 5,912,180 $274.08 Annual or $22.84 monthly Add Contain 100,000 100,000 100,000 100,000 100,000 100,000 100,000 Property Tax 200,000 200,000 200,000 200,000 200,000 200,000 200,000 Investment 50,000 54,000 53,000 50,000 46,000 40,000 40,000 Contributions 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Other 75,000 75,000 75,000 75,000 75,000 75,000 75,000 Total Revenue: 5,109,000 5,113,000 5,112,000 5,109,000 5,105,000 5,099,000 6,352,180 Net: (244,860) (361,190) (526,415) (698,568) (876,795) (1,062,249) 6,094 Fund Balance 4,148,224 3,942,398 3,617,020 3,121,511 2,447,172 1,586,081 Net Balance 3,903,364 3,581,208 3,090,605 2,422,943 1,570,378 523,832 Notes After 2014-15, expenses increase 3% per year Fund Balance earning 1% interest per year Solid Waste Annual Charges – $18.00 a month Projections 1 Placentia 22.22 2 Stanton 21.09 3 Garden Grove 20.46 4 Cypress 19.97 5 Villa Park 19.96 6 Yorba Linda 19.56 7 Anaheim 19.53 8 Huntington Bch 18.96 9 Brea 18.78 10 Santa Ana 18.73 11 Fullerton 18.60 12 Laguna Niguel 18.56 13 La Habra 18.40 14 Fountain Valley 18.16 15 San Juan Cap 18.14 16 San Clemente 18.02 17 CMSD 18.00 Average 16.77 18 Newport Beach 17.84 Median 17.84 19 Seal Beach 17.30 20 Laguna Beach 17.21 21 La Palma 16.55 22 Buena Park 15.62 23 Aliso Viejo 15.46 24 Dana Point 15.35 25 Laguna Hills 15.33 26 Tustin 15.09 27 Midway City 14.75 28 Lake Forest 13.76 29 Rancho SM 13.47 30 Newport Coast 12.74 31 Los Alamitos 12.28 32 Mission Viejo 12.11 33 Orange 12.20 34 Irvine 11.81 35 Laguna Woods 10.00 Solid Waste Annual Charge 2. The proposed charge will be strictly used for solid waste programs. No funds will be used for liquid waste collection, CIP or administration 3. The proposed charge will not exceed the proportional cost of the service attributable to the parcel. Solid Waste Annual Charge 4. The charge is not imposed for service unless the service is actually use by, or immediately available to, the owner of the property in question. 5. The proposed charge is not for general government services (e.g. police, fire, parks, streets, etc.). Solid Waste Annual Charge Recommendation That the Board of Directors approves Resolution No. 2013-833 confirming and adopting this report and directing Clerk to File with County Auditor. RESOLUTION NO. 2013-833 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ADOPTING ANNUAL CHARGES FOR SOLID WASTE WHEREAS, the Board provides for the collection of trash and related solid waste services through its exclusive franchisee to all residential areas within the District; and WHEREAS, pursuant to the authority granted to sanitary districts under Health and Safety Code Sections 5470 et seq., the District has determined to impose those charges for that service and collect that charge on the tax roll in the same manner as general taxes; and WHEREAS, since imposing that annual charge on the Assessment Roll, Proposition 218 was enacted, and since 1996, a mailed protest hearing was noticed and conducted before fees were imposed; and WHEREAS, the Board of Directors has determined to reduce the rates for annual charges for solid waste this year but desires to adopt the report imposing the charges pursuant to the provisions of Health and Safety Code Sections 5470 et seq.; and WHEREAS, said reduction in rates will not result in any person paying an increased amount and is thus exempt from the mailed notice procedures pursuant to Government Code Section 53750(h); and WHEREAS, published notice has been duly given of this hearing as provided in Government Code Section 6066 and Health and Safety Code Section 5473.1; NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District does hereby RESOLVE as follows: Section 1. That the fees, rates, and charges imposed herein have been reduced from those previously adopted to an annual charge of $216.00 and are imposed on the tax roll pursuant to the procedures provided in Health and Safety Code Section 5473. Section 2. That the appropriateness of said fees was established in accordance with California Constitution Article XIIID in previous years. Section 3. That the Board has conducted the hearing and has determined that a protest did not occur. Section 4. That the written report describing the parcels and charges provided for in Health and Safety Code Section 5473 are hereby adopted in accordance with Health and Safety Code section 5473.3 and shall be filed with the District Clerk. Section 5. That the Clerk is hereby directed to file a copy of the report with the Auditor before August 9, 2013, with a statement endorsed on the report over his signature that the report has been finally adopted by the Board of Directors, and the Auditor shall enter the charges against the parcels as they appear on the assessor’s roll. It is acknowledged that said report will be prepared in an electronic format, which will be transmitted to the Auditor. This Resolution shall take effect upon its adoption. PASSED AND ADOPTED by the Board of Directors of the Costa Mesa Sanitary District at a regular meeting held on the 27th day of June, 2013. ____________________________ __________________________ James Ferryman Arthur Perry President of the Board of Directors Secretary of the Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, Scott Carroll, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2012-833 duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the 27th day of June 2013. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this 27th day of June 2013. _________________________________ Scott Carroll Clerk of the Costa Mesa Sanitary District 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 To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2013 Subject: Liquid Waste Annual Charge Summary Recently, the District conducted a comprehensive analysis of the District’s liquid waste charges. The analysis (“Costa Mesa Sanitary District Sewer Rate Study” prepared by HF&H Consultants) concluded that an adjustment to each user class is recommended to ensure fairness and equity among all the users and to ensure there are adequate revenues to fund operating and capital components of the District’s wastewater collection system to meet California General Waste Discharge Requirements. Under Proposition 218, the amount of a charge must not exceed the proportional cost of a service attributable to a parcel. The analysis looked at charges for the next five years (FY 2013-14 through 2017-18) and because some classes are recommended to have their charges increase, the District followed Proposition 218 procedures by notifying all property owners located within the District’s service area. Property owner have until 6:00 p.m. on April 18, 2013 to notify the District of their written protest to the proposed charge adjustments. If the District receives a majority protest of 13,039 protests, then the proposed adjustment will not go into effect. Staff Recommendation That the Board of Directors conduct the protest hearing and, if a protest does not occur, approve the charges. ITEM NO. 13 Board of Directors June 27, 2013 Page 2 of 5 Analysis Revenue Needed to Operate the System To determine the proposed charges will generate enough revenue for the District’s wastewater collection system staff performed the following calculations. FY 2013-14 Revenues: Annual charges 5,110,130 (from sewer rate study) Permit & Inspection Fees 80,000 Connection Fees 75,000 Investment Earnings 60,000 Other 25,000 TOTAL: $5,345,130 Expenditures: Salaries & Benefits 1,377,292 (from proposed spending plan on 3-28-13) M&O 2,467,475 (from proposed spending plan on 3-28-13) Sub-Total: $3,844,767 $5,345,130 - $3,844,767 = $1,500,363 The balance of $1,500,363 is transferred into the Asset Management Fund, which funds the District’s Capital Improvement Projects (CIP). Asset Management: Balance 5,140,000 Transfer In 1,500,363 TOTAL: $6,640,363 Funds are then transferred out of the fund balance to budget for CIP Balance 5,140,000 Transfer In 1,500,363 TOTAL: $6,640,363 Transfer Out 1,960,000 (from proposed spending plan on 3-28-13) Net Balance $4,680,363 Board of Directors June 27, 2013 Page 3 of 5 Below are the proposed total expenditures Salaries & Benefits 1,377,292 M&O 2,467,475 CIP 1,960,000 TOTAL: $5,804,767 FY 2014-15 Revenues: Annual charges 5,212,332 (from sewer rate study) Permit & Inspection Fees 80,000 Connection Fees 75,000 Investment Earnings 60,000 Other 25,000 TOTAL: $5,447,332 Expenditures: Salaries & Benefits 1,484,800 (from proposed spending plan on 3-28-13) M&O 2,330,390 (from proposed spending plan on 3-28-13) Sub-Total: $3,815,190 $5,447,332 - $3,815,190 = $1,632,142 The balance of $1,632,142 is transferred into the Asset Management Fund, which funds the District’s Capital Improvement Projects (CIP). Asset Management: Balance 4,727,167* Transfer In 1,632,142 TOTAL: $6,359,309 *Assuming balance from FY 2013-14 earned 1% interest Funds are then transferred out of the fund balance to budget for CIP. Asset Management: Balance 4,727,167* Transfer In 1,632,142 TOTAL: $6,359,309 Transfer Out 1,957,000 (from proposed spending plan on 3-28-13) Net Balance $4,402,309 Board of Directors June 27, 2013 Page 4 of 5 Below are the proposed total expenditures. Salaries & Benefits 1,484,800 M&O 2,330,390 CIP 1,957,000 TOTAL: $5,772,190 Attachment A is a ten year analysis of the Liquid Waste charge and the Asset Management Fund. The Board set a goal to maintain a minimum balance of $5 million in the Asset Management Fund and as shown in the attachment, the analysis demonstrates that the District cannot achieve this goal with the proposed spending plan. Attachment B is proposed spending cuts for Fiscal Year 2013-14 & Fiscal Year 2014-15. When these cuts are applied to the ten year analysis, the District is able to achieve the minimum Asset Management Fund balance on a long term basis, as demonstrated in Attachment C. Proportionality of the Charges to the Service Received Proposition 218 requires that the charges imposed on parcels be proportional to the services received by the parcel. HF&H analyzed the cost of service and the District’s current charges and is recommending a rate structure that is more proportional with the cost of service actually provided to the various parcels in the District. The analysis of the proportionality of the charges is set forth in detail in pages 11-22 of the study. 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 District Counsel has reviewed and approved this report. Financial Review Attachment A and C are long term forecast of revenues and expenditures for the Liquid Waste Fund. Adopting a resolution will establish the following charges for the next five Board of Directors June 27, 2013 Page 5 of 5 consecutive years. The Sewer Rate Study, dated December 7, 2012 describes the projected revenues the charges below will generate. Proposed Annual Wastewater Rates Current Proposed Proposed Proposed Proposed Proposed Customer Class Rate* 7/1/2013 7/1/2014 7/1/2015 7/1/2016 7/1/2017 Residential (Per Dwelling Unit) Single Family 69.00 85.34 87.05 88.79 90.57 92.38 Multi Family 53.77 50.09 51.09 52.11 53.15 54.21 Non-Residential (Per 1,000 sq. ft.) Commercial - Ave Strength 38.69 37.96 38.72 39.49 40.28 41.09 Commercial - High Strength 43.66 41.40 42.23 43.07 43.93 44.81 Industrial 113.72 97.44 99.39 101.38 103.41 105.48 Public Notice Process Copies of the HF&H study and this report are on file and will be included with the entire agenda packet for the June 27, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. The mailed notice was mailed 45 days before the April 18, 2013 meeting. Published notice was also provided in accordance with Government Code Section 6066 and Health and Safety Code Section 5473.1 in the Daily Pilot. Copies of those notices are available. Alternative Actions 1. Refer the matter back to staff. Reviewed by: Marc Davis District Treasurer/Interim Accounting Manager Attachments A: Long Term Revenues and Expenditures Forecast B: Proposed spending cuts C: Long Term Revenues and Expenditures Forecast after proposed spending cuts are applied. D: Resolution No. 2013-834 Adopting Proposed Annual Liquid Waste Rates E: HF&H Analysis - Costa Mesa Sanitary District Sewer Rate Study Public Hearing Liquid Waste Annual Charges Board of Directors Meeting June 27, 2013 ITEM NO. 13 Liquid Waste Annual Charges Revenues: Annual charges 5,091,000 Charges for services 155,000 Investment earnings 60,000 Other 20,000 TOTAL: $5,326,000 1. Proposed charge will not exceed the funds required to provide the service Liquid Waste Annual Charges Expenditures: Salaries & Benefits 1,077,700 M&O 2,500,300 Sub-Total: $3,578,000 $5,326,000 - $3,578,000 = $1,748,000 Liquid Waste Annual Charges Asset Management: Balance 5,140,291 Transfer In 1,748,000* TOTAL: $6,888,291 * In budget document $1,748,00 is Transfer out Liquid Waste Annual Charges Asset Management: Balance 5,140,291 Transfer In 1,748,000 TOTAL: $6,888,291 Transfer Out 1,810,000* - CIP Net Balance $5,078,291 * In budget document $1,810,00 is Transfer in Liquid Waste Annual Charges Annual Liquid Waste Rates Customer Class 2012 2013 2014 2015 2016 2017 Residential (Per Dwelling Unit) Single Family 69.00 85.34 87.05 88.79 90.57 92.38 Multi Family 53.77 50.09 51.09 52.11 53.15 54.21 Non-Residential (Per 1,000 sq. ft.) Commercial - Ave Strength 38.69 37.96 38.72 39.49 40.28 41.09 Commercial - High Strength 43.66 41.40 42.23 43.07 43.93 44.81 Industrial 113.72 97.44 99.39 101.38 103.41 105.48 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Revenues 5,091,000 5,212,000 5,316,240 5,422,564 5,531,369 5,531,369 5,531,369 5,531,369 5,531,369 5,531,369 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 60,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 5,326,000 5,447,000 5,551,240 5,657,564 5,766,369 5,766,369 5,766,369 5,766,369 5,766,369 5,766,369 Expenditures 1,077,700 1,156,500 1,191,195 1,226,930 1,263,738 1,301,650 1,340,700 1,380,921 1,422,349 1,465,019 2,500,300 2,495,680 2,570,550 2,647,666 2,727,096 2,808,909 2,893,176 2,979,971 3,069,370 3,161,451 Balance 1,748,000 1,794,920 1,789,495 1,782,968 1,775,535 1,655,810 1,532,493 1,405,477 1,274,650 1,139,899 CIP 1,810,000 1,787,000 1,666,958 1,035,079 1,870,800 1,700,000 1,700,000 1,700,000 1,800,000 1,800,000 Total Expenses, 5,388,000 5,439,080 5,428,703 4,909,675 5,861,634 5,810,559 5,933,876 6,060,892 6,291,719 6,426,470 Asset Mgt 5,140,291 5,129,073 5,188,362 5,364,008 6,173,016 6,138,528 6,155,281 6,047,652 5,810,660 5,338,163 Transfer In 1,748,000 1,794,920 1,789,495 1,782,968 1,775,535 1,655,810 1,532,493 1,405,477 1,274,650 1,139,899 Total AM 6,888,291 6,923,993 6,977,857 7,146,976 7,948,551 7,794,338 7,687,774 7,453,129 7,085,310 6,478,062 Transfer Out 1,810,000 1,787,000 1,666,958 1,035,079 1,870,800 1,700,000 1,700,000 1,700,000 1,800,000 1,800,000 AM Balance 5.078,291 5,136,993 5,310,899 6,111,897 6,077,751 6,094,338 5,987,774 5,753,129 5,285,310 4,678,062 Notes After 2014-15, expenses increase 3% per year Fund Balance earning 1% interest per year Sewer Study Liquid Waste Annual Charges 2. Revenue from the charge will not be used for any purpose other than for which the charge is imposed. a. No funds derived from the charges will be used for solid waste programs. 3. The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership does not exceed the proportional cost of the service attributable to the parcel. Liquid Waste Annual Charges 4. The fee or charge is not imposed for service unless the service is actually use by, or immediately available to, the owner of the property in question. a. Properties are only charged if they are physically connected to the sewer system. Vacant land or properties with storage or other buildings not receiving sewer service are not charged Liquid Waste Annual Charges 5. No fee or charge is imposed for general governmental services such as police, fire, ambulance, parks or streets but is only imposed for sewer services. Liquid Waste Annual Charges Recommendation That the Board of Directors approves Resolution No. 2013-834 confirming and adopting this report and directing Clerk to File with County Auditor. RESOLUTION NO. 2013-834 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ADOPTING ANNUAL CHARGES FOR LIQUID WASTE WHEREAS, the Board provides transportation of sewage through its collection system and various other services related thereto, including, but not limited to, services related to complying with the State Water Resources Control Board Discharge Order and other federal Clean Water Act mandates; and WHEREAS, pursuant to the authority granted to sanitary districts under Health and Safety Code Sections 5470 et seq., the District has determined to impose these charges for these services and collect that charge on the tax roll in the same manner as general taxes; and WHEREAS, since imposing that annual charge on the Assessment Roll, Proposition 218 was enacted, and since 1996, a mailed protest hearing was noticed and conducted before fees were imposed; and WHEREAS, the Board directed that a sewer rate study be prepared by HF&H Consultants to determine whether the District’s charges were proportional to the service provided to the District’s parcels in accordance with Proposition 218 (Cal Constit Art XIIID); and WHEREAS, the Board has considered that study and determined that rate adjustments as set forth in that study would make those rates more proportional; and WHEREAS, the Board of Directors has determined to increase the rates for Single- Family residential units and reduce the rates for annual charges for Multi-Family residential, Commercial, and Industrial liquid waste this year, and desires to adopt the report imposing the charges pursuant to the provisions of Health and Safety Code Sections 5470 et seq.; and WHEREAS, the Board has also determined that the amount of revenue needed to operate the sewer collection system for the next five years is accurately projected in the staff report; and WHEREAS, the Board has also determined that the increases in the rates for the next five years is an accurate forecast of what will be needed by the District for those operations, all as set forth in the Study and agenda report; and WHEREAS, a new protest hearing was noticed since these new rates will increase some rates, while decreasing others; and WHEREAS, mailed notice was provided 45 days in advance of the protest hearing; and WHEREAS, published notice was also provided in accordance with Government Code Section 6066 and Health and Safety Code Section 5473.1 in the Daily Pilot; and WHEREAS, the Board has conducted the protest hearing and determined that a majority protest did not occur; NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District does hereby RESOLVE as follows: 1. That after the protest hearing was conducted, it was determined that a successful protest did not occur. 2. That the charges to be imposed meet the substantive and procedural requirements of Prop 218 (Cal. Constit., Art. XIIID). 3. That the charges are hereby adopted and imposed on the property tax roll in accordance with Health and Safety Code Section 5473. PASSED AND ADOPTED by the Board of Directors of the Costa Mesa Sanitary District at a regular meeting held on the 27th day of June, 2013. ____________________________ __________________________ James Ferryman Arthur Perry President of the Board of Directors Secretary of the Board of Directors 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 To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2013 Subject: Adopt FY 2013-14 & 2014-15 Budget Summary Over the course of several meetings, staff received input from Board members and the public regarding the proposed budget for Fiscal Years 2013-14 and 2014-15. Staff incorporated changes to the budget, as per directed by the Board, and is presenting the final version of the document for your approval consideration. The total operating and capital budget for FY 2013-14 is $10,741,860 and for FY 2014-15 the total operating and capital budget is $10,913,940. Attachment B is the proposed budget for adoption. Staff Recommendation That the Board of Directors approves Resolution No. 2013-835 adopting the Budget for Fiscal Years 2013-14 and 2014-15. Analysis Prior to developing the final budget document for tonight’s approval consideration, several meetings were held to receive public comments as well as comments from the Board. The following is a list of budget meetings held during the past few months.  March 14 – Public Workshop for sewer rate study  March 28 – Proposed spending plan for the next two fiscal years  April 18 – Projected revenues for the next two fiscal years  May 23 – Preliminary budget proposal for FY 2013-14 & 2014-15 The following is a brief overview of the final budget. ITEM NO. 14 Board of Directors June 27, 2013 Page 2 of 6 REVENUES FY 2013-14 revenues for the solid waste annual charge are decreasing by $256,000 because the proposed annual trash rates are decreasing from $228 ($19.00 a month) to $216 ($18.00) per parcel. Staff is recommending a rate decrease because the Solid Waste Fund Balance has an excess of $4 million. The overall solid waste revenues in FY 2013-14 are decreasing by $189,000. In 2014-15 the solid waste annual charge will remain flat because the annual rate will remain at $216 ($18.00 a month). Total solid waste revenues are projected to increase in 2014-15 by $4,000 because of investment earnings. District liquid waste customers will see their rates adjusted to reflect fairness and equity in the liquid waste fund; however, the adjustment is revenue neutral to the District. In FY 2013-14 total revenues derived from annual charges will remain constant at $5.1 million. Total revenues are increasing by $129,200 because of projected increases in charges for services, sewer permits and inspection fees. In FY 2014-15 the annual charge will increase by $121,000, which reflects a two percent increase in accordance to the 2012 Sewer Rate Study. All other liquid waste revenue sources will remain constant. In FY 2013-14 the proposed total District revenues for Solid and Liquid Waste funds combined is $10,435,000, decreasing from FY 2012-13 by $60,395 due to lowering the trash rates. In FY 2014-15, the proposed total combined revenue for both funds is $10,560,000, which is an increase from FY 2013-14 by $125,000 due higher anticipated property tax revenue as a result of dissolving the City’s Redevelopment Agency from the Governor, the rate adjustment for sewer and slightly higher earnings in investments. EXPENDITURES In FY 2013-14 the proposed total expenditures, including Capital Improvement Projects (CIP), is $10,741,860. The proposed expenditures are a decrease of $1,576,112 from FY 2012-13 primarily because CIP expenditures are decreasing. For instance, In September, 2012, the Board made a budget adjustment in the amount of $700,000 for rehabilitating the Santa Ana and 23rd Street force mains. In January 2013, the Board made another adjustment to the budget in the amount of $176,185 to perform the PICA analysis of force mains. In addition, there were some CIP carryovers from the previous year. In In FY 2014-15 the proposed total expenditures, including CIP is $10,913,940, which is an increase of $172,080. Expenditures are supposed to exceed revenues because of excess solid waste fund balance. The District is balancing the budget using funds from the solid waste fund balance. More details about the proposed expenditures are described below. Personnel – FY 2013-14 The proposed expenditure budget for personnel is $1,595,100. This budget includes the reorganization of the Finance Department that includes reclassifying the Accounting Manager position to Finance Manager and the creation of an accountant series where the District’s Accounting Specialist II will have an opportunity for Board of Directors June 27, 2013 Page 3 of 6 professional development growth within the organization by reclassifying the position to Associate Accountant. The accountant series includes three accounting levels that include associate accountant, accountant and senior accountant. In addition, the Maintenance Assistant position is in the budget and the welder certification premium pay was added to the budget at $5,000 per year. Salaries account for a Cost of Living adjustment (COLA) of 2.2% (February to February Consumer Price Index for Los Angeles, Orange and Riverside Counties). Every employee, with the exception of the General Manager, will receive the COLA on July 1, 2013, as reaffirmed by the Board on April 27, 2011. Attachment C is the new salary schedule for FY 2013/14. As per Director Ooten’s request, Board of Director salaries have decreased by $7,000 because he is going to request compensation for three monthly meetings. Board members 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. The District used to have one Board member participating on the District’s health benefit plan, but that Board member is no longer on the plan. Currently, no Board members are participating on the District’s health 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. There are only three employees where the District is paying the full 7% share of employee pension costs. All other employees are making contributions to their pension. 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 (Maintenance Worker I, 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. Personnel – FY 2014-15 The proposed expenditure budget for personnel is $1,721,700, which is an increase of $126,600 from FY 2013-14. The increase is due to a COLA assumption of 2.5% and CalPERS rate increases for pension cost. Adjustments will need to be made once the actual COLA and CalPERS rates are released. Attachment D is the new salary Board of Directors June 27, 2013 Page 4 of 6 schedule for FY 2014-15. The hiring of a part-time Account Clerk was removed from the budget, but it may be brought back for Board consideration after further evaluation by the new Finance Manager. Maintenance & Operations – 2013-14 The proposed expenditure budget for maintenance & operations, which includes Solid Waste Programs, is $7,205,860. The proposed expenditure budget is a decrease of $289,035 from FY 2012-13. At the May 23rd Board meeting, the Board directed staff to return to the budget the following items that were deleted from the proposed budget.  Exterior improvements to HQ - $15,000  Toughtop laptops, which includes licensing - $27,000 The above items are now in the final budget document. In addition, items are budgeted to further move the District’s Strategic Plan for achieving its vision, mission and goals. For instance, $10,000 is budgeted for Strategic Goal No. 1.2., Inflow Reduction Program and $200,000 for Strategic Goal No. 1.5., Sewer Line Maintenance Cleaning Program. New items are budgeted to support new goals identified in the Strategic Plan, such as:  Strategic Goal No. 1.1., Manhole Cover Maintenance Program - $25,000  Strategic Goal No. 2.1., Solid Waste Citizens Academy - $10,000  Strategic Goal No. 4.1., CMSD 70th Anniversary – $20,000  Strategic Goal No. 4.2., CMSD Ap - $18,900  Strategic Goal No. 4.3., Implement Voice Broadcasting Program - $2,000 Maintenance & Operations – 2014-15 The proposed expenditure budget for maintenance & operations, which includes Solid Waste Programs, is $7,264,740. The proposed expenditure budget is an increase of $58,880 from FY 2013-14. Items are budgeted for the Strategic Plan such $35,000 for Strategic Goal No. 5.1., Digital imaging of District records into electronic records management system and $14,000 for Strategic Goal No. 7.4., Produce a Comprehensive Annual Financial Report (CAFR). CAPITAL IMPROVEMENT PROJECTS In 2013-14, the proposed CIP budget is $1,810,000. The following is a breakdown of the CIP projects for FY 2013-14.  Westside Pump Station Abandonment Project $400,000  Force main upgrades $850,000  Replace equipment at pump stations $260,000  Elden Pump Station valve and piping replacement $150,000  Generator at District Yard $150,000 Board of Directors June 27, 2013 Page 5 of 6 In 2014-15, the proposed CIP budget is $1,787,000. The following is a breakdown of the CIP projects for FY 2014-15.  Westside Pump Station Abandonment Project $400,000  Pump Station Coating & Manhole Repairs $300,000  Sewer Rehabilitation Grade 4s – Phase I $568,000  Generator at Harbor Pump Station $178,500  Manhole Rehabilitation (brick manholes) $340,500 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 District Counsel has reviewed and approved Resolution No. 2013-835. Financial Review Proposed FY 2013-14 Budget Total revenue is $10,435,000. Total expenditure is $10,741,860 Expenditures are exceeding revenues in the Solid Waste Fund by $244,860. Expenditures exceeding revenues in the Solid Waste Fund is the objective to reducing the undesignated reserves, which has over $4.1 million. The undesignated reserves in the Solid Waste Fund will balance the proposed budget. Proposed FY 2014-15 Budget Total revenue is $10,560,000 Total expenditure is $10,913,940 Expenditures are exceeding revenues in the Solid Waste Fund by $361,860. Expenditures exceeding revenues in the Solid Waste Fund is the objective to reducing the undesignated reserves, which is projected to have nearly $4 million. The undesignated reserves in the Solid Waste Fund will balance the proposed budget. Committee Recommendation Not applicable Board of Directors June 27, 2013 Page 6 of 6 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 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: Resolution No. 2013-835 B: Proposed Budget for Adoption C: FY 2013-14 Salary Schedule D: FY 2014-15 Salary Schedule Reviewed by: Marc Davis District Treasurer/Interim Accounting Manager RESOLUTION NO. 2013-835 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT, ADOPTING A BUDGET FOR THE FISCAL YEARS 2013-14 & 2014-15 WHEREAS, the Board of Directors has conducted a series of study sessions and other public meetings to consider an appropriate budget; and WHEREAS, the Board of Directors is now prepared to adopt a biennial budget for 2012- 2013 and 2013-2014; WHEREAS, the Proposed Budget for fiscal years 2013-14 and 2014-15 has been prepared by order of the Board of Directors. NOW, THEREFORE, BE IT RESOLVED as follows: SECTION 1: The Biennial Budget for the Costa Mesa Sanitary District for the fiscal year beginning July 1, 2013 and ending June 30, 2014, and for fiscal year beginning July 1, 2014 and ending June 30, 2015 is hereby adopted as set forth in the Proposed Biennial Budget, subject to minute action of any changes made to the Proposed Biennial Budget at the time of its adoption. SECTION 2: This budget is in compliance with District Operations Code Chapter 4.03. PASSED AND ADOPTED by the Board of Directors of the Costa Mesa Sanitary District at a regular meeting held on the 27th day of June 2013. James Ferryman Arthur Perry President of the Board of Directors Secretary of the Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss COSTA MESA SANITARY DISTRICT ) I, SCOTT CARROLL, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2013-835 was duly and regularly passed and adopted by the said Board of Directors at a regular meeting thereof held on the 27th day of June 2013. AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the Costa Mesa Sanitary District this 27th day of June 2013. Clerk of the Costa Mesa Sanitary District Costa Mesa Sanitary District Proposed Budget for Adoption (6-27-13) Fiscal Years 2013-14 and 2014-15 Protecting our community’s health and the environment by providing solid waste and sewer collection services Attachment B Costa Mesa Sanitary District Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 Board of Directors James Ferryman President Michael Scheafer Vice President Arthur Perry Secretary Robert Ooten Assistant Secretary Arlene Schafer Board Member Submitted by: Scott Carroll, General Manager/District Clerk Prepared by: Marcus Davis, District Treasurer/Interim Accounting Manager COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 Table of Contents Page General Manager/District Clerk Budget Message 1 Fund Structure 7 Budget Overview: Solid Waste Fund 8 Liquid Waste Fund 12 Proposed Budget for Fiscal Year 2013-14: 18 Line Item Budget 22 Budget Details for Selected Accounts Proposed Budget for Fiscal Year 2014-15: 28 Line Item Budget 32 Budget Details for Selected Accounts General Manager/District Clerk Budget Message 1 June 27, 2013 To the Honorable President and Board of Directors: It is my pleasure to submit to you the Costa Mesa Sanitary District (District) Proposed Operating and Capital Improvement Budget for the Fiscal Years 2013-14 and 2014-15 for your consideration. With this budget, the District is moving to the adoption of a biennial budget. Although this budget is for two years, I will bring it back again at the beginning of Fiscal Year (FY) 2014-15 should any amendments be required. This fiscal plan was developed to serve not only as a monetary statement of services, programs and policies, but as a document that reflects the many goals, programs and service priorities that the Costa Mesa Sanitary District is committed in providing its citizens. As previously discussed with the Board, this spending plan proposes a decrease in the solid waste rates, and a reallocation in the liquid waste rate. The liquid waste rate reallocation is based upon the results of the Sewer Rate Study completed and presented to the Board in December 2012. This Study analyzed the generators of liquid waste and realigned the fees based upon this analysis. It resulted in no net change in total revenue. Staff has discussed the budget during the past 3 meetings with the Board. At the March 28, 2013 Board meeting, staff received input from the Board on an anticipated two-year spending plan. On April 18, 2013, Staff discussed revenue needs to meet the anticipated spending requirements for the biennial budget and opened, and subsequently continued, a public hearing to discuss proposed rate changes. On May 23, 2013, Staff discussed the preliminary biennial budget with the Board. This Proposed Budget is the culmination of these efforts over the past few months. Highlights of Proposed Budget for FY 2013-14 The following are some of the more significant changes between the proposed budget for FY 2013-14 and the amended budget for fiscal year 2012-13. Revenues:  Decrease in solid waste rates from $19.00 per month to $18.00 per month, a 5.26% decrease;  Increase in property tax due to the dissolution of redevelopment agencies; and  Projected better recovery on inspection and other charges for services. Expenses:  No election;  Reduction in capital outlay; Honorable Board of Directors Costa Mesa Sanitary District June 27, 2013 2  Reduction in capital improvement projects. A summary of the Proposed Budget for FY 2013-14 is as follows: Proposed Amended Budget Budget Increase (Decrease) FY 2013-14 FY 2012-13 Amount Percent Revenues: Annual charge $ 9,750,000 $ 10,008,800 $ (258,800) -2.59% Properety taxes 200,000 150,000 50,000 33.33% Investment earnings 110,000 100,000 10,000 10.00% Additional container charge 100,000 96,000 4,000 4.17% Charges for services 155,000 53,000 102,000 192.45% Other 120,000 87,595 32,405 36.99% Total revenues 10,435,000 10,495,395 (60,395) -0.58% Expenses: Salaries and benefits 1,595,100 1,522,670 72,430 4.76% Operations and maintenance 7,205,860 7,494,895 (289,035) -4.01% Programs 130,900 246,722 (115,822) -46.94% Capital improvement projects 1,810,000 3,053,685 (1,243,685) -40.73% Total expenses 10,741,860 12,317,972 (1,576,112) -14.67% Net income (loss) (306,860) (1,822,577) (1,515,717) -493.94% Transfers in 1,810,000 3,309,185 (1,499,185) -45.30% Transfers out (1,748,000) (1,748,000) - 0.00% Total transfers (net) 62,000 1,561,185 (1,499,185) -96.03% Net revenue $ (244,860) $ (261,392) $ (16,532) -6.75% Honorable Board of Directors Costa Mesa Sanitary District June 27, 2013 3 A summary of the Proposed Budget for FY 2014-15 is as follows: Proposed Proposed Budget Budget Increase (Decrease) FY 2014-15 FY 2013-14 Amount Percent Revenues: Annual charge $ 9,871,000 $ 9,750,000 $ 121,000 1.24% Properety taxes 200,000 200,000 - 0.00% Investment earnings 114,000 110,000 4,000 3.64% Additional container charge 100,000 100,000 - 0.00% Charges for services 155,000 155,000 - 0.00% Other 120,000 120,000 - 0.00% Total revenues 10,560,000 10,435,000 125,000 1.20% Expenses: Salaries and benefits 1,721,700 1,595,100 126,600 7.94% Operations and maintenance 7,264,740 7,205,860 58,880 0.81% Programs 140,500 130,900 9,600 7.33% Capital improvement projects 1,787,000 1,810,000 (23,000) -1.27% Total expenses 10,913,940 10,741,860 172,080 1.57% Net income (loss) (353,940) (306,860) (47,080) 13.30% Transfers in 1,787,000 1,810,000 (23,000) -1.28% Transfers out (1,794,920) (1,748,000) (46,920) 2.61% Total transfers (net) (7,920) 62,000 54,080 -112.77% Net revenue $ (361,860) $ (244,860) $ (117.000) 32.33% Highlights of Proposed Budget for FY 2014-15 The following are some of the more significant changes between the proposed budget for FY 2014-15 and the proposed budget for fiscal year 2013-14. Honorable Board of Directors Costa Mesa Sanitary District June 27, 2013 4 Revenues:  Increase of 2.00% in the annual charge for liquid waste. Expenses:  Addition of election costs;  Salary adjustments and estimated PERS rate increases; and  Increase in contribution to the Asset Replacement Fund. Organizational Priorities This biennial budget will be furthering the advancement of the District’s vision, mission and core values, as identified in the amended Strategic Plan, by funding all seven of the strategic elements along with the service goals the Board established to achieve by FY 2014-15. The funding of the Strategic Plan will assure that operations and management of the District are well supported for continued success. CMSD will be focusing on several priorities during the next two years that will consist of public safety, achieving zero sanitary sewer overflows and reducing residential waste stream from entering the landfills. Public safety is of the highest priority for CMSD. Dilapidated manhole covers can jeopardize the public’s safety, so staff will embark on a new two year program that will inspect and rate the condition of every manhole cover owned by CMSD. CMSD owns approximately 4,650 manhole covers. Staff will inspect half of all manhole covers in FY 13-14 and rate them on a scale of 1 to 5 with 5 meaning eminent failure and the need of immediate repair. Manhole covers rated 4 or less will be scheduled for repair at the appropriate time. The inspection of the remaining second half of manhole covers will be performed in FY 14-15. All information and data obtained from the inspection program will be logged into CMSD’s GIS mapping system. CMSD is getting close to achieving zero sanitary sewer overflows (SSO) on an annual basis. In the first six months of 2013, CMSD has experience one small SSO. This can be attributed to the new cleaning schedule of mainlines and the preventive maintenance program of pump stations. No longer is CMSD cleaning sewer pipes once every three years. A simpler approach was developed by dividing the District into sections and cleaning slightly more than one-half of the system each year which resulted in a decrease of travel time and increase efficiency by concentrating work in selected areas rather than having to drive to certain areas just to clean selected sewer lines. Cleaning sewers every two years is a safe and reliable practice that will not lead to backups and sanitary sewer overflows. Sewer lines requiring annual maintenance will continue being cleaned annually. Adequate funding is in the budget to ensure the CMSD’s new cleaning program is continued for the next two years. The final organizational priority for CMSD is reducing residential waste stream from entering the landfill. CMSD’s philosophy of zero waste is to change people’s behavior of what they throw away while at the same time offering them helpful programs to reduce and/or eliminate household waste. CMSD believes that zero waste is not about getting to zero but instead it’s Honorable Board of Directors Costa Mesa Sanitary District June 27, 2013 5 about being on the path to zero. On April 10, 2013, the Board of Directors adopted the following zero waste objective: The District will use the 4 R’s 'rethink–reduce–reuse–recycle' to achieve zero waste status by 2020. To achieve that objective, the Board adopted the following Zero Waste Goals:  Achieve 75% diversion by 2015 and 90% by 2020  CMSD Leads by Example  Collaborate with CCM and other organizations on upstream and downstream waste  Research a pilot volume base disposal program  Implement trash audit  Achieve a cultural change through education, outreach and marketing  Research organic waste program Adequate funding is in the budget that will assist CMSD in meeting the above referenced goals and staff will actively participate and collaborate with professional organizations along with other with public and private entities to ensure these goals are on the path for completion. Technology and Policy Issues New and innovative technology is now an important part of doing business to help keep rates stabilized and costs down. CMSD has been an industry leader for using trenchless technology to repair sewer pipes and electromagnetic sensors to determine pipe wall thickness. CMSD will continue to use this technology in the next two years, but the organization will also embrace other forms of technology to improve operational efficiencies such as laptops and wireless access in the field for the sewer maintenance crew, digital imaging of records into electronic records management system, digitally imaging and importing approved plans into GIS, creating a smart phone ap, implementing a voice broadcasting program and considering conversion technology for solid waste. The policy issues the District currently faces are a reflection of the statewide environmental policies such AB 341, which is designed to help meet California’s recycling goal of 75% by the year 2020. To meet this goal state officials are considering the elimination of green waste as alternative daily cover (ADC) at the landfills. If the state changes its policy on ADC it will greatly alter CMSD’s efforts to reducing the residential waste stream, which currently stands at 57.52%. Furthermore, lowering CMSD’s waste reduction rate of 57.52% will have an impact to the Cities of Costa Mesa and Newport Beach compliance with Assembly Bill 939 (AB 939), that sets State diversion goals at 50%, and Senate Bill 1016 (SB 1016), the per capita disposal measurement system because these agencies are held responsible for complying with state mandates. To ensure AB 341 does not impact CMSD and its partner agencies staff is in the process of evaluating all options to obtain a 75% reduction rate in cooperation with other public and non-profit organizations by the year 2020. The plan includes educational and public outreach programs, innovative technology such as conversion technology, along with Honorable Board of Directors Costa Mesa Sanitary District June 27, 2013 6 compliance measures to encourage residents to participate in waste reduction and recycling efforts. Finally, I want to assure you that CMSD will stay committed to being one of the most transparent local governments in California. CMSD has proven its dedication to being fully transparent as well as open and accessible to the public and other stakeholders by receiving the District Transparency Certificate of Excellence from the Special District Leadership Foundation (SDLF). In order to receive the certification, CMSD had to complete eight essential governance transparency requirements, including conducting ethics training for all board members, properly conducting open and public meetings, and filing financial transactions and compensation reports to the State Controller in a timely manner. CMSD also fulfilled fifteen website requirements intended to readily provide to the public information such as board agendas, video recording of board meetings, the current budget, and the most recent financial audit. This commitment will not waver because the public deserves to have an open and trustworthy government. Conclusion The District continues to grow and flourish as an organization. The biennial budget for FY 2013-14 and FY 2014-15 continues the District’s history of responsible fiscal management. Available resources are focused on maintaining and improving services, the District’s facilities and infrastructure and improving the quality of service to the patrons of Costa Mesa Sanitary District. I believe that this budget maintains and enhances the District’s mission; Protecting our community’s health and the environment by providing solid waste and sewer collection services.” Special Thanks Many thanks to the Board of Directors for your review, advice, suggestions, and policy direction during the budget process. I would also like to thank the CMSD staff for their contributions and participation in the development of this biennial budget. Respectfully submitted, Scott C. Carroll General Manager/District Clerk COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 7 Fund Structure The District accounts for its revenue and expenses in six funds. Each fund represents a separate accounting entity with separate purposes. The six funds and their purposes are as follows: 1. Solid Waste Fund – This fund accounts for the annual charge for providing solid waste services to the District’s customers. Expenses include operations and special programs, 2. Liquid Waste Fund – This fund accounts for the annual charge for providing sewer services to the District’s customers. Expenses include operations and capital improvement projects. 3. Sewer Construction Fund – This fund is restricted and accounts for deposits received from developers in lieu of constructing required sewer improvements associated with a development project. The funds on deposit are held by the District until such time as the District constructs the required sewer improvement. An annual budget is not adopted for this fund. Rather, as required projects are ready to be constructed, a budget adjustment will be brought to the Board to appropriate the required monies. 4. Facilities Revolving Fund – This fund is restricted and accounts for the receipt and disbursement of the capacity charges (fixture fees). Funds collected can only be used for new sewer facilities and cannot be used for maintenance. An annual budget is not adopted for this fund. Rather, as required projects are ready to be constructed, a budget adjustment will be brought to the Board to appropriate the required monies. 5. Asset Replacement Fund – This fund is restricted and accounts for the accumulation of resources for the eventual replacement of equipment. Rental charges are budgeted in the Solid Waste and Liquid Waste Funds and serve as the funding source. When it is time to replace an asset, funds are transferred to the appropriate fund from which the purchase is made. An annual budget is not adopted for this fund. 6. Asset Management Fund – This fund is restricted and accounts for the accumulation of resources for future capital improvement projects. The funds required to complete the budgeted capital projects are transferred at the beginning of the fiscal year to this Fund. When the project is ready to be started, which is most likely in future fiscal years, then funds are transferred back to the Liquid Waste Fund to fund the project. An annual budget is not adopted for this fund. This document contains the proposed operating and capital spending plans for the Solid Waste and Liquid Waste Funds of the District for FY 2013-14 and FY 2014-15. The following COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 8 subsections discuss the proposed budget for each fund, as well as the highlights of changes from the prior amended budgets. Solid Waste Fund Fiscal Year 2013-14 The proposed budget for the Solid Waste Fund for FY 2013-14 as compared to the amended budget for FY 2012-13 is as follows. Proposed Amended Budget Budget Increase (Decrease) FY 2013-14 FY 2012-13 Amount Percent Revenues: Annual charge $ 4,659,000 $ 4,915,000 $ (256,000) -5.21% Property taxes 200,000 150,000 50,000 33.33% Investment earnings 50,000 50,000 - 0.00% Additional container charge 100,000 96,000 4,000 4.17% Other 100,000 87,595 12,405 14.16% Total revenues 5,109,000 5,298,595 (189,595) -3.58% Expenses: Salaries and benefits 517,400 469,520 47,880 10.20% Operations and maintenance 4,705,560 4,789,600 (84,040) -1.75% Programs 130,900 246,722 (115,822) -46.94% Total expenses 5,353,860 5,505,842 (151,982) -2.76% Net revenue $ (244,860) $ (207,247) $ (37,613) 18.15% COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 9 The following subsections highlight the more significant changes in the proposed budget for FY 2013-14 as compared to the amended budget for FY 2012-13. Annual Charge The proposed budget includes a reduction in the annual charge for solid waste from $19.00 per month to $18.00 per month, or 5.26%. This reduction is temporary and is being proposed in an effort to reduce unspent funds that have accumulated over time. Staff will be monitoring this reduction and propose to restore the rate to an appropriate level when the accumulated funds are reduced to approximately $2.2 million. Property Taxes The proposed budget for property taxes represents an increase of $50,000 over the prior year. This increase is attributable to the elimination of redevelopment agencies within the County and the general property tax levy being reallocated due to the elimination. Salaries and Benefits Salaries and benefits are anticipated to increase by $47,880, or 10.20%, as compared to the prior year amended budget. This increase is primarily due to the hiring of the Management Assistant position and reclassifying the Accounting Manager position to Finance Manager. Operations and Maintenance Operations and maintenance costs are anticipated to decrease by $84,040, or 1.75%, as compared to the prior year amended budget. This decrease is primarily attributable to the following:  A reduction of $30,000 in election costs as no election will be held in FY 2013-14;  A reduction of $19,000 in recycling costs due to a projected continued reduction in tonnage;  An increase of $17,100 in asset replacement charges due to a full year rental rate charged on the code enforcement officer’s vehicle. COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 10 Programs Programs are proposed to decrease by $115,822, or 46.94%, from the prior year amended budget. This decrease is primarily attributable to the following:  A reduction of $60,000 in the household hazardous waste program as the District has not experienced the success of this program that was expanded in August 2012;  A reduction of $62,595 in an AB 939 grant; and  An increase of $5,823 in educational programs. Net Revenue The proposed budget includes a net revenue deficit of $244,860. This deficit is a planned deficit to help reduce the unspent funds that have accumulated over time in the Solid Waste Fund. Fiscal Year 2014-15 The proposed budget for the Solid Waste Fund for FY 2014-15 as compared to the proposed budget for FY 2013-14 is as follows. COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 11 Proposed Proposed Budget Budget Increase (Decrease) FY 2014-15 FY 2013-14 Amount Percent Revenues: Annual charge $ 4,659,000 $ 4,659,000 $ - 0.00% Properety taxes 200,000 200,000 - 0.00% Investment earnings 54,000 50,000 4,000 8.00% Additional container charge 100,000 100,000 - 0.00% Other 100,000 100,000 - 0.00% Total revenues 5,113,000 5,109,000 4,000 0.08% Expenses: Salaries and benefits 565,300 517,400 47,900 9.26% Operations and maintenance 4,769,060 4,705,560 63,500 1.35% Programs 140,500 130,900 9,600 7.33% Total expenses 5,474,860 5,353,860 121,000 2.26% Net income (loss) (361,860) $ (244,860) (117,000) 47.78% Transfers in - - - n/a Net revenue $ (361,860) $ (244,860) $ (116,330) 47.51% The following subsections highlight the more significant changes in the proposed budget for FY 2014-15 as compared to the proposed budget for FY 2013-14. Annual Charge The proposed budget includes no change in the reduced solid waste charge of $18.00 per month. This reduction is temporary and is being proposed in an effort to reduce unspent funds that have accumulated over time. Staff will be monitoring this reduction and propose to restore the rate to an appropriate level when the accumulated funds are reduced to approximately $2.2 million. COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 12 Salaries and Benefits Salaries and benefits are anticipated to increase by $47,900, or 9.26%, as compared to the prior year proposed budget. This increase is primarily due to a projected cost of living increase of 2.00% and projected merit increases of 5.00%. Operations and Maintenance Operations and maintenance costs are anticipated to increase by $63,500, or 1.35%, as compared to the prior year proposed budget. This increase is primarily attributable to the following:  An increase of $17,500 in election costs as an election will be held in FY 2014-15;  An increase of $30,000 in trash hauler fees. However, the projected increase may not come to fruition if CMSD and CR&R agree to a $0.25 fee reduction. Both sides will consider a fee reduction in early FY 2013-14; and  An increase of $19,000 in recycling costs. However, the projected increase may not come to fruition if CMSD and CR&R agree to a $0.25 fee reduction. Both sides will consider a fee reduction in early FY 2013-14. Net Revenue The proposed budget includes a net revenue deficit of $361,860. This deficit is a planned deficit to help reduce the unspent funds that have accumulated over time in the Solid Waste Fund. Liquid Waste Fund Fiscal Year 2013-14 The proposed budget for the Liquid Waste Fund for FY 2013-14 as compared to the amended budget for FY 2012-13 is as follows. COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 13 Proposed Amended Budget Budget Increase (Decrease) FY 2013-14 FY 2012-13 Amount Percent Revenues: Annual charge $ 5,091,000 $ 5,093,800 $ (2,800) -0.05% Investment earnings 60,000 50,000 10,000 20.00% Charges for services 155,000 53,000 102,000 192.45% Other 20,000 - 20,000 n/a Total revenues 5,326,000 5,196,800 129,200 2.49% Expenses: Salaries and benefits 1,077,700 1,053,150 24,550 2.33% Operations and maintenance 2,500,300 2,705,295 (204,995) -7.58% Capital improvement projects 1,810,000 3,053,685 (1,243,685) -40.73% Total expenses 5,388,000 6,812,130 (1,424,130) -20.91% Net income (loss) (62,000) (1,615,330) 1,553,330 -96.16% Transfers in 1,810,000 3,309,185 (1,499,185) -45.30% Transfers out (1,748,000) (1,748,000) - 0.00% Total transfers (net) 62,000 1,561,185 (1,499,185) -96.03% Net revenue $ - $ (54,145) $ 54,145 -100.00% The following subsections highlight the more significant changes in the proposed budget for FY 2013-14 as compared to the prior year amended budget. Annual Charge The annual charge required to fund the Liquid Waste Fund is virtually flat. In December 2012 the Board reviewed and approved a Sewer Rate Study that analyzed the generators of liquid waste and proposed a realignment of the fee structure to better match the flow. While different classifications of user saw rate increases and decreases, overall there was no net change to the total revenue generated. COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 14 Annual Liquid Waste Rates Customer Class 2012 2013 2014 2015 2016 2017 Residential (Per Dwelling Unit) Single Family 69.00 85.34 87.05 88.79 90.57 92.38 Multi Family 53.77 50.09 51.09 52.11 53.15 54.21 Non-Residential (Per 1,000 sq. ft.) Commercial - Ave Strength 38.69 37.96 38.72 39.49 40.28 41.09 Commercial - High Strength 43.66 41.40 42.23 43.07 43.93 44.81 Industrial 113.72 97.44 99.39 101.38 103.41 105.48 Operations and Maintenance Operations and maintenance costs are budgeted to decrease by $204,995, or 7.58%, from the prior year amended budget. The significant components of this decrease are:  A reduction of $254,730 in capital outlay. In FY 2012-13, the District purchased a sewer combination truck and replaced its SCADA system. These two purchases totaled approximately $400,000. In FY 2013-14, the District plans to purchase a utility service truck for approximately $150,000.  A reduction of $30,000 in election costs as no election will be held in FY 2013-14;  An increase of $42,300 in asset replacement charges due to a full year rental rate charged on the sewer combination truck and SCADA system. Transfers In Transfers in are proposed to decrease $1,499,185, or 45.30%, from the prior year amended budget. In FY 2012-13, additional transfers were made from the Asset Management Fund in order to fund the PICA analysis and Phase 3 sewer repairs. This funding is not included in the proposed budget for FY 2013-14. Net Revenue The proposed budget for the Liquid Waste Fund for FY 2013-14 is balanced. It includes contingency of $33,430. Fiscal Year 2014-15 The proposed budget for the Liquid Waste Fund for FY 2014-15 as compared to the proposed budget for FY 2013-14 is as follows. COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 15 Proposed Proposed Budget Budget Increase (Decrease) FY 2014-15 FY 2013-14 Amount Percent Revenues: Annual charge $ 5,212,000 $ 5,091,000 $ 121,000 2.38% Investment earnings 60,000 60,000 - 0.00% Charges for services 155,000 155,000 - 0.00% Other 20,000 20,000 - n/a Total revenues 5,447,000 5,326,000 121,000 2.27% Expenses: Salaries and benefits 1,156,400 1,077,700 78,700 7.30% Operations and maintenance 2,495,680 2,500,300 (4,620) -0.18% Capital improvement projects 1,787,000 1,810,000 (23,000) -1.27% Total expenses 5,439,080 5,388,000 51,080 0.95% Net income (loss) 7,920 (62,000) (54,080) 112.77% Transfers in 1,787,000 1,810,000 (23,000) -1.28% Transfers out (1,794,920) (1,748,000) (46,920) 2.61% Total transfers (net) (7,920) 62,000 54,080 -112.77% Net revenue $ - $ - $ - n/a The following subsections highlight the more significant changes in the proposed budget for FY 2014-15 as compared to the prior year amended budget. COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 16 Annual Charge The annual charge is projected to be increased by 2.00% during FY 2014-15 in accordance with the Sewer Rate Study. Salaries and Benefits Salaries and benefits are anticipated to increase by $78,700, or 7.30%, as compared to the prior year proposed budget. This increase is primarily due to a projected cost of living increase of 2.00% and projected merit increases of 5.00%. Operations and Maintenance Operations and maintenance costs are anticipated to decrease by $4,620, or 0.18%, as compared to the prior year proposed budget. While this net decrease is immaterial, it does consist of some larger differences as follows:  An increase of $32,500 in election costs as an election will be held in FY 2014-15;  A reduction of $32,260 in professional services primarily due to an internal count audit of parcels budgeted at $40,000 in FY 2013-14 and this service not being needed in FY 2014-15. Additionally, funding for CityWorks CMMS is reduced $14,300 in FY 2014-15. This is somewhat offset by the need for an internal SSMP audit in FY 2014-15 in the amount of $20,000.  A reduction of $47,300 in contract services primarily due to the elimination of the temporary permit clerk in the amount of ($19,800), ductile iron pipe analysis ($15,000) and GIS mapping services ($10,000).  An increase of $27,000 in asset replacement charges due to a full year rental rate charged on the utility service truck to be purchased in FY 2013-14.  An increase of $15,400 in sewer equipment maintenance primarily due to an increase in vehicle maintenance. Transfers In Transfers in are proposed to decrease $23,000 due to a reduction in capital improvement projects from FY 2013-14. COSTA MESA SANITARY DISTRICT Proposed Budget (6-27-13) Fiscal Years 2013-14 and 2014-15 17 Transfers Out Transfers out are proposed to increase $46,920 due to increased funding required for the Asset Management Fund in accordance with the Model. Net Revenue The proposed budget for the Liquid Waste Fund for FY 2013-14 is balanced. It includes contingency of $202,690. Capital Improvement Projects Capital improvement projects are proposed as follows, by fiscal year: Fiscal Year 2013-14 Project No. Project Amount 101 West Side Pumping Station Abandonment $ 400,000 NEW Force Main Upgrades 850,000 NEW Replace Equipment at Pump Stations 260,000 NEW Elden PS Valve and Piping Replacement 150,000 NEW Generator at Yard 150,000 Total capital improvement projects for fiscal year 2013-14 $1,810,000 Fiscal Year 2014-15 Project No. Project Amount 101 West Side Pumping Station Abandonment $ 400,000 194 Sewer Manhole Rehabilitation 300,000 NEW Sewer Line Rehab Grade 4 Phase I 568,000 NEW Generator at Harbor Pump Station 178,500 NEW Manhole Rehabilitation 340,500 Total capital improvement projects for fiscal year 2014-15 $1,787,000 COSTA MESA SANITARY DISTRICT Proposed Line Item Budget Fiscal Year 2013-14 Solid Liquid Waste Waste Fund Fund Total Revenues: Annual charge 4,659,000$ 5,091,000$ 9,750,000$ Additional container charge 100,000 - 100,000 Investment earnings 50,000 60,000 110,000 Contributions 25,000 - 25,000 Charges for services - 75,000 75,000 Sewer permits - 16,000 16,000 Inspection fees - 64,000 64,000 Property Taxes 200,000 - 200,000 Other 75,000 20,000 95,000 Total revenues 5,109,000 5,326,000 10,435,000 Expenses: Salaries and benefits (administrative): Regular salaries 335,200 435,800 771,000 Part-time salaries 34,300 7,500 41,800 Board salaries 14,400 57,300 71,700 Overtime 800 700 1,500 Auto allowance 2,400 2,400 4,800 Cell phone allowance 4,500 2,800 7,300 Incentive Pay 5,000 5,000 10,000 Tuition Reimbursement 5,000 5,000 10,000 Compensated absences 4,400 5,700 10,100 Cafeteria plan 30,700 46,100 76,800 Medicare 6,500 8,200 14,700 Social security 900 3,600 4,500 Retirement - employer 39,900 48,200 88,100 Retirement - employee 28,100 33,600 61,700 Deferred medical 3,400 4,400 7,800 Workers' compensation 1,900 3,400 5,300 Subtotal administrative 517,400 669,700 1,187,100 Salaries and benefits (sewer maintenance): Regular salaries - 250,900 250,900 Overtime - 27,200 27,200 Compensated absences - 2,800 2,800 Cafeteria plan - 43,200 43,200 Medicare - 4,400 4,400 Retirement - employer - 30,200 30,200 Retirement - employee - 18,800 18,800 Deferred medical - 2,600 2,600 Cell phone allowance - 3,900 3,900 Incentive pay - 7,000 7,000 18 COSTA MESA SANITARY DISTRICT Proposed Line Item Budget Fiscal Year 2013-14 Solid Liquid Waste Waste Fund Fund Total Workers' compensation - 17,000 17,000 Subtotal sewer maintenance - 408,000 408,000 Total salaries and benefits 517,400 1,077,700 1,595,100 Operations and maintenance (administrative): Professional services 37,560 169,340 206,900 Engineering/architectural services - 90,000 90,000 Plan check/inspection - inside - 46,000 46,000 Plan check/inspection - outside - 42,000 42,000 Plan check/inspection - sewer lateral - 24,000 24,000 Legal services 47,250 87,750 135,000 Fiscal services 14,700 27,300 42,000 Medical/employment services 200 1,800 2,000 Contract services 32,200 78,800 111,000 County collection fee 15,700 15,500 31,200 Trash hauler 2,370,000 - 2,370,000 Recycling/disposal 2,081,000 - 2,081,000 Container collection costs 13,500 - 13,500 Building maintenance 2,480 22,320 24,800 Equipment maintenance 5,060 45,540 50,600 Office supplies 800 7,200 8,000 Multi media/copy/blueprint 200 1,800 2,000 Postage 3,500 31,500 35,000 Public info/education/promo 14,700 27,000 41,700 Small tools/equipment 70 680 750 EOC equipment & supplies 400 3,600 4,000 Memberships/dues 10,730 34,020 44,750 Staff development 7,970 36,660 44,630 Board development 7,500 43,900 51,400 Mileage reimbursement 190 1,760 1,950 Liability insurance 6,500 58,500 65,000 Telephone 700 6,300 7,000 Gas - building 50 450 500 Water - building 150 1,350 1,500 Electric - building 950 8,550 9,500 Asset replacement 30,000 175,000 205,000 Capital outlay 1,500 13,500 15,000 Contingency - 33,430 33,430.00 Total operations and maintenance (administrative)4,705,560 1,135,550 5,841,110 19 COSTA MESA SANITARY DISTRICT Proposed Line Item Budget Fiscal Year 2013-14 Solid Liquid Waste Waste Fund Fund Total Operations and maintenance (sewer maintenance): Pump station contract - 80,000 80,000 Sewer line maintenance contract - 200,000 200,000 GIS support - 20,000 20,000 Fats, oils and grease contract - 104,000 104,000 Televising sewer lines contract - 5,000 5,000 Annual sewer maintenance - 220,000 220,000 Inflow reduction program - 10,000 10,000 Sewer lateral program - 200,000 200,000 Equipment maintenance - 39,300 39,300 Small tools/equipment - 8,000 8,000 Materials and supplies - 25,000 25,000 Office Supplies - 2,000 2,000 Building maintenance - Yard - 13,950 13,950 Mileage reimbursement - 1,000 1,000 Telephone - Yard - 5,500 5,500 Gas - Yard - 400 400 Water - Yard - 1,500 1,500 Electric - Yard - 5,000 5,000 Water pumps - 2,000 2,000 Electric pumps - 80,000 80,000 Staff development - 5,100 5,100 Capital Outlay - 326,000 326,000 Liability insurance - 11,000 11,000 Total operations and maintenance (sewer maintenance)- 1,364,750 1,364,750 Total operations and maintenance 4,705,560 2,500,300 7,205,860 Programs: Sharps Program 10,200 - 10,200 Household hazardous waste 50,000 - 50,000 Telephone book recycling 10,000 - 10,000 Anti-scavenging 9,800 - 9,800 Educational programs 40,900 - 40,900 Pharmaceutical program 10,000 - 10,000 Total programs 130,900 - 130,900 20 COSTA MESA SANITARY DISTRICT Proposed Line Item Budget Fiscal Year 2013-14 Solid Liquid Waste Waste Fund Fund Total Capital improvement projects: #101 - Westside abandonment - 400,000 400,000 Force main upgrades - 850,000 850,000 Replace equipment at pump stations - 260,000 260,000 Elden PS valve and piping replacement - 150,000 150,000 Generator at Yard - 150,000 150,000 Total capital improvement projects - 1,810,000 1,810,000 Total expenses 5,353,860 5,388,000 10,741,860 Transfers in/out: Transfer in from asset management fund - (1,810,000) (1,810,000) Transfer in from asset replacement fund - - - Transfer out to asset management fund - 1,748,000 1,748,000 Total transfers, net - (62,000) (62,000) Total budget, net of transfers 5,353,860 5,326,000 10,679,860 Net revenue (244,860)$ -$ (244,860)$ 21 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2013-14 Solid Liquid Waste Waste Fund Fund Total Professional services: TRC telemetry computer/maint contract - Yard 500$ 4,500$ 5,000$ TRC telemetry computer/maint contract 3,000 27,000 30,000 GovDelivery 300 2,700 3,000 Records management 3,500 31,500 35,000 Website maintenance 240 2,160 2,400 Website domain name 20 180 200 Compost bins 15,000 - 15,000 Aquavox SCADA - 12,000 12,000 Smartcover monitoring - 4,800 4,800 Manhole inspection program - 25,000 25,000 CityWorks - CMMS - 19,500 19,500 Internal count audit of parcels 10,000 40,000 50,000 Diversion study 5,000 - 5,000 Total professional services 37,560$ 169,340$ 206,900$ Fiscal services: Treasurer/Financial services contract 10,500$ 19,500 30,000 Audit contract 4,200 7,800 12,000 Total fiscal services 14,700$ 27,300 42,000 Contract services: Dig alert services -$ 500$ 500$ Temporary Staff 500 4,500 5,000 Interim contract permit technician 2,200 19,800 22,000 Ductile iron pipe analysis - 15,000 15,000 Hydraulic modeling support - 7,500 7,500 GIS mapping services - 30,000 30,000 Kaplan consulting 5,000 - 5,000 Landbase data 1,500 1,500 3,000 HHW collection event 23,000 - 23,000 Total contractual services 32,200$ 78,800$ 111,000$ Building maintenance: Janitorial contract- special cleaning 150$ 1,350$ 1,500$ Janitorial supplies 50 450 500 HVAC 100 900 1,000 Landscape maintenance 180 1,620 1,800 Pest control 40 360 400 Description 22 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2013-14 Solid Liquid Waste Waste Fund Fund TotalDescription Termite tenting 250 2,250 2,500 OCSD sewer user fees 50 450 500 Building Security system 200 1,800 2,000 Paper products 100 900 1,000 Plumbing 50 450 500 Building maintenance supplies 200 1,800 2,000 Misc. Supplies 200 1,800 2,000 Fire Extinguisher maintenance 100 900 1,000 Electrical 110 990 1,100 Back patio storage 100 900 1,000 Head Quarters Roof maintenance/ repair 100 900 1,000 Generator maintenance 500 4,500 5,000 Total building maintenance 2,480$ 22,320$ 24,800$ Emergency equipment and supplies: Redundant wireless internet 400$ 3,600$ 4,000$ Total emergency equipment and supplies 400$ 3,600$ 4,000$ Building maintenance - Yard: Janitorial contract - special cleaning -$ 700 700 Janitorial supplies - 1,000 1,000 Building security - includes fire alarm monitoring - 2,000 2,000 Backflow testing - 200 200 Landscape maintenance - special services - 600 600 Pest control - 400 400 Air conditioning maintenance - 500 500 Tankless water heater maintenance - 500 500 Filter maintenance - 250 250 Fire suppression equipment maintenance - 1,000 1,000 Roll-up door maintenance - 1,500 1,500 OC sewer service - 1,200 1,200 Safety posters - 100 100 Installing concrete slab - 3,000 3,000 Miscellaneous building maintenance supples - 1,000 1,000 Total building maintenance - Yard -$ 13,950 13,950 Equipment maintenance: Copier maintenance & copies 1,200$ 10,800 12,000 23 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2013-14 Solid Liquid Waste Waste Fund Fund TotalDescription Printer ink and repairs 100 900 1,000 Phone updates/maintenance 100 900 1,000 Computer software licensing- RealQuest 180 1,620 1,800 Computer software- Neogov 80 720 800 Surveymonkey 30 270 300 Fax machine 30 270 300 Computer equipment repair/upgrades-server backup 400 3,600 4,000 SpringBrook annual maintenance fees 2,000 18,000 20,000 ADP Timeclock 90 810 900 LaserFiche software annual support 850 7,650 8,500 Total equipment maintenance 5,060$ 45,540 50,600 Equipment maintenance - sewer maintenance: Vehicle maintenance -$ 15,000$ 15,000$ Diesel - 20,000 20,000 AQMD renewals/registration - 2,000 2,000 Gas monitor calibration/repairs - 1,700 1,700 Propane - 250 250 Diesel exhaust fluid for vac-con - 350 350 Total equipment maintenance - sewer maintenance -$ 39,300$ 39,300$ Memberships/Dues Local Agency Formation Commission (LAFCO) 7,000$ 13,000 20,000 Santa Ana River Flood Protection Agency (SARFPA) - 1,200 1,200 California Special Districts Association (CSDA) 1,680 3,120 4,800 Costa Mesa Chamber of Commerce 170 330 500 Independent Special Dist of OC (ISDOC) 70 130 200 Costa Mesa Historical Society 30 70 100 National Notary Association 10 90 100 City Clerks Association of Calif (CCAC) 20 180 200 Calif Society of Municipal Finance Officers (CSMFO)30 270 300 Government Finance Officer Association (GFOA) 30 270 300 International City/County Mgmt Assoc. (ICMA) 200 1,800 2,000 Liebert Cassidy Whitmore 350 3,150 3,500 Solid Waste Association of North America (SWANA) 900 - 900 OC Tax Assessor 10 90 100 SpringBrook National Users Group 10 90 100 State Water Resources Control Board Annual Permit Fee - 8,200 8,200 CWEA - 1,750 1,750 24 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2013-14 Solid Liquid Waste Waste Fund Fund TotalDescription International Institute of Municipal Clerks (IIMC) 20 180 200 PARMA - 100 100 Municipal Management Association of SoCal (MMASC) 200 - 200 Memberships/Dues 10,730$ 34,020$ 44,750$ Staff development: CSDA conference 300$ 2,700$ 3,000$ CSDA leadership summit 60 540 600 CSDA legislative days 100 900 1,000 CCAC conference 150 1,350 1,500 CSMFO meetings 60 540 600 CSMFO/GFOA conferences 150 1,350 1,500 Springbrook conference 600 5,400 6,000 Springbrook training 400 3,600 4,000 CalPERS conference 440 3,960 4,400 Liebert Cassidy Whitmore 220 1,980 2,200 ISDOC 20 160 180 ICMA - periodicals 20 180 200 SWANA conference 2,500 - 2,500 Chamber breakfast 10 140 150 Finance periodicals 40 360 400 Finance miscellaneous training seminars 200 1,800 2,000 Career Track Seminars 80 720 800 Clerk continuing education 50 450 500 CCAC technical training for Clerks 160 1,440 1,600 Staff recognition/monthly training and meetings 200 1,800 2,000 Awards banquet 50 450 500 MMASC conference 1,400 - 1,400 Subscriptions 50 450 500 Skillpath training 360 3,240 3,600 Supervisor training 100 900 1,000 Miscellaneous 250 2,250 2,500 Total staff development 7,970$ 36,660$ 44,630$ 25 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2013-14 Solid Liquid Waste Waste Fund Fund TotalDescription Staff development - sewer maintenance: CWEA seminars -$ 1,500 1,500 CWEA training - 1,000 1,000 License upgrade testing - 800 800 Confined space license renewals - 800 800 Miscellaneous training - 1,000 1,000 Total staff development - sewer maintenance -$ 5,100$ 5,100$ Board development: CASA conference -$ 10,800$ 10,800$ CASA - mid year - 8,800 8,800 CASA - Spring - 2,500 2,500 CSDA conference 900 8,100 9,000 CSDA legislative days 320 2,930 3,250 CWEA conference - 1,500 1,500 SWANA conference 4,450 - 4,450 SWANA chapter meetings 800 - 800 ISDOC quarterly meetings 60 540 600 Chamber breakfast 220 1,980 2,200 Mileage 100 900 1,000 SDRMA committee meetings 150 1,350 1,500 Misc seminars and training 500 4,500 5,000 Total travel/meetings/lodging 7,500$ 43,900$ 51,400$ Capital outlay (administrative): Exterior maintenance/facelift at Headquarters 1,500$ 13,500$ 15,000$ Total capital outlay (administrative) 1,500$ 13,500$ 15,000$ Capital outlay sewer maintenance: Utility service crane truck -$ 150,000$ 150,000$ Smarcovers - 20,000 20,000 Mendoza fence - 5,000 5,000 Manhole rings/covers - 20,000 20,000 Toughbook laptops - 15,000 15,000 Toughbook licenses - 12,000 12,000 Installation of wireless access for laptops - 30,000 30,000 Temporary electric panel - 7,000 7,000 26 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2013-14 Solid Liquid Waste Waste Fund Fund TotalDescription Yard bin enclosure - 5,000 5,000 Replace electrical panels at pump station - 62,000 62,000 Total capital outlay sewer maintenance -$ 326,000$ 326,000$ 27 COSTA MESA SANITARY DISTRICT Proposed Line Item Budget Fiscal Year 2014-15 Solid Liquid Waste Waste Fund Fund Total Revenues: Annual charge 4,659,000$ 5,212,000 9,871,000 Additional container charge 100,000 - 100,000 Investment earnings 54,000 60,000 114,000 Contributions 25,000 - 25,000 Charges for services - 75,000 75,000 Sewer permits - 16,000 16,000 Inspection fees - 64,000 64,000 Property Taxes 200,000 - 200,000 Other 75,000 20,000 95,000 Total revenues 5,113,000 5,447,000 10,560,000 Expenses: Salaries and benefits (administrative): Regular salaries 359,600 467,400 827,000 Part-time salaries 37,900 9,200 47,100 Board salaries 14,400 57,300 71,700 Overtime 900 1,300 2,200 Auto allowance 2,400 2,400 4,800 Cell phone allowance 4,200 3,100 7,300 Incentive Pay 5,000 5,000 10,000 Tuition Reimbursement 5,000 5,000 10,000 Compensated absences 4,800 6,100 10,900 Cafeteria plan 43,200 52,800 96,000 Medicare 7,000 8,800 15,800 Social security 900 3,600 4,500 Retirement - employer 44,200 53,500 97,700 Retirement - employee 30,200 36,100 66,300 Deferred medical 3,600 4,700 8,300 Workers' compensation 2,000 3,500 5,500 Subtotal administrative 565,300 719,800 1,285,100 Salaries and benefits (sewer maintenance): Regular salaries - 268,900 268,900 Overtime - 29,100 29,100 Compensated absences - 3,000 3,000 Cafeteria plan - 43,200 43,200 Medicare - 4,700 4,700 Retirement - employer - 34,400 34,400 28 COSTA MESA SANITARY DISTRICT Proposed Line Item Budget Fiscal Year 2014-15 Solid Liquid Waste Waste Fund Fund Total Retirement - employee - 20,200 20,200 Deferred medical - 2,700 2,700 Cell phone allowance - 3,900 3,900 Incentive pay - 7,100 7,100 Workers' compensation - 19,400 19,400 Subtotal sewer maintenance - 436,600 436,600 Total salaries and benefits 565,300 1,156,400 1,721,700 Operations and maintenance (administrative): Professional services 37,520 137,080 174,600 Engineering/architectural services - 94,000 94,000 Plan check/inspection - inside - 48,000 48,000 Plan check/inspection - outside - 44,000 44,000 Plan check/inspection - sewer lateral - 25,000 25,000 Legal services 47,250 87,750 135,000 Fiscal services 12,200 22,800 35,000 Medical/employment services 200 1,800 2,000 Contract services 31,300 31,500 62,800 County collection fee 16,100 15,900 32,000 Trash hauler 2,400,000 - 2,400,000 Recycling/disposal 2,100,000 - 2,100,000 Container collection costs 14,000 - 14,000 Election Costs 17,500 32,500 50,000 Building maintenance 2,230 20,070 22,300 Equipment maintenance 5,110 45,990 51,100 Office supplies 820 7,380 8,200 Multi media/copy/blueprint 210 1,890 2,100 Postage 3,500 31,500 35,000 Public info/education/promo 14,630 27,170 41,800 Small tools/equipment 80 720 800 EOC equipment & supplies 610 5,490 6,100 Memberships/dues 11,290 34,610 45,900 Staff development 7,790 30,540 38,330 Board development 7,500 43,900 51,400 Mileage reimbursement 200 1,770 1,970 Liability insurance 6,500 58,500 65,000 Telephone 700 6,300 7,000 Gas - building 50 450 500 Water - building 150 1,350 1,500 29 COSTA MESA SANITARY DISTRICT Proposed Line Item Budget Fiscal Year 2014-15 Solid Liquid Waste Waste Fund Fund Total Electric - building 950 8,550 9,500 Asset Replacement 30,000 201,000 231,000 Capital Outlay 670 6,080 6,750 Contingency - 202,690 202,690 Total operations and maintenance (administrative)4,769,060 1,276,280 6,045,340 Pump station contract - 82,000 82,000 Sewer line maintenance contract - 204,000 204,000 GIS support - 15,000 15,000 Fats, oils and grease contract - 107,000 107,000 Televising sewer lines contract - 5,100 5,100 Annual Sewer Maintenance - 225,000 225,000 Inflow reduction program - 10,000 10,000 Sewer lateral program - 200,000 200,000 Equipment maintenance - 54,700 54,700 Small tools/equipment - 8,000 8,000 Materials and supplies - 25,000 25,000 Office Supplies - 2,000 2,000 Building maintenance - Yard - 10,950 10,950 Mileage reimbursement - 1,000 1,000 Telephone - Yard - 5,500 5,500 Gas - Yard - 400 400 Water - Yard - 1,500 1,500 Electric - Yard - 5,100 5,100 Water pumps - 2,000 2,000 Electric pumps - 82,000 82,000 Staff development - 4,950 4,950 Capital Outlay - 157,200 157,200 Liability insurance - 11,000 11,000 Total operations and maintenance (sewer maintenance)- 1,219,400 1,219,400 Total operations and maintenance 4,769,060 2,495,680 7,264,740 Programs: Sharps Program 10,200 - 10,200 Household hazardous waste 50,000 - 50,000 Operations and maintenance (sewer 30 COSTA MESA SANITARY DISTRICT Proposed Line Item Budget Fiscal Year 2014-15 Solid Liquid Waste Waste Fund Fund Total Telephone book recycling 10,000 - 10,000 Anti-scavenging 9,800 - 9,800 Educational programs 50,500 - 50,500 Pharmaceutical program 10,000 - 10,000 Total programs 140,500 - 140,500 Capital improvement projects: #101 - Westside abandonment - 400,000 400,000 #194 - Sewer manhole rehabilitation - 300,000 300,000 Sewer line rehab grade 4 phase I - 568,000 568,000 Generator at Harbor pump station - 178,500 178,500 Manhole rehabilitation - 340,500 340,500 Total capital improvement projects - 1,787,000 1,787,000 Total expenses 5,474,860 5,439,080 10,913,940 Transfers: Transfer in from asset management fund - (1,787,000) (1,787,000) Transfer in from asset replacement fund (670) (6,080) (6,750) Transfer out to asset management fund - 1,801,000 1,801,000 Total transfers, net (670) 7,920 7,250 Total budget, net of transfers 5,474,190 5,447,000 10,921,190 Net revenue (361,190)$ -$ (361,190)$ 31 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2014-15 Solid Liquid Waste Waste Fund Fund Total Professional services: TRC computer consulting/maint contract Bldg 500$ 4,500 5,000 TRC telemetry computer/maint contract Yard 500 4,500 5,000 TRC telemetry computer/maint contract 2,500 22,500 25,000 GovDelivery 300 2,700 3,000 Records management 3,500 31,500 35,000 Website maintenance 200 1,800 2,000 Webiste domain name 20 180 200 Compost bins 30,000 - 30,000 Internal SSMP audit - 20,000 20,000 Aquavix SCADA - 12,000 12,000 Smartcover monitoring - 7,200 7,200 Manhole cover inspection - 25,000 25,000 CityWorks - 5,200 5,200 Total professional services 37,520$ 137,080 174,600 Fiscal services: Treasurer/Financial services contract 7,300$ 13,700 21,000 Audit contract 4,900 9,100 14,000 Total fiscal services 12,200$ 22,800 35,000 Contract services: Dig alert services -$ 500 500 Temporary Staff 500 4,500 5,000 Hydraulic modeling support - 5,000 5,000 GIS mapping services - 20,000 20,000 Landbase data 1,500 1,500 3,000 Kaplan consulting 10,000 - 10,000 ENRECOS 19,300 - 19,300 Total contractual services 31,300$ 31,500 62,800 Building maintenance: Janitorial contract- special cleaning 150$ 1,350 1,500 Janitorial supplies 50 450 500 HVAC 100 900 1,000 Landscape maintenance 180 1,620 1,800 Pest control 40 360 400 OCSD sewer user fees 50 450 500 Building Security system 200 1,800 2,000 Paper products 100 900 1,000 Plumbing 50 450 500 Description 32 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2014-15 Solid Liquid Waste Waste Fund Fund TotalDescription Building maintenance supplies 200 1,800 2,000 Misc. Supplies 200 1,800 2,000 Fire Extinguisher maintenance 100 900 1,000 Electrical 110 990 1,100 Back patio storage 100 900 1,000 Head Quarters Roof maintenance/ repair 100 900 1,000 Generator maintenance 500 4,500 5,000 Total Building Maintenance 2,230$ 20,070 22,300 Emergency Equipment and Supplies: AED/ CPR training 130 1,170 1,300 Survival backpacks 30 270 300 EOC Aerial map 50 450 500 Redundant wireless internet 400 3,600 4,000 Total Emergency Equipment and Supplies 610 5,490 6,100 Building maintenance Yard: Janitorial contract - special cleaning -$ 700 700 Janitorial supplies - 1,000 1,000 Building security - includes fire alarm monitoring - 2,000 2,000 Backflow testing - 200 200 Landscape maintenance - special services - 600 600 Pest control - 400 400 Air conditioning maintenance - 500 500 Tankless water heater maintenance - 500 500 Filter maintenance - 250 250 Fire suppression equipment maintenance - 1,000 1,000 Roll-up door maintenance - 1,500 1,500 OC sewer service - 1,200 1,200 Safety posters - 100 100 Miscellaneous building maintenance supples - 1,000 1,000 Total Building Maintenance Yard -$ 10,950 10,950 Equipment maintenance: Copier maintenance & copies 1,200$ 10,800 12,000 Printer ink and repairs 100 900 1,000 Phone updates/maintenance 100 900 1,000 Computer software licensing- RealQuest 180 1,620 1,800 Computer software- Neogov 80 720 800 Surveymonkey 30 270 300 Fax machine 30 270 300 33 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2014-15 Solid Liquid Waste Waste Fund Fund TotalDescription Computer equipment repair/upgrades-server backup 400 3,600 4,000 SpringBrook annual maintenance fees 2,000 18,000 20,000 ADP Timeclock 90 810 900 LaserFiche software annual support 900 8,100 9,000 Total equipment maintenance 5,110$ 45,990 51,100 Equipment maintenance - sewer maintenance: Vehicle maintenance -$ 25,000 25,000 Diesel - 25,000 25,000 AQMD renewals/registration - 2,000 2,000 Gas monitor calibration/repairs - 2,000 2,000 Propane - 300 300 Diesel exhaust fluid for vac-con - 400 400 Total equipment maintenance - sewer maintenance -$ 54,700 54,700 Memberships/Dues Local Agency Formation Commission (LAFCO) 7,210$ 13,390 20,600 Santa Ana River Flood Protection Agency (SARFPA) - 1,250 1,250 California Special Districts Association (CSDA) 1,920 3,580 5,500 Costa Mesa Chamber of Commerce 210 390 600 Independent Special Dist of OC (ISDOC) 70 130 200 Costa Mesa Historical Society 50 100 150 National Notary Association 10 140 150 City Clerks Association of Calif (CCAC) 20 230 250 Calif Society of Municipal Finance Officers (CSMFO)30 270 300 Government Finance Officer Association (GFOA) 30 270 300 International City/County Mgmt Assoc. (ICMA) 200 1,800 2,000 Liebert Cassidy Whitmore 350 3,150 3,500 Solid Waste Association of North America (SWANA) 950 - 950 OC Tax Assessor 10 90 100 SpringBrook National Users Group 10 90 100 State Water Resources Control Board Annual Permit Fee - 8,200 8,200 CWEA - 1,200 1,200 International Institute of Municipal Clerks (IIMC) 20 230 250 PARMA - 100 100 Municipal Management Association of SC (MMASC) 200 - 200 Memberships/Dues 11,290$ 34,610$ 45,900$ 34 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2014-15 Solid Liquid Waste Waste Fund Fund TotalDescription Staff development: CSDA conference 300$ 2,700$ 3,000$ CSDA leadership summit 120 1,080 1,200 CSDA legislative days 100 900 1,000 CCAC conference 150 1,350 1,500 CSMFO meetings 60 540 600 CSMFO/GFOA conferences 40 360 400 Springbrook conference 280 2,520 2,800 Springbrook training 400 3,600 4,000 CalPERS conference 240 2,160 2,400 Liebert Cassidy Whitmore 110 990 1,100 ISDOC 20 160 180 ICMA - periodicals 20 180 200 SWANA conference 3,000 - 3,000 Chamber breakfast 10 140 150 Finance periodicals 40 360 400 Finance miscellaneous training seminars 200 1,800 2,000 Career Track Seminars 80 720 800 Clerk continuing education 50 450 500 CCAC technical training for Clerk 160 1,440 1,600 Staff recognition/monthly training and meetings 200 1,800 2,000 Awards banquet 50 450 500 MMASC conference 1,400 - 1,400 Subscriptions 50 450 500 Skillpath training 360 3,240 3,600 Supervisor training 100 900 1,000 Miscellaneous 250 2,250 2,500 Total staff development 7,790$ 30,540 38,330 Staff development - sewer maintenance: CWEA renewal -$ 750 750 CWEA training - 1,600 1,600 License upgrade testing - 800 800 Confined space license renewals - 800 800 Miscellaneous training - 1,000 1,000 Total staff development - sewer maintenance -$ 4,950 4,950 35 COSTA MESA SANITARY DISTRICT Budget Details for Selected Accounts Fiscal Year 2014-15 Solid Liquid Waste Waste Fund Fund TotalDescription Board development: CASA conference -$ 10,800 10,800 CASA - mid year - 8,800 8,800 CASA - Spring - 2,500 2,500 CSDA conference 900 8,100 9,000 CSDA legislative days 320 2,930 3,250 CWEA conference - 1,500 1,500 SWANA conference 4,450 - 4,450 SWANA chapter meetings 800 - 800 ISDOC quarterly meetings 60 540 600 Chamber breakfast 220 1,980 2,200 Mileage 100 900 1,000 SDRMA committee meetings 150 1,350 1,500 Misc seminars and training 500 4,500 5,000 Total travel/meetings/lodging 7,500$ 43,900 51,400 Capital Outlay Admin & Operations 3 computer workstations 670 6,080 6,750 Subtotal Admin & Operations Capital Outlay 670$ 6,080$ 6,750$ Capital Outlay Sewer Maintenance Smartcovers -$ 20,000$ 20,000$ Manholes - 15,000 15,000 Replace electrical panels at pump stations - 37,200 37,200 Replace equipment at pump stations - 85,000 85,000 Subtotal Sewer Maintenance Capital Outlay - 157,200 157,200 Total Capital Outlay 670$ 163,280 163,950 36 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 To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2013 Subject: FOG Enforcement Appeal at 2590 Newport Blvd. Summary On April 30, 2013, the property owner at 2590 Newport Blvd. refused to take immediate action, at the request of CMSD’s compliance inspectors, to relieve the blockage in his grease interceptor to avoid an imminent sanitary sewer overflow (SSO). CMSD staff took the initiative to clear the blockage and an SSO was avoided. Because the property owner refused to take corrective action, CMSD incurred the cost to prevent a private SSO. The cost, $2,019.62, was passed on to the property owner in the form of an invoice, which is attached hereto as Attachment C. The property owner is appealing the invoice and requesting the Board of Directors to consider reducing the invoice amount. Staff Recommendation That the Board of Directors denies the appeal to reducing the invoice amount of $2,019.62 for Fats Oil Grease (FOG) enforcement at 2590 Newport Blvd. Analysis The following are the chain of events regarding this issue. On April 30th at approximately 2:45 p.m. CMSD’s FOG compliance contractor, Environmental Engineering & Contracting (EEC), conducted an inspection at Cabo Grill restaurant located at 2590 Newport Blvd. Upon inspecting the grease interceptor serving this facility (and potentially, other facilities in this center), EEC inspector Angel Bambrick observed that the interceptor effluent line was restricted between the outlet chamber and ITEM NO. 15 Board of Directors June 27, 2013 Page 2 of 4 the sample box causing the water level to rise above the interceptor baffle tubes and up to the interceptors risers. Cabo Grill owner informed Mr. Bambrick that the property owner (Mr. Tom Talebi) is responsible for maintaining the interceptor. Mr. Bambrick contacted Mr. Talebi to inform him about the situation. Mr. Talebi was instructed that the blockage needed to be cleared and the interceptor needed to be pumped within the same day. Mr Talebi told Mr. Bambrick that the soonest this could be done was Thursday May 2nd. Mr. Talebi was informed about the risk of a sewer overflow along with the issues associated with such an event (clean-up, health issues, fines, etc.), and urged Mr. Talebi to address this situation immediately. Mr Talebi stated that he would not make any more attempts to address this issue any sooner. Concerned that the interceptor may overflow, Mr. Bambrick notified another EEC inspector (Joseph Jenkins) of the situation and requested his input on the appropriate follow-up actions. Mr. Bambrick and Mr. Jenkins returned to the property to evaluate the condition of the interceptor and assess the risk of a sewer overflow. Upon arriving at the property at approximately 4:00 p.m. Mr. Jenkins observed that the water level had risen to a level higher than previously reported. Based on this observation, Mr. Jenkins determined that the risk of a spill was extremely high and reiterated to Mr. Talebi (who was onsite and viewed the grease interceptor’s connection) that at a minimum, the blockage needed to be relieved immediately or an overflow was imminent. Mr. Talebi indicated that he would not contact his plumber, stating that his plumber would come the next day (May 1st) to clear the blockage. Mr. Talebi added that if it did overflow, he would just pay for the clean-up. Mr. Jenkins informed Mr. Talebi that this action was not sufficient to address the immediate risk and reiterated that the blockage needed to be cleared as soon as possible. Mr. Jenkins informed Mr. Talebi that if he could not arrange for his plumber sooner, the District may be forced to take further actions to prevent a sewer overflow. Mr. Talebi continued to refuse to call his plumber and left the property. At approximately 5:45 p.m., Mr. Talebi and an associate arrived on-site, who proceeded to remove EEC’s cones from the grease interceptor area and directed Mr. Jenkins and Mr. Bambrick to leave the property immediately or he would call the police. Mr. Jenkins and Mr. Bambrick cooperated with this direction and left the property without incident. At approximately 6:30 p.m., District staff, Mr. Steve Cano, arrived on-site to further assess the risk for an overflow. Mr. Cano observed that the water level was now within 12 inches of the finish grade. Mr. Cano contacted Mr. Talebi to reiterate the urgency of the situation; however, Mr. Talebi hung up the phone. At this time Mr. Cano contacted C&R Drains, the District’s emergency contractor, to clear the blockage. Board of Directors June 27, 2013 Page 3 of 4 C&R Drains arrived on-site at approximately 8:00 p.m. At this time the water level was within 6” of finished grade. C&R Drains cleared the blockage at approximately 8:15 p.m., returning the interceptor’s fluid level to its operational level. On May 1st at 7:30 a.m., Mr. Jenkins observed Mr. Talebi’s plumber, Mendoza Rooter and Plumbing, on-site completing private sewer line cleaning service (from the outlet of the grease interceptor to its connection to CMSD’s main sewer line on Newport Blvd). Mr. Talebi informed Mr. Jenkins that interceptor pump-out services were scheduled for today. EEC conducted a follow-up inspection on May 2nd to confirm the pumping completion. Beyond this immediate overflow issue, other FOG noncompliance issues were identified during the FOG inspection including;  No grease interceptor records available  Grease interceptor pumping frequency appears to be insufficient  Insufficient BMP training logs On May 16th, CMSD mailed an invoice to Mr. Talebi for the services rendered to preventing a sewer overflow on his property. The cost for services is $2,019.62. Mr. Talebi is requesting the Board approve reducing the invoice because this was the first time his grease interceptor experienced a blockage. However, as noted above, he does not have maintenance records and it appears the pumping frequency is insufficient. Furthermore, if Mr. Talebi would have immediately relieved the blockage, as ordered by EEC and CMSD staff, this incident and the invoice could have been avoided. Therefore, staff is recommending the Board denies Mr. Talebi appeal to reduce the invoice. Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Element 1.0, Sewer Infrastructure and Strategic Goal No. 1.8, Fats Oil Grease (FOG) Program. Legal Review Not applicable. Financial Review The total cost the District is seeking reimbursement from Mr. Talebi is $2,019.62. Committee Recommendation N/A Board of Directors June 27, 2013 Page 4 of 4 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2013 Board of Directors regular meeting at District headquarters and on District’s website. Alternative Actions 1. Approve Mr. Talebi appeal to reduce the invoice amount 2. Refer the matter back to staff for more information. Attachment A: CMSD Invoice dated May 16, 2013 in the amount of $2,019.62 B: CMSD Inspection Report C: Pictures of Grease Interceptor 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 To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2013 Subject: Sewer System Management Plan (SSMP) Self Audit Summary CMSD entered into an agreement with Environmental Engineering & Contracting (EEC) to perform a self-audit of the Districts’ Sewer System Management Plan (SSMP). EEC performed the last self-audit in 2011. EEC has completed the audit and is ready to present their findings to the Board at tonight’s meeting Staff Recommendation That the Board of Directors: 1. Accepts the SSMP self-audit performed by EEC; and 2. Direct staff to report back with an implementation plan for the minor corrective actions identified in the audit; and 3. Direct staff to bring back the SSMP with amendments for recertification approval. Analysis In February 2013, staff solicited proposals for conducting an internal audit of the Distirct’s Sewer System Management Plan (SSMP). Staff sent RFPs to the following consultants: 1. Larson Consulting 2. Environmental Engineering & Consulting (EEC) 3. Dudek 4. Willow Enterprises 5. Dexter Wilson Engineering 6. RMC Water and Environment ITEM NO. 16 Board of Directors June 27, 2013 Page 2 of 2 All the firms mentioned above have demonstrated experience conducing SSMP audits for various sanitation and sanitary agencies. EEC was the only consulting firm that submitted a proposal. In compliance with the Statewide General Waste Discharge Requirements (GWDR) for Sanitary Sewer Systems (State Water Resources Control Board Order No. 2006- 003-DWQ), the District developed and implemented a comprehensive Sewer System Management Plan (SSMP), with the primary objective of reducing and preventing Sanitary Sewer Overflows (SSOs). A key requirement of the SSMP is that every two years routine internal audits be performed to evaluate the effectiveness of the SSMP as well as the District’s compliance with the SSMP elements. The last self-audit was performed in April 2011. EEC identified several minor nonconformance issues that are easily rectified. Some of the nonconformance issues are identified below: 1. Standard sewer permits do not mention pretreatment requirements recognized by OCSD. 2. All employees training related to operations and maintenance of sewer system are not documented. Specifically, training seminars to the California Water Environment Association are not documented. 3. The District does not conduct routine refresher training for staff on SSO response procedures. EEC staff will be giving a brief presentation to the Board regarding their findings to the self-audit. Strategic Plan Element & Goal This item complies to the objective and strategy of Strategic Plan Element 1.0, Sewer Infrastructure, which states: “Our objective is to collect and transport wastewater to meet the needs of existing and future customers.” “We will do this by the careful management of the collection infrastructure using prudent planning and maintenance, with financial strategies to maintain sufficient capacity and respond to changing regulatory demands.” Legal Review Not applicable Financial Review The cost to perform the self-audit by EEC is $15,500. This cost is approved in the FY 2013-14 Budget. There are no financial impacts for revising the SSMP. All revisions were performed by in-house staff. Board of Directors June 27, 2013 Page 3 of 2 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 June 27, 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: CMSD Self-Audit performed by EEC Waste Discharge Requirements Sewer System Management Plan Audit June 18, 2013 Prepared for: Costa Mesa Sanitary District 628 West 19th Street Costa Mesa, California Prepared by: Environmental Engineering & Contracting, Inc. 501 Parkcenter Drive Santa Ana, California 92705 EEC W2489.01 Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District i EEC TABLE OF CONTENTS 1.0 INTRODUCTION ................................................................................................................................ 1 2.0 AUDIT METHODS.............................................................................................................................. 1 2.1 Performance Measures ....................................................................................................... 2 2.2 Results Reporting ................................................................................................................ 2 3.0 RESULTS ........................................................................................................................................... 3 3.1 Goals ................................................................................................................................... 3 3.1.1 Plan and Schedule for Management, Operation, and Maintenance of Sewer System ........................................................................ 3 3.1.2 Reduction and Prevention of Sewer System Overflows ........................................ 3 3.1.3 Areas of Nonconformance to the Sewer System Management Plan .................... 5 3.1.3.1 Recommended Corrective Actions ........................................................... 5 3.2 Organization ........................................................................................................................ 5 3.2.1 Areas of Nonconformance to the Sewer System Management Plan .................... 6 3.2.1.1 Recommended Corrective Actions ........................................................... 6 3.3 Legal Authority .................................................................................................................... 6 3.3.1 Areas of Nonconformance to the Sewer System Management Plan .................... 6 3.3.1.1 Recommended Corrective Actions ........................................................... 7 3.4 Operation and Maintenance Program ................................................................................ 7 3.4.1 CMSD Sanitary Sewer System Map ........................................................................ 7 3.4.2 Preventative Maintenance Plan ............................................................................. 8 3.4.2.1 System-Wide Cleaning .............................................................................. 8 3.4.2.2 Hot Spot and Lift Station Maintenance .................................................... 9 3.4.3 Rehabilitation and Replacement Plan.................................................................... 9 3.4.3.1 Rehabilitation Projects .............................................................................. 9 3.4.3.2 Capital Improvement Program ............................................................... 10 3.4.4 Staff Training ........................................................................................................ 12 3.4.5 Equipment and Replacement Parts Inventory ..................................................... 12 3.4.6 Areas of Nonconformance to the Sewer System Management Plan .................. 12 3.4.6.1 Recommended Corrective Actions ......................................................... 12 3.5 Design and Performance Provisions ................................................................................. 13 3.5.1 Areas of Nonconformance to the Sewer System Management Plan .................. 13 3.5.1.1 Recommended Corrective Actions ......................................................... 13 3.6 Overflow Emergency Response Plan ................................................................................ 13 3.6.1 Areas of Nonconformance to the Sewer System Management Plan .................. 14 3.6.1.1 Recommended Corrective Actions ......................................................... 14 3.7 FOG Control Program ........................................................................................................ 15 3.7.1 Public Education and Outreach Program ............................................................. 15 3.7.2 Inspection of Grease-Producing Facilities ............................................................ 16 3.7.3 Legal Authority to Prohibit Discharges to the System ......................................... 17 3.7.4 Grease-Removal Device Requirements ............................................................... 17 3.7.5 Cleaning Schedule for Sewer System Sections Subject to FOG Blockages and Source-Control Measures for Enhanced Maintenance Areas ....................... 17 3.7.6 FOG Disposal Plan ................................................................................................ 17 3.7.7 Areas of Nonconformance to the Sewer System Management Plan .................. 17 3.7.7.1 Recommended Corrective Actions ......................................................... 17 3.8 System Evaluation and Capacity Assurance Plan .............................................................. 18 Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District ii EEC 3.8.1 Evaluation ............................................................................................................ 18 3.8.2 Design Criteria ...................................................................................................... 18 3.8.3 Capacity Enhancement Measures ....................................................................... 18 3.8.4 Capital Improvement Plan Schedule .................................................................... 18 3.8.5 Areas of Nonconformance to the Sewer System Management Plan .................. 18 3.8.5.1 Recommended Corrective Actions ......................................................... 19 3.9 Monitoring, Measurement, and Program Modifications ................................................. 19 3.9.1 Areas of Nonconformance to the Sewer System Management Plan .................. 19 3.9.1.1 Recommended Corrective Actions ......................................................... 19 3.10 SSMP Program Audit ......................................................................................................... 19 3.10.1 Areas of Nonconformance to the Sewer System Management Plan .................. 19 3.10.1.1 Recommended Corrective Actions ........................................................ 20 3.11 Communications Program ................................................................................................ 20 3.11.1 Areas of Nonconformance to the Sewer System Management Plan .................. 20 3.11.1.1 Recommended Corrective Actions ........................................................ 20 4.0 SUMMARY ...................................................................................................................................... 20 Figures Figure 3-1 Public Sanitary Sewer Overflows per 100 Miles of Sewer Line in CMSD Service Area, 2009–2012 ................................................................................... 8 Figure 3-2 Percentage of Sanitary Sewer Overflow Volume Recovered in CMSD Service Area, 2009–2012 ................................................................................... 7 Figure 3-3 GIS-Based Sewer Atlas Legend ............................................................................................ 8 Figure 3-4 CMSD Capital Improvement Plan Budget Allocation for Fiscal Year 2013–2014 ............. 11 Figure 3-5 Sewer Lateral Assistance Program Participation in CMSD Service Area........................... 11 Figure 3-6 Percentage of Sanitary Sewer Overflow Volume That Reached Surface Waters in CMSD Service Area, 2009–2012 ............................ 14 Figure 3-7 FOG-Related Sanitary Sewer Overflows Compared to Total Public Sanitary Sewer Overflows in CMSD Service Area, Fiscal Years 2008/09–2011/12 ................................................................................... 15 Figure 3-8 Percentage of Food Service Establishment Employees Not Trained in Kitchen Best Management Practices in CMSD Service Area, Fiscal Years 2008/2009–2011/2012 16 Tables Table 2-1 Costa Mesa Sanitary District Personnel Interviewed .......................................................... 2 Table 3-2 Length of CMSD Sewer Lines Scheduled for Cleaning in the Past 3 Fiscal Years ................ 8 Table 3-3 CMSD Sewer System Rehabilitation Projects ................................................................... 10 Table 3-7 Number of Food Service Establishments Inspected per Frequency in CMSD Service Area ..................................................................................................... 16 Table 4-1 Summary of Sewer System Management Plan Audit Results .......................................... 21 Appendices Appendix A List of SSMP Documents and Data Reviewed Appendix B Example Enforcement Letter Appendix C Example Standard Sewer Permit Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District iii EEC Appendix D Example Sewer Cleaning Work Order Appendix E Enforcement Response Flow Chart Appendix F Summary of Findings Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 1 EEC 1.0 INTRODUCTION The Costa Mesa Sanitary District (CMSD) is an independent special district that provides sewer and solid waste collection service to the City of Costa Mesa, portions of the City of Newport Beach, and portions unincorporated Orange County. The CMSD headquarters are located at 628 West 19th Street and the District Yard is located at 174 West Wilson Street in the City of Costa Mesa, California. The CMSD serves a population of approximately 116,700, as well as public, commercial, industrial, and retail businesses. The CMSD’s sewer system assets consist of 224 miles of mainline sewers, 4 miles of pressurized sewer lines (force mains), and 20 wastewater pumping stations. In 2006, the State Water Resources Control Board adopted statewide sewer regulations, termed waste discharge requirements (WDR), aimed at reducing the occurrence of sanitary sewer overflows (SSOs). In an effort to create uniformity in the way sewer systems are managed across the state, the SWRCB, through the WDR, requires any sewer agency with a sewer system of greater than 1 mile to implement a sewer system management plan (SSMP). To comply with the WDR, the CMSD developed an SSMP establishing policies and procedures to direct sewer system management in its service area and uphold California water quality standards. The SSMP must be audited every two years to assess the effectiveness of the plan and identify improvements that could further increase the plan’s effectiveness in limiting SSOs. The CMSD conducted an initial audit in 2011 that identified necessary revisions to the SSMP. CMSD subsequently updated the SSMP based on the findings of the 2011 audit. Environmental Engineering & Contracting, Inc. (EEC) was retained to support the CMSD in developing and performing a follow-up audit of the SSMP following the results of the initial audit. This report documents the results of the second audit conducted in April and May 2013. 2.0 AUDIT METHODS EEC’s framework for the SSMP audit consists of five key elements: 1) Audit Kick-Off Meeting – A kick-off meeting with CMSD staff was conducted to describe the audit process, define the purpose of the audit, and set expectations for the audit. 2) SSMP Assessment – While the 2011 audit evaluated the conformance of the CMSD’s SSMP to the statewide WDR, the 2013 audit focused on the conformance of the CMSD’s practices to the policies of the SSMP. The audit especially considered changes that have been made in response to the findings and recommendations of the 2011 audit. 3) Documentation/Data Gathering and Review – All available data and previously prepared documents relevant to the SSMP were gathered and reviewed (Appendix A, List of SSMP Documents and Data Reviewed). Information from this review was used to plan staff interviews regarding CMSD practices, policies, and procedures related to the SSMP. 4) Staff Interviews – Multiple interviews with CMSD staff were conducted to assess the level of conformance of CMSD practices with the policies and procedures identified in the SSMP (Table 2-1, Costa Mesa Sanitary District Personnel Interviewed). Personnel were asked to opine on the performance of, and recommend improvements to, the sewer system management program. Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 2 EEC Table 2-1, Costa Mesa Sanitary District Personnel Interviewed Name Title Responsibility Mr. Scott Carroll General Manager Oversight of District operations Mr. Robin Hamers District Engineer Management of design and improvement Mr. Steve Cano Maintenance Supervisor Supervision of maintenance activities Mr. Tim Henson Maintenance Worker Maintenance of pump stations Mr. Joel Ortiz Maintenance Worker Operation of vacuum/jetter truck 5) Report Preparation – A report was prepared documenting the audit findings and recommendations. The report was provided to CMSD staff for review. 2.1 Performance Measures EEC evaluated the CMSD’s sewer system management operations against the established SSMP policies and procedures: 1. Goal 2. Organization 3. Legal Authority 4. Operation and Maintenance Program 5. Design and Performance Provisions 6. Overflow Emergency Response Plan 7. FOG Control Program 8. System Evaluation and Capacity Assurance Plan 9. Monitoring, Measurement, and Program Modifications 10. SSMP Program Audits 11. Communications Program 2.2 Results Reporting To enable the CMSD to focus on improving its sewer system management program, EEC’s findings for each performance area are described in terms of the degree of nonconformance with the SSMP:  A minor nonconformance is a minor deficiency in the CMSD’s sewer management program that would not normally warrant issuance of a notice of violation, fine, or other enforcement action by the regulatory oversight agency. This type of nonconformance usually occurs when an SSMP requirement is not being met and can occur when repeated deficiencies become a trend.  A major nonconformance is a serious deficiency in the CMSD’s sewer management program that may warrant a notice of violation, fine, or other enforcement action by the regulatory oversight agency. This type of nonconformance is normally the result of noncompliance with an applicable State regulation or permit. For each identified nonconformance, EEC recommends specific actions to correct the nonconformance to the extent practicable. Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 3 EEC  A recommended corrective action is a recommended change to CMSD sewer system management operations where existing practices do not conform to the SSMP. Implementation of these actions is expected to improve the efficiency and effectiveness of the SSMP and should be implemented as soon as practicable. 3.0 RESULTS The following sections describe each SSMP performance category, outline performance criteria, and document the CMSD’s conformance to each category. Corrective actions are recommended where the CMSD’s practices do not conform to the SSMP. 3.1 Goals Finding: CMSD is fully conformant to the SSMP in this area. The CMSD measures the effectiveness of its sewer system management program against three goals established by the SWRCB for the SSMP: 1. Provide a plan and schedule to properly manage, operate, and maintain all parts of the sanitary sewer system in order to provide reliable service in the future 2. Reduce and prevent SSOs 3. Help mitigate any SSOs that do occur 3.1.1 Plan and Schedule for Management, Operation, and Maintenance of Sewer System The CMSD has formed a Sewer System Operations Committee composed of directors, engineering staff, field staff, administrative staff, and contractors who meet monthly to discuss the state of the sewer system. The CMSD has established maintenance schedules for sewer lines; pump stations; force mains; siphons; and hot spots, or areas of the sewer that are prone to SSOs and require more frequent cleaning. CMSD monitors the status of these maintenance activities to ensure that designated schedules are being met. In addition, the CMSD has established and implemented a condition assessment plan, Capital Improvement Plan, Inflow and Infiltration (I/I) Reduction Program, Hot Spot Abatement Program, and a Sewer Lateral Assistance Program. The combination of these plans and programs with the established maintenance efforts allows the CMSD to keep SSO incidents consistently low. These plans and programs are discussed in detail in later sections of this audit. 3.1.2 Reduction and Prevention of Sewer System Overflows In 2012, the CMSD experienced a total of four public SSOs (1.8 per 100 miles of sewer) in its service area and recovered 88% of the total volume of spilled wastewater. The SSO rate in 2012 was 42% lower than in 2011 and remained below the State average of 6.2 SSOs for every 100 miles of sewer for similarly sized sewer systems (Figure 3-1, Public Sanitary Sewer Overflows per 100 Miles of Sewer Line in CMSD Service Area, 2009–2012). Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 4 EEC Figure 3-1, Public Sanitary Sewer Overflows per 100 Miles of Sewer Line in CMSD Service Area, 2009–2012 Since 2011, the CMSD has implemented SSO response procedures that have improved response times and increased the volume of spilled wastewater recovered after SSOs. With the exception of one SSO that occurred in 2011, the CMSD consistently recovers more than 80% of wastewater spilled during SSOs (Figure 3-2, Percentage of Sanitary Sewer Overflow Volume Recovered in CMSD Service Area, 2009– 2012). Figure 3-2, Percentage of Sanitary Sewer Overflow Volume Recovered in CMSD Service Area, 2009–2012 In 2010, the CMSD opened the new District Yard at 174 West Wilson Street in Costa Mesa. The District Yard is a centralized storage area located in the heart of Costa Mesa. The centralized location of the District Yard enables CMSD staff to access necessary equipment and respond quickly to SSOs. CMSD attributes its fast SSO response times to the centralized, accessible location of the District Yard. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2009 2010 2011 2012Number of Public SSOs Year SSOs per 100 Miles of Sewer Line 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 % SSO Volume RecoveredSSO Recovery (%) Year Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 5 EEC The CMSD uses closed-circuit television (CCTV) to inspect locations where SSOs previously occurred to determine causes of the SSOs. The CMSD determines the need for repairs, enhances maintenance and source-control efforts, or implements other applicable corrective actions for SSO-prone locations to preclude repeated SSOs. If an SSO event occurs on private property, the CMSD requires the property owner to inspect the private lateral sewer line using CCTV and then works with the property owner(s) to ensure proper corrective actions are taken to prevent reoccurrence. If necessary, the CMSD escalates enforcement, including requirements to clean the private sewer lateral, continued inspection of the private lateral with CCTV, and/or repair the private lateral. The CMSD personnel follow up on enforcement cases through phone calls or by visiting the offices of property owners to ensure that the required actions are being implemented (Appendix B, Example Enforcement Letter). 3.1.3 Areas of Nonconformance to the Sewer System Management Plan No nonconformances related to SSMP goals were identified. 3.1.3.1 Recommended Corrective Actions No corrective actions are recommended at this time. 3.2 Organization Finding: CMSD is fully conformant to the SSMP in this area. The CMSD is in conformance with Section II, Organization, of the SSMP. The WDR requires sewer agencies to appoint Legally Responsible Officials (LRO) to oversee the implementation of the SSMP. The SSMP must include the names and telephone numbers of staff responsible for implementing the elements the SSMP program and must outline the chain of communication for reporting SSOs. The CMSD has adequately defined an organizational structure for sewer system management:  Responsible officials  Lines of authority and responsibilities for the CMSD SSMP program  Chain of Communication for Reporting SSOs The CMSD updated the SSMP in 2011 to reflect the current organizational structure, including the names and telephone numbers of persons responsible for managing the sewer system:  General Manager – Alternate LRO responsible for overall sewer management program and manages SSO reporting process.  District Engineer – LRO responsible for standards and specifications of the sewer system, creation and implementation of the Capacity Assurance Plan and Capital Improvement Plan, reporting SSOs to the California Integrated Water Quality Control Board, and updating and maintenance of CMSD maps.  Maintenance Supervisor – Primary responder for SSOs; responsible for routine operations and maintenance activities, oversight of staff training, and management of equipment and spare parts inventories.  Maintenance Workers – Responsible for general field maintenance activities, including cleaning of enhanced maintenance locations and maintenance of pump stations. Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 6 EEC  Inspector – Responsible for ensuring new construction meets standards, implementation of emergency response, and oversight of contractors hired to work on CMSD facilities. 3.2.1 Areas of Nonconformance to the Sewer System Management Plan No nonconformances related to the CMSD’s organizational structure were identified. 3.2.1.1 Recommended Corrective Actions No corrective actions are recommended at this time. 3.3 Legal Authority Finding: One minor nonconformance identified; one corrective action recommended. The CMSD is in conformance with Section III, Legal Authority, of the SSMP. The WDR requires that sewer agencies have appropriate legal authority to implement and enforce certain elements of the SSMP. The CMSD Operations Code affords the CMSD the required legal authority to implement and enforce key elements of the SSMP:  Prevent illicit discharges into the sanitary sewer (Operations Code Section 6.07.040)  Require that sewers and connections be properly designed and constructed (Operations Code Section 6.01.010)  Ensure access for maintenance, inspection, or repairs for portions of the lateral owned or maintained by the CMSD; not applicable, as the CMSD does not own or maintain laterals  Limit the discharge of fats, oils, and grease (FOG) and other debris that may cause SSOs (Operations Code Section 6.07.040 and Section 6.04.060)  Enforce any violation of its sewer ordinances (Operations Code Title I) The CMSD reviews plumbing plans, inspects the sewer system repairs and new construction, and enforces established policies. The CMSD has applied the necessary enforcement actions to promptly mitigate illicit discharges. While enforcement actions are rarely required, the CMSD has been able to effectively mitigate fats, oils, and grease discharge issues by requiring installation of grease interceptors for several existing facilities that are considered significant contributors to SSOs. Although the CMSD does not own or maintain lateral sewer lines, it can legally require property owners to inspect and repair private lateral sewer lines that connect the private property to the public sewer system (Operations Code Section 6.03). Operations Code Section 6.8.060 states that pretreatment requirements recognized by the Orange County Sanitation District for facilities are set forth in CMSD’s standard sewer permit; however, the standard sewer permit does not mention pretreatment requirements recognized by the Orange County Sanitation District (Appendix C, Example Standard Sewer Permit). 3.3.1 Areas of Nonconformance to the Sewer System Management Plan One minor nonconformance related to sewer system operation and maintenance was identified: a) Standard sewer permits do not mention pretreatment requirements recognized by OCSD. Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 7 EEC 3.3.1.1 Recommended Corrective Actions One corrective action to remedy the identified nonconformance is recommended: a) Update standard sewer permits to identify pretreatment requirements recognized by OCSD. 3.4 Operation and Maintenance Program Finding: Two minor nonconformances identified; two corrective actions recommended. The SSMP outlines five key elements of the CMSD’s sewer system operation and maintenance program:  CMSD sanitary sewer system map  Preventative maintenance plan  Rehabilitation and replacement plan  Education and training  Equipment and replacement parts inventory 3.4.1 CMSD Sanitary Sewer System Map In 2012, CMSD completed development of a geographic information system (GIS) and transitioned hand- drawn sewer system atlases to a GIS-based sewer atlas. The GIS-based atlas shows the location of gravity sewer lines and manholes, pumping facilities, and force main pipelines (Figure 3-2, GIS-Based Sewer Atlas Legend). A separate map showing the location of all storm water conveyance facilities is also available to field staff. Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 8 EEC Figure 3-3, GIS-Based Sewer Atlas Legend Any necessary corrections to the sewer atlas identified by CMSD staff and contractors are provided to the District Engineer for review and, where appropriate, revision of the atlas. In the past, revisions were made by red-lining a master copy of the paper atlas, but they are now made directly to the GIS. 3.4.2 Preventative Maintenance Plan 3.4.2.1 System-Wide Cleaning The CMSD uses a combination of contractors (National Plant Services) and CMSD staff to clean all sewer lines as a preventive maintenance measure. CMSD divided the service area into 62 zones based on the wastewater drainage watersheds and distributed the 62 zones evenly between contractor and CMSD staff. In previous years, the entire sewer system was cleaned once every three years, but in the past year, CMSD increased the cleaning frequency with a target of at least once every two years (Table 3-2, Length of CMSD Sewer Lines Scheduled for Cleaning in Past 3 Fiscal Years). Based on computerized maintenance management system (CMMS) data for work completed to date (77%) and the work remaining, CMSD is evaluating options to achieve its internal target. If adjustments are not made to increase the current cleaning rate, CMSD risks falling short of the goal (Appendix D, Example Sewer Cleaning Work Order). To address this issue, CMSD is considering remedy options that include increasing working hours or requesting additional services from contractors. The contractor has completed its portion of the cleaning. Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 9 EEC Table 3-2, Length of CMSD Sewer Lines Scheduled for Cleaning in Past 3 Fiscal Years Cleaning Frequency Total Length of Sewer Lines Cleaned (feet) Fiscal Year 2010–2011 Fiscal Year 2011–2012 Fiscal Year 2012–2013 Every year 120,240 242,619 246,880 Every two years 95,160 136,920 462,858 Every three years 274,273 240,973 0 3.4.2.2 Hot Spot and Lift Station Maintenance CMSD staff periodically evaluate hot spot locations with CCTV and determine individual cleaning frequencies for these locations. Since 2010, CMSD has reduced the number of hot spot locations in its service area from 95 to 45. The reduction can be attributed to several preventive maintenance measures that include proactive lining of locations susceptible to root intrusion, improved cleaning practices, and detailed analysis of sources of fats, oils, and grease (FOG) discharges to the sewer system. Staff inspect the CMSD’s 20 lift stations on a weekly basis, document pump run times and routine maintenance activities, and further evaluate abnormalities to identify any significant issues. CMSD contracts with JIMNI Systems for emergency response and Xylem, Inc. to conduct comprehensive pump station maintenance. All maintenance activities are documented in journals located at each lift station, and days and times of maintenance are logged in a separate spreadsheet. Work orders are currently not created for lift station maintenance. 3.4.3 Rehabilitation and Replacement Plan 3.4.3.1 Rehabilitation Projects The CMSD has a proactive rehabilitation and replacement program that includes measures for reducing I/I. In 2009, CMSD completed the second CCTV inspection of the entire sewer system to assess the system in detail and identify I/I issues. CMSD subsequently established eight rehabilitation projects to address major issues identified during the CCTV study and incorporated the projects into the SSMP. As of April 2013, the CMSD has completed all rehabilitation projects planned up to 2013 (Table 3-3, CMSD Sewer System Rehabilitation Projects). Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 10 EEC Table 3-3, CMSD Sewer System Rehabilitation Projects Project Number Project Description Projected Completion Date Percentage Completed to Date Budgeted Expense Actual Expenditures 129 Bristol Street Sewer Replacement 6/28/2012 100% $634,324 $611,061 164 Root Control Program 7/2/2012 100% $121,400 $104,570 171 Irvine Pump Station Force Main Repairs 6/8/2012 100% $405,665 $379,087 185 System Wide Sewer Reconstruction Phase I 2/1/2012 100% $1,086,000 $767,275 189 Rehabilitating 6 Sewers Transferred to CMSD 11/24/2011 100% $697,666 $672,700 190 Canyon Force Main Rehabilitation 6/20/2012 100% $141,000 $125,433 191 Emergency Work on Santa Ana 23rd Street Force Mains 12/5/2012 100% $850,000 $758,726.16 192 System Wide Sewer Reconstruction Phase II 4/19/2013 100% $1,115,361 $184,675 Total $5,051,416 $3,603,527.16 3.4.3.2 Capital Improvement Program The CMSD has implemented an Asset Management Plan that tracks life expectancy, expected rehabilitation and reconstruction, and costs for the sewer system. The minimum balance in the fund was established at $5 million. Projects identified in the Asset Management Plan are completed as part of the Capital Improvement Program (CIP). CMSD has allocated $1,960,000 for the CIP for fiscal year 2013/2014. By law, funds from the CIP must be used for maintenance and rehabilitation projects. The CMSD balances funding from the CIP for new sewer system improvement projects that aim to improve the operating efficiency and life expectancy of the entire sewer system. Based on statements from CMSD staff and past performance of the CIP, CMSD has allocated sufficient funds to complete rehabilitation and repair projects planned for fiscal year 2013/2014. CMSD appropriately details each planned project in the CIP and has allocated appropriate funds to those projects (Figure 3-4, CMSD Capital Improvement Program Budget Allocation for Fiscal Year 2013/2014). Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 11 EEC Figure 3-4, CMSD Capital Improvement Program Budget Allocation for Fiscal Year 2013/2014 Upgrades to the force mains will make up the majority of capital improvements planned for 2013/2014. CMSD uses Pipeline Inspection and Condition Analysis Corporation (PICA) technology to assess the condition of force mains. In 2012, CMSD identified two separate force mains (located at 23rd Street and Santa Ana Avenue) requiring rehabilitation; CMSD completed rehabilitation work for the two force mains in 2012. CMSD plans to continue similar assessments on the remaining force main locations as soon as possible, but has not committed to a date for completing the assessments due to the complexity of the work. With the goal of preventing SSOs and potential I/I from private properties, the CMSD implemented a Sewer Lateral Assistance Program (SLAP) in 2007 that provides financial incentives to encourage property owners to repair and rehabilitate private lateral sewer lines. Since 2010, 501 residents have taken part in SLAP to improve their sewer laterals. In 2012, the CMSD contributed $208,876 to homeowners as part of SLAP (Figure 3-5, Sewer Lateral Assistance Program Participation in CMSD Service Area). Figure 3-5, Sewer Lateral Assistance Program Participation in CMSD Service Area 400,000 1,000,000 260,000 150,000 150,000 Westside Pump Station Abandonment Force Main Upgrades Replace Pump Station Equipment Valve & Pipe Replacement For Elden Pump Station Emergency Generator for CMSD Yard 0 50 100 150 200 250 2010 2011 2012 Total Number of Participants Year Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 12 EEC 3.4.4 Staff Training In accordance with SSMP requirements, CMSD staff responsible for operation and maintenance of the sewer system actively participate in education and training activities. The CMSD’s Maintenance Supervisor has acquired Grade 3 certification as a collection system maintenance operator through the California Water Environment Association, and two field personnel have completed Grade 1 operator certification. CMSD personnel routinely attend training seminars and events for continued education and professional development; however, CMSD does not currently document some of these events. In addition, the District Engineer actively directs meetings and events for the Orange County WDR Steering Committee that provide educational opportunities for personnel of CMSD and other agencies. Based on discussions with CMSD staff, CMSD does not regularly provide employee training related to SSO response and SSMP elements. Employees are occasionally trained on how to operate the sewer combination (Sancon) truck, but CMSD does not document the training activities. 3.4.5 Equipment and Replacement Parts Inventory CMSD has developed an inventory of available equipment and replacement parts that are important for performing operations within the CMSD service area. The inventory lists the availability, quantity, and listing date of each part and piece of equipment. The Maintenance Supervisor reviews the inventory periodically and updates the inventory as parts and equipment are used or replaced. 3.4.6 Areas of Nonconformance to the Sewer System Management Plan Two minor nonconformances related to sewer system operation and maintenance were identified: a) CMSD is not currently on pace to complete cleaning of all wastewater drainage watershed sections scheduled for fiscal year 2012/2013 and risks falling short of the target without immediate adjustment. b) All employee training efforts are not documented. 3.4.6.1 Recommended Corrective Actions Two corrective actions are recommended to remedy the identified nonconformances: a) Reevaluate the system-wide cleaning frequency to identify the necessary actions for CMSD to meet the sewer system cleaning commitment. CMSD may consider the following actions to support this goal:  Increase contractor cleaning frequencies.  Add maintenance staff.  Add maintenance equipment.  Reduce the cleaning frequency for segments that do not require annual cleaning. b) Document and track staff training activities. Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 13 EEC 3.5 Design and Performance Provisions Finding: CMSD is fully conformant to the SSMP in this area. CMSD has established design and performance provisions for the installation, rehabilitation, and repair of sewer system assets; the provisions are established in four documents:  Title 7 of the CMSD Operations Code  Costa Mesa Sanitary District Standard Plans and Specifications for the Construction of Sanitary Sewers  Standard Specifications for Public Works Construction (“Green Book”)  American Public Works Association Standard Plans for Public Works Construction In addition, CMSD has standardized procedures for the use of equipment in pumping stations to facilitate maintenance and replacement. All new construction and rehabilitation activities must adhere to the established design standards adopted by CMSD. CMSD tracks each project and logs the construction plans that have been created for each project. CMSD’s written standards are made readily available and accessible to staff members, who refer to these standards when performing repairs or inspections. CMSD is also receptive to new construction and rehabilitation methods that may be more economical and efficient. During interviews, CMSD staff indicated that facility installations and repairs are regularly tested and inspected. Documentation provided by CMSD shows that installation and repair procedures are documented and tracked. Documentation also shows that CMSD keeps records of plan reviews conducted for new business construction and where property owners have been required to alter plans to comply with CMSD design standards. 3.5.1 Areas of Nonconformance to the Sewer System Management Plan No noncomformances with SSMP design and performance provisions were identified. 3.5.1.1 Recommended Corrective Actions No corrective actions are recommended at this time. 3.6 Overflow Emergency Response Plan Finding: One minor nonconformance identified; one corrective action recommended. The SSMP requires six key elements for the CMSD Overflow Emergency Response Plan:  SSO notification procedures  Appropriate response to all overflows  Regulatory notification procedures  Oral notification  Written notification  Training procedures Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 14 EEC  Emergency response operations  Program to contain and prevent sewage discharges to surface waters CMSD’s criteria for determining Category 1 and Category 2 (level of severity) SSOs, as well as procedures for response and reporting of each SSO, are consistent with the SSMP. CMSD has also developed a separate emergency response plan to address sewer pumping stations. Based on the documentation review, CMSD’s internal SSO records are consistent with the California Integrated Water Quality Control Board’s data. For each SSO occurrence, CMSD notified the proper authorities and submitted all reports pursuant to the documented procedure. CMSD has been increasingly effective in containing spills and preventing sewage from reaching surface waters (Figure 3-6, Percentage of Sanitary Sewer Overflow Volume That Reached Surface Waters in CMSD Service Area, 2009–2012). Figure 3-6, Percentage of Sanitary Sewer Overflow Volume That Reached Surface Waters in CMSD Service Area, 2009–2012 Based on interviews with CMSD staff, staff members keep a copy of the SSO Emergency Response Plan in each service vehicle and have read the plan; however, CMSD staff do not lead training activities for SSO response procedures or volume estimations. 3.6.1 Areas of Nonconformance to the Sewer System Management Plan One minor nonconformance related to the CMSD overflow and emergency response plan was identified: a. CMSD does not conduct routine refresher training for staff on SSO response procedures. 3.6.1.1 Recommended Corrective Actions One corrective action is recommended to remedy the identified nonconformance: a. Conduct and document annual employee training for SSO response procedures. 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 % Reached Surface Waters Year To Surface Waters (%) Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 15 EEC 3.7 FOG Control Program Finding: CMSD is fully conformant to the SSMP in this area. The SSMP requires seven key elements for the CMSD FOG Control Program:  Public education outreach program  FOG disposal plan  Legal authority to prohibit discharges to the system  Grease removal device requirements  Inspection of grease-producing facilities  Cleaning schedule for sewer system sections subject to FOG blockages  Source control measures for enhanced maintenance areas Based on the historically low number of FOG-related SSOs in the CMSD service area, CMSD’s FOG Control Program is effective at preventing FOG accumulation in the sewer system and FOG-related SSOs. In the past four years, CMSD experienced relatively few FOG-related SSOs compared to the total number of SSOs; this ratio can be attributed to a successful FOG Control Program (Figure 3-7, FOG-Related Sanitary Sewer Overflows Compared to Total Public Sanitary Sewer Overflows in CMSD Service Area). Figure 3-7, FOG-Related Sanitary Sewer Overflows Compared to Total Public Sanitary Sewer Overflows in CMSD Service Area, 2009–2012 3.7.1 Public Education and Outreach Program In 2005, CMSD began providing all identified food service establishments (FSEs) in its service area with educational and outreach materials, including the FOG Program Rules and Regulations, regarding the proper disposal of FOG generated in their facilities. These materials are still provided to each FSE as needed during routine FOG inspections. The educational materials are also available on the CMSD’s website (http://www.cmsdca.gov/index.php?option=com_content&view=article&id=114&Itemid=409). 0 1 2 3 4 5 6 7 8 2009 2010 2011 2012Number of Public SSOs Year Total Public SSOs FOG Related Public SSOs Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 16 EEC 3.7.2 Inspection of Grease-Producing Facilities Each FSE within the CMSD service area is supposed to be inspected at least once every two years; however, higher-risk FSEs, such as those with grease-removal equipment or those associated with enhanced maintenance locations that are prone to sewer blockages, are inspected more frequently. Seventy-five FSEs were recently identified through annual reviews of Orange County Health Care Agency lists and have been prioritized accordingly (Table 3-7, Number of Food Service Establishments Inspected per Frequency in CMSD Service Area). Table 3-7, Number of Food Service Establishments Inspected per Frequency in CMSD Service Area Quarterly Semiannual Annual Biennial Recently Identified FSEs 46 43 121 194 75 Among the FOG Control Program requirements, CMSD requires FSE owners to train their employees on kitchen best management practices for FOG. Due to frequent inspection of FSEs, the percentage of FSEs not complying with employee training requirements has remained low from year to year (Figure 3-8, Percentage of FSE Employees Not Trained in Kitchen Best Management Practices in CMSD Service Area, Fiscal Years 2008/2009–2011/2012). However, high turnover among FSE employees has prevented CMSD from obtaining 100% compliance from FSEs. In addition, in fiscal year 2010/2011, CMSD identified a large number of new facilities from the Orange County Health Care Agency list whose employees required training on kitchen best management practices. Figure 3-8, Percentage of Food Service Establishment Employees Not Trained on Kitchen Best Management Practices in CMSD Service Area, Fiscal Years 2008/2009–2011/2012 0 10 20 30 40 50 60 70 80 90 100 2008/2009 2009/2010 2010/2011 2011/2012Employees (%) % Noncompliant Employees Fiscal Year Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 17 EEC 3.7.3 Legal Authority to Prohibit Discharges to the System Where additional enforcement of the FOG Control Program is required, Sections 6.07.040 and 6.04.060 of the Operations Code provide the CMSD with the legal authority to enforce the FOG Program Rules and Regulations. In some instances in 2012, CMSD issued enforcement letters to FSEs and required one FSE to attend a CMSD Board of Directors hearing to discuss compliance issues. CMSD has adopted an enforcement flow chart to guide FSE enforcement procedures (Appendix E, Enforcement Response Flow Chart); however, CMSD does not have written enforcement procedures for responding to FOG noncompliance. 3.7.4 Grease-Removal Device Requirements CMSD requires all new FSEs to install a grease interceptor, which must first be approved by CMSD. In addition, existing FSEs that have been identified to cause or contribute to sewer system blockages are required to install a grease interceptor. CMSD is receptive to alternative grease-control technologies, particularly for facilities with physical constraints (i.e., space, slope) that make installation of traditional interceptors impracticable. 3.7.5 Cleaning Schedule for Sewer System Sections Subject to FOG Blockages and Source- Control Measures for Enhanced Maintenance Areas CMSD identifies sewer locations subject to FOG accumulation and designates the sewer in that area as a hot spot (requires cleaning more than once per year). CMSD staff routinely monitor hot spot locations to identify and mitigate the cause of FOG accumulation. Where applicable, structural repairs or escalated source-control measures are implemented to reduce the maintenance frequency for hot spots. 3.7.6 FOG Disposal Plan Once a grease interceptor is pumped, pumping companies can take grease waste to the Orange County Sanitation District’s FOG waste receiving facility. In addition, some of the larger pumping companies have their own treatment facilities on-site that receive FOG waste. In 2011, CMSD implemented a residential FOG recycling program. Residents can deliver grease waste to the Orange Coast College Recycling Center, which is open 7 days a week. Over 1,000 gallons of residential grease have been collected at the recycling center. 3.7.7 Areas of Nonconformance to the Sewer System Management Plan No noncomformances related to the FOG Control Program were identified. 3.7.7.1 Recommended Corrective Actions No corrective actions are recommended at this time. Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 18 EEC 3.8 System Evaluation and Capacity Assurance Plan Finding: CMSD is fully conformant to the SSMP in this area. SSMP outlines four key elements of the CMSD’s System Evaluation and Capacity Assurance Plan:  Evaluation  Design criteria  Capacity enhancement measures  Capital Improvement Program schedule 3.8.1 Evaluation CMSD’s Sewer Master Plan, last updated in 2005, includes a hydraulic capacity analysis; CMSD has addressed all deficiencies identified through this analysis. The CMSD plans to update the Sewer Master Plan upon completion of GIS-based flow modeling development. In addition, CMSD routinely analyzes pump station data to identify trends in sewer flow changes that have the potential to become hydraulic capacity issues, including indicators of I/I. 3.8.2 Design Criteria The CMSD uses industry-standard design criteria that state that sewer lines up to 18 inches in diameter should not flow more than half full during peak wet weather and lines 21 inches in diameter or larger should not flow more than three quarters full. CMSD is planning to use the new GIS-based flow modeling capabilities to evaluate whether sewer lines are exceeding standard capacities. According to interviews with the District Engineer, CMSD will conduct this analysis during the next Sewer Master Plan update scheduled for 2014. 3.8.3 Capacity Enhancement Measures In 2011, CMSD established a program to plug and seal manholes located in low-lying gutters and alley areas to minimize storm-water inflow. To date, CMSD has plugged and sealed 1,021 manholes; 734 manholes remain candidates to be plugged and sealed. 3.8.4 Capital Improvement Plan Schedule The 2005 Sewer Master Plan identifies CIP projects to be completed over 10 years. As discussed in Sections 3.4.3.1 and 3.4.3.2, CMSD has completed the majority of identified CIP projects and has scheduled the remaining projects for the 2013/2014 fiscal year. According to the District Engineer, the updated Sewer Master Plan may provide a CIP schedule for the next 10 years. 3.8.5 Areas of Nonconformance to the Sewer System Management Plan No nonconformances related to system evaluation and capacity assurance were identified. Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 19 EEC 3.8.5.1 Recommended Corrective Actions No corrective actions are recommended at this time. 3.9 Monitoring, Measurement, and Program Modifications Finding: CMSD is fully conformant to the SSMP in this area. The CMSD established the Sewer System Operations Committee comprising CMSD staff, Board of Directors members, subcontractors, and consultants who meet monthly to evaluate the operating effectiveness of the sewer system programs. During the meetings, the committee members discuss preventive maintenance activities, SSO data, and funding issues. In addition, the committee established a subcommittee that meets quarterly to review areas that require more frequent preventive maintenance activities. CMSD reviews all elements of the SSMP annually and updates the SSMP document as needed. The SSMP was last updated in 2013 to reflect the current conditions of the CMSD. 3.9.1 Areas of Nonconformance to the Sewer System Management Plan No nonconformances related to the program monitoring, measurement, and modifications were identified. 3.9.1.1 Recommended Corrective Actions No corrective actions are recommended at this time. 3.10 SSMP Program Audit Finding: CMSD is fully conformant to the SSMP in this area. CMSD has conducted the required SSMP audits. The first audit was conducted in 2011 and covered all sections of the SSMP. Six minor nonconformances were identified in 2011:  The SSMP did not reflect the current organizational structure of CMSD.  The SSMP did not reflect the current Operations Code section numbers.  The miles of sewer reported in California Integrated Water Quality System did not match the actual miles of sewer lines for CMSD.  The SSMP did not reflect usage of the GIS or CMMS.  Field staff had not read and signed off on the SSMP and SSO Emergency Response Plan.  The SSO Emergency Response Plan was not present in each CMSD field vehicle. As of the 2013 audit, CMSD addressed each noncompliance identified in 2011 within the established time frame. CMSD addressed most of the noncompliances during the SSMP updates in June 2011 and 2013. 3.10.1 Areas of Nonconformance to the Sewer System Management Plan No nonconformances related to the SSMP program audits were identified. Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 20 EEC 3.10.1.1 Recommended Corrective Actions No corrective actions are recommended at this time. 3.11 Communications Program Finding: CMSD is fully conformant to the SSMP in this area. The CMSD posted the updated SSMP on its website (http://cmsdca.gov) and has certified the SSMP on the State’s California Integrated Water Quality System website. The SSMP is always available to any interested party; CMSD will consider any comments or recommendations made by outside organizations. 3.11.1 Areas of Nonconformance to the Sewer System Management Plan No nonconformances related to the CMSD’s communications program were identified. 3.11.1.1 Recommended Corrective Actions No corrective actions are recommended at this time. 4.0 SUMMARY CMSD developed a comprehensive SSMP in compliance with the State WDR. Based on personnel interviews, documentation review, and consistently low number of SSO events, the CMSD has effectively implemented the SSMP to reduce and prevent SSOs within CMSD service area. CMSD continually evaluates the condition of its sewer system assets and conducts routine preventive maintenance to ensure the system is functioning efficiently. However, the current audit identified several areas in which the CMSD’s sewer system management practices are not consistent with the SSMP (Table 4-1, Summary of Sewer System Management Plan Audit Results). No major nonconformances were identified; however, 4 minor nonconformances, with 4 recommended corrective actions, were identified. Most of the nonconformances are due to the recent implementation of GIS and CMMS systems, CMSD’s more proactive approach to sewer cleaning frequencies, and CMSD’s in-depth analysis of potential FSEs that were not previously inspected. Based on interviews with CMSD staff, EEC anticipates that CMSD will be able to address the identified nonconformances within the 2013/2014 fiscal year. EEC has recommended corrective actions to address nonconformance areas and anticipates that CMSD’s sewer system management operations will satisfy the SSMP once the recommended corrective actions are fully implemented (Appendix F, Summary of Findings). Waste Discharge Requirements Sewer System Management Plan 2013 Audit June 18, 2013 W2489.01 Costa Mesa Sanitary District 21 EEC Table 4-1, Summary of Sewer System Management Plan Audit Results Sewer System Management Plan Section Finding Section 1, Goals In Conformance Section II, Organization In Conformance Section III, Legal Authority Minor Nonconformance Section IV, Operations and Maintenance Minor Nonconformance Section V, Design and Performance Provisions In Conformance Section VI, Overflow Emergency Response Plan Minor Nonconformance Section VII, FOG Control Program In Conformance Section VIII, System Evaluation and Capacity Assurance Plan In Conformance Section IX, Monitoring, Measurement, and Program Modifications In Conformance Section X, SSMP Program Audits In Conformance Section XI, Communications Program In Conformance APPENDIX A LIST OF SSMP DOCUMENTS AND DATA REVIEWED SSMP AUDIT PROGRAM REQUESTED DOCUMENTS Hard Copy • Sewer System Management Plan (2013) • Sewer Master Plan o 2009‐2010 o 2005 • CIPP 2010 ‐ 2014 • Sewer System I/I Evaluations • SSO Data o Reporting figures • SSO Emergency Response Plan o Sewer Pumping Stations o Reporting guidelines o Emergency call list • Sewer System Committee Meeting Minutes • Flow Monitoring Data and Capacity Evaluations for Pump Stations • Certificates • Updated Hot Spot List • Plan Review Procedures and Documents • Operations Code Digital Copy • Cleaning History • FOG Inspection Information o FOG Control Program Manual (2004) o Ordinance o Slides and Healthcare Data o Inspections Conducted • Strategic Plan 2010‐2015 • Education materials (No More Wipes letters, etc.) • Updated Hot Spot List • Plan Review Procedures and Documents • Operations Code • Equipment and Spare Parts Inventory • Annual Report (2012) • Plans and Specs for Construction/Rehab • S.L.A.P. Participation Spreadsheet • Pumping Station Maintenance History APPENDIX B EXAMPLE ENFORCEMENT LETTER APPENDIX C EXAMPLE STANDARD SEWER PERMIT SEWER PERMIT BUILDING ADDRESS: CITY: STATE: CA ZIP: PARCEL NO: PROPERTY OWNER NAME: PHONE NO.: CONTRACTOR NAME: PHONE NO.: CONTRACTOR ADDRESS: CITY: STATE: CA ZIP: STATE LICENSE NO.: CITY BUSINESS LICENSE NO.: WORK TO BE DONE: I hereby acknowledge that I have read this application and state the above is correct and agree to comply with State laws, City and County ordinances and Sanitary District ordinances pertaining to sanitary sewers. I certify I possess the above valid State of California classification or am legal owner of the property described above. ________________________________ Signature of Permittee Date The Costa Mesa Sanitary District shall maintain and provide the following endorsements on the additional insured endorsement form used by the contractor’s insurance company while work is being performed under this permit: “The Costa Mesa Sanitary District and its elected and appointed boards, officers, agents, and employees are additional insured and its respect to this project and other insurance maintained by the Costa Mesa Sanitary District Shall be excess and not contributing with the insurance provided by this policy.” _______________________________________________________________________________ Office Use Only PERMIT FEE: $ PERMIT NO.: OTHER FEE: $ PERMIT ISSUED BY: TOTAL: $ INSPECTED BY: Date APPROVED: YES____ NO ____ Date NOTES: ALL SEWER CONNECTIONS MUST BE INSPECTED – CALL (714) 290-6831 628 W. 19th Street, Costa Mesa, CA 92627 Costa Mesa Sanitary District APPENDIX D EXAMPLE SEWER CLEANING WORK ORDER Costa Mesa Sanitary District - Work Order November 19, 2012 Work Order #16164 Clean Main Priority 3 Supervisor CANO, STEVE Location Contractor Address Comments Map attached, pipes to be cleaned are highlighted vibrant blue. Select CCTV observations also appear on map, labeled with distance from downstream manhole. Legend attached. Instructions Always clean upstream pipe segments before advancing downstream. Projected Start Date 7/1/2012 Actual Start Date Projected Finish Date 6/30/2013 Actual Finish Date Associated Asset IDs Facility Condition Assessment Notes (Debris, Grease, Roots: Zero, Light, Moderate, Heavy) 138790 138792 138793 138794 138797 Debris: Z L M H Grease: Z L M H Roots: Z L M H Debris: Z L M H Grease: Z L M H Roots: Z L M H Debris: Z L M H Grease: Z L M H Roots: Z L M H Debris: Z L M H Grease: Z L M H Roots: Z L M H Debris: Z L M H Grease: Z L M H Roots: Z L M H Work Order Lifecycle Requested By Initiated By GALLEGOS, RAMON On 11/6/2012 5:01:35 PM Submitted To ORTIZ, JOEL On 11/6/2012 5:01:36 PM Opened By On Work Completed By Closed By On Costs Labor 0 Materials 0 Equipment 0 Permits 0 Total 0 Page 1 of 2 Costa Mesa Sanitary District - Work Order November 19, 2012 138799 138801 Debris: Z L M H Grease: Z L M H Roots: Z L M H Debris: Z L M H Grease: Z L M H Roots: Z L M H Labor Estimated Name Dates Hours / Units - Actual Name Dates Hours / Units - Field Crew Comments Page 2 of 2 APPENDIX E ENFORCEMENT RESPONSE FLOW CHART Routine Inspection Conducted at FSENoncompliance Requiring Follow-up1Identified?YesNoFirst Follow-up Inspection ConductedNoncompliance Requiring Follow-up1Identified?NoYesLetter Issued to FSE Specifying Required Corrective Actions and Due Dates for CorrectionSecond Follow-up Inspection ConductedNoncompliance Requiring Follow-up1Identified?NoYesThird Follow-up Inspection ConductedNoncompliance Requiring Follow-up1Identified?Issue Fine or Hearing for Termination of ServiceInspection Frequency is IncreasedNoYes1. Noncompliance Requiring a Follow-up Include:FOG > 25%Dislodged Baffle TubeDamaged Baffle WallInaccessible for Inspection (unable to open lids)Grinder InstalledReview FSE Enforcement at SSSC MeetingEscalated FSE Enforcement Required2. Noncompliance Requiring Immediate Elevated Enforcement Include:FOG > 80%Restricted EffluentEvidence of Recent SSOYesNoNoncompliance Requires Immediate Elevated Enforcement2?Require Correction of Noncompliance Immediately. YesNo4/13/2012 APPENDIX F SUMMARY OF FINDINGS Summary of Corrective Actions Costa Mesa Sanitary District Sewer System Management Plan 2013 Audit Report Section Section Title Waste Discharge Requirement SSMP Section Minor Nonconformane Follow-Up Action Target Date for Correction Date Corrected 3.1 Goal Create goals specific to system operations and SSO reduction.I N/A N/A N/A N/A 3.2 Organization Identify LROs, management personnel, and chain of communication for reporting SSOs.II N/A N/A N/A N/A 3.3 Legal Authority Legal Authority to prevent illicit discharges to the sewer system. Sewer connections are properly designed and constructed. Ensure access to laterals/mains. Limit the discharge of FOG. Enforce violations of its sewer ordinances. III Standard sewer permits do not mention pretreatment requiments recognized by OCSD Update the Standard Sewer Permit to mention the pretreatment requirements recognized by OCSD December 2013 CMSD is not currently on pace to complete cleaning of all wastewater draining watershed sections scheduled for fiscal year 2012/2013, and risks falling short of the target without immediate adjustment Reevaluate the whole-system cleaning frequency to identify the necessary actions to meet the sewer cleaning commitment. July 2013 All employee training efforts are not documented Document and track staff training efforts July 2013 3.5 Design and Performance Provisions Create standards for installation, rehabilitation and repair; and for the inspection and testing of new and rehabilitated facilities. V N/A N/A N/A N/A 3.6 Overflow Emergency Response Plan Provide SSO notification procedures, appropriate response to all overflows, regulatory notification procedures, training procedures, emergency response operations, program to contain and prevent sewage discharge to surface waters. VI CMSD does not conduct regular trainign for staff regarding SSO response procedures Conduct regular training for SSO response procedures December 2013 3.8 System Evaluation and Capacity Assurance Plan Create a system evaluation and capacity assurance plan which includes; evaluation, design criteria, capacity enhancement measures, and CIP schedule VIII N/A N/A N/A N/A 3.9 Monitoring, Measurement, and Program Modifications Maintain relevant information to prioritize SSMP activities. Monitor the implementation and effectiveness of the SSMP. Assess the success of the preventative maintenance program. Update program elements as necessary. Identify and illustrate SSO trends. IX N/A N/A N/A N/A 3.10 SSMP Program Audit Conduct periodic audits at a minimum of once every two years.X N/A N/A N/A N/A 3.11 Communication Program Enrollees shall communicate with the public on the development, implementation, and performance of the SSMP. XI N/A N/A N/A N/A VII Enrollees must implement a FOG source control program in order to reduce the accumulation of FOG in the sewer system and FOG related SSOs. FOG Control Program3.7 IV Maintain an up-to-date map, develop a preventative maintenance plan, develop a rehabilitation and replacement plan. Provide education and training. Provide equipment and spare parts inventory. Operation and Maintenance Program3.4 N/A N/A N/A N/A W2489.01 Costa Mesa Sanitary District Page 1 of 2 EEC 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 To: Board of Directors Via: Scott Carroll, General Manager From: Anna Sanchez, Administrative Service Manager Date: June 27, 2013 Subject: Memorandum of Understanding with County of Orange for Use of AlertOC Notification System Summary AlertOC is Orange County’s public mass notification system utilized to notify the public of emergency events and actions that should be taken in response to those events. AlertOC is currently used by the County of Orange, most Orange County cities, and most of the water districts. Wastewater utilities are being invited to participate starting this year. AlertOC is funded and managed by the Orange County Sheriff’s Department Emergency Management Division. Staff Recommendation Staff recommends the Board of Directors authorize the General Manager to enter into a Memorandum of Understanding (MOU) between the County of Orange and Costa Mesa Sanitary District for use of AlertOC, a countywide mass notification system. Analysis AlertOC is a public mass notification system that was initiated and is paid for by the County of Orange. AlertOC that is used to notify residents and businesses in the event of an emergency in which the public should take protective action, such as evacuation orders or boil water notifications. The system utilizes two databases for public notifications. The ITEM NO. 17 Board of Directors June 27, 2013 Page 2 of 3 first is what is called E911 data. E911 data includes all landline phone numbers provided by the telephone companies. The second data set comes from self registration. The self- registration portal, www.alertoc.com, allows for residents and people who work within Orange County to register additional contact information such as emails, cell phone numbers, and to opt into receiving text messages as well. In order to utilize the system each agency is required to sign a Memorandum of Understanding (attached) with the County and authorized users are required to attend training on the use of the system. The MOU is largely to ensure the proper use of the system and more specifically the E911 data. E911 data can only be used for emergency notifications and cannot be used for any other purpose. Agencies are also strongly encouraged to create an internal policy on use of the system, or to include its use in their Emergency Operations Plan. Currently, out of the thirteen water special districts, nine water utilities have chosen to participate in the program. It is expected that these same nine water utilities will continue to participate, as well as an additional four wastewater agencies. City Water Departments are covered by City wide participation in the program. Expected Utility Participation: 1. Costa Mesa Sanitary District 2. East Orange County Water District 3. El Toro Water District 4. Midway City Sanitary District 5. Moulton Niguel Water District 6. Municipal Water District of Orange County 7. Orange County Sanitation District 8. South Coast Water District 9. Serrano Water District 10. Santa Margarita Water District 11. Trabuco Water District 12. Yorba Linda Water District 13. South Orange County Wastewater Authority The MOU will cover use of the AlertOC system from July 1, 2013 through June 30, 2017. Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Element 5.0., Administrative Management, which states: Board of Directors June 27, 2013 Page 3 of 3 “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 has reviewed the MOU. Financial Review AlertOC is funded and managed by the Orange County Sheriff’s Department Emergency Management Division. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 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 Attachment A: 2013 AlertOC MOU Attachment B: Exhibit A as referenced in the 2013 AlertOC MOU Attachment C: Exhibit B as referenced in the 2013 AlertOC MOU Attachment D: Exhibit C as referenced in the 2013 AlertOC MOU Page 1 of 5 MEMORANDUM OF UNDERSTANDING BETWEEN THE COUNTY OF ORANGE AND PARTICIPANTS FOR USE OF COUNTYWIDE MASS NOTIFICATION SYSTEM This Memorandum of Understanding, hereinafter referred to as “MOU,” dated_______________, which date is stated for purposes of reference only, is entered into by and between the County of Orange, a political subdivision of the State of California, hereinafter referred to as “COUNTY,” and the undersigned municipalities, public universities and water agencies responsible for protecting a resident population and maintaining a dedicated public safety answering point (PSAP) within the County of Orange, hereinafter referred to individually as “PARTICIPANT” or collectively as “PARTICIPANTS.” This MOU is intended to establish governance and terms of use for a Countywide Public Mass Notification System. RECITALS WHEREAS, COUNTY is sponsoring a Countywide Public Mass Notification System (“System”) for the primary intent of providing timely communication to the public during times of emergency; and WHEREAS, the County is making use of the System available to all cities and agencies within the County of Orange who have the responsibility for protecting a resident population and maintaining a dedicated public safety answering point (PSAP); and WHEREAS, COUNTY entered into Orange County Agreement No. MA-060-13011688 (“Agreement”) with Blackboard Connect, Inc., for the provision of Public Mass Notification System Services, on or about May 21, 2013, attached hereto as Exhibit A, to disseminate critical, time-sensitive emergency information to COUNTY’s citizens and businesses through phone and e-mail devices for emergency notification purposes; and WHEREAS, Blackboard Connect, Inc. agrees to provide to PARTICIPANTS the services agreed to by Blackboard Connect, Inc. and COUNTY as contained under the Agreement in exchange for abiding by the terms set forth in this MOU; and WHEREAS, PARTICIPANTS agree to uphold the same terms and conditions of the Agreement, to use the System in compliance with all usage agreements identified and incorporated herein as Exhibit A (Orange County Agreement No. MA-060-13011688), Exhibit B (Countywide Public Mass Notification System Policy and Guideline) and Exhibit C (Nondisclosure Document), and the terms of this MOU to receive the benefits under the Agreement. Page 2 of 5 NOW, THEREFORE, the parties agree as follows: I. Definitions: “Agreement” shall refer to Orange County Agreement No. MA-060-13011688 between COUNTY and Blackboard Connect, Inc. The Agreement is attached to this MOU as Exhibit A. “Countywide” shall mean all geographic locations in Orange County, California. “Contact information” shall mean PARTICIPANT and public contact data stored in the System for the purpose of disseminating communication in accordance with this MOU and its Exhibits. “Emergency” shall include, but not be limited to, instances of fire, flood, storm, epidemic, riots, or disease that threaten the safety and welfare of the citizens and property located within the boundaries of the COUNTY and PARTICIPANTS’ respective jurisdictions. “Emergency information” shall mean information relevant to the safety and welfare of recipients in the event of an Emergency. Such information shall include but not be limited to instructions and directions to alleviate or avoid the impact of an emergency. “Emergency notification situation” shall mean instances when emergency information is to be distributed through the System. “Non-emergency information” shall refer to information that is not relevant to the safety and welfare of recipients, but has been deemed to be of significant importance to a PARTICIPANT’s jurisdiction to justify the use of the System to distribute such information. “Non-emergency notification situation” shall mean instances when a PARTICIPANT deems non-emergency information to be of significance to a PARTICIPANT’S jurisdiction and the PARTICIPANT uses the System to distribute such information. “System” shall mean the Public Mass Notification System as provided by Blackboard Connect, Inc. to COUNTY under the Agreement. The System is designed to disseminate information by utilizing common communications, i.e. telephone and e-mail communications to citizens and businesses as permitted under the Agreement. II. Hold Harmless: PARTICIPANT will defend, indemnify and save harmless COUNTY, its elected officials, officers, agents, employees, volunteers and those special districts and agencies which COUNTY's Board of Supervisors acts as the governing Board ("COUNTY INDEMNITIES") from and against any and all claims, demands, losses, damages, expenses or liabilities of any kind or nature which COUNTY, its officers, agents, employees or volunteers may sustain or incur or which may be imposed upon Page 3 of 5 them for injury to or death of persons, or damages to property as a result of, or arising out of the acts, errors or omissions of PARTICIPANT, its officers, agents, employees, subtenants, invitees, or licensees. COUNTY will defend, indemnify and save harmless PARTICIPANT, its officers, agents, employees and volunteers from and against any and all claims, demands, losses, damages, expenses or liabilities of any kind or nature which PARTICIPANT, its officers, agents, employees or volunteers may sustain or incur or which may be imposed upon them for injury to or death of persons, or damages to property as a result of, or arising out of the acts, errors or omissions of COUNTY, its officers, agents, employees, subtenants, invitees, or licensees. III. Term: This MOU shall be in effect from July 1, 2013 and shall expire on June 30, 2017, unless COUNTY funding of the System becomes unavailable at which time PARTICIPANTS will be given six-month advance notice per the termination terms found in Paragraph IX. Termination, below. IV. Scope of Services: PARTICIPANTS shall receive from Blackboard Connect, Inc. the same services provided by Blackboard Connect, Inc. to the COUNTY under the Agreement. COUNTY’s involvement in this MOU is limited only to extending the availability of the terms and conditions of the Agreement to the PARTICIPANTS. PARTICIPANTS and Blackboard Connect, Inc. acknowledge and agree that any actions taken by Blackboard Connect, Inc. or any PARTICIPANT under the scope of the Agreement and this MOU are the responsibility of Blackboard Connect, Inc. and the respective PARTICIPANT. V. Use: Use of the System and its data, including but not limited to contact information, is governed by the terms, conditions and restrictions set forth in the terms provided in Exhibit A, B and C. All PARTICIPANTS agree to the terms and conditions contained in Exhibits A, B, and C. COUNTY retains the right to update Exhibits A, B, and C as needed, in whole or in part, during the life of this MOU. Any and all revised Exhibits will be distributed to PARTICIPANTS within five business days of the revision date and shall be incorporated into this MOU. Such modifications to the Exhibits shall not be deemed an amendment for the purposes of Paragraph X. Amendments, below. PARTICIPANT, including each of its agents, officers, employees, and representatives who are given access to the System, agrees to abide by the individual terms of each agreement and the additional conditions incorporated herein. Breach of use may result in individual user or PARTICIPANT access account termination. The scope of services under the Agreement is limited to using the System to distribute business communication to PARTICIPANT inter-departmental resources and/or emergency information to the public in emergency notification situations. PARTICIPANTS may arrange for the use of the System with Blackboard Connect, Inc. to distribute non-emergency information. However, any agreement reached between Blackboard Connect, Inc. and any PARTICIPANT for the use of the System for non- emergency notification situations shall exist only between Blackboard Connect, Inc. and Page 4 of 5 the PARTICIPANT. In accordance with Paragraph II. Hold Harmless, above, COUNTY shall be held harmless and indemnified by the PARTICIPANTS and Blackboard Connect, Inc. from any actions whatsoever arising from any PARTICIPANT’s use of the System for non-emergency services. All PARTICIPANTS have read and accept the terms and conditions found in COUNTY’s “Countywide Public Mass Notification System Policy and Guideline (June 30, 2008)”, attached hereto as Exhibit B. VI. Compensation: All compensation owed by PARTICIPANTS to Blackboard Connect, Inc. shall be made between PARTICIPANTS and Blackboard Connect, Inc. VII. Notice: Any notice or notices required or permitted to be given pursuant to this MOU shall be submitted in writing and delivered in person, via electronic mail or via United States mail as follows: COUNTY: County of Orange – Sheriff-Coroner Department Emergency Management Bureau Attn: Donna Boston / Emergency Management 2644 Santiago Canyon Road Silverado, CA 92676 PARTICIPANTS: Each PARTICIPANT shall provide to COUNTY a contact person and notice information upon entering into this MOU. Notice shall be considered tendered at the time it is received by the intended recipient. VIII. Confidentiality: Each party agrees to maintain the confidentiality of all related records and information of the other party pursuant to all statutory laws relating to privacy and confidentiality that currently exist or exist at any time during the term of this MOU. All information and use of the System shall be in compliance with California Public Utilities Code section 2872. IX. Termination: The COUNTY or any PARTICIPANT may terminate its participation in this MOU at any time for any reason whatsoever. If any PARTICIPANT chooses to terminate its participation in this MOU, the terminating PARTICIPANT shall provide written notification in accordance with Paragraph VII. Notice, above. Such notice shall be delivered to the COUNTY 30 days prior to the determined termination date. A terminating PARTICIPANT shall uphold the obligations contained in Paragraph II. Hold Harmless in its entirety and Paragraph VIII. Confidentiality, above. Upon termination, PARTICIPANT agrees to inform each PARTICIPANT user to stop using the System and to relinquish all System access, user accounts, passwords and non-PARTICIPANT data to COUNTY immediately. PARTICIPANT may choose to delete and/or export non- public PARTICIPANT (aka inter-departmental) owned contact information, as well as, export resident provided contact information prior to termination. Resident provided Page 5 of 5 contact information acquired through PARTICIPANT sources shall remain in the System and available to the County for regional or multi-jurisdictional notification use as needed. Should COUNTY discontinue its funding for the System, which shall be grounds for COUNTY’s termination of its participation, COUNTY shall give PARTICIPANTS six- month advance courtesy notice prior to terminating the Agreement. All other reasons for terminating by COUNTY shall be valid upon providing notice to the PARTICIPANTS. Upon termination by COUNTY, this MOU shall no longer be in effect. Termination by a PARTICIPANT shall not be deemed an amendment to this MOU as defined in Paragraph X. Amendments, below. X. Amendments: This MOU may be amended only by mutual written consent of the parties involved unless otherwise provided for in this MOU. The modifications shall have no force and effect unless such modifications are in writing and signed by an authorized representative of each party. Termination by a PARTICIPANT or adding a new PARTICIPANT to this MOU shall not be deemed an amendment. IN WITNESS WHEREOF, the parties hereto have caused this Memorandum of Understanding to be executed by their duly authorized representatives as of the dates opposite the signatures. COUNTY OF ORANGE By: ___________________________________ Date: _________________ Sandra Hutchens, Sheriff-Coroner County of Orange PARTICIPANT: __________________________________________ By: ___________________________________ Date: _________________ Authorized Signature ___________________________________ Print Name and Title Page 1 of 32 Page 2 of 32 Page 3 of 32 Page 4 of 32 Page 5 of 32 Page 6 of 32 Page 7 of 32 Page 8 of 32 Page 9 of 32 Page 10 of 32 Page 11 of 32 Page 12 of 32 Page 13 of 32 Page 14 of 32 Page 15 of 32 Page 16 of 32 Page 17 of 32 Page 18 of 32 Page 19 of 32 Page 20 of 32 Page 21 of 32 Page 22 of 32 Page 23 of 32 Page 24 of 32 Page 25 of 32 Page 26 of 32 Page 27 of 32 Page 28 of 32 Page 29 of 32 Page 30 of 32 Page 31 of 32 Page 32 of 32 Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 1 of 13 Effective: June 30, 2008 I. PURPOSE The purpose of this document is to outline the Standard Operating Procedures for the use and administration of AlertOC, the Orange County Public Mass Notification System, hereinafter referred to as “System”. This document will provide more specific step-by-step procedures and roles and responsibilities at the regional level including describing expectation of participants. Individual jurisdictions/agencies should create and maintain and regional concepts. The step-by step procedures for activation and use will be maintained in a separate document maintained by each jurisdiction/agency as a part of their emergency response plans for overall planning and response efforts. A copy of these procedures shall be maintained in RespondOC in the AlertOC folder. This document does not supersede any policy and procedures outlines in the Memorandums of Understandings signed by participating agencies, but should be used to support the use of the Orange County Mass Notification System. II. SYSTEM DESCRIPTION The primary intent of the Countywide Public Mass Notification System is to disseminate early warning and time sensitive information to county businesses and residents during time of an emergency event. The Public Mass Notification System is only one component of the County of Orange Public Warning System. As deemed fit by local authorities, the System should be used in conjunction with the other public warning mechanisms including, but not limited to, route alerting, the Emergency Alert System, sirens, and press releases. The Mass Notification System is available 24/7 and has been pre-loaded with Orange County landline phone numbers (including unlisted) and countywide geographic maps. Additionally, citizens have the option to provide additional contact information via self- registration portal www.alertoc.com with link access from county and all participating entity websites. Upon local authority decision to activate, the System will be used to send a message, describing the situation and recommended action the public should take, to affected businesses and households via telephone, e-mail and/or text. The County of Orange, Orange County Sheriff’s Department is the sponsor of the Countywide Public Mass Notification System initiative and will take appropriate measures to ensure that the System is in a state of operational readiness at all times. It is the responsibility of all participating Agencies to maximize citizen benefits from the System. While the County’s intent for implementing and maintaining the System is for “emergency” use, upon consent from local authorities, cities may optionally use the System to disseminate “government-related” non-emergency notifications to citizens and organization resources within its jurisdiction. See Section V. Authorized Use and Section VIII. Cost for policy guidelines relating to non-emergency use. Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 2 of 13 III. GOVERNANCE The Orange County Sheriff’s Department Emergency Management Division will manage the Mass Notification System as a countywide asset under the Policy and Guidance approved and recommended by the Orange County AlertOC Working Group., and agreed upon by each individual Agency when they opt into the system. Use of the System by each Agency is contingent upon that Agency abiding by the contract with the mass notification vendor, and the protocols established by the Emergency Management Council and Operational Area Executive Board. The System utilizes the 9-1-1 database to complete the notifications. The use of the 9-1-1 database is regulated by the California Public Utilities Code (CPUC) sections 2872 and 2891.1. The information contained in the 9-1-1 database is confidential and proprietary and shall not be disclosed or utilized except by authorized personnel for the purpose of emergency notifications. Any agency in violation of this regulation is subject to criminal charges as described in the CPUC. The Orange County Sheriff’s Department Emergency Management Division is responsible to ensure that the provisions of the contract are implemented properly. Authorized users must respect the integrity of the database, understand the privacy issues and fully comply with the policies and protocols outlined in this document. If violations of the MOU and this approved policy document are made by any individual or Agency, the Orange County Sheriff’s Department reserves the right to disable that individual’s or Agency’s login(s). IV. OVERVIEW OF GENERAL SYSTEM FEATURES At minimum, the Orange County Sheriff’s Department shall acquire and maintain a Public Mass Notification System capable of meeting the following requirements. A. Licensed for use throughout the County’s entire region B. Capacity to send a 45 second message to 10,000 residents and businesses within 10 minutes C. Capacity to send messages via phone, e-mail and text D. Accessible via the public Internet E. Provides audit trail logging and reporting F. GIS map interface for geographic call list generation G. Citizen self-registration web portal (available in English, Spanish and Vietnamese) H. Interactive phone survey technology and reporting I. IVR based notification setup and execution J. Capable of identifying constituents preferred language and sending message in English, Spanish and Vietnamese Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 3 of 13 V. AUTHORIZED USE The Mass Notification System is designed to be a countywide asset, available to all Agencies that have a dedicated public safety answering point (PSAP) and/or a resident population they are responsible for making protective action recommendations. An Agency may participate in the countywide System at no charge when used for emergency purposes until June 2017. Agencies authorized to join the system at no cost are limited to the incorporated cities in the Orange County Operational Area, County agencies and departments, the Municipal Water District of Orange County and Orange County Retail Water Agencies. Each participating Agency must sign a MOU and will maintain, at minimum, a Local Agency Administrator responsible for implementing and administering use of the System at the local level. Cities Cities wishing to participate may do so by having an authoritative representative sign the “Orange County Public Mass Notification System” MOU. Upon signing the agreement, the Agency will be provided a local administrator account, a vendor provided user manual and initial training. Throughout the term of the agreement, the Agency may use the System to send an unlimited number of emergency notifications to the public as well as an unlimited number of emergency and non-emergency inter-department messages. Each participating City shall develop and maintain written procedures to identify and address the Agency’s specific use of the System within the scope of this policy guide. County Users Unincorporated areas of Orange County will have emergency messaging to the public launched by the Orange County Sheriff’s Department. All other county agencies may have access to utilize the system for interdepartmental use. Each participating County agency shall develop and maintain written procedures to identify and address the Agency’s specific use of the System within the scope of this policy guide and provide this guideline to the Orange County Sheriff’s Department Emergency Management Division. Water Retail Water Agencies The Municipal Water District of Orange County and Orange County Retail Water Agencies wishing to participate may do so by having an authoritative representative sign the “Orange County Water Retail Agency Public Mass Notification System” MOU. Upon signing the agreement, the Agency will be provided a local administrator account, and the Orange County Sheriff’s Department, Emergency Management Division in collaboration with the Municipal Water District of Orange County – Water Emergency response Organization of Orange County (WEROC) will provide a user manual and initial training. Throughout the term of the agreement, the Agency may use the System to send emergency notifications to the public by utilizing pre-established GIS shape files or the system’s interactive map feature to identify their water users. Each participating agency shall develop and maintain written procedures to identify and address the Agency’s specific use of the System within the scope of this policy guide. Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 4 of 13 Emergency Use Use of the Mass Notification System for emergency activity contains two components: (1) the need to disseminate critical, safety-related information to individuals regarding emergency events occurring now, follow up information regarding the event and termination of the emergency event., and (2) communicating with safety-responder staff, volunteers and involved parties about the emergency event. As a general rule, the System is to be used when the public is being asked to take some action (e.g. evacuate, prepare to evacuate, shelter in place, boil tap water before drinking, local assistance centers and other follow up information, rentry to an areas after evacuation orders have been lifted or termination of the emergency because the danger has passed). Emergency Public Notifications are limited to: 1. Imminent or perceived threat to life or property 2. Disaster notifications 3. Evacuation notices 4. Public health emergencies 5. Public safety emergencies 6. Any notification to provide emergency information to a defined community The following criteria should be utilized to assist with determining the need to issue an alert: 1. Severity. Is there a significant threat to public life and safety? 2. Public Protection. Is there a need for members of the public to take a protective action in order to reduce loss of life or substantial loss of property? 3. Warning. Will providing warning information assist members of the public in making the decision to take proper and prudent action? 4. Timing. Does the situation require immediate public knowledge in order to avoid adverse impact? 5. Geographical area. Is the situation limited to a defined geographical area? Is that area of a size that will allow for an effective use of the system, given the outgoing call capacity? 6. Are other means of disseminating the information inadequate to ensure proper and time delivery of the information? 7. Is the message being sent follow up information to an emergency event in progress? If the answer to ALL of these questions is “Yes”, then an activation of the Mass Notification System for emergency purposes may be warranted. To assist with trigger points for potential message use topics refer to Attachment A Emergency Responder Notifications are limited to: 1. Contacting first responders to advise of an emergency 2. Contacting first responders to report for duty due to an emergency 3. Contacting key staff regarding an emergency or crisis situation Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 5 of 13 4. Contacting agency employees/DSWs to report at a different time or location (or provide an update) due to an emergency 5. Exercises Emergency considerations: 1. Notification shall clearly state situation is an emergency 2. Message length shall not exceed 60 seconds 3. It is highly recommended all messages are recorded using a real voice and not the computer transcriber. 4. It is highly recommended to provide a phone number or website where the public can obtain additional or updated information 5. An all clear notification should be sent when applicable A. Inter-Department Communication City and County Agencies may use the Mass Notification System for non-emergency inter- departmental business communication as needed, without cost. It is recommended that individual Agencies identify where this would add value to their operations and establish separate written protocols and procedures for this use. B. Non-Emergency Public Use No agency shall use the Mass Notification System for non-emergency public announcements unless a separate contract with the vendor is established. Non-emergency use shall be consistent and in compliance with the non-emergency guidelines included within. Any agency in violation of this term may have their use of the system suspended. Additionally, E 911 data is not allowed to be utilized for non emergency use according to the law California Public Utilities Code (CPUC) sections 2872 and 2891.1 and violators may be subject to criminal enforcement. Jurisdictions will be limited to utilizing the self-registering portal entry data only when launching non-emergency messages. Agencies who contract to use the countywide System for non-emergency activity agree to give precedence to emergency notification call-outs by delaying or terminating non- emergency notification sessions if needed to increase emergency message success. The primary concern for point of failure in this situation is not the Mass Notification System, but the telephone port capacity of local phone providers responsible for delivering calls to residents. Cost associated with non-emergency public notifications is the responsibility of the local Agency, See section VIII. Non-emergency public notification use is prohibited for any of the following purposes: 1. Any message of commercial nature 2. Any message of a political nature 3. Any non-official business (e.g. articles, retirement announcements, etc.) 4. To send a message to an E911 obtained data source; see Section III, Governance, for additional information relating to E911 data use restrictions Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 6 of 13 VI. AUTHORIZED SYSTEM USERS A. Public Notifications In general, use of the system in most cities is the responsibility of the local law enforcement agency. Since law is responsible to make alert, notification and evacuation orders. However, others may also be authorized to make notifications will be officials including , emergency management, fire and city manager departments. County Administrator: The Orange County Sheriff’s Department will act as the Countywide Public Mass Notification System County Administrator. County Administrator responsibilities are covered in section IX. System Administration and Operation. County User: Orange County Sheriff’s Department Emergency Communication Division (9- 1-1 dispatch), Control One and Emergency Management Division personnel will be setup as “County” users. County Users will have permission to access and launch emergency notifications to all jurisdictions within Orange County consistent with County Operational Area public safety response guidelines. All other county agencies will have permission to execute inter department notifications. The Orange County Emergency Operations Center, when activated will be responsible for all public notifications to unincorporated areas during an emergency. For day to day use of the system for public safety incidents including but not limited to hazmats, felony crimes with suspects still at large, the Orange County Sheriff’s Department Commander will be responsible for execution of messages. Local Agency Administrator: A minimum of one designated Local Agency Administrator will be required for each Agency participating in the countywide System. Local Agency Administrator responsibilities are covered in section IX. System Administration and Operation. Local Agency User: Participating Agencies may have an unlimited number of Local Agency Users. Local Agency Users will have access to resident contact records within their jurisdiction as well as neighboring jurisdictions with an established MOU agreement. Local Agency Users will be authorized and managed by the Local Agency Administrator and may have varied system permissions. Any City jurisdiction who has contracted police services (ex: Yorba Linda Police Services is contracted with Brea Police Department) shall grant and provide access to their jurisdictions system in order to launch messages in a timely manner.  Water agencies are identified as local users under the Orange County Sheriff’s Department Emergency Management Division. Inter-Department User: Inter-departmental users will have permission to inter-departmental contact information only and are authorized to use the system solely for inter-departmental communication including but limited to first responder or volunteer call-outs. Additional user for special contact groups including In House Special Services (IHSS), access and Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 7 of 13 functional need cliental may be established with prior authorization from the Orange County Sheriff’s Department to ensure no vendor contract violations are occurring. VII. ACTIVATION OF THE SYSTEM Each City Jurisdiction is responsible for launching messages to affected citizens and businesses within their jurisdiction. Determination of authority to request activation of the Mass Notification System rest with local officials, not with the County of Orange or the Orange County Sheriff’s Department Emergency Management Division. Water agencies are responsible for launching messages to affected citizens and businesses as identified in their service district. The following is protocol to be followed when an emergency message is launched anywhere in Orange County. A. Public Notifications 1. The County of Orange is authorized to use the System to send notifications of regional emergencies to any and all residents within the Operational Area (example: Countywide quarantine order for a health alert). Upon sending a countywide notification, Orange County Sheriff’s Department Emergency Management Division will, as soon as possible, advise the appropriate local Agency that mass notifications have been sent by the County to residents of their cities. Pre-notification to emergency managers by email or WebEOC of this AlertOC activation before actual delivery of the message will occur if possible. 2. Other than regional emergency notifications, public notifications are the responsibility of the individual City/Local Government. In the event that the geographical location of an incident requires a message to be delivered to multiple jurisdictions, the responsible Agency will inform each individual Agency so that they can send the message to those affected within their own jurisdiction. Exception: Small unincorporated neighborhoods embedded within City limits will receive mass notification of local city emergency activity from City Officials. This does not include the unincorporated areas of Rossmoor, Midway City, Cowan Heights, Lemon Heights, all canyons, Coto de Caza and Trabuco Canyon areas. Any of the fore mentioned unincorporated areas by names, coordination will have to occur with the Orange County Sheriff’s Department/Watch Commander when the EOC is not activated. 3. For a City wishing to send or receive messages to or from a neighboring Agency during time of a multi-jurisdictional incident, an MOU should be established between both parties that grants permission for the handling Agency to send emergency notification to residents within the affected Agency. (Exception will be made for cities who have contracted law enforcement services. No MOU will be required and access SHALL be granted). a. In the event no MOU has been established, the local city agency will contact the Police Watch Commander who is the 24 hour warning point for all cities for approval and coordination. 4. Water agencies sending information to the public will do so only to pre-loaded GIS shape files containing their service areas. This procedure must occur due to the overlapping jurisdictional boundary areas. Water agencies will launch messages under the Orange County user account. Pre-notification to the Water Emergency Response of Orange County (WEROC) emergency manager, and impacted city emergency Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 8 of 13 managers will occur prior to the lunch of the message by email containing the AlertOC message before actual delivery of the message will occur. a. The WEROC Emergency Manager is responsible to notify and provide the information to the OA/County Emergency Manager since the identification information will show the County of Orange as the initiator. 5. In the event a participating Agency is unable to send out an emergency message, the Orange County Control One Coordinated Communications Center is available to act on the local Agency’s behalf. Agencies that do not have a current MOU with the County may also request Control One to send out an emergency message. Control One will not be available to send internal notifications. All rules and guidelines are applicable. It is still the responsibility of the local agency with the primary responsibility of the incident to receive approval for adjacent jurisdictions on multi jurisdictional events. Attachment B is the launch form containing all information required in order to launch a message. Authority to request mutual aid assistance from Control One must be requested by a Lieutenant or above (same protocols as requesting a Code Alex). 6. If the Operational Area EOC is activated, agencies may request to utilize the Orange County Information Hotline 714-628-7085 as the identification phone number for residents and businesses to call to obtain additional information. Agencies are requested to send a copy of the AlertOC script to the OA EOC before the message is launched, if possible. 7. Participating Agencies are authorized to develop pre-established notification lists and messages to meet their individual needs. These lists may include special populations (e.g. in-home care, schools, etc) or those susceptible to certain risks (e.g. homes within dam inundation zone). It is the responsibility of the participating Agency to create, maintain and update these lists. B. Emergency Response and Inter-Department Notifications: 1. Each participating Agency is authorized to create employee/volunteer and department call lists and pre-recorded messages. 2. Any non-city agency wishing to create specialty groups which still contain public contact information (ex: special needs callouts) may do so with prior consent. However, any activation of information to any of these groups needs to be coordinated to ensure clear, concise and accurate information is being dispersed. During emergencies, messages will be coordinated with the Operational Area, Orange County Sheriff’s Department Emergency Management Division. 3. It is the sole responsibility of each participating Agency to maintain these lists and to launch notifications as deemed necessary. VIII. COSTS The County of Orange agrees to fund the System for notifications classified as “emergency use”. The County of Orange also agrees to continue to purchase updated E911 telephone data and geographic maps. Costs associated with use of the System for non-emergency activity is the responsibility of the local Agency through separate contract with the mass notification Vendor. Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 9 of 13 IX. SYSTEM ADMINISTRATION/OPERATIONS Individual Agencies are responsible for providing logins and procedural training to key individuals within their Agency responsible for using the Mass Notification System. A. County Administrator The Orange County Sheriff’s Department will assign and maintain a designated Mass Notification Program Administrator responsible for overall acquisition, accessibility, maintenance, compliance and management of all components required to provide an effective countywide mass notification system. The County Administrator is responsible for: 1. System acquisition and contract management. 2. Policy management and as needed modification (in consultation with public safety, emergency management and emergency response personnel.) 3. Audit compliance: routine monitoring of System use to insure policy and contract compliance. 4. Access management: record management of signed MOU from each participating Agency, distribution of local administrator accounts and updated local administrator contact list. 5. Data management: E911 data acquisition, update and compliance monitoring. Countywide map file acquisition, update and overall geo-coding. 6. Testing: facilitate routine System-wide test exercise, document overall test results and recommend and execute, as needed, corrective action at the County level. 7. Public education campaign: initiate and facilitate public education campaign aimed at making the public aware of the countywide public mass notification system initiative and citizen web portal. 8. System support: provide support to Local Agency Administrators. B. Local Agency Administrator Participating Agencies agree to appoint a designated Mass Notification Local Administrator responsible for leading, coordinating, monitoring and optimizing use of the Mass Notification System at the local level. Local Agency Administrator shall act as the Agency’s central point of contact and will work collaboratively with the County Administrator to insure local use of the system is within policy and MOU guidelines. Local Agency Administrator is responsible for: 1. Contract acquisition if Agency will use the system for non-emergency purposes. 2. Local Agency Mass Notification Operating Procedure development and management. 3. Use compliance: routine monitoring to ensure System is used within the conditions and terms of this document and associated MOU. 4. Access management: local user account distribution and management, record management of MOU(s) and signed end user P&P. 5. Data management: perform routine data management, error-correcting and data integrity updates to System contact and geo-coded map data. Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 10 of 13 6. Testing: facilitate routine local System test exercise, document local test results and recommend and execute, as needed, corrective action at the local level. 7. Public education campaign: initiate and facilitate public education campaign aimed at making the local community aware of the intended use of the Mass Notification System and citizen web portal. 8. System support: provide support to local Agency end-users. X. INFORMATION SYSTEMS AND SUPPORT The Orange County Sheriff’s Department will acquire and maintain 24x7x365 vendor support for the Mass Notification System. Participating Agencies are authorized to contact vendor support as needed. XI. ROUTINE TESTING The Mass Notification System will be tested quarterly. Test exercises will be geared towards insuring that use of the System in an emergency is optimized. This includes testing operational readiness, activation procedures and system effectiveness as well as validating data and system processes. Through test exercises, System administrators and users will be able to observe the mode of operation to augment and refresh System and process knowledge. Specific test exercise routines, roles, responsibilities and schedule will be detailed in the Operational Area Standard Operating Procedure document. By signing the Mass Notification System MOU, participating Agencies agree to take part in quarterly Mass Notification countywide test exercises. XII. DEFINITIONS 1. System – All components of the Mass Notification System including hardware, software, access portals, contact data and GIS maps. 2. Resident – Comprises households and businesses. 3. IVR – Interactive Voice Response is a phone technology that allows a computer to detect voice and touch tones using a normal phone call. This technology will allow a user of the Mass Notification System to launch a message to a pre-defined call list when a pc or internet connection is not available. 4. Emergency - “Emergency” shall include, but not be limited to, instances of fire, flood, storm, epidemic, riots, or disease that threaten the safety and welfare of the citizens and property located within the boundaries of the county and participants’ respective jurisdictions. Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 11 of 13 Revision History: Revision Date Author Description April 18, 2008 PMNS Policy Committee Document originated May 19, 2008 PMNS Executive Review Team Non-emergency session termination in Section V., Item C. June 16, 2008 Teara LeBlanc Exception clause in Section VII, Item A., bullet 2. May 2010 Vicki Osborn Revision of all sections June 2012 Raymond Cheung Revision for OCSD transition May 2013 Raymond Cheung Revision for new vendor contract Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 12 of 13 Attachment A – Alert OC Trigger Points Guidelines (Placeholder) Type of Incident Description Meets Public Safety Criteria Active Shooter A shooting with armed individual or individuals is occurring in a known area. Yes Boil Water Orders An unsafe water supply issue requiring the public to boil water before use. Yes Building Fire A fire occurring in an urban area requiring evacuation or shelter in place for the immediate area. Yes Violent Crimes Violent crimes that just occurred such as robbery, assault, murder, etc. Yes Felony Suspect at Large Law enforcement is currently searching for a felony suspect that is suspected to be in a certain area. Yes HazMat Hazardous Materials incidents that require a fire/hazmat response and may include evacuations or shelter-in- place orders. Yes Health Orders Any public health order made pursuant to County Health Officer recommendations. Yes Missing Adult (920A) with special circs 12- 17 yrs with decreased mental capacity or medical condition Yes Missing Child (920C) 12 yrs or younger ***Discussion add Amber alert triggers Yes Missing Juvi (920J)with special circs 18 yrs and older 12- 17 yrs with decreased mental capacity or medical condition Yes Severe Weather Related Weather warnings that forecast an occurring or imminent threat to public safety or coincide with protective action recommendations such as voluntary or mandatory evacuation orders. Yes Evacuation or Shelter-in-Place Voluntary or mandatory evacuation or shelter-in-place orders. Yes Wildland Fire A fire occurring in a wildland urban interface area requiring immediate evacuation or shelter-in-place. Yes Road Closures Unplanned road closures due to an emergency situation. Yes Planned Events Road closures due to community events planned in advance. No Orange County Operational Area Countywide Public Mass Notification System Standard Operating Procedures Page 13 of 13 AlertOC Activation Form (for emergency use only) (Attachment B) Request Received Date/Time: By: (Name/Title) Jurisdiction Information Jurisdiction Name: Requestor: (Name/Title) Contact Phone Numbers: #1: #2: Authorizing Official: (Name/Title) Message Specifics Date/Time Message to Be Sent: Immediately Targeted Recipients: Type of Message: Phone e-mail SMS SMS Content: Message Content: Staff Executing Message Initiator Name (printed): Authorizing Sheriff Official: Date and Time Sent: Name, Date and Time Results provided to jurisdiction NONDISCLOSURE AGREEMENT NONDISCLOSURE AGREEMENT BETWEEN PACIFIC BELL TELEPHONE COMPANY dba SBC CALIFORNIA, AND THE COUNTY OF ORANGE. CALIFORNIA THIS AGREEMENT. effective this 26th day of June, 2008, ("Effective Date") is between PACIFIC BELL TELEPHONE COMPANY dba sac CALIFORNIA, a California corporation (hereinafter .SBC California"), County of Orange (hereinafter .Customer") and NTI Group, Inc. (hereinafter .Subcontractor"). 1. Customer has requested Neighborhood Call service from sac California under sac California's Tariff, CAL.P.U.C. NO. A9.2.6 and agrees to comply with all provisions of sac California's Tariff, CAL.P.U.C. NO. A9.2.6. Customer has identified Subcontractor as its agent for obtaining Neighborhood Call subscriber information from sac California for provision of comrnunity alerts and notifications to citizens as defined in California Public Utilities Commission Code Sections 2872 and 2891.1 and as allowed in sac California's Tariff, CAL.P.U.C. NO. A9.2.6. In the event Customer elects to no longer use Subcontractor for obtaining Neighborhood Call subscriber information, Customer shall provide sac California written notice of such change 30 days in advance of Subcontractor's agency status being terminated by Customer. Subcontractor certifies that it has reviewed the terms and conditions of the sac California Tariff, CAL. P.U.C. NO. A9.2.6 for Neighborhood Call and specifically A9.2.6B.2.b which stipulates in part: .The Neighborhood Call database information provided to Customer pursuant to this tariff is confidential and proprietary and such information will be held in confidence and only used and disclosed to Customer's employees or its subcontractors and agents with a need to know for purposes of providing a community alert and notifications to citizens as defined in California Public Utilities Code Sections 2872 and 2891.1. Customer agrees that each of its employees, subcontractors or agents receiving or having access to the Neighborhood Call database information will be informed that such information is subject to the terms and conditions of this tariff and the Neighborhood Call database information will remain the property of Pacific; that the Neighborhood Call database information will be treated with the same degree of care as Customer affords to its own highly confidential and proprietary information; and that the Neighborhood Call database information will not be reproduced in any manner, unless otherwise specifically authorized in writing by Pacific. Upon request, Customer will promptly return to Pacific all Neighborhood Call database information in a tangible form or certify to Pacific that such information has been destroyed." Subcontractor agrees to comply with each of the obligations contained in sac California's Tariff, CAL. P.U.C. NO. A9.2.6.B.2.b for Neighborhood Call Tariff. Notwithstanding the preceding sentence, Subcontractor agrees that no Neighborhood Call subscriber information will shared with any non-employee of Subcontractor, whether it be a subcontractor or agent, without the written authorization of Customer and the execution of a Nondisclosure Agreement with sac California. This Nondisclosure Agreement shall be in effect from the Effective Date until such time that Customer terminates its request for Neighborhood Call service from sac California or Custorner elects to no longer use Subcontractor for obtaining Neighborhood Call subscriber information. Subcontractor's duty to keep the Neighborhood Call subscriber information confidential shall continue beyond the term of this Nondisclosure Agreement until such time that Subcontractor returns to sac California all Neighborhood Call subscriber information in a tangible form or certifies to sac California that such information has been destroyed. Nothing contained in this Nondisclosure Agreement shall license or otherwise in any Information. This Nondisclosure Agreement shall benefit and be binding upon the parties hereto and their respective subsidiaries, affiliates, successors and assigns. This Nondisclosure Agreement shall be governed by and construed in accordance with the laws of the State of 2. 3. 4. 5. 8. 1. 8. California, irrespective of its choice of laws principles. be construed as granting or conferring any rights by [SIGNATURE PAGE FOllOWS] XXX)( (Customer) r ----- Print Name: Title Proaram Manaaer Date Signed: June 30. 2008 2 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 To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2013 Subject: Rewarding Ideas Program Summary Last year, the Board of Directors approved Administrative Regulations No. 20.40 to help encourage employees to generate ideas for organizational improvements and providing a system for answering and recognizing adopted ideas. Employees are eligible to receive a monetary reward of up to $1,000 for ideas that generate significant savings to the organization. Staff Recommendation That the Board of Directors approves rewarding District employees Steve Cano, Joel Ortiz, and Alex Arreola $75 each, a total of $225.00, for their idea to enhance safety on the sewer combination truck. Analysis On May 6, 2013, Steve Cano, Maintenance Supervisor, Joel Ortiz, Maintenace Worker III, and Alex Arreola, Maintenance Worker I, submitted a suggestion to enhance safety on the sewer combination truck by installing storage units in more accessible and safe locations on the truck. Attachment “A” is a copy of the staff’s suggestion. The suggestion made by the field staff is further demonstration of the District’s oustanding safety culture. Although employee safety is the District highest priority, with this suggestion, cost savings to the District could not be projected. For this reason, staff has determined there are intangible cost savings to the District and recommend the Board approve awarding each employee who contributed to this suggestion, $75 each. ITEM NO. 18 Board of Directors June 27, 2013 Page 2 of 2 Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Element 5.0, Administrative Management, which states the following: 5.0 Administrative Management 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 Not applicable Financial Review The reward is for a total of $225.00. There is sufficient funding available in the Rewarding Ideas Program budget to approve this award. 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 June 27, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Approve a lessor or higher reward amount to District employees Steve Cano, Joel Ortiz, and Alex Arreola. 2. Do not approve the reward. Attachments A: Completed Rewarding Ideas Program Suggestion Form 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 To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2013 Subject: Contract Administration for Project #197 – System Wide Sewer Reconstruction – Phase III Summary Robin B. Hamers & Associates (RBH) submitted a proposal to provide contract administration and inspection services for Project #197, System Wide Sewer Reconstruction Project – Phase III. Staff Recommendation That the Board of Directors receive and file this report. The General Manager is approving the contract administration proposal from Robin B. Hamers & Associates (RBH) for $15,979. RBH will perform said services under his existing contract with the District. Analysis On June 4, 2013, bids were opened for Project #197 in which Charles King Company is the low bidder and later tonight the Board is considering awarding a contract to Charles King for said services. Robin B. Hamers & Associates (RBH) submitted a proposal to provide contract administration and inspection services for Project #197 for $15,979. RBH performed contract and inspection services for Phase I and Phase II of the District’s System Wide Sewer Reconstruction Project. RBH’s cost was $24,000 for Phase I that included administering and inspecting the reconstruction of 95 segments, which breaks down to $252.63 per segment. RBH’s cost was $18,817 for Phase II for 73 segments at $257.77 per segment. ITEM NO. 19 Board of Directors June 27, 2013 Page 2 of 2 RBH’s latest proposal of $15,979 is for administering and inspecting the last remaining Grade 5’s, which totals 67 line segments. The Phase III proposal breaks down to $257.77 per segment. Staff believes RBH’s proposal for Phase III is a fair proposal because the cost per segment is constant from Phase II and lower than Phase I. In addition, the proposal does not exceed ten percent of the contract cost. Staff has determined that RBH can perform contract administration and inspection services for this project under his existing contract with the District. Strategic Plan Element & Goal This item supports achieving Strategic Element No. 1.0, Sewer Infrastructure and Strategic Goal No 1.4, System wide sewer replacement and repair program. Legal Review Not applicable. Financial Review The total cost for this service will not exceed $15,979. Funding for this service is budgeted in the project’s CIP budget. Committee Recommendation N/A Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2013 Board of Directors regular meeting at District headquarters and on District’s website. Alternative Actions 1. Do not approve RBH proposal and direct staff to solicit bids for contract administration services. 2. Refer the matter back to staff for more information. Attachment A: Robin B. Hamers & Associates, Inc. Proposal Reviewed by: Marc Davis Acting 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 To: Board of Directors Via: Scott Carroll, General Manager From: Javier Ochiqui, Management Analyst Date: June 27, 2013 Subject: CR&R Audit Implementation Plan Summary Michael Balliet Consulting, LLC was retained by CMSD to perform a review of CR&R, Environmental Services. On May 23, 2013, the Board of Directors reviewed the audit results and approved the recommendations from Michael Balliet Consulting, LLC. The Board of Directors directed staff to develop an implementation plan that focused on the “unclear” areas. Staff is providing the Operations Committee with the CR&R Audit Implement Plan. Staff Recommendation That the Board of Directors approves the CR&R Audit Implementation Plan. Analysis The purpose of the review was to establish CR&R’s compliance with contract terms and performance during fiscal year 2011/2012. The auditor stated that CR&R is in compliance with 25 of 28 review questions (89%). The auditor identified 3 areas that were “unclear.” Below are the 3 areas that the CR&R Audit Implement Plan will focus on: Compliance Area 1. Reasonability of CR&R rates/ Annual rate review 2. Verify green waste diversion percentage 3. Most favorable rate ITEM NO. 20 Board of Directors June 27, 2013 Page 2 of 2 CMSD staff will work with District Counsel, CR&R, and Michael Balliet Consulting, LLC to revise the contract in order to clarify the areas of concern. Attached is the CR&R Audit Implementation Plan providing further details, recommendations, and action plan. Strategic Plan Element & Goal This item complies with the objective and strategy of Strategic Element 2.0, Solid Waste, which states: “Objective: Our objective is to manage the collection and recycling of residential trash in the most economical and environmentally friendly way.” “Strategy: We will do this by looking for ways to improve efficiencies, achieve high customer satisfaction, and considering prudent new recycling methods.” Legal Review CMSD staff will work with District Counsel to revise the contract in order to clarify the areas of concern. Financial Review CMSD and CR&R have agreed to implement the plan and revise the contract in order to clarify the “unclear” compliance areas. In addition, CR&R is willing to pass billing and collections savings on to CMSD via a $0.50 rate reduction. Therefore, the Fiscal Year Base Rate per Occupancy per the Agreement will be reduced from $9.1554 to $8.9054 per household and the Recycling/Disposal rate will be reduced from $52.22 to $51.97 per ton. Committee Recommendation On June 18, 2013, the Operations Committee approved recommending to the Board the CR&R Audit Implementation Plan. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 27, 2013 Board of Directors regular meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Refer the matter back to staff for additional information. Attachment A: CR&R Audit Implementation Plan ATTACHMENT A COSTA MESA SANITARY DISTRICT CR&R AUDIT IMPLEMENTATION PLAN FINANCIAL REVIEW Recommendation # Compliance Comments Action Plan Employee Responsible for Implementation Start Date Completion Date Status 15. Reasonability of CR&R rates. Annual rate review Unclear Rate guarantee language in contract is ambiguous. Rates can be considered reasonable or unreasonable Work with District staff, Counsel, Michael Balliet Consulting, LLC and CR&R to revise the contract in order to clarify Management Analyst June 2013 August/ September 2013 In progress OPERATIONAL REVIEW Recommendation # Compliance Comments Action Plan Employee Responsible for Implementation Start Date Completion Date Status 6. Verify green waste diversion percentage Unclear Exact percentage of green waste diversion requires disposal composition study Enter into an Agreement with Michael Balliet Consulting, LLC to perform a waste characterization study and Amendment review Management Analyst July 2013 August 2013 Pending Agreement COMPLIANCE REVIEW Recommendation # Compliance Comments Action Plan Employee Responsible for Implementation Start Date Completion Date Status 2. Most Favorable Rate Unclear Current agreement terminology is too vague for a definitive determination Delete from contract and replace with within 10 percent of net to hauler OC average language Management Analyst June 2013 August/ September 2013 In progress CMSD BOARD OF DIRECTORS OPERATIONS COMMITTEE MEETING Board of Directors Schedule for Attendance Chairman Scheafer and Director Ooten Alternate: President Ferryman AGENDA Tuesday, June 18, 2013 - 9:30 a.m. Costa Mesa Sanitary District 628 W 19th Street Costa Mesa, CA 92627 STANDING REPORTS - RECYCLING 01. Recycling Report – May 2013  Update on how CMSD is meeting AB 939 goals 02. Waste Diversion Report – May 2013  Update on the amount of recycling materials diverted from the landfill 03. Ordinance Enforcement Officer’s May 2013 Report  Review OEO enforcement activities for trash cans, graffiti and scavenging 04. Scavenging Report – May 2013  Review scavenging activities reported to CMPD 05. Solid Waste Facts & Figures – May 2013  Review and discuss facts and figures regarding solid waste in CMSD  City Commercial tonnage information (Quarterly Reports) NEW DISCUSSION ITEMS - RECYCLING 06. Sharps and Pharmaceuticals Program  Receive and discuss report from staff 07. Sharps Container Grant from Cal Recycle – Oral Report  Receive an oral report from staff regarding the HHW sharps container grant 08. CR&R Audit Implementation Plan  Receive and discuss implementation plan from staff 09. Free Home Trash Audits - Oral Report  Receive an oral report from staff regarding this program ACTION ITEMS – RECYCLING - No action items STANDING REPORTS – SEWER SYSTEM 10. Monthly Spill Statistics – No SSOs occurred in May. 11. Sewer Facts and Figures  Review and discuss facts and figures regarding CMSD’s sewer system NEW DISCUSSION ITEMS – SEWER SYSTEM – 12. Presentation from Mr. Larry Acker, CEO for ACT, Inc. D’MAND KONTROL SYSTEM  Consider implementing an incentive program for home owner to purchase a project that can reduce sewer flow. ITEM NO. 21 Operations Committee June 18, 2013 Page 2 of 3 13. Grease Trap Concerns at the Maru Sushi Food Service Establishment (FSE) – Oral Report  Discuss possible FOG Ordinance violations 14. CRWQCB SSO Reduction Program – Revised Monitoring & Reporting Requirements  Received and discuss report from State agency regarding new requirements for monitoring and reporting Sanitary Sewer Overflows (SSOs) 15. Project #101 West Side Pumping Station Abandonment – Oral Report  Receive an update from staff regarding this project. 16. Project #193 – Pumping Station Seismic Study and Retrofit – Oral Report  Receive an update from staff regarding this project. 17. Project # 196 – Installation of Back Power and Pumping Capability – Phase I – Oral Report  Receive an update from staff regarding this project. 18. Project #198 - Pigging/PICA/Re-lining the Harbor Force Main– Oral Report  Receive an update from staff regarding this project CMSD PROJECTS: 19. A. Project #101 West Side Pumping Station Abandonment – Status  Engineer’s Estimates for the work are being prepared; the District Engineer reviewed 2 sections of the OCSD EIR as requested. B. Project #192 System Wide Sewer Reconstruction Phase 2 – Status  The Board of Directors accepted the project as complete on 5/23/13. C. Project #193 Pumping Station Seismic Study and Retrofit – Status  The portion of the project that will secure the electrical enclosures is out to bid. D. Project #196 Installation of Backup Power and Pumping Capability Phase I - Status  The City of Costa Mesa is reviewing the design for the 3 stations in Costa Mesa. E. Project #197 System Wide Sewer Reconstruction Phase 3 – Status  Bid opening was 6/4/13 and the low bidder is Charles King Co., the same contractor as Phase II. F. Project #198 Condition Assessments of Force Mains - Status  The District Engineer is working on Engineer’s Estimates for lining 4 force mains. G. Project #199 OCSD Proposed Transfer of Fairview Trunk  The General Manager is negotiating the rehabilitation cost of the Fairview Trunk with OCSD. NEW DISCUSSION ITEMS – OTHER - None 20. Quarterly Report – CMSD’s Rewards Idea Program  Receive and discuss report. 21. Quarterly Report – California Legislation  Receive and discuss report. ACTION ITEMS – OTHER - None Upcoming CMSD & Community Events and Activities Operations Committee June 18, 2013 Page 3 of 3 22. A. City of Costa Mesa 60th Anniversary, three day musical festival on Fair Drive adjacent to City Hall, Friday, June 28th through Sunday, June 30th. B. City of Costa Mesa Concerts in the Park, July 2, 9, 16 & 23 at Fairview Park from 5:30 – 7:45 pm. C. Special Costa Mesa 60th Anniversary Concert in the Park, July 30th at Fairview Park from 5:30 – 7:45 pm. D. City of Newport Beach Concerts in the Park, June 30, July 28 and August 11 at 100 Civic Center Drive from 6:00 – 7:30 pm E. City of Newport Beach Shakespeare by the Sea, July 20 & 21 at 1990 Ford Road from 7:00 – 9:00 pm. F. OC Fair, July 12 through August 10, 2013 G. 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. H. 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 $1,600. For more information visit www.cmsdca.gov or call (949) 645-8400. I. 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 23. This is the time to receive any comments from members of the public. 24. Discuss items for next Operations Committee meeting. Next Meeting Date: July 16, 2013 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. 5/23/13 - Engineer's Estimates for the work are being prepared. 6/27/13 - Engineer's Estimates for the work are being prepared; the District Engineer reviewed 2 sections of the OCSD EIR as requested. Account Number Encumbrances Balance #101 1,765,000 23,374 67,383 14,330 1,659,912 20 Total 1,765,000 23,374 67,383 14,330 1,659,912 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. #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. 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. 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. 4/18/13 - The District Engineer is continuing work on the preliminary engineering. 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. ITEM NO. 22 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. 4/18/13 - The final repair was made on 4/2/13. One small a.c. repair needs to be completed. 5/23/13 - Construction was completed on 4/19/13. The Board will accept improvements on 5/23/13. 6/27/13 - The Board of Directors accepted the project as complete on 5/23/13. FINANCIAL STATUS through 1/31/13: Account Number Encumbrances Balance #192 1,175,000 59,639 175,690 1,691 937,981 20 Total 1,175,000 59,639 175,690 1,691 937,981 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. 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. #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. 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. 4/18/13 - No change in status. 5/23/13 - No change is status. 6/27/13 - The portion of the project that will secure the electrical enclosures is out to bid. 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 #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. 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. 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. 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. 4/18/13 - No change in status. 5/23/13 - A soils investigation is being performed for the 23rd P.S. location in the right-of-way slope. Two other locations will be housed in prefabricated buildings. 6/27/13 - The City of Costa Mesa is reviewing the design for the 3 stations in Costa Mesa FINANCIAL STATUS through 1/31/13: Account Number Encumbrances Balance #196 1,060,000 22,806 34,480 - 1,002,714 Total 1,060,000 22,806 34,480 - 1,002,714 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. 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 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. 4/18/13 - The plans were submitted to Costa Mesa and Newport Beach for 1st review on 4/1/13. 5/23/13 - The project went out to bid on May 3, 2013 and bid opening is June 4, 2013. 6/27/13 - Bid opening was 6/4/13 and the low bidder is Charles King Co., the same contractor as Phase II. FINANCIAL STATUS through 1/31/13: Account Number Encumbrances Balance #197 670,000 - 57,176 1,448 611,376 20 Total 670,000 - 57,176 1,448 611,376 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. #197 System Wide Sewer Reconstruction Phase III Rob Hamers, District Engineer Sep-12 Nov-13 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. 4/18/13 - The District Engineer and field crew met on 4/2/13 to plan the work at the Harbor force main. 5/23/13 - The District Engineer is working on engineer's estimates for lining the four force mains. 6/27/13 - No change in status. FINANCIAL STATUS through 1/31/13: Account Number Encumbrances Balance #198 176,185 885 820 174,480 20Total 176,185 - 885 820 174,480 #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 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. 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 To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: June 27, 2013 Subject: Encroachment Agreement at 1661 Indus Street, Newport Beach Summary The District owns a 10” sewer main in a 35’ wide easement in the backyards of properties on Indus Street in Newport Beach. The easement is 35’ wide instead of the usual 10’-20’ wide because the sewer was constructed in straight segments adjacent to the curvilinear Orange County Flood Control District Santa Ana Delhi Channel. The 35’ wide easement greatly restricts the property owners’ use of their backyards. The backyards also have a steep slope from front to back. The property owner at 1661 Indus Street has proposed to cantilever a removable deck over the slope, sewer, and easement in order to better utilize his backyard. In order to accommodate his request, the attorney for the District prepared an encroachment agreement allowing the deck while requiring the property owner to be financially responsible for the cost of removing and replacing the deck should the District need to excavate down to the sewer line or perform other work in the easement. The property owner is also responsible for reimbursing the District the legal and engineering costs pertaining to the agreement. Staff Recommendation The Board of Directors approves the agreement. ITEM NO. 23 Board of Directors June 27, 2013 Page 2 of 3 Analysis Over the years, Costa Mesa Sanitary District (CMSD) staff has discovered property owner improvements in CMSD easements and Orange County Sanitation District (OCSD) easements that were constructed without authorization. Recently the CMSD Board of Directors approved an encroachment agreement for a property on Tustin Avenue in Newport Beach where the property owner installed fences, sheds, and special paving over a CMSD sewer and easement. CMSD staff also assisted OCSD when property owners constructed improvements over their Red Hill Gisler Trunk as it traverses many backyards while paralleling the 405 freeway. OCSD has had a very difficult time administering the rights of their easement as property owners have built elaborate pools and other structures in the easement. Because property owners either do not have knowledge of the easement or feel they have the right to use and enjoy their property, it makes sense for the easement holder to work with the owners when improvements are proposed rather than make a strict prohibition of improvements. In the case of 1661 Indus Street, the encroachment agreement allows both the District and property owner to achieve their goals while accommodating the other party. As a side note, there is one Grade 5 sewer deficiency in the District’s main in the backyard of 1661 Indus Street that is scheduled for repair by the no-dig installation of two short sections of cured-in-place-pipe. The property owner is aware of this situation and has agreed not to install the deck until the repair is complete. Although the repair will not affect the backyard, the District desires a clear backyard in case there is an emergency condition that requires excavation to the sewer main. Strategic Plan Element & Goal This item complies with Strategic Plan Element 3.0, Partnerships, with the Objective: To foster beneficial relationships to accomplish the goals of the District. Legal Review District Counsel prepared the attached Encroachment Agreement and is prepared to answer questions or entertain discussion. Financial Review There is no cost to the District regarding the Encroachment Agreement. The property owner will be reimbursing the District the legal and engineering costs in preparing the Board of Directors June 27, 2013 Page 3 of 3 Encroachment Agreement while the repair in the backyard of 1661 Indus is being funded by one of the District’s capital improvement projects. Committee Recommendation Not applicable Public Notice Process Copies of this report are on file and will be included with the agenda packets for the June 27, 2013 Board of Directors regular meeting and on the District’s website. Alternative Actions 1. Do not approve the Encroachment Agreement or any construction within the CMSD easement. 2. Refer the matter back to staff for additional information. Attachment A: Encroachment Agreement 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 To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: June 27, 2013 Subject: #197 System Wide Sewer Reconstruction – Phase III – Awarding Contract Summary The District prepared plans and specifications for the third phase of reconstructing the Grade 5 deficiencies in the District’s sewer system. The results of the bid opening are shown below with a recommendation for award. This is the third and final phase of repairing the 255 Grade 5 deficiencies. It is noted there are approximately 1,600 line segments with at least one Grade 4 deficiency remaining in the system. Staff Recommendation The Board of Directors: 1. Award a contract to the lowest responsible bidder, Charles King Co., Inc., of Signal Hill, in the amount of $228,700.00. 2. Approve a 10% contingency budget of $22,870. Analysis The District televised its entire sewer system from January 2006 to March 2009 and found 255 Grade 5 sewer deficiencies. Grade 5 deficiencies require immediate attention as the risk of failure is high and failures may result in sanitary sewer overflows (SSOs). The ITEM NO. 21 Board of Directors June 27, 2013 Page 2 of 3 Board of Directors chose to reconstruct these deficiencies in a four-year period; however, this is Phase III and will be the final phase for repairing the Grade 5 deficiencies. The low bidder is Charles King Co., who was also the Phase II contractor, so the low bid is lower than expected. Bids were opened on 6/4/2013 and the results are as follows: Engineer’s Estimate $ 318,000 Charles King Co., Inc. $ 228,700 Lucas Builders, Inc. $ 265,762 Vasilj $ 327,800 Staff checked the licensing requirements and references for the low bidder, Charles King Co., Inc., and found everything in order; therefore, a recommendation to award the bid is being made. Strategic Plan Element & Goal This item complies with Strategic Plan Element 1.0, Sewer Infrastructure and Goal No. 1.4, System Wide Sewer Replacement and Repair Program. Legal Review District Counsel prepared and signed the construction agreement. Financial Review Total cost for this project is $251,570, which includes a 10% contingency. There is approximately a balance of $618,807 budgeted for this project. Money left over from this project will be transferred to the District’s Asset Management Fund. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2013 regular Board of Directors meeting at District Headquarters and on the District website. Alternative Actions 1. Do not award the project to Charles King Co, Inc. Board of Directors June 27, 2013 Page 3 of 3 2. Refer the matter back to staff for additional information. Attachment A: Contract between Charles King Co., Inc. and CMSD Reviewed by: Marc Davis Acting Accounting Manager/Treasurer 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 To: Board of Directors Via: Scott Carroll, General Manager From: Marc Davis, Treasurer Date: June 27, 2013 Subject: Statement of Investment Policy for Fiscal Year 2013-14 Summary Attached is the Statement of Investment Policy for Fiscal Year 2013-14 (Policy). The Policy documents the Board’s guidelines under which the District Treasurer can invest the District’s idle funds. Staff Recommendation Adopt Resolution No. 2013-836 approving the Policy and delegating the investment function to the District Treasurer for the 2013-14 fiscal year. Analysis California Government Code §53646 allows the District Treasurer to submit an annual investment policy to the Board for consideration. It is not a requirement to do so, but staff believes it is prudent to continue this practice. The enclosed Policy documents the Board’s objectives surrounding the selection of investments, as well as those investments in which the Board has authorized. It also provides limitations on specific investments. The responsibility for placing investments rests with the Board. California Government Code §53607 allows the Board to delegate the investment function to the District ITEM NO. 25 Board of Directors June 27, 2013 Page 2 of 5 Treasurer for a period of one year. The attached Resolution approves the Policy and delegates the investment function to the District Treasurer for the 2012-13 fiscal year. The attached Policy is a red-lined version so that the Board can review the proposed changes to the Policy. Once approved, the changes will be incorporated into the Policy, and it will be distributed to the brokers assisting the District with the investment of its idle funds. 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 District Counsel has reviewed Resolution 2013-836 as to form. Financial Review The Statement of Investment Policy guides the Treasurer in how to invest the District’s idle funds. The amount of investment earnings to be generated as a result of the investing function is based upon the market conditions at the time of investment. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2013 Board of Directors regular meeting at District Headquarters (631 W. 19th Street) and on the District’s website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff Attachments Attachment 1 – Resolution Number 2013-836 Attachment 2 – Statement of Investment Policy for Fiscal Year 2013-14 ATTACHMENT 1 RESOLUTION NO. 2013-836 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ADOPTING A STATEMENT OF INVESTMENT POLICY FOR FISCAL YEAR 2013-14, AND AUTHORIZING THE TREASURER TO INVEST AND REINVEST IDLE MONIES OF THE COSTA MESA SANITARY DISTRICT IN ACCORDANCE WITH THE STATEMENT OF INVESTMENT POLICY, AND FURTHER AUTHORIZING THE SAID TREASURER TO DELEGATE TO A DEPUTY THE CARRYING OUT OF ANY SUCH TASKS. WHEREAS, Government Code Section 53601 et seq. sets forth the investments that the District may lawfully make; and WHEREAS, Government Code Section 53646(a)(2) sets forth that the District’s Treasurer may annually render to the Board of Directors a Statement of Investment Policy at a public meeting for the Board to consider; and WHEREAS, The Board has reviewed the Statement of Investment Policy; and WHEREAS, Government Code Section 53607 allows the Board to delegate the authority to make investments and to sell or exchange securities for a one year period to the Treasurer, provided that monthly reports are thereafter made of the status of said transactions. NOW, THEREFORE, the Board of Directors does hereby resolve: 1. That the Statement of Investment Policy for fiscal year 2013-14 is approved. 2. That the Treasurer is authorized to make investments consistent with said Policy and is required to provide a written report to the Board on a monthly basis and verbal report to the Board on a quarterly basis on the status of those transactions. The Treasurer is hereby given all of the authority provided by Government Code Section 53607, including the power to invest and reinvest and the power to sell or exchange securities, consistent with the District’s policy. 3. That the Treasurer may delegate some part of these duties to a deputy provided that the Treasurer remains responsible for such decisions and provides oversight. ATTACHMENT 1 PASSED and ADOPTED on this 27th day of June 2013. ________________________________ ________________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors ATTACHMENT 1 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, Scott Carroll, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2013-836 duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof held on the 27th day of June 2013. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this 27th day of June 2013. _________________________________ Scott Carroll Clerk of the Costa Mesa Sanitary District Attachment B COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2012-132013-14 1 I. PURPOSE This statement is intended to formalize the various policies and procedures for the prudent investment of temporarily idle cash for the Costa Mesa Sanitary District (District). It outlines the investment-related activities, which comprise good cash management. In concert with these activities there are many facets of an appropriate secure short-term investment program, which will enhance the economic condition of the District while safeguarding its assets. II. INVESTMENT SELECTION OBJECTIVE The District strives to maintain the level of investment of all idle funds as near 100% as possible. All temporarily pooled idle cash is invested under the "Prudent Investor Standard," Government Code §53600.3, which states, in part: ”…When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency…” This affords the District a broad spectrum of investment opportunities as long as the investment is deemed prudent and is allowable under current legislation of the State of California Government Code Section 53600 et seq. and the Costa Mesa Sanitary District Statement of Investment Policy. The District Treasurer, after meeting the legality, safety, liquidity and diversification criteria, will attempt to obtain the highest yield possible. The criteria for selecting investments, in order of priority are: 1. Legality – The District's investments must conform to federal laws, state statutes, District ordinances and internal policies and procedures. The District has established internal controls to ensure that investment activities comply with all applicable statutes, ordinances and policies. 2. Safety – The safety and risk associated with an investment refers to the potential loss of principal, interest or a combination of these amounts. The District only operates in those investments that are considered very safe. Attachment B COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2012-132013-14 2 3. Liquidity – This refers to the ability to "cash in" at any moment in time with a minimal chance of losing some portion of principal or interest. The District's investment portfolio will remain sufficiently liquid to enable the District to meet all operating requirements as well as unanticipated needs for funds. 4. Diversification – The District's investment portfolio will be sufficiently diversified to avoid incurring unreasonable risks resulting from saturation of assets in specific security types, maturities or individual financial institutions. 5. Yield – Yield is the potential dollar earnings an investment can provide, and sometimes is described as the rate of return. The basic premise underlying the District's investment philosophy is to ensure that funds are always safe and available when needed. The District does not buy stocks, speculate or deal in futures or options. Any investment extending beyond a five-year period requires prior District Board approval. III. AUTHORIZED INVESTMENTS The District limits its investments to the following vehicles:  US Treasury Bills  US Treasury Notes  Federal Agency Issues - Examples include: o Federal Intermediate Credit Bank Debentures (FICB) o Federal Farm Credit Bank (FFCB) o Federal Land Bank Bonds (FLB) o Federal Home Loan Bank Notes and Bonds (FHLB) o Federal National Mortgage Association (FNMA) o Federal Home Loan Mortgage Corporation (FHLMC)  Banker’s Acceptances  Certificates of Deposit (CD)  Negotiable Certificates of Deposit  Commercial Paper  Medium Term Corporate Notes  Money Market Mutual Funds  Passbook Savings Account  Local Agency Investment Fund (LAIF) Attachment B COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2012-132013-14 3 IV. DELEGATION OF AUTHORITY The District’s Board of Directors (Board) hereby delegates its authority to invest surplus District funds to the Treasurer. Delegation of the investment function by the Board is limited to a one-year period. Failure to delegate deems the Board to be trustee and fiduciary, therefore subject to the prudent investor standard. V. INTERNAL CONTROLS A system of internal control shall be established and documented in writing. The controls shall be designed to prevent loss of public funds arising from irregularities, employee error, misrepresentation of third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the District. Controls deemed most important include: control of collusion, separation of duties, custodial safekeeping, clear delegation of authority, confirmation of transactions, minimizing the number of authorized investment officials, documentation of transactions and strategies, and code of ethics standards. VI. REPORTING The Treasurer shall submit a monthly investment report to the Board. This report will communicate, at a minimum, the type of investment, institution, date of maturity, amount of deposit, rate of interest, current market value of securities with maturities in excess of 12 months, source of market valuations, statement of compliance and such other data as required by the Board. Once each quarter, the Treasurer shall discuss the previous month’s investment report with the Board at a regular meeting. VII. LEGAL CONSTRAINTS Surplus funds must be deposited in state or national banks, state or federal savings associations or federal credit unions within the State of California. These deposits cannot exceed the amount of the institution's paid-up capital and surplus. The bank or savings and loan must secure public funds deposits with eligible securities having a market value of 110% of the total amount of the deposits or first trust deeds having a value of 150% of the total amount of the deposits. A third class of collateral is a 105% letter of credit drawn on the Federal Home Loan Bank. The Treasurer may waive security for that portion of a deposit, which is insured pursuant to Federal law. Currently, the first $250,000 of a deposit is federally insured. Deposits over $250,000 are collateralized as indicated above. Attachment B COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2012-132013-14 4 VIII. DERIVATIVES The term derivative is a commonly used name that describes a variety of securities whose values are "derived from" the value of another asset, a reference rate or an index. Investment in derivative instruments is limited to securities that have periodic increases, or step-up interest rate adjustments that provide an increased yield. Investment in callable securities is also allowed, but must comply with other restrictions as specified in this Investment Policy. Derivative securities known as inverse floaters, range notes, structured investment vehicles, mortgage-derived interest-only strips and other such securities that produce higher yields when purchased but have the possibility of producing low or no return through the life of the security, are not allowable. IX. BOND PROCEEDS When investing bond proceeds, if any, the District will adhere to this Investment Policy (Policy) when determining appropriate instruments for placing monies. If the bond's trust agreement is more restrictive than this Policy, then the trust agreement supersedes this Policy. The District may delegate it’s responsibly to the fiscal agent to ensure compliance with the bond covenants when managing bond proceeds on behalf of the District. Borrowing money solely for the purpose of investing and earning arbitrage is specifically prohibited. X. GRANDFATHER PROVISIONS The District’s investment strategy is to buy and hold investments until maturity. As legislation and the District’s Policy change, certain investments may become prohibited. Under Section 53601.6 of the California Government Code, the District may hold prohibited investments until their maturity to avoid incurring a loss. This allows the District to "grandfather" in securities purchased prior to the effective date of new legislation. When selling and subsequently repurchasing securities prior to maturity, losses are only acceptable if the proposed swap/trade can clearly enhance yield (value) over the life of the new security on a total return basis, or to prevent the further loss of principal. Sufficient written documentation to facilitate the audit of the transaction must be maintained. In the event that an issuer’s rating is downgraded from when the security was purchased, the Treasurer’s awareness is heightened and the security will be closely monitored to determine if credit risk has been significantly increased. The Treasurer will evaluate the need to sell the security prior to maturity. Attachment B COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2012-132013-14 5 XI. BANKS AND SECURITIES DEALERS The District shall transact business only with banks, savings and loans, and "primary" or "regional" registered investment securities broker/dealers with offices located, or doing business, in the State of California. Any broker/dealer or financial institution wishing to provide services must complete the District's questionnaire and be approved by the Treasurer. The number of broker/dealers authorized to transact business with the District is one broker/dealer for every $5,000,000 of portfolio size. XII. SAFEKEEPING AND CUSTODY Securities should be held in a third party custodian/safekeeping account. Said securities shall be held in a manner that establishes the District's right of ownership pursuant to Government Code Sections 53601 and 53608 et seq. All securities owned by the District should be held by a third party except the collateral for time deposits in banks and savings and loans, which is held by the Federal Home Loan Bank or an approved Agent of Depository. The collateral for time deposits in banks should be held in the District's name by the bank's Trust Department, or alternately, by the Federal Reserve Bank pursuant to Government Code Sections 53656 and 53657 et seq. XIII. INDEMNIFICATION Any authorized investment personnel acting with prudence and in accordance with the District’s Policy, will not be held personally liable for any investment losses. Through surety bonds, the District is indemnified against any investment personnel acting with malfeasance, misfeasance or nonfeasance. XIV. CONFLICT OF INTEREST Any firm proposing to provide any type of investment service to the District shall acknowledge their familiarity with and agree to abide by any Federal and State laws or regulations pertaining to contractual conflicts of interest or contributions by such firms, their employees, spouses or agents. Any persons, firms, dealers, brokers and advisors providing investment services or bond issue assistance shall disclose to the Treasurer all fee sharing and commission arrangements with other entities or persons prior to the District agreeing to buy an investment or issuing bonds. Attachment B COSTA MESA SANITARY DISTRICT Statement of Investment Policy Fiscal Year 2012-132013-14 6 XV. POLICY REVIEW The Treasurer shall be responsible for reviewing and modifying this Policy annually for Board approval to ensure its consistency with the overall objectives of safety, preservation of principal, and liquidity, and its relevance to current law and current financial and economic conditions. XVI. SUMMARY The basic premise underlying the District's investment philosophy is conservative, and will continue to be, to ensure that money is always safe and available when needed. Attachments: Investment Guidelines and Strategy Investment Procedures – Internal Control Guidelines Cash Controls Segregation of Treasury Functions Glossary of Investments Attachment B COSTA MESA SANITARY DISTRICT Investment Guidelines and Strategy Fiscal Year 2012-132013-14 7 I. GUIDELINES Guidelines are established to direct and control activities in such a manner that previously established goals are achieved. 1. Investment Transaction: Every investment transaction must be authorized and reviewed by the Treasurer. 2. Pooled Cash: Whenever practical, cash is consolidated into one bank account and invested on a pooled concept basis. Interest earnings are allocated quarterly to each fund based upon the average monthly ending cash balance of the fund. 3. Competitive Bids: Purchases and sales of securities are made on the basis of competitive offers and bids when practical. 4. Cash Forecasting: The cash flow for the District is projected with the receipt of revenues and maturity of investments scheduled so that adequate cash will be available to meet disbursement requirements. 5. Investment Limitations: Security purchases and holdings are maintained within statutory limits imposed by the California Government Code. The District's current limits are: District Policy Government Code Permitted Investments/Deposits Percent Maturity Percent Maturity US Treasury Bills and Notes Unlimited 5 years Unlimited 5 years US Government Securities Unlimited 5 years Unlimited 5 years Certificates of Deposit 25% 1 year Unlimited 5 years Bankers’ Acceptances (1) 25% 180 days 40% 180 days Commercial Paper (2) 25% 270 days 25% 270 days Negotiable CDs (2) 25% 5 years 30% 5 years Medium Term Notes 20% 5 years 30% 5 years LAIF $40 million50% n/a $40 million n/a Shares of Beneficial Interest (3), (4) 20% 5 years 20% 5 years (1) Further limited to 30% in any single commercial bank per Government Code and 15% per District Policy (2) Further limited to 10% in any single issuer (3) Includes CalTRUST, money market funds and money market mutual funds (4) Further limited to 10% in any single mutual fund Attachment B COSTA MESA SANITARY DISTRICT Investment Guidelines and Strategy Fiscal Year 2012-132013-14 8 6. Liquidity: The marketability of a security is considered at the time of purchase, as the security may have to be sold at a later date to meet unanticipated cash demands. 7. Diversification: The portfolio should consist of various types of securities, issuers, and maturities. 8. Evaluate Certificates of Deposit: a) Certificates of Deposit shall be evaluated in terms of FDIC coverage. The District does not purchase Certificates of Deposit in excess of $100,000. b) Negotiable Certificates of Deposit shall be evaluated in terms of the credit worthiness of the issuer, as these deposits are uninsured and uncollateralized promissory notes. II. STRATEGY Strategy refers to the ability to manage financial resources in the most advantageous manner. 1. Economic Forecasts: Economic forecasts are obtained periodically from economists and financial experts through bankers and brokers to assist with the formulation of an investment strategy for the local agency. 2. Implementing Investment Strategy: Investment transactions are executed which conform to anticipated interest rate trends and the current investment strategy plan. 3. Rapport: A close working relationship is maintained with large vendors of the District. The objective is to pinpoint when large disbursements will clear the District's bank account. It is essential for good cash control that such large expenditures be anticipated, estimated as to dollar amount, and communicated to the Treasurer for liquidity planning purposes. 4. Preserve Portfolio Value: Standards are developed in order to maintain earnings near the market and to preserve the value of the portfolio. III. AUDIT Annually, the District's external auditors review the District’s portfolio and perform limited procedures related to compliance. Additionally, they review that purchase price, market value and maturity date for financial statement purposes. This review is included as part of the annual audit of the District. Attachment B COSTA MESA SANITARY DISTRICT Investment Procedures – Internal Control Guidelines Fiscal Year 2012-132013-14 9 I. OBJECTIVES OF INTERNAL CONTROL Internal control is the plan of organization and all the related systems established by management's objective of ensuring, as far as practical:  The orderly and efficient conduct of its business, including adherence to management policies;  The safeguarding of assets;  The prevention or detection of errors and irregularities;  The accuracy and completeness of the accounting records; and  The timely preparation of reliable financial information. II. LIMITATIONS OF INTERNAL CONTROL No internal control system, however elaborate, can by itself guarantee the achievement of management's objectives. Internal control can provide only reasonable assurance that the objectives are met, because of its inherent limitations, including:  Management's usual requirement that a control be cost-effective;  The direction of most controls at recurring, rather than unusual, types of transactions;  Human error due to misunderstanding, carelessness, fatigue or distraction of functions; and  The potential for a person responsible for exercising control abusing that responsibility. Frequently, a member of management is in a position to override controls which management has set up. III. ELEMENTS OF INTERNAL CONTROL Elements of a system of internal control are the means by which an organization can satisfy the objectives of internal control. These elements are: 1. Organization: Specific responsibility for the performance of duties should be assigned and lines of authority and reporting clearly identified and understood. 2. Personnel: Personnel should have capabilities commensurate with their responsibilities. Personnel selection and training policies, together with the quality and quantity of supervision, are thus important. Attachment B COSTA MESA SANITARY DISTRICT Investment Procedures – Internal Control Guidelines Fiscal Year 2012-132013-14 10 3. Segregation of Functions: Segregation of incompatible functions reduces the risk that a person is in a position both to perpetrate and conceal errors or irregularities in the normal course of duty. If different people handle two parts of a transaction, collusion is necessary to conceal errors or irregularities. In particular, the functions that should be considered when evaluating segregation of functions are authorization, execution, recording, custody of assets and performing reconciliations. 4. Authorization: An appropriate responsible individual should authorize all transactions. The responsibilities and limits of authorization should be clearly delineated. The authorization for a specific transaction or granting general authority for transactions should be to a position commensurate with the significance of the transactions. Delegation of authority to authorize transactions should be handled very carefully. 5. Controls Over an Accounting System: Controls over an accounting system include manual and computerized procedures carried out independently to ascertain that transactions are complete, valid, authorized and properly recorded. Attachment B COSTA MESA SANITARY DISTRICT Cash Controls Fiscal Year 2012-132013-14 11 I. PROCEDURES THAT MAY BE PERFORMED BY AUDITORS WITH RESPECT TO CASH RECEIPTS 1. District procedures and controls are reviewed. Some of the system strengths are: a. Receipts are controlled upon receipt by proper registration devices; b. Receipts are reconciled on a daily basis; c. Amounts are deposited intact; d. All bank accounts are authorized by the Board; e. Cash counts are done by two or more individuals; f. Bank reconciliations are reviewed; g. The posting of cash receipt entries in books is prompt; h. Receipt forms are prenumbered, accounted for, and physically secured; i. Proper approval required for write-off's of customer accounts; j. Checks are restrictively endorsed upon receipt; k. Adequate physical security over cash; l. Individuals who handle cash do not post account records or process billing statements; and m. Adequate supervision of financial operations. 2. Significant revenues are confirmed directly with payor and compared with District books to make sure amounts are recorded properly, or reviewed on an analytical basis by year over year comparisons. 3. Cash balances are substantiated by confirming account balances. Bank reconciliations are reviewed for propriety and recalculated by the auditor. All significant reconciling items on bank reconciliations are verified as valid reconciling items by proving to subsequent bank statements. Attachment B COSTA MESA SANITARY DISTRICT Segregation of Treasury Functions Fiscal Year 2012-132013-14 12 The District’s treasury function is segregated as follows. Function Responsibility Authorization of investment transactions: A) Formal investment policy Prepared by Treasurer Reviewed by Board Adopted by Board B) Investment transactions approved by Treasurer C) Monthly Investment Report: Prepared by Treasurer Reviewed by Board Execution of investment transactions Treasurer Recording of investments in Treasurer’s records Treasurer Recording of investments in accounting records Accounting Finance Manager Accounting records approved by Accounting Finance Manager Verification of investment and confirmation of Treasurer’s records Accounting Finance Manager Bank reconciliation: Prepared by Accounting Specialist IIAssociate Accountant Approved by Accounting Finance Manager Execute wire transfers Treasurer Callback verification of wire transfer Bank Annual review of investment portfolio External Auditors Attachment B COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2012-132013-14 13 Bankers' Acceptances – Short-term credit arrangements to enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at its maturity. An acceptance is a high-grade negotiable instrument. Acceptances are purchased in various denominations for 30, 60, or 90 days, but no longer than 180 days. The interest is calculated on a 360-day discount basis similar to Treasury Bills. The District may not invest more than 25% of its surplus money in Bankers' Acceptances and no more than 15% of bankers’ acceptances may be placed with any one commercial bank. Certificates of Deposit (CD) – Time deposits of a bank or savings and loan. They are purchased in various denominations with maturities ranging from 30 to 360 days. The District does not purchase Certificates of Deposit that are not FDIC insured. The interest is calculated on a 360-day, actual day month basis and is payable monthly. The District may invest up to 25% of its surplus money in insured CD's with maturities of one year of less. Commercial Paper – Short-term unsecured promissory notes issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial Paper is issued by corporations such as General Motors, IBM, etc. Local agencies are permitted by State law to invest in Commercial Paper of the highest ranking or of the highest letter and numerical rating as provided by Moody's Investor's Service, Inc., or Standard and Poor's Corporation. Purchases of eligible Commercial Paper may not exceed 270 days maturity, nor exceed 25% of the District's surplus funds. The District may not purchase more than 10% of any single issuer. Federal Agency Issues – Guaranteed directly or indirectly by the United States Government. All agency obligations qualify as legal investments and are acceptable as security for public deposits. Agencies usually provide higher yields than direct Treasury issues with all of the same advantages. An unlimited amount of funds may be invested in Federal Agency issues with maximum maturities of less than five years. The Board must expressly authorize any investment with a maturity greater than five years. Examples include:  Federal Intermediate Credit Bank Debentures (FICB) – Loans to lending institutions used to finance the short-term and intermediate needs of farmers, such as seasonal production. They are usually issued monthly in minimum denominations of $3,000 with a nine-month maturity. Interest is payable at maturity and is calculated on a 360-day, 30- day month basis. Attachment B COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2012-132013-14 14  Federal Farm Credit Bank (FFCB) – Debt instruments used to finance the short and intermediate term needs of farmers and the national agricultural industry. They are issued monthly with three and six-month maturities. The FFCB issues larger issues (one to ten years) on a periodic basis. These issues are highly liquid.  Federal Land Bank Bonds (FLB) – Long-term mortgage credit provided to farmers by Federal Land Banks. These bonds are issued at irregular times for various maturities ranging from a few months to ten years. The minimum denomination is $1,000. They carry semi-annual coupons. Interest is calculated on a 360-day, 30-day month basis.  Federal Home Loan Bank Notes and Bonds (FHLB) – Issued by the Federal Home Loan Bank System to help finance the housing industry. The notes and bonds provide liquidity and home mortgage credit to savings and loan associations, mutual savings banks, cooperative banks, insurance companies and mortgage-lending institutions. They are issued irregularly for various maturities. The minimum denomination is $5,000. The notes are issued with maturities of less than one year and interest is paid at maturity. The bonds are issued with various maturities and carry semi-annual coupons. Interest is calculated on a 360-day, 30-day month basis.  Federal National Mortgage Association (FNMA) – Used to assist the home mortgage market by purchasing mortgages insured by the Federal Housing Administration and the Farmers Home Administration, as well as those guaranteed by the Veterans Administration. They are issued four times a year with maturities from a few months to eight years. The minimum amount is $10,000 and carry semi-annual coupons, with interest computed on a 360-day, 30-day month basis.  Federal Home Loan Mortgage Corporation (FHLMC) – A government-sponsored corporation established to develop the secondary market for conventional home mortgages. Mortgages are purchased solely from the Federal Home Loan Bank System member lending institutions whose deposits are insured by agencies of the United States Government. They are issued for various maturities and in minimum denominations of $10,000. Interest is paid semi-annually and is calculated on a 360-day, 30-day month basis. Investment Trust of California (CalTRUST) – A joint powers authority established by local agencies in the State of California for the purpose of pooling and investing local agency funds. A Board of Trustees supervises and administers the investment program. The Board is comprised of experienced investment officers and policy-makers of the public agency members. CalTRUST invests in fixed income securities eligible for investment pursuant to California Government Code §53601 et seq. The District is not limited as to the number of deposits and withdrawals in any given month for the short-term account within CalTRUST. The district is limited to one Attachment B COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2012-132013-14 15 transaction per month in the medium-term account within CalTRUST. See also Shares of Beneficial Interest. Local Agency Investment Fund (LAIF) – A special fund in the State Treasury which local agencies may use to deposit funds for investment. There is no minimum investment period and the minimum transaction is $5,000, in multiples of $1,000 above that, with a maximum balance of $40,000,000 for any agency. The District is restricted to 15 transactions per month for each LAIF account. LAIF offers high liquidity because deposits can be converted to cash in 24 hours with no interest lost. Interest is distributed to those agencies participating on a per share basis determined by the amounts deposited and the length of time they are deposited. Interest is paid quarterly. The State retains a portion for administrative costs, not to exceed one-quarter of one percent of the earnings. The pooling of the State's surplus cash with the participant's surplus cash creates a multi-billion dollar money pool and allows diversified investments. In a high interest rate market, the District does better than LAIF however, in times of low interest rates, LAIF’s yields are higher. The District invests in the Local Agency Investment Fund whose Investment Policy allows investments in securities not specifically authorized by the District's Investment Policy, but allowable under the California Government Code. Medium Term Corporate Notes – Unsecured promissory notes issued by a corporation organized and operating in the United States. These are negotiable instruments and are traded in the secondary market. Medium Term Corporate Notes can be defined as extended maturity Commercial Paper. Local agencies are restricted by the Government Code to investments in corporations rated in the top three note categories by a nationally-recognized rating service, five year maximum maturity and may not exceed 30% of surplus funds. The District's restrictions are a maximum term of five years to maturity and total investments in Medium Term Corporate Notes may not exceed 20% of the District's surplus funds. The District may not purchase more than 10% of any single issuer. Negotiable Certificates of Deposit – Unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. The primary market issuance is in multiples of $1,000,000, the secondary market usually trades in denominations of $500,000, and smaller lots are occasionally available. As a matter of practice, only the ten largest US banks, where there is a secondary market established for continued liquidity, are considered for investment. Purchases of Negotiable Certificate of Deposit may not exceed 25% of the District's surplus funds and five years to maturity. The District may not buy more than 10% of any single issuer. Attachment B COSTA MESA SANITARY DISTRICT Glossary of Investments Fiscal Year 2012-132013-14 16 Passbook Savings Account Demand Deposit – Interest bearing active deposits placed at state or national banks, state or federal savings and loan associations, state or federal credit unions and federally insured industrial loan companies. Monies placed in a savings account earn short- term interest. Deposits are FDIC insured up to $250,000, and may be in any amount. Shares of Beneficial Interest – Also referred to as money market mutual funds. CalTRUST, which has previously been defined, is classified as shares of beneficial interest. Shares of beneficial interest must consist of highly-rated short-term debt instruments. The management companies shall either (1) attain the highest ranking or the highest letters and numerical rating provided by not less than two of the three largest nationally recognized rating services, or (2) have an investment advisor registered with the Securities and Exchange Commission (SEC) with not less than five years experience investing in the securities and obligations as authorized above and with assets under management in excess of five hundred million dollars ($500,000,000) and (3) follow regulations specified by the SEC under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1, et seq.). The purchase price of shares for beneficial interest shall not exceed 20% of the District's portfolio. US Treasury Bills – Direct obligations of the United States Government issued weekly with maturity dates up to one year. They are issued and traded on a discount basis with interest calculated on a 360-day basis and actual invested days. They are issued in amounts of $10,000 and up, in multiples of $5,000. They are a highly liquid security. An unlimited amount may be invested in US Treasury Bills. US Treasury Notes – Direct obligations of the United States Government with original maturities of 1 to 10 years. They are generally available in minimum denominations of $5,000 for two and three-year maturities, and $1,000 denominations for all other maturities. Notes are actively traded in a large secondary market and are very liquid. An unlimited amount of funds may be invested in US Treasury Notes with maximum terms of five years. The term may be extended if authorized by the Board. 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 To: Board of Directors Via: Scott Carroll, General Manager From: Alan Burns, District Counsel Date: June 27, 2013 Subject: Dissolving Operations Committee and Instituting Study Session Special Meeting Procedure Summary The proposed resolution and ordinance will dissolve the Operations Committee and institute a District procedure to hold special meetings as study sessions. The ordinance will revise the procedure for placing matters on the agenda. Staff Recommendation That the Board of Directors adopts the following: 1. Resolution No. 2013-839 dissolving the Operations Committee and directing that periodic study sessions be held of the full Board. 2. Ordinance No. 98 amending Operations Code Section 3.01.110 pertaining to procedures for placing an item on the agenda. Analysis The volume of the Board of Directors’ business has long ago surpassed what can reasonably be accomplished in a single Board meeting held once a month. The Board therefore instituted recycling and sewer committees to address issues early and to work up the policy considerations before matters were presented to the full Board at its monthly regular meeting. Those committees were melded into an Operations Committee which addressed both subjects at one extra meeting per month. Dissatisfaction with the committee method of providing early discussion of policy matters arose from the Brown Act limitation that only members of a standing committee could provide input but that other Board members could only attend and listen. While this allowed all of the Board to receive the information, the District and its ITEM NO. 26 Board of Directors June 27, 2013 Page 2 of 3 constituents were deprived of the opportunity to have all of their elected officials participate and provide input into the early discussions. Because of the need for an additional meeting to address policy issues early, and because the Committee system did not allow all members to fully participate in the discussions of the committee, the Board has now determined that the District would be better served if the Operations Committee was dissolved and special meetings of the full Board be held each month as study sessions to allow early discussion of policy issues. The resolution will accomplish that. An amendment to the Operations Code is also required as the Operations Committee was one of the mechanisms by which an item could be cleared for inclusion on the regular full Board agenda. Staff was, for a while, somewhat inundated with requests for agenda item research and preparation requests, leading to the formalized rule set forth in District Operations Code Section 3.01.110 as to how an item is placed on the agenda. There is no longer a problem with multiple requests for agenda items being made and staff believes that the rules for agenda preparation can be relaxed allowing such matters to be handled more informally when the issues are simple or there is an urgent need to address an item, or if the matter is non-controversial. Therefore, we recommend the amendment to the ordinance allowing more relaxed agenda management procedures. The recommended action was directed by the Board. Staff concurs that this will be a more effective way for the Board to address policy matters early. Staff also believes that a liberalizing of the procedure for placing a matter on the agenda is also warranted in special circumstances. Strategic Plan Element & Goal This item complies with 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 This agenda item was prepared by District Counsel, in coordination with the General Manager. Financial Review Board members are currently compensated $221.00 per meeting they attend, up to a maximum of 6 meetings per month. The creation of a Study Session Special Meeting in lieu of the Operations Committee creates no additional financial. If District Counsel and/or District Treasurer were required to attend the Study Session Special Meetings the additional cost to the District is estimated at $7,032 annually. Board of Directors June 27, 2013 Page 3 of 3 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2013 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Continue with the Operations Committee. Attachment A: Resolution No. 2013-839 Attachment B: Ordinance No. 98 1 RESOLUTION NO. 2013-838 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT DISSOLVING THE OPERATIONS COMMITTEE AND DIRECTING THAT PERIODIC STUDY SESSIONS BE HELD OF THE FULL BOARD WHEREAS, the Board of Directors of the Costa Mesa Sanitary District has determined that the press of District business does not allow for all Board consideration and approval at one monthly meeting but requires at least one additional meeting per month where substantial policy decisions are discussed and options are fully explored; and WHEREAS, the Board has to date been utilizing an Operations Committee system in which sewer and recycling matters have been considered by a standing committee; and WHEREAS, said Standing Committee discussion did not allow the full Board to participate, but the full Board generally attended so that each director would be apprised of the facts and issues being considered; and WHEREAS, the Brown Act did not allow those directors not on that Committee to participate in the discussion but required that they attend only as observers; and WHEREAS, the Board has now determined that a study session of the full Board is a better vehicle for deliberation and discussion and provides the public with the full benefit of all Board members’ input and debate; NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District does hereby RESOLVE as follows: 1. That the Operations Committee is hereby dissolved as a standing committee. 2. That the Board shall establish periodic monthly meetings of the full Board as study sessions. That those meetings shall be established as special meetings and noticed for study purposes, with no action normally taken at those meetings. 3. That nothing herein established is meant to limit the Board from setting a Special Meeting and taking action at that meeting provided the agenda clearly sets forth in the agenda description the possibility of action being taken. 4. That to the extent Resolution No. 2011-805 establishing Standing Committees is inconsistent with this resolution, this resolution shall supersede that resolution. 2 PASSED AND ADOPTED by the Board of Directors of the Costa Mesa Sanitary District at a regular meeting held on the ________ day of ___________________, 2013. AYES: Board Members- NOES: Board Members- ABSTAIN: Board Members- ABSENT: Board Members- _________________________________ James Ferryman President I HEREBY CERTIFY that the foregoing is a full, true, and correct copy of Resolution 2013-_____ adopted by the Board of Directors of Costa Mesa Sanitary District at its regular meeting held on _____________________, 2013. _________________________________ Scott Carroll Clerk of the Board ORDINANCE NO. 98 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ESTABLISHING PROCEDURES FOR PLACING ITEMS ON BOARD AGENDAS WHEREAS, the Board of Directors of the Costa Mesa Sanitary District has previously utilized an Operations Committee to study District subjects and work up policy issues for the full Board; and WHEREAS, the Operations Committee also provides a mechanism by which business items were placed on the agenda for discussion and action; and WHEREAS, the Board has determined to dissolve the Operations Committee and to instead study issues during study sessions of the full Board; and WHEREAS, the Board does hereby desire to make conforming changes to its Operations Code to delete references to the Operations Committee as a place where agenda items could be approved for full Board discussion; NOW, THEREFORE, the Board of Directors of the Costa Mesa Sanitary District does hereby ORDAIN as follows: Section 1. That Section 3.01.110 of the Costa Mesa Sanitary District Operations Code is hereby amended to read as follows: “3.01.110. Procedure for Placing an Item on the Agenda. (a) Any Board member may request that an item be placed on the agenda upon approval of a majority of the Board of Directors. The request must be made by completing the Request to Agendize an Item form along with pertinent backup documentation. The nature of the item must be within the subject matter jurisdiction of the Costa Mesa Sanitary District. The complete package will be forwarded to the General Manager or designee to discuss at the Board meeting (b) Any member of the public may request that an item be placed on an agenda. The individual can make this request during the Public Forum section of any Board meeting, and the item must be within the subject matter jurisdiction of the Costa Mesa Sanitary District. The request can also be made by completing the Request to Agendize an Item form along with pertinent back-up documentation. The complete package will be forwarded to the General Manager or designee to discuss with the full Ordinance No. 98 Board for a determination for inclusion on the agenda. The public does not have the right to demand that an item be placed on the agenda; the control of the agenda is a matter determined by the Board. (c) The request for placing an item on the agenda should be submitted by 12:00 noon, fourteen (14) working days prior to the meeting. An additional amount of time may be required if staff is expected to make an appropriate recommendation. (d) Once a determination has been made for inclusion on the agenda, the General Manager or designee will prepare a staff report based on the documentation received. The staff report will be forwarded to the Board of Directors for discussion at the predetermined date of the Board meeting. (e) Notwithstanding the foregoing, when the matter does not require a workup or backup data, or due to the urgency of the matter, the request can be made at any special or regular Board meeting under ‘Director Comments.’ The Board can, at that time, vote to place it on a future agenda.” Section 2. Should any part, clause or section of this Ordinance be declared by any Court to competent jurisdiction to be invalid, the remaining provisions of this Ordinance shall nevertheless be and remain in full force and effect, and the Board of Directors of the Costa Mesa Sanitary District hereby declares that each and every section, clause, provision, or part of this Ordinance would have been adopted and made a part of this Ordinance without the adoption of any portion thereof and that the invalidity of any part or provision hereof shall not in any way affect the validity or enforcement of the remaining provisions of this Ordinance that may stand on their own. Section 3. Pursuant to Health and Safety Code sections 6490 and 6491.3, the District Clerk shall cause this Ordinance or a summary thereof to be published in a newspaper of general circulation printed and published in the District according to law. PASSED and ADOPTED this ______ day of _____________, 2013 __________________________ __________________________ Secretary President Ordinance No. 98 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, SCOTT CARROLL, Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Ordinance No. 98 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the 27 day of June, 2013, by the following votes: AYES: NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District this 27 day of June, 2013. Clerk of the Costa Mesa Sanitary District ITEM NO. 27 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 To: Board of Directors From: Scott Carroll, General Manager Date: June 27, 2013 Subject: CSDA Board of Directors Elections Summary The California Special Districts Association (CSDA) Board of Directors is the governing body responsible for all policy decisions related to CSDA’s member services, legislative advocacy, education and resources. The Board of Directors plays an important role to the operation of the association and to the representation of the common interests of all California’s special districts before the Legislature and the state administration. Ballots for the 2014-16 Board of Directors elections have been mailed out and must be received by CSDA by the end of the business day on August 2, 2013 Staff Recommendation That the Board of Directors approves casting a ballot for the Open Seat B of Region 6 for the California Special Districts Association Board of Directors. Analysis The Board of CSDA is elected from its six geographical regions. Each of the six regions has three seats on the board with staggered three-year terms. Region 6 of the Board represents Orange, Riverside, San Diego and Imperial Counties. Orange County Cemetery District Trustee, Bill Nelson, is the incumbent running for re- election for Region 6. Attachment A is more information about Trustee Nelson. No other candidates are running for Region 6. After the Board approves its nomination for Region 6 and the vote is cast, CMSD Board minute action will be accompanied with the nomination. ITEM NO. 28 Board of Directors June 27, 2013 Page 2 of 2 Strategic Plan Element & Goal This item supports achieving Strategic Element No. 3.0, Partnerships and Strategic Goal No 3.4, Participate in the activities of professional associations. Legal Review Not applicable. Financial Review There is no financial impact to the District for casting a ballot. Committee Recommendation N/A Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 27, 2013 Board of Directors regular meeting at District headquarters and on District’s website. Alternative Actions 1. Refer the matter back to staff for more information. Attachment A: Letter from Orange County Cemetery District Attachment B: CSDA 2013 Mail Ballot Information