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2019_10_29_boardTuesday, October 29, 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 Acting District Clerk, Gina Terraneo, 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 September 10, 2019 3. Approve the Board of Directors Regular Meeting Minutes of September 19, 2019 4. Approve the Board of Directors Special Meeting Minutes of September 23, 2019 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Adopt Warrant Resolution No. CMSD 2020-04 Approving District Warrant 7. Payroll Transparency Disclosure for September 2019 8. Accept the occupancy count as presented as 22,871 and direct staff to prepare a warrant to CR&R Environmental Services for $237,023.61 for September 2019 collection 9. Approve the preparation of a warrant to CR Transfer in the amount of $209,067.43 for September 2019 recycling and disposal services in the October 2019 warrant register 10. Receive and File Fiscal Year 2018-2019 Annual Compliance Report for Requirements of Government Code Section 66013 (d) for Capacity Charges. 11. Receive and File Annual Report of Expenses- Fiscal Year 2018-19 12. Adopt Resolution No. 2019-925 Ordering that Publication of Ordinance No. 129 has Occurred 13. Investment Report for the Month of August 2019 14. Contracts Signed by the General Manager D. PUBLIC HEARINGS E. GENERAL MANAGER'S REPORTS 1. Citizens Advisory Committee (CAC) September 18, 2019 Meeting Overview 2. Receive and File the 2015-20 Strategic Plan Quarterly Update - FY 2019-20 1st Quarter 3. Performance Measurement Program Update Report: January - September 2019 4. Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2018-19 to Fiscal Year 2019-20. 5. Multi-Family Proposal - Update 6. Consider Attending the Waste Expo Conference in New Orleans from May 4-7, 2020 7. Consider Approving Appropriation of Funds for Boardroom Audio Visual System Repair F. ENGINEER'S REPORTS 1. Receive and File the Monthly Capital Improvements Project Status Report 2. #318 President Pump Station Reconstruction Recommendation for Alternative 2 3. #321 Indus Sewer Main Relocation; Accept Improvements, File Notice of Completion, Exonerate Bonds G. TREASURER'S REPORTS 1. Investment Report for the Month of September 2019 H. ATTORNEY'S REPORTS 1. Consider Adopting Resolution No. 2019-926 Modifying the Wastewater Discharge Permit Conditional Waiver Permit for Denny's 3170 Harbor Blvd. 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 K. NEW BUSINESS L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. ADJOURN TO CLOSED SESSION 1. Conference with Legal Counsel- Existing Litigation (Government Code §54956.9(d)(1)) N. RECONVENE TO OPEN SESSION O. CLOSING ITEMS 1. Adjourn Tuesday, October 29, 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 Acting District Clerk, Gina Terraneo, 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 Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ferryman Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Invocation - Vice President Ooten Meeting Oct 29, 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 Oct 29, 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 Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Procedural A. OPENING ITEMS Introduction of Young Southeast Asian Leaders Initiative (YSEALI) Professional Fellows, Ms. Thidalath Vongsayalath from Laos and Ms. Phoeurn Chan Arun from Cambodia. Subject 6. Ceremonial Matters and Presentations Meeting Oct 29, 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 Oct 29, 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 Oct 29, 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: October 29, 2019 Subject: Approve the Board of Directors Study Session Minutes of September 10, 2019 Summary The recorded minutes of the September 10, 2019 Board of Directors Study Session 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 Board of Directors Study Session on September 10, 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 October 29, 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 September 10, 2019 Meeting Oct 29, 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 Sep 10, 2019 - Board of Directors Study Session minutes_2019_09_10_ss.pdf (61 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: October 29, 2019 Subject: Approve the Board of Directors Regular Meeting Minutes of September 19, 2019 Summary The recorded minutes of the September 19, 2019 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 Board of Directors Regular Meeting on September 19, 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 October 29, 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 Board of Directors Regular Meeting Minutes of September 19, 2019 Meeting Oct 29, 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 Sep 19, 2019 - Board of Directors Regular Meeting File Attachments minutes_2019_09_19_rm.pdf (96 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: October 29, 2019 Subject: Approve the Board of Directors Special Meeting Minutes of September 23, 2019 Summary The recorded minutes of the September 23, 2019 Board of Directors Special Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Special Meeting on September 23, 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 October 29, 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 4. Approve the Board of Directors Special Meeting Minutes of September 23, 2019 Meeting Oct 29, 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 Sep 23, 2019 - Board of Directors Special Meeting File Attachments minutes_2019_09_23_special.pdf (113 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/District Clerk Date: October 29, 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 Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the October 29, 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 (1,710 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Oct 29, 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_director_expense.pdf (1,877 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 4-2020 Mtg.pdf (190 KB) Subject 6. Adopt Warrant Resolution No. CMSD 2020-04 Approving District Warrant Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2020-04 approving District warrants for the month of September 2019 in the amount of $1,003,752.79 Goals 4.7 Demonstrate outstanding efforts in transparency 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: Kaitlin Tran, Finance Manager Date: October 29, 2019 Subject: Payroll Transparency Disclosure for September 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 October 29, 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 7. Payroll Transparency Disclosure for September 2019 Meeting Oct 29, 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 4.7 Demonstrate outstanding efforts in transparency 7.0 Finance File Attachments Payroll Transparency Disclosure Sept2019.pdf (983 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: October 29, 2019 Subject: Accept the occupancy count as presented as 22,871 and direct staff to prepare a warrant to CR&R Environmental Services for $237,023.61 for September 2019 collection Summary Accept the occupancy count as presented using 22,871 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for September 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,023.61 to be ratified in the October 2019 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,871 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for September 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,023.61 to be ratified in the October 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 $10.3635 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. As of September 30, 2019, total District occupancy was at 22,871, with thirteen (13) new 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 September 2019: 22,871 x $10.3635 =$237,023.61 Legal Review Not Applicable Environmental Review Subject 8. Accept the occupancy count as presented as 22,871 and direct staff to prepare a warrant to CR&R Environmental Services for $237,023.61 for September 2019 collection Meeting Oct 29, 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 22,871 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for September 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,023.61 to be ratified in the October 2019 warrant list. 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 October 29, 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 2019-09-G CMSD Occupancy Report.pdf (137 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: October 29, 2019 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $209,067.43 for September 2019 recycling and disposal services in the October 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 $209,067.43 for September 2019 recycling and disposal services to be ratified in the October 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 overbilled the District by $0.11, but CMSD will be paying the actual amount owed. Costa Mesa Newport Beach Total Residential Waste $146,045.57 $1,724.17 $147,769.75 Organics $58,416.93 $2,880.75 $61,297.68 Total Payment $209,067.43 Tonnage Residential Waste 2656.34 31.36 2687.70 Organics 772.20 38.08 810.28 Total Tonnage 3,497.98 Legal Review Not Applicable Subject 9. Approve the preparation of a warrant to CR Transfer in the amount of $209,067.43 for September 2019 recycling and disposal services in the October 2019 warrant register Meeting Oct 29, 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 $209,067.43 for September 2019 recycling and disposal services to be ratified in the October 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 October 29, 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: The Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: October 29, 2019 Subject: Receive and File Fiscal Year 2018-2019 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. Recommendation Staff recommends the Board receive and file this report. 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. Subject 10. Receive and File Fiscal Year 2018-2019 Annual Compliance Report for Requirements of Government Code Section 66013 (d) for Capacity Charges. Meeting Oct 29, 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 (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 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. 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, 2019. During the fiscal year 2018-19, the Facilities Revolving Fund received $163,692 in capacity charges and interest earnings of $6,521 for the fiscal year. Due to cancellation of projects by the contractors there were three refunds issued for a total of $2,208. A transfer of $176,951 from the Facilities Revolving Fund to the Wastewater Fund was made for the purchase and installation of Solar Panels at the District Headquarters property at 290 Paularino Avenue. As of June 30, 2019, the funds available in the Facilities Revolving Fund was $127,923. In comparison, the capacity charges collected in fiscal year 2017-18 were $147,335. The increase of $16,357 in capacity charges collected over the prior fiscal year was the result of the timing of payments received and an increase in new development construction. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 29, 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 FY18-19- Attachment 1.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. 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: Kaitlin Tran, Finance Manager Date: October 29, 2019 Subject: Receive and File Annual Report of Expenses- Fiscal Year 2018-19 Summary California Government Code requires special districts to disclose, at least annually, any reimbursement paid by the District of at least $100 for each individual charge for services or products received by a Board Member or Staff. The Annual Report of Expenses for Fiscal Year 2018-19 is provided as Attachment A of this report. Recommendation Staff recommends that the Board of Directors receive and file the Annual Report of Expenses for the Fiscal Year 2018-19. Analysis Section 53065.5 of the California Government Code states that “Each special district, as defined by subdivision (a) of Section 56036, shall, at least annually, disclose any reimbursement paid by the district within the immediately preceding fiscal year of at least one hundred dollars ($100) for each individual charge for services or product received. "Individual charge" includes, but is not limited to, one meal, lodging for one day, transportation, or a registration fee paid to any employee or member of the governing body of the district. The disclosure requirement shall be fulfilled by including the reimbursement information in a document published or printed at least annually by a date determined by that district and shall be made available for public inspection.” Attached is the Annual Report of Expenses for the Fiscal Year 2018-19 which will be published on the District's website under the Transparency tab. Legal Review Not applicable. Environmental Review Subject 11. Receive and File Annual Report of Expenses- Fiscal Year 2018-19 Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Budgeted Yes Recommended Action Staff recommends that the Board of Directors receive and file the Annual Report of Expenses for the Fiscal Year 2018-19. Goals 7.0 Finance 4.7 Demonstrate outstanding efforts in transparency 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 It is the policy of the District to encourage and promote training and educational opportunities for all District employees so that the services they render to the District may be made more effective. Attendance at educational seminars, conferences and meetings by Board Members and/or Staff are also encouraged to monitor new legal requirements and technological advancements in the solid and wastewater industries. The reimbursement of approved training, travel and other work related expenses are dictated by the CMSD Employee Handbook, Policy 2.4 and the Operations Code, Section 3.01.090; Conferences, Travel and Expenses. The $16,782.89 of reimbursements reported on Attachment A have met the requirements outlined above. The Annual Report of Expenses are included on the District's website under the Transparency tab. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 29, 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 Report of Expenses FY 18-19 Attachment A.pdf (33 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. RESOLUTION NO. 2019-925 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE COSTA MESA SANITARY DISTRICT ORDERING THAT PUBLICATION OF ORDINANCE NO. 129 AMENDING THE OPERATIONS CODE TO PROVIDE A NEW DAY AND TIME FOR THE MONTHLY REGULAR MEETINGS WHEREAS, the Board of Directors on August 22, 2019 adopted Ordinance No. 129 amending the Operations Code to provide a new day and time for the monthly regular meetings; and WHEREAS, that Ordinance was published in the Newport Beach/Costa Mesa Daily Pilot on October 12, 2019; and WHEREAS, Health and Safety Code Section 6490 provides that an order of the Board that publication has occurred is conclusive evidence that publication has properly been made; NOW, THEREFORE, the Board of Directors does hereby resolve: That it is hereby ordered and decreed that publication of Ordinance No. 129 establishing regulations for District facilities has occurred. PASSED and ADOPTED on this day of 2019. _______________________________ _______________________________ Secretary, Costa Mesa Sanitary District President, Costa Mesa Sanitary District Board of Directors Board of Directors STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF COSTA MESA ) I, GINA TERRANEO, Acting Clerk of the Costa Mesa Sanitary District, hereby certify that the above and foregoing Resolution No. 2019-925 was duly and regularly passed and adopted by said Board of Directors at a regular meeting thereof, held on the day of October, 2019 by the following votes: AYES: Subject 12. Adopt Resolution No. 2019-925 Ordering that Publication of Ordinance No. 129 has Occurred Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors adopt Resolution No. 2019-925 ordering that the publication of Ordinance No. 129 has occurred. NOES: ABSENT: ABSTAIN: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Costa Mesa Sanitary District, this ____ day of ___________________ 2019. _________________________________ Gina Terraneo Acting Clerk of the Costa Mesa Sanitary District File Attachments RESOLUTION NO. 2019-925 ORDERING THAT PUBLICATION OF ORDINANCE NO. 129 HAS OCCURED.doc (28 KB) Proof 7635345 Costa Mesa Sanitary District.pdf (75 KB) Affidavit.pdf (376 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 From: Marc Davis, District Treasurer Date: October 29, 2019 Subject: Approve the Investment Report for the Month of August 2019 Summary Attached is the Investment Report for the month of August 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 August 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 August 31, 2019. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 27, 2019 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 August 31, 2019, was 1.884%. The yield to maturity of the portfolio was 1.888%. The District’s weighted average interest rate was 45 basis points (0.457%) below the LAIF average monthly rate for August 2019 of 2.341%. The weighted average number of days to maturity for the District’s total portfolio was 538 days (1.47 years). The duration of the underlying securities in LAIF as of August 31, 2019 was 180 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 August 31, 2019 was 45.34%. 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 a maximum of 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. The revenue dry period is from June through October. Subject 13. Investment Report for the Month of August 2019 Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Recommended Action That the Board of Directors approve the Investment Report for the month of August 2019. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to a maximum of 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. The revenue dry period is from June through October. 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 1.418% for the year ending June 30, 2020. Through August 31, 2019, the portfolio has earned a weighted average interest rate of 1.906%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 29, 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 - August 2019.pdf (578 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 From: Scott Carroll, General Manager Date: October 29, 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 September 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 September 2019. Contracts 1. ADS Environmental Services – Smoke testing the Mendoza Pump Station tributary area. Cost: $26,950 Purchase Orders 2. Xylem Water Solutions USA, Inc. – Rebuild one pump at Elden Pump Station. Cost: 19,353.60 3. Plumbers Depot, Inc. – Two smart flow devices were installed at the Bristol Street syphon and cleanout where two SSOs occurred in August. Cost: $10,215.68 4. Michael Balliet Consulting, LLC – Perform CR&R’s annual performance review. Cost: 3,990. 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 14. Contracts Signed by the General Manager Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action (Consent) Fiscal Impact Yes Budgeted Yes Recommended Action That the Board of Directors receive and file this report Goals 5.0 Administrative Management Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 29, 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. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: October 29, 2019 Subject: Citizens Advisory Committee (CAC) September 18, 2019 Meeting Overview Summary The following is an overview of the topics discussed by the CAC at their September 18, 2019 meeting Recommendation That the Board of Directors receive and file this report. Analysis There were seven items on the September 18 agenda that are described below. Public Comments - There were no public comments. 1. Approve the Citizens Advisory Committee Meeting Minutes of July 17, 2019 - The minutes were unanimously approved. 2. Review Approved Board of Directors Meeting Minutes of July 25, 2019 - CAC asked staff if there was anything worth noting of the July 25 Board meeting. Staff informed the CAC that the Board approved $500 for Second Chance Orange County Gala Event and staff attended the event that was held the night before the CAC meeting. Staff informed the CAC the Board received an update on the emergency work for the two inverted siphons on Bristol Street and described some of the challenges performing the emergency work. In addition, staff informed the CAC that the Board approved changing the date of the October Board Regular Meeting to October 29, 2019 because the general manager will be out of town attending the International City/County Management Association (ICMA) annual conference in Nashville Tennessee and then he will be traveling to Sacramento to facilitate an all day workshop at the California Special Districts Association (CSDA) headquarters called, "So, You Want to be a General Manager?" Staff informed the CAC that the District will begin smoke testing a portion of the Mendoza Pump Station Tributary area on October 14. 3. Review Draft Board of Directors Meeting Minutes of August 22, 2019 - Staff informed the CAC that the Board approved the contribution application for Costa Mesa-Newport Harbor Lions Club to use District generators at the Fish Fry and then staff informed the CAC that the Board approved the agreement with the City of Newport Beach for collecting sewer flow from certain city properties. Staff informed the CAC that the agreement was the first of a two step process in which the second step will be the beginning of the annexation process that will begin in early 2020. 4. 2019 Citizen Survey Questions - Staff described to the CAC the purpose for conducting a citizen survey and the process for selecting a consultant. Adam Probolsky, the consultant selected to perform the survey, addressed the CAC regarding the importance to citizen engagement and described why public agencies perform citizen surveys. The CAC asked many questions including how 500 citizens are selected randomly to perform the survey, and are citizens selected throughout the district and not focused on one particular area. The CAC asked other questions, such as will businesses be included in the survey, how does Probolsky Research decide to survey citizens via online versus land line and cell phones, and how does Probolsky Research obtain emails and phone numbers from citizens. Later, Mr. Probolsky described how focus groups work. The CAC was provided sample questions that will be asked of District citizens. Staff was seeking feedback and/or suggestions from the CAC on the proposed questions and inquired from the CAC if they have additional or amended questions to survey. The CAC believes greater awareness needs to be focused on large item pick-up and door-to-door household hazardous waste collection. Director Scheafer commented that he prefers Subject 1. Citizens Advisory Committee (CAC) September 18, 2019 Meeting Overview Meeting Oct 29, 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 the survey to have an emphasis on trash service because that is the service that residents most likely connect with the District. He wanted to know if citizens are happy with their trash collection services. The CAC agreed with Director Scheafer and requested that the survey ask citizens if they know all about the different services provided by the District. Secretary Schafer commented that residents are not aware that they can have three large item pick-ups per year. The CAC recommended rewording question number 30 because the question mentions that the organics recycling program involves separating food scraps, but it does not mention lawn clippings (green waste). 5. Consider Appointing two Citizens Advisory Committee members to serve on the Solid Waste Ad Hoc Committee - The CAC asked staff if there were any goals established for the committee. Staff informed the CAC that the goals will be established by the committee. The CAC asked staff about the timeline of the committee and the frequency of meetings. Staff informed the CAC that ad hoc committees typically last six months to a year, and the frequency is usually once a month. The CAC appointed Monte Fields and Elodie Katz to serve on the Solid Waste Ad Hoc Committee. 6. 75th Anniversary Open House & State of the District - Staff informed the CAC that the open house and State of the District event is scheduled for Saturday, October 12 from 9 to 11 a.m. 7. Special Districts Week - Staff informed the CAC that the State Legislature approved Assembly Concurrent Resolution (ACR) 89 proclaiming September 22-28 as Special Districts Week. ACR 89 was sponsored by the California Special Districts Association to commemorate the organization's 50th Anniversary. Staff recommended that the CAC recommend to the Board the adoption of Resolution No. 2019-924 proclaiming the week of September 22-28, 2019 to be Special Districts Week. The CAC unanimously approved the recommendation. Committee Members & Staff Comments - CAC Chair Carey congratulated the Board and staff for receiving the award for Outstanding Household Hazardous Waste Collection Program at the California Resource Recovery Association's annual conference. Legal Review Not applicable Environmental Review Providing an overview of the CAC's September 18, 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 October 29, 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: October 29, 2019 Subject: Receive and File 2015-20 Strategic Plan Quarterly Update - FY 2019-20 1st 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 No strategic goals were completed in the first quarter, but the on-going goals have been updated and described in more detail in the attachment. The next quarterly update will be the second quarter in FY 2019-20 and will be presented to the Board on January 27, 2020. 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 October 29, 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 2019-20 1st Quarter Meeting Oct 29, 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 2019-20 - 1st Qtr.pdf (300 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: October 29, 2019 Subject: Performance Measurement Program Update Report : January - September 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 third report for 2019 that covers the months of January through September. There are three measures that experience significant changes to their outcome that staff wants to bring to your attention. 1. Number of Sanitary Sewer Overflows (SSOs) per 100 miles. The goal for this measure is to be below the number of SSOs per 100 miles from within Region 8 (Santa Ana) of the California Integrated Water Quality System (CIWQS) database. From January through September the number of SSOs per 100 miles within Region 8 is 0.64. Unfortunately, the current outcome for CMSD is 2.68 SSOs per 100 miles. Of the SSOs CMSD experienced, three were caused by grease, another SSO was caused by a broken private sewer lateral, one SSO was caused by tree roots and another SSO was caused by a surge inside a home due to both pumps turning on during testing. The District will CCTV the SSOs caused by grease and tree roots to try to determine the source, and then take corrective action. In addition, staff is exploring the use of chemicals to mitigate grease inside the wastewater system. Recently, staff installed a smart cover sensor on Bristol Street where the District experienced two SSOs. The smart cover will send alarms to staff when the water is rising above a significant level. In regards to the SSO inside a home, the Special Districts Risk Management Association (SDRMA) is handling the claim for damages and coordinating repairs with the homeowner. 2. Solid Waste Disposal Rate per person in Costa Mesa Residential population is below state target (CalRecycle). The 2018 data is now available on CalRecycle's website and it shows Costa Mesa's disposal rate increased 12.5% from 4.8 pounds in 2017 to 5.4 pounds per person in 2018. The disposal amount reported in 2018 is 113,884.33 tons compared to 102,576.46 tons in 2017. Staff assumed the 2018 disposal amount is attributed to a population increase from recent infill development occurring within the community; however, the population reported to CalRecycle decreased from 115,012 in 2017 to 114,536 in 2018. Staff will need to review the city report submitted to CalRecycle to fully analyze the cause of the disposal amount increase. 3. Percentage of employees indicated the District is a better organization than it was compared to one year ago. The outcome for this measure is experiencing one of the biggest gains from a year before. Eighty-six percent (86%) of employees indicated the District is a better organization than a year ago compared to sixty-five (65%) in 2018. District leadership has been working collaboratively to create a culture based on trust and cooperation and those efforts are now starting to see results. The next Performance Measurement Update Report will be presented to the Board on January 27, 2020 that will include a full year of data from 2019. Subject 3. Performance Measurement Program Update Report: January - September 2019 Meeting Oct 29, 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 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 October 29, 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-Sept Outcome and Performance Measurement Program.pdf (1,137 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: October 29, 2019 Subject: Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2018-19 to Fiscal Year 2019-20. Summary All appropriations lapse at the end of each fiscal year, therefore it is necessary to request that certain unspent appropriations and encumbrances for goods and/or services that have yet to be completed by fiscal year end be carried over into the subsequent fiscal year. After the close of the prior fiscal year, the Board of Directors reviews and approves a list of appropriations and encumbrances that are requested to be carried over in to the new fiscal year. Recommendation That the Board of Directors approve the re-appropriation of funds in the Fiscal Year 2019-20 for the carryover items from the prior fiscal year as detailed in Attachments A and B, and summarized as follows: 10 Solid Waste Fund: Carryover Appropriations $29,410, Encumbrances $ 0 20 Wastewater Fund: Carryover Appropriations $2,995,517, Encumbrances $434,481 Analysis All appropriations lapse at the end of each fiscal year, therefore it is necessary to request that certain unspent appropriations for goods and/or services be carried over into the subsequent fiscal year. The carryover appropriations represent budgeted Fiscal Year 2018-19 appropriations for goods and/or services that were not expended as of June 30, 2019, but are expected to be expended in the Fiscal Year 2019-20. Generally, allowable carryovers are limited to certain types of goods or services, such as professional service contracts, capital outlay or capital improvement projects (CIP). Due to their scope and size, CIP is inherently precluded from being completed within the fiscal year in which funding was initially appropriated. The carryover of operating transfers represents the use of specific resources to fund specific carryover appropriations. The carryover of revenues typically relates to grants where the money has been received but not earned. Encumbrances represent purchase orders (POs) issued for goods and/or services which were not received or completed during the prior fiscal year by June 30, 2019. A PO is a commitment created to reserve a portion of the appropriation’s available balance, but does not represent an expenditure or liability for budgetary or accounting purposes. The budget appropriations associated with encumbrance’s lapse at fiscal year-end unless the Board re-appropriates the funds in the subsequent fiscal year as requested in this report. Subject 4. Carryover Appropriations and Carryover Encumbrances from Fiscal Year 2018- 19 to Fiscal Year 2019-20. Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action Budgeted Yes Recommended Action That the Board of Directors approve the re-appropriation of funds in the Fiscal Year 2019- 20 for the carryover items from the prior fiscal year as detailed in Attachments A and B, and summarized as follows: 10 Solid Waste Fund: Carryover Appropriations $29,410, Encumbrances $0 20 Wastewater Fund: Carryover Appropriations $2,995,517, Encumbrances $434,481 Goals 7.0 Finance After all payments are made for goods and services received by June 30, 2019, staff analyzes the remaining appropriation balances and open encumbrances to determine their validity. If the proposed continuing appropriations and encumbrances were not carried over into Fiscal Year 2019-20, there would not be sufficient appropriations in the current year budget to fund existing and the current year adopted projects. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review The total amount to be carried over for Solid Waste Fund is $29,410. The total amount to be carried over for Wastewater Fund is $3,429,998. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 29, 2019 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions Refer the matter back to staff. File Attachments Attachement A & B- Carryover Appropriations and Encumbrances FY 18-19 to 19-20.pdf (8 KB) E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: October 29, 2019 Subject: Multi-Family Proposal - Update Summary Per direction from the Board of Directors, staff met with the City of Costa Mesa to present and discuss a solid waste collection services proposal for multi-family homes and commercial properties. Staff will be providing a brief summary of that meeting and sharing concerns City staff presented with this proposal. Staff Recommendation That the Board of Directors provide feedback and direction to staff. Analysis Over the last few months, staff has worked on a solid waste collection services proposal for the City of Costa Mesa. In the proposal, staff identified four areas where CMSD can assist with enhancing solid waste collection services in the City. On Tuesday, September 17th staff presented the areas of enhancements to City staff. The four areas of enhancements identified are: 1. An organized trash and recycling system over an open market that saves residents money, increases recycling, reduces wear and tear on city streets, and provides fair prices. 2. Divided residential customers - reduce the confusion about who services which properties and allows City to redirect resources to other areas. 3. Abandoned Items - reduce the number of illegal dumping in the City and reduce their collection/disposal costs. 4. Unknown Customer Base - the number of homes and businesses reported by the City are significantly fewer than those in CMSD's system. City staff was very defensive and believed CMSD staff was criticizing their services. Discussion ensued regarding what the real motives were for CMSD to take over all solid waste services. CMSD staff explained that this idea was brought forward by the elected officials serving on the CMSD/Mesa Water District/City/School District Liaison Committee and staff is following through on their direction. CMSD staff informed City staff that CMSD has a unique opportunity to focus on providing two services and is able to dedicate staff and resources to them. City staff questioned how CMSD would be able to afford all the proposed services as well as additional staff to help oversee the solid waste contract, to which CMSD staff responded that the program would be funded by multi- family and commercial rates that would be based on a financial analysis performed by a professional consultant and then approved through a Prop 218 process. The City made a clear point that the idea of enhancing services for residents was not a selling point, but instead they wanted to know if there was a financial benefit to the City, and that would be the only way the City would take this proposal into consideration. Overhead costs for the City are minimal to oversee solid waste services, so the City would not experience savings in this area. City staff also questioned whether a merge would actually result in fewer trash trucks on the road. It was then implied that CMSD should also be paying the City a franchise fee for the residential trucks on the road. Additional concerns by the City included possibly having two haulers service residents, the length of the contract, and the possibility that CMSD would not go out to bid. Lastly, City staff mentioned concerns with rates going up to help CMSD pay for these services and stripping away the ability for residents to shop around for the lowest rates. Subject 5. Multi-Family Proposal - Update Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Recommended Action That the Board of Directors provide feedback and direction to staff. Goals 2.00 Solid Waste 2.4 Develop Strategies for 75% Waste Diversion Merge costs at this time are unknown because both CMSD and the City have different customer base numbers. In order to reapproach the City and discuss costs/financial benefits, staff is recommending that an outside consultant is hired to complete a feasibility study. This study would provide both CMSD and the City of Costa Mesa with approximate costs for CMSD to provide the service and will help determine if this even a venture the District should continue to pursue. Staff estimates a study like this would cost about $40,000 to complete. However, before CMSD decides to conduct a study, staff recommends seeking City approval to perform the study and request their participation, otherwise they may believe the study is biased and favors the District. Legal Review Not applicable. Environmental Review The proposal is not 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 cost for the Study in the amount of $40,000 is not included in the FY 2019-20 budget. The Board of Directors will need to appropriate funds from Solid Waste Fund Balance to cover for this cost. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the October 29, 2019 Board of Directors Study Session meeting at District Headquarters and posted on the District's website. E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: October 29, 2019 Subject: Consider Attending the Waste Expo Conference in New Orleans from May 4-7, 2020 Summary Waste Expo is a national educational conference on solid waste management. The Board of Directors requested that this item be brought back for discussion and consideration regarding attending the 2020 Waste Expo Conference in New Orleans from May 4 through 7, 2020. Recommendation That the Board of Directors consider attending the Waste Expo Conference in New Orleans from May 4-7, 2020 and direct staff to bring back for Board consideration the approval of an appropriation of funds from the Solid Waste Fund Balance. Analysis The Waste Expo conference is one of the largest conferences in the U.S. that focuses on solid waste management, operations, and technology. Listed below are the solid waste topics that will be discussed at the 2020 conference. Alternative Fuel Fleets Anaerobic Digestion Technologies Autonomous Vehicles Case Studies of Anaerobic Digestion, Biogas, and Biofuel Production Circular Economy & Sustainability Initiatives Commodities Composting Infrastructure Development Construction and Demolition Trends Contract Negotiation and Municipal Bids Drones, Robotics, & Artificial Intelligence Efficiency in Fleet Operations Food Waste Prevention, Reduction, & Recovery Hard to Recycle Items Leachate Management Technologies MRF Operations Municipal Recycling Issues Organics Waste Processing Organics Waste Reduction & Diversion Single Use Plastics Technology and Food Waste Reduction The Status of Recycling & National SWORD Subject 6. Consider Attending the Waste Expo Conference in New Orleans from May 4-7, 2020 Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action Fiscal Impact Yes Recommended Action That the Board of Directors consider attending the Waste Expo Conference in New Orleans from May 4-7, 2020 and direct staff to bring back for Board consideration the approval of an appropriation of funds from the Solid Waste Fund Balance. Goals 2.00 Solid Waste 3.00 Partnerships 3.4 Participate in the activities of professional associations Trends in Landfill Management Waste Conversion Technologies Wasted Food Policy and Management Waste-to-Energy Workplace Threats & Violence Zero Waste Initiatives The Board has expressed interest attending the 2020 Waste Expo Conference and requested that this item be brought back for discussion. Staff estimates it will cost $3,205 per person to attend the full conference. A complete breakdown of the cost is described below in the Financial Review section. Attending the 2020 Waste Expo Conference was not budgeted, so if the Board decides to attend, funds from the Solid Waste Fund Balance will need to be appropriated into the budget. Legal Review Not applicable Environmental Review Attending conferences are administrative matters that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review The following is a breakdown of the estimated costs for one person to attend the 2020 Waste Expo Conference. Registration 1,125 Hotel (4 nights) 1,125 Airfare 750 Transportation 100 Meals 105 $3,205 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 29, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Stay fewer nights in hotel to reduce total costs 2. Do not attend the 2020 Waste Expo Conference E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Gina Terraneo, Management Analyst II/Acting District Clerk Via: Scott Carroll, General Manager Date: October 29, 2019 Subject: Consider Approving Appropriation of Funds for Boardroom Audio Visual System Repair Summary Prior to the August 13, 2019 Board of Directors Study Session meeting, the District Boardroom's audio visual system unexpectedly failed. District staff reached out to 4 different audio visual companies to conduct site visits and provide recommendations for the repair of the system, and all 4 companies recommended the replacement of the control system and the digital signal processor. These pieces of equipment are essentially the brain of the audio visual system, which allow for the audio to be controlled and processed for inclusion in any meeting videos that are recorded in the room. Quotes were obtained from each of these companies and analyzed by District staff. The Board is being asked to consider appropriating $21,900 for the repair of the system. Analysis The District's current Boardroom audio visual system was installed in October of 2016 by First Impulse, just before the District moved into its current headquarters. This project was facilitated by Trendzitions, a consultant that was hired to provide relocation planning services to the District. Unfortunately, the system installed by First Impulse has undergone several issues since its installation, all of which stem from the control system and the digital signal processor. The control system frequently crashes (rendering it uncontrollable), and District staff must then request that First Impulse technicians provide on-site support that is billed at an hourly rate. Additionally, the digital signal processor has failed 3 times, most recently in August of 2019. Despite being sent back to the manufacturer for repair 3 times, this piece of equipment has proven to be highly unreliable for the District's purposes of amplifying audio during public meetings and recording meeting videos. District staff contacted the companies listed below to conduct site visits and provide recommendations for the repair of the audio visual system. According to all 4 for of these companies, the brands of the equipment that was originally installed by First Impulse is not designed for commercial use. Rather, they are more commonly seen in home security and home entertainment systems. Each company proposed the replacement of the control system and the digital signal processor. Additionally, the quotes below include the Subject 7. Consider Approving Appropriation of Funds for Boardroom Audio Visual System Repair Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action Preferred Date Oct 29, 2019 Absolute Date Oct 29, 2019 Fiscal Impact Yes Dollar Amount $21,900.00 Budgeted No Budget Source Fund Balance Recommended Action That the Board of Directors consider appropriating $21,900 for the repair of the District Boardroom audio visual system. Goals 4.7 Demonstrate outstanding efforts in transparency 4.0 Community Outreach & Communications corresponding mobile control options, any necessary installation materials, programming costs, labor costs, and a 1-year service agreement following installation. Integrated Media Systems Quote = $24,241.91 Triton Technology Solutions Quote = $23,576.49 Western Audio Visual & Security Quote = $21,881.62 Lightwerks AV Solutions Quote = $20,185.64 After comparing the proposed equipment and reviewing each company's prior experience, it is District staff's recommendation to select the proposal from Western Audio Visual & Security in the amount of $21,881.62. Although this is not the lowest proposal, Western Audio Visual & Security proposed the highest quality equipment (including a digital signal processor with the most expansion capabilities), they are located in Orange County (allowing for a quick response time in case any repair work is needed in the future), and they have extensive experience installing audio visual equipment for government agencies (such as the Cities of Mission Viejo, Brea, and Corona council chambers). The lowest proposal came from Lightwerks AV Solutions, which is located in Hawthorne, CA and has no prior experience installing audio visual equipment for a government agency boardroom or council chambers. Given the importance of reliability to this system, District staff believes that the cost difference is worth selecting a local company with extensive prior experience. Recommendation That the Board of Directors consider appropriating $21,900 for the repair of the District Boardroom audio visual system. Legal Review Not applicable. Environmental Review The consideration of appropriating funds for the repair of the District Boardroom audio visual system 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 Based on the quote that is recommended by District staff, the total cost for this repair is $21,881.62. The failure of the Boardroom audio visual system was unexpected, and therefore its repair was not included in the adopted Fiscal Year 2019-2020 budget. District staff is requesting that the Board of Directors approve an appropriation of $21,900 from Fund Balance to Capital Outlay. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the October 29, 2019 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions 1. Do not approve the appropriation of funds. 2. Direct staff to report back with more information. F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Rob Hamers, District Engineer Date: October 29, 2019 Subject: Receive and File Monthly 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 October 29, 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 Updates Oct 2019 mtg.pdf (523 KB) Subject 1. Receive and File the Monthly Capital Improvements Project Status Report Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Receive and File Goals 7.2 Develop a long term CIP 4.7 Demonstrate outstanding efforts in transparency 1.10 Abandon five pump stations on the west side in conjunction with Orange County Sanitation District companion project 1.0 Sewer Infrastructure 1.1 Manhole Cover Maintenance Program 1.4 System Wide Sewer Replacement and Repair Program F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: October 29, 2019 Subject: #318 President Pump Station Reconstruction Recommendation for Alternative 2 Summary The Costa Mesa Sanitary District has been comprehensively analyzing the existing concrete vault pump station in the hopes of re- purposing the vault as the new emergency storage vault for the reconstruction of the President Pump Station. Re-use of this structure will significantly reduce the construction cost of the new pump station and the re-use of the structure has been supported by the Board of Directors, the District Engineer, field crews, and the Citizens Advisory Committee. The results of the analysis indicate that because building codes have become stricter over the years, the existing concrete vault requires moderate structural enhancements to meet these codes. The approximate cost of the enhancements is $60,000, which is significantly less costly than the $275,000 cost of a new vault. Therefore, it does appear feasible to select Alternative 2 to re- construct the entire pump station for approximately $1.5 million as estimated in the original budget. Attached is the current engineer’s estimate showing a cost of $1,600,800. Recommendation The Board of Directors: 1. Direct the General Manager to have plans and specifications prepared in accordance with Alternative 2 as outlined in this report. 2. Direct the General Manager to have the District Engineer complete the design phase for an engineering fee of $98,900. Analysis Because the District does not have the original construction plans for the concrete vault, the structural engineering firm Arcon used ground penetrating radar (GPR) to determine the floor, wall, and ceiling slab thicknesses. The GPR also located the rebar inside the floor, walls, and ceiling. Core samples of the concrete and steel were also taken. Once the wall thicknesses and steel were determined, calculations were performed to compare the strength of the vault versus design loads used in today’s standards. It is the increase in design loads that is causing the necessity to add additional strength to the vault. Attached is the Arcon report. In order to continue reducing the overall cost of the project based on the original design, the following cost saving measures were introduced into Alternative 2: 1. Reuse of existing concrete vault 2. Maintain smaller overall footprint 3. Eliminate retaining walls 4. Use of prefabricated 8’ diameter wet well 5. Minimize use of neighbors’ yards 6. Relocate vaults away from overhead electrical lines 7. Simplify layout The proposed engineering fee to complete the Alternative 2 design is $98,900 (see attached) which is 6.2% of construction costs (normally 10%). The proposed structures and layout of Alternative 2 are completely different from the Alternative 1 design, so the design is, in essence, starting over. Subject 2. #318 President Pump Station Reconstruction Recommendation for Alternative 2 Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action The Board of Directors: 1. Direct the General Manager to have plans and specifications prepared in accordance with Alternative 2 as outlined in this report. 2. Direct the General Manager to have the District Engineer complete the design phase for an engineering fee of $98,900. Legal Review Not required 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 By selecting Alternative #2 with the expected low construction bid, it appears at this point that there are sufficient funds for the recommended action. Staff projects the available budget balance at the end of the project to be $151,221.79. The total current approved budget for Project #318 President Pump Station Reconstruction is broken down as follows: Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 29, 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. File Attachments CMSD318 - Eng Est (Rev 2019-10-22).pdf (53 KB) CMSD318 - RBH REDESIGN Fee - Alternative 02 Final (Rev 2019-10-22).pdf (100 KB) CMSD318-Siting-alternative-2-22Oct2019.pdf (410 KB) Structural Engineer's Report.pdf (3,664 KB) F. ENGINEER'S REPORTS To: Board of Directors From: Rob Hamers, District Engineer Date: October 29, 2019 Subject: #321 Indus Sewer Main Relocation; Accept Improvements, File Notice of Completion, Exonerate Bonds Summary Construction of the improvements was completed on October 16, 2019 by Gentry General Engineering, Inc., therefore, it is appropriate for the District to accept the improvements, file a notice of completion, and exonerate bonds. The project entailed relocating the District’s 10” gravity sewer main away from the existing apartment building that was pushing down the sewer main and compromising the structural integrity of the line. Analysis The District has been monitoring the existing 10” sewer main and was fortunate the existing pipe withstood the forces causing it to be pushed down without breaking for a long enough period for the District to relocate the line. The sewer main was moved out from under the backyard patios of apartment units 4A, 4B, 4C, and 4D. In a few locations, the sewer main was approximately 3’ from the edge of the existing building. Although construction is now complete, the District must still vacate the existing sewer easement and have the property owner grant the District a new easement over the new alignment of the sewer main. Staff will be preparing the easement documents and will bring those to the Board of Directors at a later date. The owner is aware of this final step in the process. Recommendation The Board of Directors approves the following action: 1. Accept improvements as completed and file a Notice of Completion. 2. Authorize payment of 5% retention 35 days after Notice of Completion is recorded. 3. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Legal Review The attorney for the District prepared and approved the construction contract for the project. Environmental Review The replacement of a gravity main with a new gravity main of the same size for the same rate of flow as shown on the plans for Project #321 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 budget for Project #321 Indus Phase 2, which is the sewer main relocation project, is $350,000. Staff is requesting a Budget Carryover of $323,932 for Project #321 Indus Phase 2 on another agenda report at this meeting. The project to date expenses total $320,501, including encumbrances. The remaining available budget is $29,499, which is sufficient to cover expenses incurred but not yet billed, and the retentions payable. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 29, 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. Subject 3. #321 Indus Sewer Main Relocation; Accept Improvements, File Notice of Completion, Exonerate Bonds Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action Attachments - Notice of Completion File Attachments Notice of Completion Project #321.docx (16 KB) G. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: October 29, 2019 Subject: Approve the Investment Report for the Month of September 2019 Summary Attached is the Investment Report for the month of September 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 September 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 September 30, 2019. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 27, 2019 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 September 30, 2019, was 1.841%. The yield to maturity of the portfolio was 1.845%. The District’s weighted average interest rate was 44 basis points (0.439%) below the LAIF average monthly rate for September 2019 of 2.280%. The weighted average number of days to maturity for the District’s total portfolio was 565 days (1.55 years). The duration of the underlying securities in LAIF as of September 30, 2019 was 185 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 September 30, 2019 was 40.70%. 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 a maximum of 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. The revenue dry period is from June through October. Subject 1. Investment Report for the Month of September 2019 Meeting Oct 29, 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 September 2019. Goals 7.0 Finance Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to a maximum of 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. The revenue dry period is from June through October. 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 1.418% for the year ending June 30, 2020. Through September 30, 2019, the portfolio has earned a weighted average interest rate of 1.886%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 29, 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 - September 2019.pdf (574 KB) H. ATTORNEY'S REPORTS To: Board of Directors From: Alan R. Burns, District Counsel Date: October 9, 2019 Subject: Consider Adopting Resolution No. 2019-926 Modifying the Wastewater Discharge Permit Conditional Waiver Permit for Denny's 3170 Harbor Blvd. Summary The proposed resolution memorializes the Board’s decision after conducting a hearing on whether to order Denny’s to install a grease interceptor. The Board found that the violations occurred, but instead of ordering that a grease interceptor be installed, increased the maintenance on the lateral so that hydro-jetting occurs once per month. Recommendation That the Board of Directors adopt Resolution No. 2019-926 Modifying the Wastewater Discharge Permit Conditional Waiver Permit for Denny's 3170 Harbor Blvd. Analysis Staff noticed a hearing to revoke the conditional waiver attached to the Food Service Permit for Denny’s. The grounds were a history of sewage spills, but specifically a January 29, 2019 SSO and a May 19, 2019 SSO. Based on those recent events, a hearing was scheduled for revocation of the conditional waiver. After hearing the evidence, the Board determined that the SSOs did occur, and did justify a modification of the permit, but determined that Denny’s would be allowed to increase its maintenance program from twice a month to once a month to see if that fixed the problem. The attached resolution sets forth the particular findings. Legal Review District Counsel has prepared the resolution and this agenda report. Environmental Review An increase in maintenance 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 There is no financial impact to the District for Adopting Resolution No. 2019-926 Modifying the Wastewater Discharge Permit Conditional Waiver Permit for Denny's 3170 Harbor Blvd. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the October 29, 2019 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff. Subject 1. Consider Adopting Resolution No. 2019-926 Modifying the Wastewater Discharge Permit Conditional Waiver Permit for Denny's 3170 Harbor Blvd. Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors adopt Resolution No. 2019-926 Modifying the Wastewater Discharge Permit Conditional Waiver Permit for Denny's 3170 Harbor Blvd. Goals 1.0 Sewer Infrastructure 1.8 Fats, Oil & Grease (FOG) Program File Attachments Reso No. 2019-926 Modifying the Wastewater Discharge Permit Conditional Waiver Permit from Dennys.docx (20 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 Oct 29, 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 Oct 29, 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 Oct 29, 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 Oct 29, 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 Oct 29, 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 Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Information L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Discussion M. ADJOURN TO CLOSED SESSION Conference with Legal Counsel- Existing Litigation (Government Code §54956.9(d)(1)) Steve Hodges v. Costa Mesa Sanitary District, Scott Carroll, Does 1 through 50 OCSC No. 30-2019-01102477-CU-OE-CJC Subject 1. Conference with Legal Counsel- Existing Litigation (Government Code §54956.9(d)(1)) Meeting Oct 29, 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 NOVEMBER 21, 2019 IN THE DISTRICT'S BOARD ROOM, LOCATED AT 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Oct 29, 2019 - Board of Directors Regular Meeting Access Public Type Procedural