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2019_07_25_boardThursday, July 25, 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 June 18, 2019 3. Approve the Amended Board of Directors Regular Meeting Minutes of June 27, 2019 4. Payroll Transparency Disclosure for June 2019 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Adopt Warrant Resolution No. CMSD 2020-01 Approving District Warrant Registers 7. Accept the occupancy count as presented as 22,821 and direct staff to prepare a warrant to CR&R Environmental Services for $223,540.82 for June 2019 collection 8. Approve the preparation of a warrant to CR Transfer in the amount of $196,295.59 for June 2019 recycling and disposal services in the July 2019 warrant register 9. Contracts Signed by General Manager 10. Consider Adopting Ordinance No. 128 Prohibiting Interference with District Easements, Sewer Facilities and Adopting Sewer Easement Maintenance Cooperation Standards and Amending the Chapter Number for Incorporation into the District's Operations Code D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Consider Contribution Program Application for Second Chance Orange County Gala Event 2. Receive and File the 2015-20 Strategic Plan Quarterly Update - FY 2018-19 4th Quarter 3. Receive and File Preliminary Fourth Quarter Budget Review for FY2018-19 4. Performance Measurement Program Update Report: January - June 2019 5. California Special Districts Association Board of Directors Southern Network (Seat B) Election 6. General Manager Declaring Emergency Work for Two Inverted Siphons on Bristol Street - Update 7. Proposition 218 Certification of Assessment FY 2019-20 8. Consider Changing the date of the October Board Regular Meeting to October 29, 2019 F. ENGINEER'S REPORTS 1. Receive and File the Monthly Capital Improvements Project Status Report 2. Declaration of Conflict of Interest - 1521 Kathleen Lane, Costa Mesa 3. Declaration of Conflict of Interest - 418 E. 18th St., Costa Mesa 4. Inflow & Infiltration (I/I): Mendoza Pump Station Smoke Test G. TREASURER'S REPORTS 1. Approve the Investment Report for the Month of June 2019 H. ATTORNEY'S REPORTS I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request  of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.  For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (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 1. Consider Changing the Day and Time of the Board of Directors Regular Meeting - Oral Report K. NEW BUSINESS L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. CLOSING ITEMS 1. Adjourn Thursday, July 25, 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 Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ferryman Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Ooten Meeting Jul 25, 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 Jul 25, 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 Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Jul 25, 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 Jul 25, 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 Jul 25, 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: July 25, 2019 Subject: Approve the Board of Directors Study Session Minutes of June 18, 2019 Summary The recorded minutes of the June 18, 2019 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 June 18, 2019. 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 July 25, 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 June 18, 2019 Meeting Jul 25, 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 Jun 18, 2019 - Board of Directors Study Session minutes_2019_06_18_ss.pdf (62 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: July 25, 2019 Subject: Approve the Amended Board of Directors Regular Meeting Minutes of June 27, 2019 Summary The recorded minutes of the June 27, 2019 Amended Board of Directors Regular Meeting are hereby submitted to the Board of Directors for review and approval. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Analysis Attached to the staff report are the minutes for the Amended Board of Directors Regular Meeting on June 27, 2019 . 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 July 25, 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. Subject 3. Approve the Amended Board of Directors Regular Meeting Minutes of June 27, 2019 Meeting Jul 25, 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 Jun 27, 2019 - Amended Board of Directors Regular Meeting File Attachments minutes_2019_06_27_rm.pdf (104 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: Lieu Tran, Accountant Date: July 25, 2019 Subject: Payroll Transparency Disclosure for June 2019 Summary 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. Analysis Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include .... C. Continuing administrative or maintenance activities." Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 25, 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. Subject 4. Payroll Transparency Disclosure for June 2019 Meeting Jul 25, 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 File Attachments Payroll Transparency Disclosure June 2019.pdf (930 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: Noelani Middenway, District Clerk Date: July 25, 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 July 25, 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_compensation.pdf (276 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Jul 25, 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. b_expense.pdf (253 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 July 2019.pdf (181 KB) Subject 6. Adopt Warrant Resolution No. CMSD 2020-01 Approving District Warrant Registers Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2020-01 approving District warrants for the month of June 2019 in the amount of $700,641.80. 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: July 25, 2019 Subject: Accept the occupancy count as presented as 22,821 and direct staff to prepare a warrant to CR&R Environmental Services for $223,540.82 for June 2019 collection Summary Accept the occupancy count as presented using 22,821 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for June 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,540.82 to be ratified in the July 2019 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,821 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for June 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,540.82 to be ratified in the July 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. Over the last two years, District staff has been working with CR&R to reconcile the entire list of service addresses and has finally completed the project. As of June 30, 2019, total District occupancy was at 22,821, with fifteen (15) new accounts added since the last billing period. Another five (5) accounts were opened by CR&R based on the ongoing audit, these accounts existed in CMSD system but not in CR&R's. 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 June 2019: 22,821 x $9.7954 =$223,540.82 Legal Review Subject 7. Accept the occupancy count as presented as 22,821 and direct staff to prepare a warrant to CR&R Environmental Services for $223,540.82 for June 2019 collection Meeting Jul 25, 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 22,821 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for June 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,540.82 to be ratified in the July 2019 warrant list. 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 July 25, 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 OCCUPANCY REPORT REVISED.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: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: July 25, 2019 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $196,295.59 for June 2019 recycling and disposal services in the July 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 $196,295.59 for June 2019 recycling and disposal services to be ratified in the July 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 $0.32, but CMSD will be paying the actual amount owed. Costa Mesa Newport Beach Total Residential Waste $131,264.79 $3970.51 $135,235.29 Organics $58,190.99 $2,869.30 $61,060.29 Total Payment $196,295.59 Tonnage Residential Waste 2525.78 76.40 2602.18 Organics 813.86 40.13 853.99 Total Tonnage 3,456.17 Legal Review Not Applicable Subject 8. Approve the preparation of a warrant to CR Transfer in the amount of $196,295.59 for June 2019 recycling and disposal services in the July 2019 warrant register Meeting Jul 25, 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 $196,295.59 for June 2019 recycling and disposal services to be ratified in the July 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 July 25, 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 From: Scott Carroll, General Manager Date: July 25, 2019 Subject: Contracts Signed by General Manager Summary At the January 24, 2019 Board of Directors meeting, the Board directed the General Manager to submit a list of contracts he signed during the previous month. Below are the contracts he signed in the month of June 2019. Recommendation That the Board of Directors receive and file this report Analysis Below are the contracts signed by the General Manager in the month of June 2019. Contracts: 1. EEC Environmental – Second Amendment to Agreement for managing the District’s Fats, Oil and Grease (FOG) program. Cost: $108,000 2. Theresa Kasprzyk – Website Maintenance. Cost: $6,000 3. City Works - License and maintenance for electronic work order system. Cost: $66,000 for three years. 4. SutiSoft – Software for HR Information System. Cost: $2,300 5. OC Superintendent of Schools - First Amendment to Agreement for Project Zero Waste Lunch Education Programs for k-6 grade students. Cost: $20,000 6. Mercury Disposal Systems – Picking up fluorescent light tubes, fluorescent light bulbs and household batteries from OCC Recycling Center. Cost: $60,000 Purchase Orders: No purchase orders were signed in the month of June. Legal Review All contracts are reviewed and approved by District Counsel before contracts are executed. Environmental Review Providing the Board of Directors a monthly list of contracts signed by the General Manager 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 is adequate funding in the budget for the expenses referenced above. Subject 9. Contracts Signed by General Manager Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors receive and file this report Goals 5.0 Administrative Management th Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. 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: Alan Burns, District Counsel Date: July 25, 2019 Subject: Considering Adopting Ordinance No. 128 Prohibiting Interference with District's Easements and Sewer Facilities and Adopting Sewer Easement Maintenance Cooperation Standards and Amending the Chapter Number for Incorporation into the District's Operations Code Summary The ordinance to prohibit interference with the District’s easements was passed at last month’s regular board meeting. It was thereafter discovered that the Chapter number used was already dedicated to a different subject. This ordinance corrects that mistake and assigns the Ordinance provisions to Chapter 6.11 of the Operations Code. Recommendation That the Board of Directors adopt Ordinance No. 128 Prohibiting Interference with District Easements, and Sewer Facilities and Adopting Sewer Easement Maintenance Cooperation Standards and Amending the Chapter Number for Incorporation Into the District's Operations Code. Analysis The ordinance passed last month prohibited obstruction of the District’s sewer easements. After the action to adopt the ordinance, it was discovered that the ordinance had a chapter number assigned to it that was already occupied in the District’s Operations Code. The mistake was caught before the ordinance was published so it never went into effect. This ordinance will correct that mistake and assign the provisions to Chapter 6.11 of the Costa Mesa Operations Code. Legal Review District counsel has reviewed this matter and prepared the correcting ordinance. Environmental Review Adoption of the ordinance will result in lessening the environmental impact on the ground surface in the easement area by restricting structures, walls, and trees that might compromise the underground sewer main. Subject 10. Consider Adopting Ordinance No. 128 Prohibiting Interference with District Easements, Sewer Facilities and Adopting Sewer Easement Maintenance Cooperation Standards and Amending the Chapter Number for Incorporation into the District's Operations Code Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Ordinance No. 128 Prohibiting Interference with District Easements, and Sewer Facilities and Adopting Sewer Easement Maintenance Cooperation Standards and Amending the Chapter Number for Incorporation Into the District's Operations Code Goals 5.4 Review and maintain Operations Code, policies and Administrative Regulations 5.0 Administrative Management 1.0 Sewer Infrastructure Financial Review Since the previous ordinance was not published, there are no additional costs. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. File Attachments Ordinance No. 128 - Prohibiting Intereference with the Districts Easements, and Sewer Facilities and Adopting Sewer Easement Maintenance Cooperation Standards.pdf (103 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: July 25, 2019 Subject: Consider Contribution Program Application for Second Chance Orange County Gala Event Summary On July 31, 2013, the Board of Directors approved implementing new procedures for sponsoring organizations and/or events. Staff is presenting the Board of Directors with a District Contribution Program Eligibility Application to provide a table sponsorship of $1,000 for Second Chance Orange County Gala Event on September 17, 2019. Recommendation That the Board of Directors: 1. Approve the Second Chance Orange County contribution application requesting a $1,000 table sponsorship for their Gala Event on September 17, 2019; and 2. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling, proper disposal or prevention of sanitary sewer overflows by disseminating program flyers at the event. Analysis According to the procedures implemented on July 31, 2013, the Board of Directors must do the following in order to determine if a contribution should be made: Establish the purpose the District is trying to serve by contributing. This purpose must be established as one of the District’s statutory powers or a power that would be incidental to those purposes. For example, District purposes include properly treating sewage, preventing SSOs, and recycling. Describe how the contribution will advance the District's purpose. For being a table sponsor Second Chance will disseminate to every table at the event a flyer of staff's choice that promotes a District program such as Citizens Environmental Protection Academy, Sewer Inspection Rebate Program, Door-to-Door Household Hazardous Waste or medication and sharps drop off program. The event will be held at Newport Beach City Hall and even though Subject 1. Consider Contribution Program Application for Second Chance Orange County Gala Event Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $1,000.00 Budgeted Yes Budget Source 10-100100-4420 & 20-100100-4420 (Public Information/Education/Community Promotions Sponsorships) Recommended Action That the Board of Directors: 1. Approve the Second Chance Orange County contribution application requesting a $1,000 table sponsorship for their Gala Event on September 17, 2019; and 2. Make a finding that this contribution will increase District visibility and promote the District's purposes of recycling, proper disposal or prevention of sanitary sewer overflows by disseminating program flyers at the event. Goals 3.00 Partnerships 3.5 Participate in community groups and civic organization activities 4.0 Community Outreach & Communications this event is located outside District boundaries, the District does provide services to a portion of Newport Beach residents, which is why staff is recommending approval of the contribution application. Legal Review Not applicable Environmental Review The consideration of a monetary contribution to a non-profit organization to be used as a vehicle for promoting the District is an administrative matter and is not a disturbance of the environment, similar to grading or construction, and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review There are sufficient funds in the Fiscal Year 2019-2020 Solid Waste and Wastewater Public Info/Education/Community Promotions accounts for this sponsorship. A total of $58,000 is budgeted for sponsorships during FY 2019-2020 and $8,000 is available for contributions. On June 27, 2019, the Board approved a $2,500 contribution to the Costa Mesa Foundation for having a booth at Concerts in the Park series, which leaves a balance $5,500 and adequate money available for contributing to Second Chance Orange County Gala Event. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the July 25, 2019 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Determine that no purpose exists for providing a sponsorship for the Second Chance Orange County Gala Event. 2. Approve an alternative sponsorship level of $500, but a designated table for District officials will not be available. File Attachments Second Chance Contribution Application.pdf (1,418 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: July 25, 2019 Subject: Receive and File 2015-20 Strategic Plan Quarterly Update - FY 2018-19 4th 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 Three strategic goals were completed in the 4th Quarter. Strategic Goals 6.2, 6.4 and 6.6 are now complete and described in more details in the attachment. The next quarterly update will be the first quarter in FY 2019-20 and will be presented to the Board on October 24, 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 July 25, 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 2. Receive and File the 2015-20 Strategic Plan Quarterly Update - FY 2018-19 4th Quarter Meeting Jul 25, 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 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 - 4th Qtr.pdf (303 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: July 25, 2019 Subject: Receive and File Preliminary Fourth Quarter Budget Review for FY2018-19 Summary This report serves as a summary of the District’s spending through June 30, 2019 with the understanding the fiscal years numbers won't be final until the annual audit is complete later this calendar year. Recommendation That the Board of Directors receive and file this report. Analysis The Solid Waste Fund is projected to come in under budget and Wastewater Fund is projected to be over budget on June 30, 3019. A total of 98% of the Solid Waste budget for the 2018-19 fiscal year was expended. At this time, staff anticipates a budgetary savings of $123,400 for the fiscal year, mainly due to savings in Personnel and Special Program budgets. Staff estimates the Wastewater Fund will be at a deficit of $99,500 as of June 30, 2019 due to unexpected emergency work during the year. Staff will ask the Board of Directors to approve the transfer from Project 318, President Pump Station to the Annual Sewer Maintenance account to pay for the emergency work on Bristol Street. If the Board approved the transfer, the Wastewater Fund will be within budget. Encumbrance and carryover requests will be presented to the Board at either the September or October Board meeting. The Capital Projects accounts are projected to be within budget. Please see the attached report for a more detailed analysis. 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 See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 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 3. Receive and File Preliminary Fourth Quarter Budget Review for FY2018-19 Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors receive and file this report. Goals 7.6 Monitor the asset management program 7.0 Finance File Attachments A- FY2018-19 Q4 Preliminary Budget Analysis.pdf (527 KB) B-Expenditure Analysis Through 6-30-19.pdf (21 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: July 25, 2019 Subject: Performance Measurement Program Update Report : January - June 2019 Summary On November 26, 2018, the Board of Directors approved a new program to engage with staff, the Board and the public regarding how well the District is performing. The Performance Measurement Program was approved by the Board 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. Recommendation That the Board of Directors receive and file this report. Analysis Attached is the second report for 2019 that covers the months of January through June. The outcome to some measures are already being achieved while the outcome for other measures are not applicable during this reporting period because data is not yet available. As the year progresses, the data will be adjusted to reflect the performance. Measures that are not achieving their outcome will be discussed among staff in which strategies will be developed to achieve the outcome. The next Performance Measurement Update Report will be presented to the Board on October 24, 2019. Legal Review Not applicable Environmental Review Implementing 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 July 25, 2019 regular meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. File Attachments 2019 Jan-June Outcome and Performance Measurement Program.pdf (1,134 KB) Subject 4. Performance Measurement Program Update Report: January - June 2019 Meeting Jul 25, 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 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, CMC, District Clerk Date: July 25, 2019 Subject: California Special Districts Association Board of Directors Southern Network (Seat B) Election Summary The California Special Districts Association (CSDA) is holding an election for Southern Network, Seat B. One candidate will need to be selected and voted for electronically by August 9, 2019. Analysis CSDA Board of Directors Southern Network, Seat B, election is currently open. There are seven candidates running for the seat, of which only one candidate may be voted for. The electroni ballot needs to be received by August 9, 2019. Recommendation That the Board of Directors nominate and vote for one candidate for the CSDA Board of Directors Southern Network, Seat B, and direct General Manager, Scott Carroll, to electronically vote for said candidate. Legal Review Not applicable. Environmental Review The consideration of candidates and voting is an administrative matter and is not a disturbance of the environment, similar to grading or construction, and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the July 25, 2019 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions That the Board of Directors direct staff to abstain from voting. Subject 5. California Special Districts Association Board of Directors Southern Network (Seat B) Election Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type File Attachments 01_Mills_Greg.pdf (38 KB) 02_LaMoreaux_Dennis.pdf (348 KB) 03_Mack_Michael.pdf (364 KB) 04_Coats_Ron.pdf (257 KB) 05_Rivers_Kelly.pdf (338 KB) 06_Tiegs_Kathleen.pdf (429 KB) 07_Woods_Lindsay.pdf (99 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: July 25, 2019 Subject: General Manager Declaring Emergency Work for Two Inverted Siphons on Bristol Street - Update Summary On June 18, 2019, the Board of Directors received a report about the General Manager declaring emergency work for two inverted siphon mainline pipes on Bristol Street. More information about the project is described in the June 18th staff report. The following is a project update since it was first reported to the Board on June 18. Recommendation That the Board of Directors: 1. Receive and file this report; and 2. Approve the transfer of $452,000 from project number 318, President Pump Station to the Annual Sewer Maintenance account to pay for the emergency work on Bristol Street. Analysis By the end of July the siphon construction work will be complete. The upper 45 degree bends on the discharge side of the siphon were not 45 degrees, they were smoother transitions that do not need to be replaced. In July, the following work was done: 1. Install a short section of liner in each siphon line and then finish cleaning the bottom sections of both barrels. This work was performed at night. Both lines are running fine, but completion of the cleaning was essential. 2. Finished repaving the two traffic lanes where the work occurred, which will also be done at night. 3. The drive approach where the downstream manhole is located was reconstructed per city standard, as required by City staff. This was a very delicate complicated project and CMSD was fortunate to have GCI Construction on the project due to their complete understanding of sewer siphons, experience, and ingenuity. The estimate total cost for this emergency work is $452,000, which includes cost from GCI construction to repair the siphons and rent two temporary by-pass pumps, National Plant Services, C&R Drains, Jimni Systems and Robin Hamers & Associates (RHA). National Plant Services provided cleaning services while C&R Drains provided a small push camera to view the condition of the pipe, and Jimni provided a pumper truck. RHA provided contract administration and inspection services. The District's emergency work procedures went very well on this repair. CMSD did not sustain an SSO into the adjacent flood control channel, nor a collapse of either siphon line, nor a street collapse, all of which were very possible. Legal Review Not applicable Environmental Review Subject 6. General Manager Declaring Emergency Work for Two Inverted Siphons on Bristol Street - Update Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Budgeted No Recommended Action That the Board of Directors: 1. Receive and file this report; and 2. Approve the transfer of $452,000 from project number 318, President Pump Station to the Annual Sewer Maintenance account to pay for the emergency work on Bristol Street. Goals 1.0 Sewer Infrastructure The emergency work is a minor alteration and is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” project as stated under 15301; “Class 1 consists of the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities …”; pertaining to 15301(b) “Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services”. Financial Review This project was an unanticipated repair and therefore it was not budgeted. The estimate total cost is $452,000. The District has paid approximately $33,000 partially for the emergency work. The District has not received all invoices. The cost is being charged to the Annual Sewer Maintenance account. When all invoices are paid, this account will be over budget. Staff is requesting approval from the Board to transfer $452,000 from project number 318, President Pump Station to the Annual Sewer Maintenance account. There will be sufficient funds remaining in project #318 after the transfer. Account Description Current Balance FY2018-19 Increase/ (Decrease)Balance After Tra 20-201318-4300 President PS Rehab #318 $1,801,200 ($452,000)1,349,200 20-200001-4364 Annual Sewer Maintenance ($226) $452,000 $451,774 Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the July 25, 2019 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: July 25, 2019 Subject: Proposition 218 Certification of Assessment FY 2019-20 Summary The District adopted the procedures authorized by Health & Safety Code Section 5470 that allows solid waste and wastewater charges to be collected on the assessment roll. On an annual basis, the Board of Directors adopts resolutions and confirming ordinance that allows the District to place a charge against the parcels. The Auditor-Controller is now requiring agencies to also submit the proposed Proposition 218 Assessment Certification. Recommendation That the Board of Directors confirm Proposition 218 Certification of FY 2019-20 Assessment charges and file with County Auditor- Controller Office. Analysis The District has adopted procedures provided in Health and Safety Code Section 5470 et seq. to allow our solid waste and wastewater collection charges to be collected with other taxes on the County assessment roll. On June 27, 2019 the Board of Directors adopted Resolutions No. 2019-919 and 2019-920 confirming solid waste and wastewater annual charges to be collected with the general taxes for fiscal year 2019-20. On July 17, 2019 the County Auditor-Controller emailed out a Proposition 218 Certification of Assessment to be completed by each taxing jurisdiction. The proposed Certification of Assessment certifies that special assessments placed by the Costa Mesa Sanitary District on the 2019- 20 Property Tax roll meet the requirement of Proposition 218 that added Articles XIIIC and XIIID to the State Constitution. The "Certification" document further requires the Costa Mesa Sanitary District to agree to defend, indemnify and hold harmless the County of Orange, the Board of Supervisors, the Auditor-Controller, its officers and employees, from litigation over whether the requirements of Proposition 218 were met with respect to each assessment the District places. This year no fees are being increased for wastewater, but fees for solid waste collection will increase over a five-year period. The District followed the Proposition 218 procedures in considering the increase in solid waste charges and a protest hearing was held and the protest failed. In previous years the District followed Proposition 218 in setting sewer rates. The Certification of Assessment must be filed with the Auditor before August 10. Legal Review District Counsel reviewed this staff report and certification of assessment attached hereto. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “Projects” does not include......C. Continuing administrative or maintenance activities.” Financial Review There are no fiscal impacts for confirming Proposition 218 Certification of FY 2019-20 Assessment Charges and file with County Auditor-Controller Office. Subject 7. Proposition 218 Certification of Assessment FY 2019-20 Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors confirm Proposition 218 Certification of FY 2019-20 Assessment charges and file with County Auditor-Controller Office. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the July 25, 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 Prop 218 CERTIFICATION OF ASSESSMENT.docx (16 KB) E. GENERAL MANAGER'S REPORTS Subject 8. Consider Changing the date of the October Board Regular Meeting to October 29, 2019 Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors approve changing the date of the October regular Board meeting to October 29, 2019. F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: July 25, 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.” While this report is an administrative matter, each of the projects has its own CEQA findings when it is first proposed and started. 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 July 25, 2019 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov Alternative Actions 1. Refer item back to staff with further direction. File Attachments CIP Updates July 2019 Mtg.pdf (703 KB) Subject 1. Receive and File the Monthly Capital Improvements Project Status Report Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file the report. Goals 4.7 Demonstrate outstanding efforts in transparency 7.2 Develop a long term CIP 1.10 Abandon five pump stations on the west side in conjunction with Orange County Sanitation District companion project 1.6 Evaluate Force Main Conditions on a Regular Basis 1.4 System Wide Sewer Replacement and Repair Program 1.1 Manhole Cover Maintenance Program 1.0 Sewer Infrastructure F. ENGINEER'S REPORTS To: General Manager, Alternate District Engineer From: District Engineer Re: Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 1521 Kathleen Lane, Newport Beach, CA – Jerry and Cara Weichman Please be advised that I have been retained to do private engineering work for the property at 1521 Kathleen Lane, Newport Beach, CA, which is owned by Jerry and Cara Weichman. I have reason to believe that this project or those persons involved in that project may have the need for District engineering approvals in the future. I have been retained by Jerry and Cara Weichman and will be reporting this relationship as a source of income on my FPPC Statement of Economic Interests Form 700 next year. Pursuant to state law, District Operations Code Section 3.01.045, and my contract with the District: 1. I hereby notify you of this source of income or other relationship that causes me a conflict in approving any matters in my official capacity pertaining to this property and these persons. 2. I request that the General Manager alert the Alternate District Engineer that he is to provide all engineering approvals on behalf of the District with respect to these persons or that property. 3. That the Alternate District Engineer shall report directly to the General Manager and submit his bills for services directly to the General Manager. 4. That if any plans are required to be approved, that those shall show my seal and signature as private engineer of record, and the Alternate District Engineer shall provide his approval by signing as Alternate District Engineer. That these separate approvals shall be given on the same page and in a manner that clearly shows the separate capacities of each engineer in providing their respective approvals. 5. I request that the District Clerk maintain a copy of this Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer as a permanent record of the District or for as long as required under the District’s record retention schedule. I understand that this procedure does not allow me to enter into or influence the awarding of contracts in my official capacity in which I have a financial interest, which is a separate prohibition. (Gov. Code § 1090.) If I can provide further information about the identity of my source of income or about the scope of my assignment, please advise, and I will elaborate as necessary. Robin Hamers District Engineer Subject 2. Declaration of Conflict of Interest - 1521 Kathleen Lane, Costa Mesa Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type F. ENGINEER'S REPORTS To: General Manager, Alternate District Engineer From: District Engineer Re: Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 418 E. 18 St., Costa Mesa, CA – Water Meter Plan - Tim Campbell Please be advised that I have been retained to do private engineering work for the property at 418 E. 18 Street, Costa Mesa, which is owned by Tim Campbell. I have reason to believe that this project or those persons involved in that project may have the need for District engineering approvals in the future. I have been retained by Tim Campbell and will be reporting this relationship as a source of income on my FPPC Statement of Economic Interests Form 700 next year. Pursuant to state law, District Operations Code Section 3.01.045, and my contract with the District: 1. I hereby notify you of this source of income or other relationship that causes me a conflict in approving any matters in my official capacity pertaining to this property and these persons. 2. I request that the General Manager alert the Alternate District Engineer that he is to provide all engineering approvals on behalf of the District with respect to these persons or that property. 3. That the Alternate District Engineer shall report directly to the General Manager and submit his bills for services directly to the General Manager. 4. That if any plans are required to be approved, that those shall show my seal and signature as private engineer of record, and the Alternate District Engineer shall provide his approval by signing as Alternate District Engineer. That these separate approvals shall be given on the same page and in a manner that clearly shows the separate capacities of each engineer in providing their respective approvals. 5. I request that the District Clerk maintain a copy of this Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer as a permanent record of the District or for as long as required under the District’s record retention schedule. I understand that this procedure does not allow me to enter into or influence the awarding of contracts in my official capacity in which I have a financial interest, which is a separate prohibition. (Gov. Code § 1090.) If I can provide further information about the identity of my source of income or about the scope of my assignment, please advise, and I will elaborate as necessary. Robin Hamers District Engineer Subject 3. Declaration of Conflict of Interest - 418 E. 18th St., Costa Mesa Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Receive and File th th F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: July 25, 2019 Subject: Inflow & Infiltration (I/I): Mendoza Pump Station Smoke Test Summary Orange County Sanitation District (OCSD) as well as the State Water Resources Control Board under the Waste Discharge Requirements (WDR) prohibits inflow and Infiltration (I/I) of surface and groundwater into the sewer system. Treating wastewater is costly and the addition of surface water causes OCSD to construct additional capacity at its treatments plants. I/I also negatively affects the performance of sewer systems by taking up the capacity that was designed for wastewater. The Costa Mesa Sanitary District’s (CMSD) I/I program consists of manhole plugging and sealing and has been active since the winter of 2009- 2010. The District has determined there is little to no infiltration into the system but there is inflow of surface water into the system due to flooding streets and alleys, possible illegal connections, and pool discharges. The District has plugged and sealed approximately 1,000 manholes out of 4,720 total manholes in the District. The District’s Inflow Reduction Program has previously prevented water from mid level storms from entering the system and these results have been reported to the Board and Orange County Sanitation District. The District's goal is to limit inflow to less than 2% rain ingress, which is OCSD’s goal as well. Generally, the District does not calculate inflow into the system for storms of less than 1” of rainfall due to inaccuracies in small storm calculations. However, during the last three storm events, the rainfall exceed one inches, which resulted the ingress to surpass the 2% goal. On December 7, 2018, the rain ingress was 3.8% and on January 12, 2019 the rain ingress was 3.75%. On February 15, 2019 a storm of 2.76 inches of rainfall caused the Mendoza Pump Station to run an extra 377 minutes equating to 361,920 gallons of rainwater in the wastewater system, which caused a rain ingress of 2.59%. The District’s other pump stations also pump stormwater but Mendoza Station is usually the largest offender. Based on the overall results from this storm and another, District Management determined the manhole plugging and sealing from prior years needed to be re-established and that additional steps should be taken. Management decided to consider “smoke testing”, the surest method to finding illegal connections that create inflow. District Staff is currently in the process of obtaining and evaluating proposals for smoke testing the Mendoza Pump Station tributary area in order to find and terminate the connections allowing rainwater to enter the wastewater system. Five firms have been contacted: ADS, Michael Baker, Psomas, Empire, and Dudek. A few public agencies stated they perform their own smoke testing. Subject 4. Inflow & Infiltration (I/I): Mendoza Pump Station Smoke Test Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Dollar Amount $40,000.00 Budgeted No Budget Source Wastewater Fund Recommended Action That the Board of Directors direct staff to proceed smoke testing the Mendoza Pump Station Tributary Area Goals 1.0 Sewer Infrastructure 1.2 Inflow Reduction Program 1.7 Pump Station Maintenance & Standardization Program Recommendation That the Board of Directors direct staff to proceed smoke testing the Mendoza Pump Station Tributary Area Analysis Infiltration is groundwater (underground water) entering into sewer lines through cracks and/or separated joints in the sewer lines. Groundwater may be from storm water infiltrating down through the soil or from naturally occurring groundwater. Inflow is surface water entering through the vent holes in the cover and water entering through the annular space between the manhole ring and cover. Inflow generally occurs during storms that flood streets and may also be caused by illegal connections. An example of an illegal connection is a property owner solving his backyard flooding problem by installing a drain and connecting it to the sanitary sewer. When the District televised the sewer system from 2006-2009, only two instances of heavy infiltration (termed “gushers”) were discovered and these sources of water were immediately terminated. During the 2016-2018 televising program, there were no instances of heavy infiltration. The source of I/I water in the District’s system is inflow and this conclusion is supported by extra runtimes in the pumping stations immediately after a rain event. Inflow will occur immediately after the rain event whereas infiltration of underground water into the sewer is delayed from the time of the storm as the water must first percolate through the soil all the way down to the sewer system. The District’s Inflow Reduction Program is an attempt to reduce the amount of surface water entering the sewer system during winter storms. Many streets in Costa Mesa are relatively flat and flood during large storms. Standing water from curb to curb where manholes are located causes large volumes of water to enter the system though the vent holes and the space between the ring and cover. The cure for flooded streets is additional storm drain catch basins and pipelines but the City has struggled with funding these improvements. Therefore, Staff has used plugging and sealing manholes as the best course of action to prevent inflow. The risk in plugging and sealing manholes is the lack of oxygen circulation in the system and the inability to see a backup in the system since a backup manifests itself through these same vent holes. The lack of oxygen causes a buildup in hydrogen sulfide, which leads to more pronounced odors and corrosion in the system. The use of smoke testing represents the District’s next step in inflow reduction. The concept is simple and works as follows: A smoke machine and blower drive smoke into the sewer main, which is usually located underground along the center line of a street. The smoke travels up the main and up the sewer laterals all the way into each of the residences connected to the main. Smoke will then exit through openings leading to the sewer lateral. For instance, smoke exiting through a plumbing roof vent indicates the house is connected to the system but smoke emanating from a backyard storm drain grate indicates the homeowner is solving his drainage problems by illegally connecting to the sewer system. After the testing, the District will take steps to have the illegal connections removed. On July 17, 2019, the Citizens Advisory Committee unanimously approved recommending the Board of Directors consider smoke testing the Mendoza Pump Station Tributary Area to locate flow sources Legal Review Not applicable at this time. Environmental Review Smoke testing is performed with non-hazardous smoke that will quickly dissipate into the atmosphere. Also, there is no disturbance of the environment similar to grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review Preliminary cost estimates for smoke testing Mendoza pumping station tributary area is approximately $40,000. This project has a budget of $10,000. Assuming additional costs for traffic control, permits, liaison, follow-up, etc., an initial total budget recommendation is to allocate $30,000 for the project. . In accordance with CMSD Operations Code Section 4.03.010(h), the General Manager has the authority to transfer up to $50,000 from savings, from account to account. Staff is projecting a savings from Project #318 - President Pump Station Reconstruction Project, so if the Board directs staff to proceed smoke testing the Mendoza Tributary Area, the General Manager will transfer $30,000 from Project #318 to the Annual Sewer Maintenance account. Account Description Pending Carryover Balance FY 2018-19 Adopted Budget FY 2019-20 Pending Amended Budget FY 2019-20 In (D 20-201318- 4300 President PS Rehab #318 $1,349,200 $840,000 $2,189,200 ($ 20-200001- 4364 Annual Sewer Maintenance (Mendoza Smoke Test)$0 $10,000 $0 $ Public Notice Process Copies of this report are on file and will be included with the agenda packet for the July 25, 2019 Board of Directors regular meeting and on the District’s website. Alternative Actions 1. Do not use smoke testing to determine points of inflow. 2. Refer the matter back to staff for additional information. Attachments: Mendoza Pump Station Tributary Area G. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: July 25, 2019 Subject: Approve the Investment Report for the Month of June 2019 Summary Attached is the Investment Report for the month of June 2019. 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 June 2019. 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 June 30, 2019. 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 June 30, 2019, was 1.982%. The yield to maturity of the portfolio was 1.985%. The District’s weighted average interest rate was 45 basis points (0.446%) below the LAIF average monthly rate for June 2019 of 2.428%. The weighted average number of days to maturity for the District’s total portfolio was 466 days (1.28 years). The duration of the underlying securities in LAIF as of June 30, 2019 was 179 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 June 30, 2019 was 40.27%. 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. Subject 1. Approve the Investment Report for the Month of June 2019 Meeting Jul 25, 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 June 2019. Goals 7.0 Finance Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. Undesignated - Remaining available cash, which is available to be appropriated by the Board. Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund - Accumulation of funds in accordance with the asset management model for long- term replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not include….C. Continuing administrative or maintenance activities.” Financial Review The portfolio was budgeted to earn an average rate of 0.900% for the year ending June 30, 2019. Through June 30, 2019, the portfolio has earned a weighted average interest rate of 1.899%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the July 25, 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 - June 2019.pdf (591 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 Jul 25, 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 Jul 25, 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 Jul 25, 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 Jul 25, 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 Jul 25, 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 Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Information J. OLD BUSINESS Subject 1. Consider Changing the Day and Time of the Board of Directors Regular Meeting - Oral Report Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors consider changing the day and time of its regular meeting. L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Discussion M. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON AUGUST 22, 2019 IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Jul 25, 2019 - Board of Directors Regular Meeting Access Public Type Procedural