2019_12_19_boardThursday, December 19, 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 November 12, 2019
3. Approve the Board of Directors Regular Meeting Minutes of November 21, 2019
4. Approve the Directors' Compensation and Reimbursement of Expenses
5. Adopt Warrant Resolution No. CMSD 2020-06 Approving District Warrant Registers
6. Payroll Transparency Disclosure for November 2019
7. Accept the occupancy count as presented as 22,890 and direct staff to prepare a warrant to CR&R Environmental
Services for $237,220.52 for November 2019 collection
8. Approve the preparation of a warrant to CR Transfer in the amount of $196,470.49 for November 2019 recycling
and disposal services in the December 2019 warrant register
9. Contracts Signed by the General Manager
10. Investment Report for the Month of November 2019
D. PUBLIC HEARINGS
E. GENERAL MANAGER'S REPORTS
1. Receive and file the Comprehensive Annual Financial Report, Auditor's Report in Accordance with Government
Auditing Standards, and the Auditors' Required Communication for the year ended June 30, 2019
2. Consider Approving Out-of-State Travel for General Manager to attend Servant Leadership Conference in Hurst,
Texas on January 23-24, 2020
3. CMSD's Emergency Preparedness Exercise Debriefing
4. FY 2018-19 CR&R Performance Review
F. ENGINEER'S REPORTS
1. Receive and File the Monthly Capital Improvements Project Status Report
2. 3150 Bear Street, Trinity Broadcasting Network Redevelopment into School, Approval in Concept of Accepting
CMSD Sewer Main and Easements
G. TREASURER'S REPORTS
H. ATTORNEY'S REPORTS
I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by
a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings
for which the per diem compensation is sought, the Operations Code provides that such compensation is
authorized for each day’s service rendered as a Director at the request of the Board (not to exceed
six days in one month), and certain meetings are specified as being eligible as set forth in District
Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service
for it to be eligible for the per day compensation.
1. Orange County Sanitation District (OCSD) - (President Ferryman)
2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry)
3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer)
4. California Special Districts Association (CSDA) - (Secretary Schafer)
5. Special District Risk Management Authority (SDRMA) - (Director Scheafer)
6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030
J. OLD BUSINESS
K. NEW BUSINESS
L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
1. Oral Communications and Director Comments
M. ADJOURN TO CLOSED SESSION
N. RECONVENE TO OPEN SESSION
O. CLOSING ITEMS
1. Adjourn
Thursday, December 19, 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 Dec 19, 2019 - Board of Directors Regular Meeting
Type Procedural
A. OPENING ITEMS
Subject 2. Pledge of Allegiance - President Ferryman
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Procedural
A. OPENING ITEMS
Subject 3. Invocation - Vice President Ooten
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
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 Dec 19, 2019 - Board of Directors Regular Meeting
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 Dec 19, 2019 - Board of Directors Regular Meeting
Type Procedural
A. OPENING ITEMS
Subject 6. Ceremonial Matters and Presentations
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
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 Dec 19, 2019 - Board of Directors Regular Meeting
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 Dec 19, 2019 - Board of Directors Regular Meeting
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 & Acting District Clerk
Date: December 19, 2019
Subject: Approve the Board of Directors Study Session Minutes of November 12, 2019
Summary
The recorded minutes of the November 12, 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 November 12, 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 December 19, 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
minutes_2019_11_12_ss.pdf (138 KB)
Subject 2. Approve the Board of Directors Study Session Minutes of November 12, 2019
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action (Consent), Minutes
Recommended Action That the Board of Directors approve the meeting minutes as presented.
Workflow
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.
Workflow Dec 9, 2019 1:03 PM :: Submitted by Gina Terraneo. Routed to Lindsey Orellana for
approval.
Dec 11, 2019 6:22 PM :: Approved by Lindsey Orellana. Routed to Scott Carroll for
approval.
Dec 11, 2019 6:27 PM :: Approved by Scott Carroll. Routed to Gina Terraneo for approval.
Dec 12, 2019 1:03 PM :: Final approval by Gina Terraneo
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 & Acting District Clerk
Date: December 19, 2019
Subject: Approve the Board of Directors Regular Meeting Minutes of November 21, 2019
Summary
The recorded minutes of the November 21, 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 November 21, 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 December 19, 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
minutes_2019_11_21_rm.pdf (183 KB)
Subject 3. Approve the Board of Directors Regular Meeting Minutes of November 21,
2019
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action (Consent), Minutes
Recommended Action That the Board of Directors approve the meeting minutes as presented.
Workflow
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.
Workflow Dec 9, 2019 12:59 PM :: Submitted by Gina Terraneo. Routed to Lindsey Orellana for
approval.
Dec 11, 2019 6:22 PM :: Approved by Lindsey Orellana. Routed to Scott Carroll for
approval.
Dec 11, 2019 6:29 PM :: Approved by Scott Carroll. Routed to Gina Terraneo for approval.
Dec 12, 2019 1:03 PM :: Final approval by Gina Terraneo
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: December 19, 2019
Subject: Directors' Compensation and Reimbursement of Expenses
Summary
The Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for review and
approval.
Analysis
Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses.
Staff Recommendation
That the Board of Directors approve the compensation and reimbursement of expenses as presented.
Legal Review
Not applicable.
Environmental Review
Consideration of the compensation and reimbursement of expenses is an administrative matter and is exempt from the requirements
of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA
allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”,
and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6. "Projects” does not include ….
C. Continuing administrative or maintenance activities.”
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the December 19, 2019 Board of Directors
Regular Meeting at District Headquarters and posted on the District’s website.
Alternative Actions
1. Do not approve the compensation and reimbursement of expenses as presented.
2. Direct staff to report back with more information.
File Attachments
a_compensation.pdf (1,510 KB)
b_expense_reimbursement.pdf (537 KB)
Subject 4. Approve the Directors' Compensation and Reimbursement of Expenses
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action (Consent)
Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as
presented.
Workflow
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.
Workflow Dec 10, 2019 4:25 PM :: Submitted by Gina Terraneo. Routed to Gina Terraneo for
approval.
Dec 12, 2019 1:07 PM :: Final approval by Gina Terraneo
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 2020-06.pdf (134 KB)
Workflow
Subject 5. Adopt Warrant Resolution No. CMSD 2020-06 Approving District Warrant
Registers
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action (Consent)
Budgeted Yes
Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2020-06 approving
District warrants for the month of November in the amount of $952,613.06.
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.
Workflow Dec 10, 2019 6:35 PM :: Submitted by Lieu Tran. Routed to Kaitlin Tran for approval.
Dec 10, 2019 6:53 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 11, 2019 10:27 AM :: Approved by Scott Carroll. Routed to Gina Terraneo for
approval.
Dec 12, 2019 1:08 PM :: Final approval by Gina Terraneo
C. CONSENT CALENDAR - All matters listed on the consent calendar are
considered to be routine and may be acted upon by one motion after public
comment has been received. Only Board of Directors may pull an item for
discussion. Reading of resolutions is waived and they will be adopted and
numbered. Now is the time for those in the audience who wish to speak to
items listed on the consent calendar. Each speaker will be limited to four (4)
continuous minutes of comment on the consent calendar as a whole.
To: Board of Directors
Via: Scott Carroll, General Manager
From: Lieu Tran, Accountant
Date: December 19, 2019
Subject: Payroll Transparency Disclosure for November 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 December 19, 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 6. Payroll Transparency Disclosure for November 2019
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
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 Nov 2019.pdf (1,283 KB)
Workflow
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.
Workflow Dec 2, 2019 2:09 PM :: Submitted by Lieu Tran. Routed to Kaitlin Tran for approval.
Dec 3, 2019 2:40 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 11, 2019 10:26 AM :: Approved by Scott Carroll. Routed to Gina Terraneo for
approval.
Dec 12, 2019 1:09 PM :: Final approval by Gina Terraneo
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: December 19, 2019
Subject: Accept the occupancy count as presented as 22,890 and direct staff to prepare a warrant to CR&R Environmental
Services for $237,220.52 for November 2019 collection
Summary
Accept the occupancy count as presented using 22,890 as the correct number of active units and direct staff to prepare a warrant to
CR&R Environmental Services for November 2019 collection based on this occupancy report so long as the contractor fulfills the
obligations of the agreement in the amount of $237,220.52 to be ratified in the December 2019 warrant list.
Recommendation
That the Board of Directors accept the occupancy count as presented using 22,890 as the correct number of active units and direct
staff to prepare a warrant to CR&R Environmental Services for November 2019 collection based on this occupancy report so long as
the contractor fulfills the obligations of the agreement in the amount of $237,220.52 to be ratified in the December 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 November 30, 2019, total District occupancy was at 22,890, with seven (7) 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 November 2019:
22,890 x $10.3635 =$237,220.52
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
Subject 7. Accept the occupancy count as presented as 22,890 and direct staff to prepare
a warrant to CR&R Environmental Services for $237,220.52 for November 2019
collection
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action (Consent)
Recommended Action That the Board of Directors accept the occupancy count as presented using 22,890 as the
correct number of active units and direct staff to prepare a warrant to CR&R
Environmental Services for November 2019 collection based on this occupancy report so
long as the contractor fulfills the obligations of the agreement in the amount of
$237,220.52 to be ratified in the December 2019 warrant list.
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 December 19, 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
2019-11-G CMSD Occupancy Report.pdf (135 KB)
Workflow
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.
Workflow Dec 5, 2019 7:26 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for approval.
Dec 5, 2019 9:25 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 11, 2019 10:27 AM :: Approved by Scott Carroll. Routed to Gina Terraneo for
approval.
Dec 12, 2019 2:20 PM :: Final approval by Gina Terraneo
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: December 19, 2019
Subject: Approve the preparation of a warrant to CR Transfer in the amount of $$196,470.49 for November 2019 recycling
and disposal services in the December 2019 warrant register
Summary
This payment to CR Transfer is for the sorting of recyclables from the mixed waste and disposal of the remaining waste at the landfill.
With the implementation the Organics Recycling Program adopted by the Board, this payment also includes the diverting of the
organics waste to the Anaerobic Digestion facility to be recycled into fertilizer or renewable natural gas to fuel the refuse trucks.
Recommendation
That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $$196,470.49 for November
2019 recycling and disposal services to be ratified in the December 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 $142,055.67 $2,195.90 $144,251.57
Organics $52,218.92 $52,218.92
Total Payment $196,470.49
Tonnage
Residential Waste 2583.77 39.94 2623.71
Organics 690.27 690.27
Total Tonnage 3313.98
Legal Review
Not Applicable
Environmental Review
Subject 8. Approve the preparation of a warrant to CR Transfer in the amount of
$196,470.49 for November 2019 recycling and disposal services in the December
2019 warrant register
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action (Consent)
Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the
amount of $$196,470.49 for November 2019 recycling and disposal services to be ratified
in the December 2019 warrant register.
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 December 19, 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.
Workflow
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.
Workflow Dec 11, 2019 12:24 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for
approval.
Dec 11, 2019 12:42 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 11, 2019 2:07 PM :: Approved by Scott Carroll. Routed to Gina Terraneo for approval.
Dec 12, 2019 2:50 PM :: Final approval by Gina Terraneo
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: December 19, 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 November 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 November 2019.
Contracts
1. Western Audio Visual Inc. – Installing new AV system in the Board room. Cost: 21,792.03
2. JIMNI Systems – Preventive maintenance for six sewer pump stations. Cost: $9,160.00
Purchase Orders
3. Vortex – New cord reel for garage door at the Yard. Cost: $515.00
4. Smartcover – Contractor, GCI, damaged high water monitoring device. Cost: $1,563.85. District to be reimbursed by GCI.
5. National Plant Services, Inc. - CCTV 5 Pipe Sections of Golf Course Drive. Cost: $2,700.
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.
Public Notice Process
Subject 9. Contracts Signed by the General Manager
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action
Fiscal Impact No
Budgeted Yes
Recommended Action That the Board of Directors receive and file this report
Goals 5.0 Administrative Management
Copies of this report are on file and will be included with the entire agenda packet for the December 19, 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.
Workflow
Workflow Dec 10, 2019 4:21 PM :: Submitted by Scott Carroll. Routed to Kaitlin Tran for approval.
Dec 10, 2019 4:29 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 11, 2019 10:27 AM :: Approved by Scott Carroll. Routed to Gina Terraneo for
approval.
Dec 12, 2019 2:27 PM :: Final approval by Gina Terraneo
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: December 19, 2019
Subject: Approve the Investment Report for the Month of November 2019
Summary
Attached is the Investment Report for the month of November 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 November 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 November 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 November 30, 2019, was
1.751%. The yield to maturity of the portfolio was 1.753%. The District’s weighted average interest rate was 35 basis points (0.352%)
below the LAIF average monthly rate for November 2019 of 2.103%. The weighted average number of days to maturity for the
District’s total portfolio was 616 days (1.69 years). The duration of the underlying securities in LAIF as of November 30, 2019 was
218 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 November 30, 2019 was
35.40%. 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 10. Investment Report for the Month of November 2019
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action (Consent)
Recommended Action That the Board of Directors approve the Investment Report for the month of November
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 November 30, 2019, the
portfolio has earned a weighted average interest rate of 1.836%.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the December 19, 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 - November 2019.pdf (334 KB)
Workflow
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.
Workflow Dec 11, 2019 4:54 PM :: Submitted by Marc Davis. Routed to Gina Terraneo for approval.
Dec 12, 2019 2:32 PM :: Final approval by Gina Terraneo
E. GENERAL MANAGER'S REPORTS
To: Board of Directors
Via: Scott Carroll, General Manager.
From: Kaitlin Tran, Finance Manager
Date: December 19, 2019
Subject: Receive and file the Comprehensive Annual Financial Report, Auditor's Report in Accordance with Government
Auditing Standards, and the Auditors' Required Communication for the year ended June 30, 2019
Summary
The annual financial audit of the District has been completed. Attached to this report are the audited financial
statements, the auditors’ report in accordance with Government Auditing Standards, and the auditors’ required
communication for the fiscal year ended June 30, 2019. Joshua Calhoun, Partner, Teaman Ramirez & Smith, Inc,
which is the District’s independent audit firm that conducted the annual audit.
Recommendation
The Board of Directors receive and file:
1) The Comprehensive Annual Financial Report for Year Ended June 30,2019,
2) Auditors’ Report in Accordance with Government Auditing Standards, and
3) The Auditors’ Required Communication for the Year Ended June 30, 2019.
Analysis
Financial highlights during the year ended June 30, 2019 included:
Total assets and deferred outflows of resources of the District exceeded its liabilities and deferred inflows of
resources by $62,377,469. Of this amount, $18,930,206 is unrestricted and available to meet the District’s ongoing
obligations to its customers and creditors.
Net position of the Solid Waste Fund decreased by $380,579, which was attributable to the adoption of a deficit
budget to decrease the fund’s reserves. Expenses were projected to exceed revenues by $983,090; however,
revenues came in higher than budgeted and expenses were lower than expected.
Net position of the Wastewater Fund increased by $969,967 during the year ended June 30, 2019. This increase was
primarily attributable to a one-time transfer in of $411,364 from the Fixed Asset Replacement Fund for the purchase
of a new Wastewater Combination Cleaning truck which was not delivered by fiscal year-end. The remaining
increase was the result of larger than expected Non-Operating Revenue and Investment Earnings of $397,586.
Legal Review
Not applicable.
Environmental Review
The preparation of financial statements is an administrative action that is categorically exempt under the California
Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) Section 15300.4 of CEQA allows
an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt
classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6
“Projects” does not include .... C. Continuing administrative or maintenance activities.”
Financial Review
The cost of the annual audit was $9,500, which was included in the District’s budget.
Subject 1. Receive and file the Comprehensive Annual Financial Report, Auditor's Report
in Accordance with Government Auditing Standards, and the Auditors' Required
Communication for the year ended June 30, 2019
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Procedural
Goals 7.0 Finance
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the December 19, 2019 Board
of Directors regular meeting at District Headquarters and on District’s website at www.cmsdca.gov.
Alternative Actions
Refer the matter back to staff.
File Attachments
FINAL 2019 INTERNAL CONTROL REPORT_2019-12-03.pdf (3,222 KB)
FINAL 2019 SAS 114 CONCLUSION LETTER_2019-12-03.pdf (3,191 KB)
FINAL CAFR FY18-19.pdf (3,921 KB)
Workflow
Workflow Dec 10, 2019 6:23 PM :: Submitted by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 11, 2019 10:30 AM :: Approved by Scott Carroll. Routed to Gina Terraneo for
approval.
Dec 12, 2019 2:35 PM :: Final approval by Gina Terraneo
E. GENERAL MANAGER'S REPORTS
To: Board of Directors
From: Scott Carroll, General Manager
Date: December 19, 2019
Subject: Consider Approving Out-of-State Travel for General Manager to attend Servant Leadership Conference in Hurst,
Texas on January 23-24, 2020
Summary
Strategic Government Resources (SGR) is a private company that provides employee and leadership development programs for
local government professionals. One of its core development programs is servant leadership. On January 23-24, 2020, SGR will be
hosting its 7th Annual Servant Leadership Conference that will focus on community engagement, organizational culture, civility and
resiliency.
Recommendation
That the Board of Directors Consider Approving Out-of-State Travel for General Manager to attend Servant Leadership Conference in
Hurst, Texas on January 23-24, 2020
Analysis
Servant leadership is a philosophy in which the main goal of the leader is to serve. This philosophy is different from traditional
leadership where the leader's main focus is the thriving of his/her company or organization. A Servant Leader empowers people, puts
the needs of the employees first and helps people develop and perform as highly as possible.
Attached is the agenda for the 2020 Conference.
Legal Review
Not applicable
Environmental Review
The consideration of out-of-state conference attendance is an administrative matter and is not a disturbance of the environment and
does not constitute a project under CEQA or the District's CEQA guidelines.
Financial Review
The following is a breakdown of the estimated costs to attend the conference
Registration 349.00
Airfare 262.00
Subject 2. Consider Approving Out-of-State Travel for General Manager to attend Servant
Leadership Conference in Hurst, Texas on January 23-24, 2020
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action
Fiscal Impact Yes
Dollar Amount $1,050.00
Budgeted Yes
Budget Source Wastewater and Solid Waste Fund
Recommended Action That the Board of Directors Consider Approving Out-of-State Travel for General Manager
to attend Servant Leadership Conference in Hurst, Texas on January 23-24, 2020
Goals 3.00 Partnerships
3.4 Participate in the activities of professional associations
6.0 Personnel/Organizational Management
Hotel 269.00
Airport Parking 70.00
Transportation 50.00
Food 50.00
$ 1,050.00
There is sufficient money in the FY 2019-20 Budget for this expense.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the December 19, 2019 Board of Directors
meeting at District Headquarters (290 Paularino Avenue) and posted on the District's website at www.cmsdca.gov.
Alternative Actions
1. Do not approve out of state travel for the general manager.
2. Direct staff to report back with more information.
File Attachments
Servant Leadership Conference Agenda.pdf (802 KB)
Workflow
Workflow Dec 10, 2019 5:27 PM :: Submitted by Scott Carroll. Routed to Kaitlin Tran for approval.
Dec 10, 2019 6:15 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 11, 2019 10:30 AM :: Approved by Scott Carroll. Routed to Gina Terraneo for
approval.
Dec 12, 2019 2:37 PM :: Final approval by Gina Terraneo
E. GENERAL MANAGER'S REPORTS
To: Board of Directors
From: Scott Carroll, General Manager
Date: December 19, 2019
Subject: CMSD's Emergency Preparedness Exercise Debriefing
Summary
On October 17, 2019, staff performed a tabletop exercise in the District's Emergency Operation Center. The following were the
objectives of the exercise.
To become familiar with role of each position within the EOC.
Learn the importance of each section in the EOC and the importance of effective communications.
Identify missing forms, equipment, supplies, etc. that would be needed during a disaster.
For some District employees, this exercise was their first experience working in an EOC.
Recommendation
That the Board of Directors receive and file this report.
Analysis
Tabletop exercises are designed to help an organization test a hypothetical situation, such as a natural or man-made disaster, and
evaluate the groups ability to cooperate and work together, as well as test their readiness to respond.
The hypothetical situation on October 17 was severe flooding from inclement weather. The exercise was performed using
Standardized Emergency Management System (SEMS) procedures because SEMS is the standardized structure for the response
phase of emergency management in California. Several scenarios were presented to staff in which each person had to respond to
the scenario based on the EOC position they were assigned to. Because the District does not have enough staff to fill all the
positions in an EOC, employees were assigned to several positions simultaneously. For instance, the general manager serves as the
EOC Director; however, the office specialist may be the first person to arrive in the EOC and therefore must assume the role of EOC
Director until she is relieved by the general manager. Attached is a copy of the Tabletop Exercise.
The following were the lessons learned from the tabletop exercise.
1. The District needs to reach out to the Cities of Newport Beach and Costa Mesa for EOC training so that staff can witness how an
EOC functions.
2. The District needs to reach out to the County to repair radios not working in the trucks. This is especially important now that
special districts have access to the 800 MHz Countywide Coordinated Communications System.
3. The District has new trucks in the fleet so more radios need to be installed in the fleet.
4. The District needs to have its own radio frequency so staff can practice using the radios.
5. Review list of contractors in the Emergency Operations Plan and maintain current list on the computer's EOC folder.
6. Purchase $1,000 worth of meals ready to eat (MRE) for HQ and $1,000 MREs for the Yard.
7. Purchase more locking composite manholes for streets that are prone to flood. This will prevent people from opening manhole
lids to alleviate flooding
8. Schedule training using the County's WebEOC.
9. Purchase new sandbags at the Yard to replace sandbags that are torn or ripped due to being exposed to weather conditions.
Subject 3. CMSD's Emergency Preparedness Exercise Debriefing
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action
Fiscal Impact No
Recommended Action That the Board of Directors receive and file this report
Goals 6.0 Personnel/Organizational Management
6.1 Perform EOC Training
Staff will implement the lessons learned above and prepare for another exercise in the near future.
Legal Review
Not applicable
Environmental Review
Holding a training session inside in an office 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 or the District's CEQA Guidelines.
Financial Review
There were no financial impacts to the District for conducting the tabletop exercise and there is adequate funding in the budget to
implement the lessons learned mentioned above.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the December 19, 2019 Board of Directors
meeting at District Headquarters and on District website at www.cmsdca.gov
Alternative Actions
1. Direct staff to report back with more information.
File Attachments
Tabletop Exercise 10-17-19.pdf (161 KB)
Workflow
Workflow Dec 10, 2019 6:58 PM :: Submitted by Scott Carroll. Routed to Robin Hamers for
approval.
Dec 11, 2019 11:33 AM :: Approved by Robin Hamers. Routed to Kaitlin Tran for approval.
Dec 11, 2019 12:06 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 11, 2019 12:23 PM :: Approved by Scott Carroll. Routed to Gina Terraneo for
approval.
Dec 12, 2019 2:39 PM :: Final approval by Gina Terraneo
E. GENERAL MANAGER'S REPORTS
To: Board of Directors
Via: Scott Carroll, General Manager
From: Nabila Guzman, Management Analyst I
Date: December 19, 2019
Subject: FY 2018-19 CR&R Performance Review
Summary
Per Section 4.6 of the Agreement, the “DISTRICT shall complete a yearly performance review of the trash collection and recycling
program on a yearly basis and CONTRACTOR and DISTRICT shall meet to discuss and resolve problems that may be occurring in
the programs. DISTRICT shall prepare a performance review form that allows for evaluation of services provided at the residences as
well as administrative services including report preparation, accuracy, and timeliness of transmittal, responsiveness to inquiries,
database management, service levels and helpfulness.”
Recommendation
That the Board of Directors receive and file this report.
Analysis
The evaluation term was July 1, 2018 to June 30, 2019. The performance was evaluated on the following grading scale: Excellent,
Satisfactory, Unsatisfactory, and Not Applicable. Staff reviewed CR&R's performance in nine areas and made the following findings:
1. Service To Be Provided and Term: CR&R furnished all labor to collect, transport, recycle and dispose of solid waste
collected. Monthly reports have confirmed that all material collected from CMSD service area is going to CR&R's MRF and AD
Facility as outlined in the contract.
2. Hauler Compensation: The District's goal is to maintain a net-to-hauler rate that does not exceed ten percent of the County
average. The standard per-unit net-to-hauler payment for the review period is $18.60 which is $1.11 below county average. The
County of Orange net-to-hauler rate average for all jurisdictions is $17.92 plus 10% that the agreement allows ($17.92 + $1.79 =
$19.71) is the maximum amount that CR&R could receive and remain in compliance.
3. Records, Reports, Reviews and Audits: CR&R's monthly reports and master manifest provide requirements for waste
diversion. The audit consultant found that the monthly reports show significantly different recycled material composition than is
detailed in the Master Manifest. Due to this, CMSD instructed the audit consultant to also perform a waste sort to determine if the
high percentage of green waste in the master manifest provided was reasonable. The results of that study confirm that the high
percentage of green waste recycling is possible.
4. Operations: During the review period, there was an increase in leak and spill complaints from CR&R's fleet. Thirty-eight
complaints were received through phone and email and an additional fifteen complaints were received through the District's
GovOutreach online and mobile application system. Due to the unusual spike in complaints, CMSD requested that the contract
auditor inspect CR&R's fleet and maintenance logs. The consultant found that CR&R did inspect the vehicles after complaints and
corrected the problems.
5. Insurance, Bonds and Indemnifications: The spills and leaks that occurred during the review period happened inside
various HOA's. CR&R did indemnify CMSD from potential litigation and worked directly with the HOA to correct the issue.
6. Default and Damages: N/A
Subject 4. FY 2018-19 CR&R Performance Review
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action, Receive and File
Recommended Action That the Board of Directors receive and file this report.
Goals 2.00 Solid Waste
2.2 Annual Contract Audits
7. Collection Schedule: 270 missed curbside pickup complaints were received during the year in review. Additionally, there was
an increase in trash truck break downs that caused multiple route delays. CMSD has sat down with CR&R to examine route
efficiency and the aging fleet. CR&R has committed to adding more mixed waste daily routes to accommodate the increase in
population as well as to replace some of the older trucks in the fleet.
8. Special Programs: Per the agreement, CR&R's Sustainability Specialist is to dedicate approximately 20 hours a week
promoting solid waste diversion programs in CMSD. CMSD has determined that CR&R is not in compliance with this section of the
contract. Time logs were provided for the entire year, but CMSD has found that most of the time is spent doing administrative work for
CMSD such as report gathering, attending study sessions, answering emails and phone calls. The Specialist did begin a Welcome to
the Neighborhood program in January 2019 and visited 112 homes but the number of new service accounts has significantly
decreased.
9. Miscellaneous: CMSD staff met with Dean Ruffridge, Senior Vice President of CR&R on Wednesday, December 11, 2019, to
discuss the performance evaluation. Staff had the opportunity to share their concerns highlighted in the evaluation and CR&R was
very receptive to making changes. The aging fleet and route efficiency were discussed, and CR&R has agreed to replace some of the
older vehicles servicing the CMSD area as well as adding a mixed waste route to their daily schedule. This will be revisited in the
beginning of 2020, CR&R currently has new trucks available but are waiting on CNG fuel tanks before they can begin operation.
The cart-to-cart outreach program was also discussed and CR&R explained that their full-time outreach staff member had been busy
with other cities in FY 18-19. CR&R staff has availability in 2020, and he will be conducting the outreach for CMSD. The program was
also expanded and it will no longer just focus on the organics carts, the program will also check for contents in the mixed waste carts.
CR&R has promised to complete outreach to 10% of the service area in 2020 and 10% every year after.
Additionally, staff raised concerns regarding the 20 hour a week commitment to community outreach by the sustainability specialist.
CR&R has committed to making changes as they are also interested in raising program awareness within the community. CR&R
suggested breaking up the CMSD service area into nine different sectors so the sustainability specialist can personalize the outreach
to problems experienced in each area. CMSD staff will monitor CR&R's progress in areas discussed and will update the Board of
Directors in a few months.
In addition, Mike Balliet Consulting, LLC (MBC) provided a partial compliance review of 26 specified items per agreement
requirements. The review, attached to this report, found that CR&R exhibited an acceptable compliance, passing 26 of 26 areas of
review. Per MBC's performance audit, a discrepancy was found between reports provided on the composition of materials recycled.
Based on the discrepancy found, CMSD directed MBC to conduct a waste composition review. Based on the waste sort performed,
MBC considers CR&R's master manifest figures to be reasonably possible. However, it was suggested that additional sorts should be
required of CR&R to establish more accurate monthly reporting figures.
Legal Review
Not Applicable.
Environmental Review
A performance review of CR&R in and of 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 programs of CR&R, such as the
organics programs, receive individual CEQA review when they are initiated or revised. MBC conducted a random sampling and
waste sorting of three representative loads of CMSD mixed waste routes.
Financial Review
The cost to perform the partial compliance audit review by Michael Balliet Consulting, LLC is $3,990. This cost was approved in the
FY 2019-20 Budget. The Waste Composition Review was an additional $3,600. There are sufficient funds in the budget to cover both
reviews.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the December 19, 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.
File Attachments
CR&R Annual Review 2018-2019 Report Mike Balliet.pdf (989 KB)
Mike Balliet - Waste Characterization Review.pdf (683 KB)
FY 18-19 CMSD Evaluation.pdf (328 KB)
Workflow
Workflow Dec 11, 2019 3:44 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for
approval.
Dec 11, 2019 4:56 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 12, 2019 12:17 PM :: Approved by Scott Carroll. Routed to Gina Terraneo for
approval.
Dec 12, 2019 2:41 PM :: Final approval by Gina Terraneo
F. ENGINEER'S REPORTS
To: Board of Directors
Via: Scott Carroll, General Manager
From: Rob Hamers, District Engineer
Date: December 19, 2019
Subject: Capital Improvement Projects Status Report
Summary
Attached is a summary of the Capital Improvement Project activities during the month.
Recommendation
That the Board of Directors receive and file the report.
Analysis
Attached are ten 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 December 19, 2019 Board of Directors
Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov
Alternative Actions
1. Refer item back to staff with further instructions.
File Attachments
CIP Updates Dec 2019 Meeting.pdf (618 KB)
Subject 1. Receive and File the Monthly Capital Improvements Project Status Report
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action, Receive and File
Recommended Action That the Board of Directors receive and file the report.
Goals 4.7 Demonstrate outstanding efforts in transparency
7.2 Develop a long term CIP
1.10 Abandon five pump stations on the west side in conjunction with Orange County
Sanitation District companion project
1.4 System Wide Sewer Replacement and Repair Program
1.1 Manhole Cover Maintenance Program
1.0 Sewer Infrastructure
Workflow
Workflow Dec 9, 2019 11:36 AM :: Submitted by Lieu Tran. Routed to Robin Hamers for approval.
Dec 9, 2019 2:22 PM :: Approved by Robin Hamers. Routed to Kaitlin Tran for approval.
Dec 9, 2019 4:18 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 11, 2019 10:30 AM :: Approved by Scott Carroll. Routed to Gina Terraneo for
approval.
Dec 12, 2019 2:50 PM :: Final approval by Gina Terraneo
F. ENGINEER'S REPORTS
To: Board of Directors
From: Rob Hamers, District Engineer
Date: December 19, 2019
Subject: 3150 Bear Street, Trinity Broadcasting Network Redevelopment into School, Approval in Concept of Accepting
CMSD Sewer Main and Easements
Summary
The Trinity Broadcasting Network (TBN) headquarters is being sold as the company recently determined the building is no longer
needed for its growing network. The TBN parcel is 6.2 acres and fronts the 405 Freeway. During the night, the extensive outdoor
lighting creates a spectacle for motorists passing by.
The proposed redevelopment of the parcel includes a school, dormitories, kitchen, laundry facilities, and gym for approximately 627
students. The proposed wastewater flow from the site added to the existing flows will exceed the normal operating parameters for
the District sewer in Olympic Avenue. In order to avoid flow problems, an alternative sewer alignment is proposed that will discharge
the project’s wastewater directly into the Orange County Sanitation District (OCSD) Gisler-Red Hill trunk sewer. For this to occur,
OCSD is requiring CMSD own the first leg of sewer from the trunk. This causes the necessity of the District being granted an
easement over a small portion of the TBN property and possibly over City of Costa Mesa property. The attached Connection Point
exhibit showing the information is attached.
Recommendation
The Board of Directors approve in concept the sewer alignment utilizing the direct connection to the OCSD trunk sewer including the
acceptance of CMSD easements and sewer main along with an easement for access and maintenance with formal documents to be
brought back to the Board for approval at a later date.
Analysis
In addition to the capacity concerns mentioned above, there is another significant reason to utilize the OCSD Gisler-Red Hill Trunk
option. The existing sewer mains in Paularino Ave and Bristol Street accept flows from restaurants that do not have grease
interceptors and this area has been designated a hot spot. The hot spot flows, which have a high grease content, flow westerly in
Paularino Avenue, then northerly on Trinity, then westerly along Olympic to a short CMSD sewer main in an easement flowing
northerly into the OCSD trunk. This sewer main is shown on the attached Tributary Area map.
If the TBN redevelopment flows are not diverted to another location, the TBN flows will flow easterly in Olympic and also arrive at the
beginning of the short sewer main leading to the OCSD trunk. Staff is concerned that wastewater laden with grease coming from the
east will run into the high flows from the TBN parcel from the west and create turbulence and hydrogen sulfide in the manhole and
sewer. Turbulence causes off-gassing that leads to the formation of hydrogen sulfide and sulfuric acid, which creates odor and
corrosion problems. Therefore, the proposed option of CMSD owning a new section of main and easement adjacent to the OCSD
trunk appears to be a safer and more effective option.
Legal Review
District Counsel will review and provide language for the easement documents and resolution.
Environmental Review
The construction of a short section of sewer main to redirect flows 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
The developer's engineer will prepare the easement documents and the Attorney for the District and District Engineer will insure the
developer pays for the District's legal and engineering costs.
Subject 2. 3150 Bear Street, Trinity Broadcasting Network Redevelopment into School,
Approval in Concept of Accepting CMSD Sewer Main and Easements
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Action
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the December 19, 2019 Board of Directors
regular meeting at District Headquarters and on District’s website.
Alternative Actions
Refer the matter back to staff fof additional information.
Attachments
Tributary Area Map
Connection Point Detail
File Attachments
Tributary Area.pdf (2,574 KB)
Connection Point.pdf (225 KB)
Workflow
Workflow Dec 9, 2019 2:06 PM :: Submitted by Robin Hamers. Routed to Robin Hamers for
approval.
Dec 9, 2019 2:19 PM :: Approved by Robin Hamers. Routed to Kaitlin Tran for approval.
Dec 9, 2019 4:23 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval.
Dec 11, 2019 10:33 AM :: Approved by Scott Carroll. Routed to Gina Terraneo for
approval.
Dec 12, 2019 2:51 PM :: Final approval by Gina Terraneo
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 Dec 19, 2019 - Board of Directors Regular Meeting
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 Dec 19, 2019 - Board of Directors Regular Meeting
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 Dec 19, 2019 - Board of Directors Regular Meeting
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 Dec 19, 2019 - Board of Directors Regular Meeting
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 Dec 19, 2019 - Board of Directors Regular Meeting
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 Dec 19, 2019 - Board of Directors Regular Meeting
Type Information
L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Subject 1. Oral Communications and Director Comments
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Discussion
O. CLOSING ITEMS
THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON
MONDAY, JANUARY 27, 2020 AT 4:30 P.M. IN THE DISTRICT'S BOARD ROOM, 290 PAULARINO AVENUE, COSTA
MESA.
Subject 1. Adjourn
Meeting Dec 19, 2019 - Board of Directors Regular Meeting
Type Procedural