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2019_01_24_boardThursday, January 24, 2019 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 5:30 P.M. Public Comments: Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to four minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS 1. Call to Order - President Ferryman 2. Pledge of Allegiance - President Ferryman 3. Invocation - Vice President Ooten 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. 6. Ceremonial Matters and Presentations B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. 1. Public Comments C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1. Approve Consent Calendar 2. Approve the Board of Directors Study Session Minutes of December11, 2018 3. Approve the Board of Directors Regular Meeting Minutes of December 20, 2018 4. Adopt Warrant Resolution No. CMSD 2019-7 Approving District Warrant Registers 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Approve Payroll Transparency Disclosure for December 2018 7. Approve the preparation of a warrant to CR Transfer in the amount of $181,524.02 for December 2018 recycling and disposal services in the January 2019 warrant register 8. Accept the occupancy count as presented as 22,724 and direct staff to prepare a warrant to CR&R Environmental Services for $222,590.67 for December 2018 collection 9. Receive and File Fiscal Year 2017-2018 Annual Compliance Report for Requirements of Government Code Section 66013 (d) for Capacity Charges. D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Receive and file the Comprehensive Annual Financial Report, Auditor's Report in Accordance with Government Auditing Standards, and the Auditors' Required Communication for the year ended June 30, 2018 2. 2018: A Year In Review 3. 2018 Performance Measurement Final Report 4. Receive and File 2015-20 Strategic Plan Quarterly Update - FY 2018-19 2nd Quarter 5. FY 2018-19 Budget Review – Mid-Year 6. Discuss Preliminary Budget Calendar for the 2019-2021 Biennial Budget 7. Citizens Advisory Committee (CAC) January 9, 2019 Meeting Overview 8. Roger Faubel Public Affairs, Inc. - Consider Approving Agreement and Directing the General Manager to Sign said Agreement 9. Receive and File General Manager's 2018 Performance Goals and CMSD Accomplishments; Direct President Ferryman to meet with the General Manager to negotiate 2019 performance goals and compensation F. ENGINEER'S REPORTS 1. Receive and File Monthly Capital Improvement Projects Status Report 2. #318 President Pump Station Reconstruction; Review of Alternative 4; Pump Station Located in Cul-de-Sac 3. #319/#320 Canyon Pump Station Rehabilitation and Sewer Force Main Replacement; Bid Opening, Award of Project, and Transfer of Funds G. TREASURER'S REPORTS 1. Approve the Investment Report for the Month of December 2018 H. ATTORNEY'S REPORTS 1. Ordinance No. 124 - Reenacting the Purchasing Provisions of the District's Operations Code I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request &nbsp;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.&nbsp;&nbsp;For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (President Ferryman) 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) 4. California Special Districts Association (CSDA) - (Secretary Schafer) 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 J. OLD BUSINESS K. NEW BUSINESS L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. ADJOURN TO CLOSED SESSION N. RECONVENE TO OPEN SESSION O. CLOSING ITEMS 1. Adjourn Thursday, January 24, 2019 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 5:30 P.M. Public Comments: Any member of the public may address the Board. Speakers on agenda items should identify themselves to the District Clerk before the meeting so that their input can be provided at the time the item is considered. Speakers on non-agenda items will be heard under Public Comments. Pursuant to State law, the Board may not discuss or take action on non-agenda items except under special circumstances. Speakers must limit their remarks to four minutes or as decided upon by the Presiding Officer. The Presiding Officer reserves the right to declare any speaker out of order. Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained at the District offices at 290 Paularino Avenue, Costa Mesa, California. In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS Subject 1. Call to Order - President Ferryman Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ferryman Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Ooten Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS James Ferryman, President Robert Ooten, Vice President Arlene Schafer, Secretary Michael Scheafer, Director Arthur Perry, Director Subject 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Procedural B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject 1. Public Comments Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Procedural C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 1. Approve Consent Calendar Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Consent Calendar as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: January 24, 2019 Subject: Approve the Board of Directors Study Session Minutes of December 11, 2018 Summary The recorded minutes of the December 11, 2018 Board of Directors Study Session are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Study Session on December 11, 2018. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 24, 2019 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments Subject 2. Approve the Board of Directors Study Session Minutes of December11, 2018 Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. Minutes View Minutes for Dec 11, 2018 - Board of Directors Study Session minutes_2018_12_11_ss.pdf (58 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: January 24, 2019 Subject: Approve the Board of Directors Regular Meeting Minutes of December 20, 2018 Summary The recorded minutes of the December 20, 2018 Board of Directors Regular Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Regular Meeting on December 20, 2018. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 24, 2019 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments Subject 3. Approve the Board of Directors Regular Meeting Minutes of December 20, 2018 Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. Minutes View Minutes for Dec 20, 2018 - Board of Directors Regular Meeting minutes_2018_12_20_rm.pdf (81 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. File Attachments WARRANT RESO Jan 2019 Meeting.pdf (265 KB) Subject 4. Adopt Warrant Resolution No. CMSD 2019-7 Approving District Warrant Registers Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2019-7 approving District warrants for the month of December 2018 in the amount of $724,712.87. Goals 7.0 Finance All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk Date: January 24, 2019 Subject: Directors' Compensation and Reimbursement of Expenses Summary The Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses. Staff Recommendation That the Board of Directors approve the compensation and reimbursement of expenses as presented. Legal Review Not applicable. Environmental Review Consideration of the compensation and reimbursement of expenses is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 24, 2019 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the compensation and reimbursement of expenses as presented. 2. Direct staff to report back with more information. File Attachments a_director_compensation.pdf (222 KB) b_director_expense_reimbursement.pdf (118 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Scott Carroll, General Manager Date: January 24, 2019 Subject: Approve Payroll Transparency Disclosure for December 2018 Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Analysis Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Recommendation That the Board of Directors approve and file the report. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 24, 2019 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Subject 6. Approve Payroll Transparency Disclosure for December 2018 Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors approve and file the report. Goals 7.0 Finance Alternative Actions Refer item back to staff with further instructions. File Attachments Payroll Transparency Disclosure December 2018.pdf (692 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: January 24, 2019 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $181,524.02 for December 2018 recycling and disposal services in the January 2019 warrant register Summary This payment to CR Transfer is for the sorting of recyclables from the mixed waste and disposal of the remaining waste at the landfill. With the implementation the Organics Recycling Program adopted by the Board, this payment also includes the diverting of the organics waste to the Anaerobic Digestion facility to be recycled into fertilizer or renewable natural gas to fuel the refuse trucks. Recommendation That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $181,524.02 for December 2018 recycling and disposal services to be ratified in the January 2019 warrant register. Analysis Below is a chart depicting the total tonnage and payments due for residential and organic waste collected in Costa Mesa and Newport Beach. Please note there was a discrepancy with billing this month, CR&R's billing system inaccurately calculated invoice totals and over billed the District by $0.33, but CMSD will be paying the actual amount owed. Costa Mesa Newport Beach Total Residential Waste $133,780.13 $2,437.91 $136,218.04 Organics $43,176.71 $2,129.27 $45,305.98 Total Payment $181,524.02 Tonnage Residential Waste 2574.18 46.91 2621.09 Organics 603.87 29.78 633.65 Total Tonnage 3254.74 Legal Review Not Applicable Subject 7. Approve the preparation of a warrant to CR Transfer in the amount of $181,524.02 for December 2018 recycling and disposal services in the January 2019 warrant register Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $181,524.02 for December 2018 recycling and disposal services to be ratified in the January 2019 warrant register. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 24, 2019 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: January 24, 2019 Subject: Accept the occupancy count as presented as 22,724 and direct staff to prepare a warrant to CR&R Environmental Services for $222,590.67 for December 2018 collection Summary Accept the occupancy count as presented using 22,724 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,590.67 to be ratified in the January 2018 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,724 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,590.67 to be ratified in the January 2019 warrant list. Analysis The occupancy count is the number of residential customers that the District pays CR&R for the trash truck to stop and pick-up trash. The District pays CR&R $9.7954 per occupant, per month. Each month, new residential customers in brand new developments contact the District to establish new trash service. District staff contacts CR&R to approve the drop-off of carts at the residence, which results in an increase in the occupancy count as shown on the attached list. Over the years, some discrepancies have occurred in the number of total occupancies. District staff has been working with CR&R to reconcile the entire list of service addresses for the past few months. As of December 31, 2018, total District occupancy was at 22,724, with twenty-two (22) accounts added since the last billing period. District staff will continue to track the number of new service addresses. The payment calculation is based on the following: District's Current Rate for December of 2018: 22,724 x $9.7954 = $222,590.67 Subject 8. Accept the occupancy count as presented as 22,724 and direct staff to prepare a warrant to CR&R Environmental Services for $222,590.67 for December 2018 collection Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 22,724 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for December 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,590.67 to be ratified in the January 2019 warrant list. Legal Review Not Applicable Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the January 24, 2019 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. Alternative Actions Refer item back to staff with further instructions. File Attachments 2018-12-G CMSD Occupancy Report.pdf (15 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: The Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Senior Accountant Date: January 24, 2019 Subject: Receive and File Fiscal Year 2017-2018 Annual Compliance Report for Requirements of Government Code Section 66013 (d) for Capacity Charges. Summary Staff is providing the Board with the Annual Compliance Report to fulfill the information and reporting requirements of Government Code Section 66013(d) for Capacity Charges. Analysis On May 27, 2010 the Board adopted Ordinance No. 76, revising the charges collected by the District and establishing that fixture fees are capacity charges and making related clarifying changes. (CMSD § 6.04.040) Fixture fees are capacity charges for public facilities in existence at the time a charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged, including supply or capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local agency involving capital expense relating to its use of existing or new public facilities. Upon payment of the fees, the money shall be deposited in a separate capital facilities account maintained in accordance with Government Code Section 66013(d). For each such separate account, the District shall, within one hundred eighty (180) days of the close of the fiscal year, make available to the public the following information: (1) A description of the charges deposited in the fund. (2) The beginning and ending fund balance of the fund and the interest earned from investment of moneys in the fund. (3) The amount of charges collected in that fiscal year. (4) An identification of all of the following: (A) Each public improvement on which charges were expended and the amount of the expenditure for each improvement, including the percentage of the total cost of the public improvement that was funded with those charges if more than one source of funding was used. (B) Each public improvement on which charges were expended that was completed during that fiscal year. (C) Each public improvement that is anticipated to be undertaken in the following fiscal year. (5) A description of each interfund transfer or loan made from the capital facilities fund. The information provided, in the case of an interfund transfer, shall identify the public improvements on which the transferred moneys are, or will Subject 9. Receive and File Fiscal Year 2017-2018 Annual Compliance Report for Requirements of Government Code Section 66013 (d) for Capacity Charges. Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action Staff recommends the Board receive and file this report. Goals 7.0 Finance be, expended. The information, in the case of an interfund loan, shall include the date on which the loan will be repaid, and the rate of interest that the fund will receive on the loan. Recommendation Staff recommends the Board receive and file this report. Legal Review District Counsel has reviewed this report. The report complies with Gov. Code § 66013 and CMSD Operations Code 6.04.040. Environmental Review Preparing the yearly compliance report is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Finance staff confirms that the Annual Compliance Report presents fairly the financial activity of the Facilities Revolving Fund for the fiscal year ending June 30, 2018. During the fiscal year 2017-18, the Facilities Revolving Fund received $147,335 in capacity charges, interest income earned negative $34 due to fair market valuation adjustments recorded at year end. Due to cancellation of projects by the contractors there were two refunds from the fund for a total of $760. One hundred and ninety three thousand were transferred out to the Wastewater Fund for the purchase of the property at 2252 Fairview Road. As of June 30, 2018, the funds available in the Facilities Revolving Fund were $136,869. In comparison, the capacity charges collected in fiscal year 2016-17 were $183,328. The decrease of $46,459 in capacity charges collected over the prior fiscal year was the result of the timing of payments received, a decrease in new development constructions and the District Yard expansion. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 regular Board of Directors meeting at District Headquarters and on District’s website www.cmsdca.gov Alternative Actions Refer the matter back to staff. File Attachments Annual Compliance Report for Capacity Charges FY17-18.pdf (150 KB) All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Senior Accountant Date: January 24, 2019 Subject: Comprehensive Annual Financial Report, Auditor's Report in Accordance with Government Auditing Standards, and the Auditors' Required Communication for the year ended June 30, 2018. Summary The annual financial audit of the District has been completed. Attached to this report are the audited financial statements, the auditors’ report in accordance with Government Auditing Standards, and the auditors’ required communication for the fiscal year ended June 30, 2018. Joshua Calhoun, Partner, Teaman Ramirez & Smith, Inc, which is the District’s independent audit firm that conducted the annual audit. Recommendation The Board of Directors receive and file: 1) The Comprehensive Annual Financial Report for Year Ended June 30,2018, 2) Auditors’ Report in Accordance with Government Auditing Standards, and 3) The Auditors’ Required Communication for the Year Ended June 30, 2018. Analysis Financial highlights during the year ended June 30, 2018 included: Total assets and deferred outflows of resources of the District exceeded its liabilities and deferred inflows of resources by $61,827,147. Of this amount, $17,262,186 is unrestricted and available to meet the District’s ongoing obligations to its customers and creditors. Net position of the Solid Waste Fund decreased $589,355, which includes a prior period adjustment reducing net position in the amount of $58,612 for the implementation of Governmental Accounting Standards Board (GASB) Statement 75, Accounting and Financial Reporting for Postemployment Benefits and Other Pensions. The reduction in beginning net position was primarily attributable to the adoption of a deficit budget to decrease the fund’s reserves. Expenses were projected to exceed revenues by $975,000; however, revenues received were greater than expected and expenses were lower than expected. Net position of the Wastewater Fund increased $801,093. This increase was primarily attributable to operating revenues and transfers exceeding operating expenses by $919,983. This increase was reduced by a prior period adjustment in the amount of $118,890 for the implementation of GASB 75. Legal Review Not applicable. Environmental Review Subject 1. Receive and file the Comprehensive Annual Financial Report, Auditor's Report in Accordance with Government Auditing Standards, and the Auditors' Required Communication for the year ended June 30, 2018 Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action, Procedural Recommended Action The Board of Directors receive and file: 1)The Comprehensive Annual Financial Report for Year Ended June 30,2018, 2)Auditors’ Report in Accordance with Government Auditing Standards, and 3)The Auditors’ Required Communication for the Year Ended June 30, 2018. Goals 7.0 Finance The preparation of financial statements is an administrative action that is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “Projects” does not include .... C. Continuing administrative or maintenance activities.” Financial Review The cost of the annual audit was $9,250, which was included in the District’s budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 Board of Directors regular meeting at District Headquarters and on District’s website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff. File Attachments CMSD- INTERNAL CONTROL REPORT.pdf (309 KB) CMSD- SAS 114 CONCLUSION LETTER.pdf (266 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 24, 2019 Subject: 2018: A Year In Review Summary In January, the District produces a document highlighting the accomplishments achieved during the past year. The 2018 year end review is now complete and available for viewing. Recommendation That the Board of Directors receive and file this report. Analysis Thanks to the dedicated and professional staff of the Costa Mesa Sanitary District and the leadership and vision of the Board of Directors, the organization achieved extraordinary results in 2018, as demonstrated below: Energy cost savings and reducing carbon footprint by installing a solar photovoltaic system on the rooftop at HQ. Enhanced emergency response time and equipment storage capacity by expanding the District Yard. Expanded citizen engagement by launching two new programs: Citizens Environmental Protection Academy; and Citizens Advisory Committee Increase transparency efforts by implementing a Performance Measurement Program Transitioned from at-large to by-district elections Implemented new drop-off programs at HQ for sharps and retired American Flags Expanded the Door-to-Door Household Hazardous Waste Collection Program to all District solid waste customers Replaced President Pump Station Force Main. Repaired 51 wastewater line segments classified as eminent failure A special thank you goes to Gina Terraneo, Management Analyst II, for her commitment and dedication for preparing an outstanding report. Legal Review Not applicable Environmental Review A document describing the District's 2018 year end accomplishments is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review Preparing the 2018: A Year In Review is in the FY 2018-19 Budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 special meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information Subject 2. 2018: A Year In Review Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report Goals 5.0 Administrative Management File Attachments 2018 Year End Report.pdf (25,453 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 24, 2019 Subject: 2018 Performance Measurement Final Report Summary On November 29, 2018, the Board of Directors adopted Administrative Regulations No. 70.00, which established methods and procedures for gathering and analyzing organizational performance while at the same time collaborating towards continuous improvement of performance in an open and transparent manner. The new policy is called, Performance Measurement Program. Recommendation That the Board of Directors receive and file this report. Analysis A Performance Measurement Program has been developed to determine how well the District is performing in areas of efficiency, effective workforce, customer satisfaction, cost effectiveness, citizen engagement and transparency. The purpose of the program is to continually look at ways to improve and/or enhance the level of service that is being provided internally to staff and externally to the public. The program was first made public at the Citizens Advisory Committee on October 10, 2018 and then it was presented to the Board of Directors on November 26, 2018 followed by the adoption of Administrative Regulations No. 70.00 on November 29th. Attached is the 2018 Performance Measurement Final Report. Of the 43 measures being analyzed for performance, 28.5 have fully met the desired outcome while seven measures came close to achieving the outcome. There are 5.5 measures that clearly missed the desired outcome and two measures could not be analyzed due to lack of available data. The District's Performance Measurement Team analyzed the year-end results and discussed ways for improvement. For instance, an annual inspection program of force main air relief valves will be implemented and staff is going analyze the rain ingress at Mendoza Pump Station to try to determine how clear water is entering the system. The Performance Measurement Team next review of the Program will be in April 2019 in which the team will be analyzing first quarter 2019 data. The 2018 Performance Measurement Final Report is available for viewing on the District's website at www.cmsdca.gov Legal Review Not applicable Environmental Review A Performance Measurement Program is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There are no financial impacts to the District for implementing a Performance Measurement Program Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 special meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions Subject 3. 2018 Performance Measurement Final Report Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report Goals 5.0 Administrative Management 1. Direct staff to report back with more information File Attachments Outcome and Performance Measurement Program.pdf (1,057 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 24, 2019 Subject: Receive and File 2015-20 Strategic Plan Quarterly Update - FY 2018-19 2nd Quarter Summary On May 28, 2015, the Board of Directors adopted the 2015-2020 Strategic Plan, which is a plan that establishes goals, objectives, strategies and work plans for the next five years and will help move the organization in a direction toward achieving its mission and vision. Attached is the quarterly update that demonstrates the progress staff is making toward achieving the strategic goals. Recommendation That the Board of Directors receive and file this report. Analysis 27 out of the 48 strategic goals (Strategic Goal 1.10 was canceled) are complete while three strategic goals are in process. Several goals are on-going and are achieving results. The next quarterly update will be the third quarter in FY 2018-19 and will be presented to the Board on April 25, 2019. Legal Review Not applicable Environmental Review The District’s Strategic Plan is a planning document and preparation and adoption of the plan itself is an administrative matter and is not a disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. The environmental review of each of the efforts or projects outlined in the Strategic Plan will occur when the Board of Directors specifically considers each of the items since that is when the full scope of work of each effort or project will be described Financial Review Activities described in the strategic goals are funded in the budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 Board of Directors regular meeting at CMSD headquarters (290 Paularino Avenue) and on CMSD's website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. Subject 4. Receive and File 2015-20 Strategic Plan Quarterly Update - FY 2018-19 2nd Quarter Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report Goals 1.0 Sewer Infrastructure 2.00 Solid Waste 3.00 Partnerships 4.0 Community Outreach & Communications 5.0 Administrative Management 6.0 Personnel/Organizational Management 7.0 Finance File Attachments Qtly Progress Rpt 2018-19 - 2nd Qtr.pdf (298 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Senior Accountant Date: January 24, 2019 Subject: FY 2018-19 Budget Review – Mid-Year Summary This report serves as a summary of the District’s spending through December 31, 2018 as well as staff’s best estimate of projected balances for the year-ended June 30, 2019. Recommendation That the Board of Directors: 1. That the Board of Directors approve transferring $200,000 from Contingency to Sewer Maintenance. 2. That the Board of Directors receive and file this report. Analysis Based on the spending trends through December 31. 2018, staff is projecting a minimal savings in the Solid Waste Fund and the Wastewater Fund. As of December 31, 2018, a total of 41.9% of the Solid Waste budget for the 2018-19 fiscal year has been expended. At this time, staff anticipates a budgetary savings of $15,500 at fiscal year-end. n: 0in 0in 0pt; padding: 0in 5.4pt; text-align: center;">Account Name Increase Decrease 20-200001-4364 Sewer Maintenance $200,000 20-200000-4990 Contingency $200,000 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff for additional information. Subject 5. FY 2018-19 Budget Review – Mid-Year Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Budgeted Yes Recommended Action That the Board of Directors: 1. That the Board of Directors approve transferring $200,000 from Contingency to Miscellaneous Sewer Work Account. 2. That the Board of Directors receive and file this report. Goals 7.0 Finance File Attachments A-FY 2018-19 Mid-Yr Budget Analysis.pdf (83 KB) B-Expenditure Analysis Through 12-31-2018.pdf (71 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Kaitlin Tran, Senior Accountant Date: January 24, 2019 Subject: Preliminary Budget Calendar for the 2019-2021 Biennial Budget Summary The schedule below represents the outline for creating and adopting the District’s Fiscal Year 2019-20 and 2020-21 budgets. Staff will be working on different aspects of the budget from now until the May Study Session and will update the Board as necessary. Staff recommends the following target dates: ACTION ITEM TARGET DATE Department Budgets due from Staff 02/25/19 Finance Review with departments 03/07/19 February 2016-17 Consumer Price Index released 03/20/19 General Manager Review 03/27/19 Preliminary budget document handed out to Board and Citizens Advisory Committee (CAC)04/25/19 Notice of public hearing (postcard mail out)05/06/19 CAC Meeting to review preliminary budget 05/08/19 Study Session meeting to review preliminary budget 05/14/19 Special meeting to review preliminary budget 05/27/19 Publish newspaper hearing notice (Gov Code 6066) 06/03/19 Study Session meeting (if nescessary) to finalize budget 06/11/19 Adopt Sewer/Trash at regulary Board meeting 06/27/19 Budget adoption at regular Board Meeting 06/27/19 Transmit assessments to OC Treasurer-Tax Collector 08/08/19 Legal Review None Required Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review None Required Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Refer the matter back to staff for additional information. Subject 6. Discuss Preliminary Budget Calendar for the 2019-2021 Biennial Budget Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Discussion Goals 7.0 Finance File Attachments Prelim Budget Calendar 2019-21.pdf (123 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 24, 2019 Subject: Citizens Advisory Committee (CAC) January 9, 2019 Meeting Overview Summary The following is an overview of the topics discussed by the CAC at their January 9 meeting Recommendation That the Board of Directors receive and file this report. Analysis There were six items on the January 9 agenda that are described below. 1. Approve the Citizens Advisory Committee Meeting Minutes of December 12, 2018 - Minutes were approved with no discussion. 2. Draft Board of Directors Meeting Minutes of December 20, 2018 - Chair Carey informed the Committee that the Board appointed Jim Ferryman as the next President. The CAC inquired further information about their requirement to attend Board meetings. Staff informed the CAC that in accordance to the CAC Handbook, each Committee member must attend at least one Board meeting and there were some concerns among Board members that they have not seen any CAC members at said meetings. Staff reminded the CAC the Board meets on the second Tuesday and fourth Thursday of the month. 3. Solid Waste Rate Study Report - District consultant, NBS, gave a power point presentation regarding the proposed solid waste rate increases from 2019 through 2024 and described the justifications for those increases. The CAC expressed concerns about the equitability between the three different cart sizes. The CAC did not believe it was fair a 35-gallon cart is being charged the same rate as a 90 gallon cart. No action was taken by the CAC. The proposed solid waste rates will be brought back to the CAC for a recommended action on February 13, 2018. 4. CMSD 75th Anniversary Ad Hoc Committee Meeting - Chair Carey described the proposed activities and promotional items the Ad Hoc Committee is considering. Staff shared with the CAC the 75th Anniversary logo the Committee selected. 5. Consider Approving a Quarterly Citizens Advisory Committee (CAC) Meeting Schedule - The CAC approved a bi-monthly schedule and agreed to have special meetings if need be. The CAC first special meeting will on February 13, 2018. 6. Committee Member Comments - The CAC inquired information regarding the investigation into Rob Hamers & Associates billings. Staff provided the CAC with copies of the Daily Pilot story regarding the investigation and informed the CAC that the investigation found no evidence of fraud or embezzlement. Committee Member Brenneman said he cannot attend Board meetings because he has a conflict with his teaching obligations at CSU Fullerton. Legal Review Not applicable Environmental Review Subject 7. Citizens Advisory Committee (CAC) January 9, 2019 Meeting Overview Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Board of Directors receive and file this report Goals 5.0 Administrative Management Providing an overview of the CAC's January 2019 meeting is an administrative matter, which will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA. Financial Review There are no financial impacts to the District. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 Board of Directors regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 24, 2019 Subject: Roger Faubel Public Affairs, Inc. - Consider Approving Agreement and Directing the General Manager to Sign said Agreement Summary Since 2016 the Costa Mesa Sanitary District has hired the services of Roger Faubel Public Affairs, Inc. to provide community outreach and public relation services. From time to time the Agreement with Roger Faubel Public Affairs has been extended and/or modified. The Fifth Amendment expired on January 1, 2019 and now staff is recommending an annual agreement with the firm. Recommendation That the Board of Directors approve the Agreement and directs the General Manager to sign said Agreement. Analysis The political and policy environment in Orange County can have enormous influence on the ability of CMSD to faithfully execute our roles and responsibilities. Roger Faubel Public Affairs will continue to utilize their experience and relationships in Orange County to keep staff and the Board apprised of policy discussions going on in the region. The firm will also assist CMSD with advocacy, strategic guidance and public outreach services. Whittingham Public Affairs Advisors will serve as a sub-consultant to Roger Faubel Public Affairs. Some of the specific services the Faubel/Whittingham team has provided to the District include the following: Prepare press releases Prepared congratulatory letters for President Ferryman's signature to local and state elected officials who were victorious in the most recent November election. Attend Local Agency Formation Commission (LAFCO) meetings and stays abreast on LAFCO agenda items. Assist developing media and outreach strategies for the District. Legal Review District Counsel has reviewed and approved the Agreement Environmental Review The consideration of services by a consulting firm is an administrative matter and is not a disturbance of the environment similar to grading or construction and does not constitute a project under CEQA or the District’s CEQA Guidelines. Financial Review Subject 8. Roger Faubel Public Affairs, Inc. - Consider Approving Agreement and Directing the General Manager to Sign said Agreement Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $60,000.00 Budgeted Yes Budget Source Wastewater and Solid Waste Fund Recommended Action That the Board of Directors approve the Agreement with Roger Faubel Public Affairs, Inc. and direct the General Manager to sign said Agreement. Goals 4.0 Community Outreach & Communications The annual cost will be $60,000. This type of services was included in the adopted budget, so $30,000 will be spent from the FY 2018-19 Budget and the remaining $30,000 will be budgeted in the FY 2019-20 Budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 Board of Directors meeting at District headquarters and on District’s website at www.cmsdca.gov. Alternative Actions 1. Do not approve the Agreement with Roger Faubel Public Affairs, Inc. File Attachments 2019 Faubel Agreement.pdf (2,239 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: January 24, 2019 Subject: Receive and File General Manager's 2018 Performance Goals and CMSD Accomplishments; Direct President Ferryman to meet with the General Manager to negotiate 2019 performance goals and compensation Summary Annually, the Board reviews the General Manager’s performance goals along with District accomplishment during the past year. This report summarizes the goals achieved and accomplishments made by the District in 2018. Recommendation That the Board of Directors: 1. Receive and file General Manager's 2018 performance goals and CMSD Accomplishments; and 2. Direct President Ferryman to meet with General Manager to negotiate his 2019 performance goals and compensation. Analysis In 2018, the Board of Directors assigned the General Manager ten goals to achieve in 2018. Of the ten goals, eight are complete while two goals are not complete. Attached is a list of the General Manager’s goals along with a brief description of the status for each goal. Earlier in the evening, staff presented the 2018 Year End Report to the Board of Directors describing the accomplishments made throughout the year. Legal Review Not applicable Environmental Review Consideration by the Board of Directors of the compensation paid to the District’s General Manager is an administrative matter and not a disturbance of the environment similar to grading or construction and not a project under CEQA or the District’s CEQA Guidelines. Financial Review The financial impacts are unknown until the Board approves 2019 performance goals. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 Board of Directors regular meeting at District headquarters (290 Paularino Avenue) and on District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information File Attachments 2018 Goals.pdf (134 KB) Subject 9. Receive and File General Manager's 2018 Performance Goals and CMSD Accomplishments; Direct President Ferryman to meet with the General Manager to negotiate 2019 performance goals and compensation Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors: 1. Receive and file General Manager's 2018 performance goals and CMSD accomplishments; and 2. Direct President Ferryman to meet with General Manager to negotiate 2019 performance goals and compensation. Goals 6.0 Personnel/Organizational Management F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: January 24, 2019 Subject: Capital Improvement Projects Status Report Summary Attached is a summary of the Capital Improvement Project activities during the month. Recommendation That the Board of Directors receive and file the report. Analysis Attached are nine capital improvement projects that are in progress or will soon begin. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 24, 2019 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions Refer item back to staff with further instructions. File Attachments CIP Monthly Status Report - January 2019.pdf (89 KB) Subject 1. Receive and File Monthly Capital Improvement Projects Status Report Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 1.0 Sewer Infrastructure 1.1 Manhole Cover Maintenance Program 1.4 System Wide Sewer Replacement and Repair Program 1.6 Evaluate Force Main Conditions on a Regular Basis 4.7 Demonstrate outstanding efforts in transparency 7.2 Develop a long term CIP F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: January 24, 2019 Subject: #318 President Pump Station Reconstruction; Review of Alternative 4; Pump Station Located in Cul-de-Sac Summary During a meeting in December 2018, the Board of Directors suggested the sewer pump station could be located in the President Place cul-de-sac instead of the current location in the sideyard easement of property located at 2034 President Place. The Board noticed on the plans the large areas in the cul-de-sac clear of underground utilities. After discussing the cul-de-sac option, the Board directed the General Manager and District Engineer to bring back a conceptual/preliminary design along with an engineer’s estimate so a comparison could be made with the first three alternatives, which had previously been discussed. Alternative 4 conceptual/preliminary design is complete and the plans and engineer’s estimate are attached hereto. Recommendation The Board of Directors: 1. Review Alternative 4 plans and engineer’s estimate of $1.8 million and compare with Alternatives 1, 2, and 3. 2. Direct the General Manager to secure additional project funding as needed as part of the 2019-2020 fiscal year for whichever alternative is selected. 3. Direct the General Manager to hold one or two neighborhood meetings to ascertain the opinions of the residents of Alternative 4 design of moving the station into the cul-de sac. 4. Consider the benefits and limitations of Alternative 4 as shown in the Analysis section below. Consider the District Engineer’s opinion of supporting Alternative 4 due to the large number of important benefits and the ability to mitigate the limitations. Analysis Alternative 4 has the following benefits and limitations: Benefits The CMSD line cleaning crew and the pump station crew both prefer having the station in the cul-de-sac. Current access to the station is along a 15 foot wide drive with a tight turn and the large vactor trucks currently have to back-in all the way along the drive to the pump station. The cul-de-sac is wide open and parking and access to the station would be very simple. Emergency response time is lower if the station is in the cul-de-sac due to reduced time in accessing the pump station. Subject 2. #318 President Pump Station Reconstruction; Review of Alternative 4; Pump Station Located in Cul-de-Sac Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action The Board of Directors: Review Alternative 4 plans and engineer’s estimate of $1.8 million and compare with Alternatives 1, 2, and 3. Direct the General Manager to secure additional project funding as needed as part of the 2019-2020 fiscal year for whichever alternative is selected. Direct the General Manager to hold one or two neighborhood meetings to ascertain the opinions of the residents of Alternative 4 design of moving the station into the cul-de sac. Consider the benefits and limitations of Alternative 4 as shown in the Analysis section below. Consider the District Engineer’s opinion of supporting Alternative 4 due to the large number of important benefits and the ability to mitigate the limitations. Goals 1.0 Sewer Infrastructure 1.7 Pump Station Maintenance & Standardization Program The proposed new emergency storage vault for the station at its current location has a small footprint due to tight quarters whereas in the cul-de-sac it can be longer and wider and much more shallow, which reduces construction costs. Although the new station will have a permanent backup diesel generator, if there ever is a sewer overflow of the pump station in the cul-de-sac, it will be readily seen by residents. With posted phone numbers and new SCADA, District crews can readily respond. Past sewer spills of the station as located in the easement have been rather large due to the inability to know a spill was occurring. There are overhead Edison and Telephone wires very close to the existing pump station and a contractor for Alternatives 1, 2, or 3 will have to work slowly and carefully to avoid them. There are no overhead wires in the middle of the cul-de-sac. Alternatives 1 and 3 will cause disruption to the backyard improvements of 2034 President Place. Operations and Maintenance (O&M) is much simpler if the station is located in the cul-de-sac. The construction period will be reduced because all the components are accessible at all times, whereas, the tight quarters of Alternatives 1, 2, and 3 require sequential construction. Limitations Odor control will be challenging due to the close proximity of the pump station to the residences. Multiple alternatives have been discussed and a number of methods will be included in the design of the pump station. This increases expenses. Noise will increase when work on the station occurs because the station is in the middle of the cul-de-sac. All access covers for the wet well, valve vault, meter vault, and emergency storage vault will have to be extra heavy duty to withstand heavy duty traffic and circular turning movements by vehicles that imparts torsion on the access covers. Heavy duty access covers are more expensive than non-traffic rated covers plus they wear out sooner. Having the station exposed increases the opportunities for vandalism even though everything is underground and locked tight. Review of Alternative 1 Additional funding in the amount of $838,623 is needed to re-bid the project with the current plans and specifications. The engineer’s estimate is $2.2 million and as designed the downtime before the station would overflow is 2.5 hours during peak flow and 10 hours during low flow. The emergency storage vault is 17 feet deep and the wet well is 26.5 feet deep. Review of Alternative 2 Re-design the proposed pump station improvements to achieve a construction cost in line with the original engineer’s estimate of $1.45 million. Under this option, no additional funding is needed. Under this design, the existing concrete pump station structure will be reused as the emergency storage vault and is 13 feet deep. The downtime of the station before an overflow occurs is 2 hours at peak flow and 8.5 hours during low flow. Review of Alternative 3 Revise the Alternative 1 plans to reduce cost by relocating the emergency storage vault so the incoming sewer main does not need relocation. The depth of the emergency storage vault will be reduced from 17 feet deep to 15 feet deep and the depth of the wet well will be reduced from 26.5 feet deep to 24 feet deep. The resulting engineer’s estimate is $1.95 million. The downtime before the station would overflow is 2 hours during peak flow and 8.5 hours during low flow. The emergency storage vault is 15 feet deep and the wet well is 24 feet deep. Review of Alternative 4 Recommended by the District Engineer due to the long list of benefits outlined above. The engineer’s estimate is $1.8 million, the emergency storage vault is only 11 feet deep, the wet well is 21 feet deep, and the valve vault is 7 feet deep. There is over 2.5 hours of downtime during peak flow and over 8 hours during low flow. Legal Review Not applicable at this time. Environmental Review The replacement of an existing pump station with a similar pump station of the same size for the same rate of flow as shown on the plans for Project #318 is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c) “Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity“. Financial Review The total amount currently budgeted for Project 318 is $2,000,000. As construction of this project will not begin until toward the end of this fiscal year or the beginning of next fiscal year, any shortfall in funding based upon the alternative selected by the Board of Directors, will be included as part of the fiscal year 2019-20 budget. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Refer the matter back to staff for additional information. Attachments Alternatives 1, 2, 3 Preliminary Plans for Alternative 4 Budget Calculations Engineer's Estimate for Alternative 4 File Attachments CMSD318 ALT 01 FINAL 2018-09-30.pdf (643 KB) CMSD318 ALT 02 FINAL 2018-09-30.pdf (297 KB) CMSD318 ALT 03 FINAL 2018-09-30.pdf (319 KB) Budget Calculations Rev 2.docx (17 KB) CMSD318 - CulDeSac Option - Rev 2019-01-03.pdf (6,231 KB) CMSD318 - Eng Est - CulDeSac (Rev 2019-01-04).pdf (26 KB) Executive File Attachments CMSD318 - CulDeSac Option - Rev 2019-01-03.pdf (6,231 KB) CMSD318 - CulDeSac Option - Rev 2019-01-02.pdf (6,729 KB) CMSD318 - CulDeSac Option - Rev 2019-01-03.pdf (6,231 KB) CMSD318 - Eng Est - CulDeSac (Rev 2019-01-04).pdf (26 KB) #318 Alt 04 Staff Report.docx (84 KB) F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: January 24, 2019 Subject: #319/#320 Canyon Pump Station Rehabilitation and Sewer Force Main Replacement; Bid Opening, Award of Project, and Transfer of Funds Summary The project was initiated after the west side pumping station abandonment program was canceled and will rehabilitate the interior of the Canyon Pump Station and provide a new sewer force main (pressurized sewer main) to bring the facility into conformance with today’s District standards. The project was originally two separate projects, but was combined to minimize traffic impacts, noise impacts, and restoration costs. Recommendation The Board of Directors: 1. Award a contract to the lowest responsive and responsible bidder, GCI Construction, Inc., in the amount of $782,784.00 2. Approve a contingency of 10% in the amount of $78,278.40 3. Approve a transfer of $170,000 from Project 322 and $1,000 from Contingency into Project 319/320. Analysis Bids were opened on December 6, 2018 and the results were as follows: Engineer’s Estimate $744,052 GCI Construction, Inc. $782,784 Minako America $1,505,600 Originally, the estimated construction cost for each project and the adopted project budget were as follows: #319 Canyon Force Main Replacement $475,000/$620,000 #320 Canyon Pump Station Rehabilitation $193,000/$225,000 Total $668,000/$845,000 Subject 3. #319/#320 Canyon Pump Station Rehabilitation and Sewer Force Main Replacement; Bid Opening, Award of Project, and Transfer of Funds Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Recommended Action The Board of Directors: Award a contract to the lowest responsive and responsible bidder, GCI Construction, Inc., in the amount of $782,784.00 Approve a contingency of 10% in the amount of $78,278.40 Approve a transfer of $170,000 from Project 322 and $1,000 from Contingency into Project 319/320. Goals 1.0 Sewer Infrastructure 1.6 Evaluate Force Main Conditions on a Regular Basis 1.7 Pump Station Maintenance & Standardization Program Due to adding additional items to the project that were identified during the design phase, the construction cost rose from an estimated $668,000 to a low bid of $782,784. This is due to a number of reasons. As discussed at previous meetings, construction costs are still very high even though the industry appears to be slightly slowing down. A few contractors have stated they are holding their current price structure, which is the highest it has ever been. Another reason is how the scope of work for the pump station was determined. The field crew made a list of items needed to keep the station running and these items are included in the scope of work. The field crew admirably tries to keep costs down and asked only for what is needed today. However, when an engineer reviews the scope of work, the engineer knows the project gives him one chance to upgrade any parts or equipment that might be needed in the next 10 years. These items are discussed with the field crew and usually added to the scope of work. One example of this is the valve vault access cover, which is old and part steel and part concrete and requires a crane and a lot of work to remove the concrete portion that provides full access. The cover is being replaced by a standard heavy duty double leaf hatch with spring loaded doors. Access to the valve vault is part of emergency response and the door will now readily open. This same line of reasoning was used and resulted in new electrical parts and equipment and another traffic rated door. Additionally, Wilson Street is under a slurry seal moritorium so there are extra costs associated with the restoration work. Based on bid opening, the project expenses are as follows: Design – Civil Engineering, Surveying, Aerial Topography $ 61,590 Design – Electrical Engineering $ 3,500 Construction Contract $ 782,784 Contract Administration, Engineering, Surveying, Electrical Eng $ 32,990 Estimated Inspection $ 20,000 10% Contingency $ 78,278 Advertising, etc. $ 2,500 Amount paid for parts at Yard that will be used inside valve vault $ 19,343 Spare pump to be purchased separately $ 15,000 Total Expenses $1,015,985 Original Budget $ 845,000 Additional Funds Required <$170,985> Legal Review District Counsel prepared and signed the construction contract for this project. Environmental Review The replacement of various items inside the existing pump station with equivalent items and the replacement of the force main with a new force main of the identical size for the same rate of flow as shown on the plans for Project #319/#320 is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c) “Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity“. Financial Review Project 319/320 currently is budgeted at $845,000. In order to provide adrequate funding to complete this project, a budget adjustment is required for the additional $171,000 shortfall. Project 322, Iowa Force Main Replacement, is budgeted at $170,000, but work on this project will not begin until next fiscal year. As such, the entire budget can be transferred to Project 319/320, and the Iowa Force Main Project can be rebudgeted as part of the fiscal year 2019-20 budget process. The remaining $1,000 shortfall can be funded from Contingency. As such, in order to adequately fund Project 319/320, the following budget adjustment is required: Liquid Waste Fund: Account No.Account Name Increase Decrease 20-201319-4300 Project 319/320 – Canyon FM Replacement and Pump Station Rehab $171,000 20-201322-4300 Project 322 – Iowa Force Main Replacement $170,000 20-200000-4990 Contingency $1,000 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Refer the matter back to staff for additional information. Attachments Bid Tab File Attachments CMSD319&320 - Bid Tab (Rev 2018-12-06).pdf (71 KB) G. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: January 24, 2019 Subject: Approve the Investment Report for the month of December 2018 Summary Attached is the Investment Report for the month of December 2018. As required by the District’s Statement of Investment Policy, the Investment Report delineates all investment activity during the month. Recommendation That the Board of Directors approve the Investment Report for the month of December 2018. Analysis This report lists the types of securities held in the District’s portfolio, the institutions from which the securities were purchased, maturity dates and interest rates as of December 31, 2018. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the July 26, 2018 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party custodian, Pershing, LLC, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer’s Office. It does not represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw. This reporting practice is consistent with industry standard practices for similar funds. The weighted average stated rate of return (current yield) for the District’s investment portfolio as of December 31, 2018, was 1.930%. The yield to maturity of the portfolio was 1.933%. The District’s weighted average interest rate was 36 basis points (0.361%) below the LAIF average monthly rate for December 2018 of 2.291%. The weighted average number of days to maturity for the District’s total portfolio was 586 days (1.61 years). The average duration of the underlying securities in LAIF as of December 31, 2018 was 192 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 December 31, 2018 was 38.20%. The District has adequate cash reserves necessary to meet its obligations for the next six months. A majority of the District’s cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District’s cash and investments are as follows: Solid Waste Fund: Operating Reserve - Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Subject 1. Approve the Investment Report for the Month of December 2018 Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve the Investment Report for the month of December 2018. Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. Undesignated - Remaining available cash, which is available to be appropriated by the Board. Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund - Accumulation of funds in accordance with the asset management model for long-term replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not include….C. Continuing administrative or maintenance activities.” Financial Review The portfolio was budgeted to earn an average rate of 0.900% for the year ending June 30, 2019. Through December 31, 2018, the portfolio has earned a weighted average interest rate of 1.795%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the January 24, 2019 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and on the District’s website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff. File Attachments Investment Report - December 2018.pdf (352 KB) H. ATTORNEY'S REPORTS To: Board of Directors From: Alan Burns, District Counsel Date: January 24, 2019 Subject: Ordinance No. 124 - Reenacting the Purchasing Provisions of the District's Operations Code Summary The proposed ordinance was continued from the December 20, 2018 meeting. It proposes that the General Manager be provided with new and increased informal bid authority for public works contracts of up to $200,000. It further proposes that the General Manager have consistent authority for other District contract awards and purchases. Recommendation That the Board of Directors adopt Ordinance No. 124 - Reenacting the Purchasing Provisions of the District's Operations Code. Analysis The current District ordinance provides for different awarding authority and procedures for different types of contracts. Those involve public works jobs, which are subject to formalized procedures, and purchases of goods, and contracts for services and repairs. The Public Contract Code sets forth a formal bid process and an informal bid process. Informal bidding can occur for jobs that were under certain dollar limits by maintaining lists of contractors that were qualified to do the work, and then informal plans and specifications were made available for the work. It provided a more streamlined procedure and allowed staff to implement this process without the formal newspaper noticing procedure and without the public agenda process time limits that add lead-time to any contract that was to be awarded. This process allows the manager or other staff person to award contracts without Board approval. The original informal bid process authorized contracts of $125,000 or less. The Board adopted that procedure and provided the General Manager with that authority. The Legislature thereafter increased the amount of informal bid award authority to $175,000, but the staff never requested additional authority. The informal authority has now been increased by the Legislature to $200,000. Staff is now requesting the additional authority for the full amount authorized. The District’s Operations Code also has different bidding and awarding authority for other (non-public works) contracts and purchases. A sanitary district is provided with broad authority to adopt purchasing procedures for these other types of purchases. These include goods, professional and other services, and repair and maintenance. This ordinance would make all of the bidding and award limits consistent: for $5,000 or less, no bidding; for $60,000 or less, direct bidding; for $200,000 or less informal bidding; and for over $200,000 formal bidding (if required) and Board award on a public agenda. Legal Review District Counsel has prepared the ordinance, in consultation with staff. Environmental Review The consideration of modifying informal bid limits is an administrative matter and not a disturbance of the environment similar to grading or construction and does not constitute a project under CEQA or the District’s CEQA Guidelines. Financial Review Subject 1. Ordinance No. 124 - Reenacting the Purchasing Provisions of the District's Operations Code Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Board of Directors adopt Ordinance No. 124 - Reenacting the Purchasing Provisions of the District's Operations Code Goals 5.0 Administrative Management 5.4 Review and maintain Operations Code, policies and Administrative Regulations There are no financial impacts to the District for adopting Ordinance No. 124. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the January 24, 2019 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov. Alternative Actions 1. Do not adopt Ordinance No. 124 and direct staff to continue using the informal bid limits adopted in the Operations Code. 2. Do not adopt Ordinance No. 124 and direct staff to bring back an ordinance with lesser authority than recommended. 3. Do not adopt Ordinance No. 124 and direct staff to bring back the ordinance to the Citizens Advisory Committee for further study. File Attachments 20181227 Ordinance - Reenacting the Purchasing Provisions.docx (35 KB) I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 1. Orange County Sanitation District (OCSD) - (President Ferryman) Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer) Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Information I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Information L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Discussion O. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON FEBRUARY 28, 2019 IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Jan 24, 2019 - Board of Directors Regular Meeting Access Public Type Procedural