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2020_02_24_board2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#1/48 Monday, February 24, 2020 Board of Directors Regular Meeting 290 Paularino Avenue, Costa Mesa at 4:30 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 Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Procedural 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#2/48 A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ferryman Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Procedural 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#3/48 A. OPENING ITEMS Subject 3. Invocation - Vice President Ooten Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Procedural 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#4/48 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 Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Procedural 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#5/48 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 Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Procedural 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#6/48 A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Procedural 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#7/48 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 Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Procedural 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#8/48 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 Feb 24, 2020 - 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#9/48 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: February 24, 2020 Subject: Approve the Board of Directors Study Session Minutes of January 14, 2020 Summary The recorded minutes of the January 14, 2020 Board of Directors Study Session are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Study Session on January 14, 2020. 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 February 24, 2020 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 January 14, 2020 Meeting Feb 24, 2020 - 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 Jan 14, 2020 - Board of Directors Study Session 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#10/48 minutes_2020_01_14_ss.pdf (111 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#11/48 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: February 24, 2020 Subject: Approve the Board of Directors Regular Meeting Minutes of January 27, 2020 Summary The recorded minutes of the January 27, 2020 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 January 27, 2020. 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 February 24, 2020 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the meeting minutes as presented. 2. Direct staff to report back with more information. File Attachments Subject 3. Approve the Board of Directors Regular Meeting Minutes of January 27, 2020 Meeting Feb 24, 2020 - 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 Jan 27, 2020 - Board of Directors Regular Meeting 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#12/48 minutes_2020_01_27_rm.pdf (224 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#13/48 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: February 24, 2020 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 February 24, 2020 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 (2,103 KB) Subject 4. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Feb 24, 2020 - 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#14/48 b_reimbursement.pdf (2,025 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#15/48 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 2020-08.pdf (141 KB) Subject 5. Adopt Warrant Resolution No. CMSD 2020-08 Approving District Warrant Registers Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Action, Action (Consent) Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2020-08 approving District warrants for the month of January in the amount of $848,297.83. 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#16/48 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: February 24, 2020 Subject: Payroll Transparency Disclosure for January 2020 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 February 24, 2020 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 January 2020 Meeting Feb 24, 2020 - 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 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#17/48 File Attachments Payroll Transparency Disclosure January 2020.pdf (174 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#18/48 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: February 24, 2020 Subject: Accept the occupancy count as presented as 22,926 and direct staff to prepare a warrant to CR&R Environmental Services for $237,593.60 for January 2020 collection Summary Accept the occupancy count as presented using 22,926 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for January 2020 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,593.60 to be ratified in the February 2020 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 22,926 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for January 2020 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,593.60 to be ratified in the February 2020 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 January 31, 2020, total District occupancy was at 22,926 with twenty (20) new accounts added since the last billing period. Two (2) accounts deleted based on home being classified as a single-family home and not a 3-unit property. 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 January 2020: 22,926 x $10.3635 =$237,593.60 Legal Review Not Applicable Subject 7. Accept the occupancy count as presented as 22,926 and direct staff to prepare a warrant to CR&R Environmental Services for $237,593.60 for January 2020 collection Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Action, Action (Consent) Recommended Action That the Board of Directors accept the occupancy count as presented using 22,926 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for January 2020 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $237,593.60 to be ratified in the February 2020 warrant list. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#19/48 Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the February 24, 2020 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 REVISED 2020-1-G CMSD Occupancy Report.pdf (45 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#20/48 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: February 24, 2020 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $217,644.47 for January 2020 recycling and disposal services in the February 2020 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 of 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 $217,644.47 for January 2020 recycling and disposal services to be ratified in the February 2020 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. Due to weight ticket calculation rounding, monthly invoices may be slightly off by a few pennies. Invoices that are slightly off are marked by an asterisk below. Type of Waste Invoice Tonnage Rate Amount Billed Residential Waste - Costa Mesa 37953 1,370.03 $54.98 $75,324.26* Residential Waste - Costa Mesa 37998 1,450.50 $54.98 $79,748.46* Residential Waste - Newport Beach 37999 31.65 $54.98 $1,740.12 Residential Waste - Newport Beach 37954 33.60 $54.98 $1,847.33 Total Residential Waste 2,885.78 $158,660.17 Organics 37991 386.31 $75.65 $29,224.35 Organics 38040 393.39 $75.65 $29,759.95 Total Organics 779.7 $58,984.30 Grand Total 3,665.48 $217,644.47 Legal Review Not Applicable Subject 8. Approve the preparation of a warrant to CR Transfer in the amount of $217,644.47 for January 2020 recycling and disposal services in the February 2020 warrant register Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Action, Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $217,644.47 for January 2020 recycling and disposal services to be ratified in the February 2020 warrant register. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#21/48 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 February 24, 2020 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#22/48 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: February 24, 2020 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 January 2020. 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 January 2020. Contracts 1. Liebert Cassidy Whitmore – Training consortium regarding personnel matters. Cost: $4,435 Purchase Orders 2. LEHR – Installing emergency light bar and strobes on new utility truck. Cost: $5040.43 3. LEHR – Installing emergency Board with Traffic Advisor Unit #1009. Cost: $5,895.43 4. Wood Oil Company - 1,700 Gallons of Clear Low-Sulphur Diesel. Cost: $5,375.77 5. BC Traffic Specialist – New traffic signs, stands, cones and supplies to outfit new utility truck. Cost: $2,099.63 6. BC Traffic Specialist – Roll up back brace for traffic sign and snap on traffic cone sign with arrows for directing traffic. Cost: $157.35 7. MacLeod Watts - New Actuarial Valuations 06/30/2019 and GASB 75 Reports 06/30/2020. Cost: $5,900 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". Subject 9. Contracts Signed by the General Manager Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Action (Consent) Fiscal Impact No Budgeted Yes Recommended Action That the Board of Directors receive and file this report Goals 5.0 Administrative Management 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#23/48 Financial Review There is adequate funding in the budget for the expenses referenced above. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the February 24, 2020 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#24/48 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: February 24, 2020 Subject: Approve the Investment Report for the Month of January 2020 Summary Attached is the Investment Report for the month of January 2020. 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 January 2020. 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 January 31, 2020. 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 January 31, 2020, was 1.801%. The yield to maturity of the portfolio was 1.802%. The District’s weighted average interest rate was 17 basis points (0.165%) below the LAIF average monthly rate for January 2020 of 1.967%. The weighted average number of days to maturity for the District’s total portfolio was 548 days (1.50 years). The duration of the underlying securities in LAIF as of January 31, 2020 was 215 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 one year or less as of January 31, 2019 was 46.93%. 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 Subject 10. Investment Report for the Month of January 2020 Meeting Feb 24, 2020 - 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 January 2020. Goals 7.0 Finance 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#25/48 the County of Orange. The revenue dry period is from June through October. 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 January 31, 2020, the portfolio has earned a weighted average interest rate of 1.831%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the February 24, 2020 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 - January 2020.pdf (594 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. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#26/48 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: February 24, 2020 Subject: Reclassifying the Part-time Accounting Clerk Position to Full-time Status Summary Maintaining the reporting and accounting duties required by the Finance Department with only a part-time Accounting Clerk has become a challenge. The District’s current part-time Accounting Clerk position is scheduled for 20 hours a week. Staff is proposing that this classification convert from a part-time position to a regular full-time position in order to meet the accounting needs of the District. Recommendation That the Board of Directors consider approving reclassifying the part-time Accounting Clerk position to full-time status. Analysis From September 2015 to May 2019, the Finance Department consisted of three full-time positions: the Finance Manager, the Senior Accountant and the Administrative Assistant II. The Administrative Assistant II position worked at the front desk while assisting the Finance Department during the majority of their time. 2019 was a challenging year for the Finance Department. Due to unanticipated events, the department came to consist of two full-time employees, a Finance Manager and an Accountant, along with a part-time Accounting Clerk. It became a struggle for the Finance team to keep up with the additional activities in the department due to the growth of the District over the last few years. The Accounting Clerk is limited to working 20 hours a week, which does not provide adequate time to assist the Finance Department with other duties. Within the past few years, the volume of invoices that accounts payable processes has increased. Also, to be in compliance with current Fair Labor Standards Act (FLSA) laws, payroll processing requires an increased amount of time to complete. In addition to accounts payable and payroll, the Finance Department also needs assistance processing accounts receivable, posting cash receipts, generating and analyzing financial reports, scanning back-up documents to upload to Springbrook, and providing support to the Finance Department when team members are out on leave. Accounts Receivable: The number of invoices being issued increased in 2019 compared to previous years; including, but not limited to, the monthly office rental invoice, reimbursement requests, sanitary sewer overflows (SSO) back charges, grant requests, and back charges to approximately 100 accounts for services. After an invoice is generated and issued, staff must follow up on payments and reconcile the accounts in the General Ledger. If the invoice is still outstanding, staff then calculates the penalty and interest charge, generates and reissues a past due invoice. The Finance Department requires additional assistance in accounts receivable. Cash Receipts: As previously mentioned, there has been an increase in invoices issued requiring additional assistance in recording the payments received. In addition, there was an increase in new development within the last few years and residents have been Subject 1. Reclassifying the Part-time Accounting Clerk Position to Full-time Status Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors consider approving reclassifying the part-time Accounting Clerk position to full-time status. Goals 7.0 Finance 6.0 Personnel/Organizational Management 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#27/48 moving into these new homes. Residents of the newly developed properties pay a prorated amount during the year until they can be placed on the County assessment. There were 142 new accounts in fiscal year (FY) 2016-17 and 181 new accounts in FY 2018-19 that paid a prorated fee. Six months into this current fiscal year, there are 106 new accounts. Staff projects the number of new accounts will continue to increase. Provides Supports: Currently, if a staff member goes out on leave, this results in one sole employee to manage all of the duties in the Finance Department. Reclassifying the part-time Accounting Clerk position to a full-time position will provide additional support for the department during the absence of staff and help to increase efficiency and effectiveness throughout the department on a daily basis. Unfortunately, recruiting for the part-time Accounting Clerk position and finding a candidate that is a fit for the District has been challenging. The full-time Accounting Clerk position will include benefits and hours that are more desirable in order to attract candidates that are well qualified and a good fit for the District. Legal Review Environmental Review The consideration of reclassifying the Accounting Clerk position is an administrative matter and is not a disturbance of the environment similar to grading or construction and does not constitute a project under CEQA or the District’s CEQA guidelines. Financial Review If the Board approves the full-time Accounting Clerk position, the recruitment will start in March 2020 and the new incumbent will have a target start date in May. Staff estimates the total salary and benefits for the last two months of FY 2019-20 is $12,500. There are available funds in the benefit accounts to cover for the benefit costs. As for salary, staff is proposing the following budget adjustment: No legal review is required for reclassifying the Accounting Clerk position from part-time to full-time employment. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#28/48 There is $29,000 budgeted in the FY 2020-21 Part-time Salaries and benefits accounts. An additional $45,500 is needed to cover for the full-time Accounting Clerk fully burdened cost of $74,500. Staff is proposing the following budget adjustment for FY 2020-21: 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#29/48 Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the February 24, 2020 Regular Board meeting at District Headquarters and posted on the District's website. Alternative Actions Do not approve reclassifying the Accounting Clerk position from part-time to full-time employment. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#30/48 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: February 24, 2020 Subject: Refund of Wastewater and Solid Waste Assessment - APN 422-102-09 Bernard Street Summary The Board of Directors has previously reviewed Mrs. Soffer's request for a wastewater and solid waste assessment refund on parcel APN 422-102-09. Staff was able to confirm charges placed through fiscal year 2000-2001 and determined that a total of $10,089.15 was overpaid over twenty years. Recommendation That the Board of Directors provide direction to staff on a refund for APN 422-102-09. Analysis On January 27, 2020, the Board of Directors reviewed a request from Mrs. Michiko Soffer requesting a refund of the District's wastewater and solid waste assessment fees charged to her home. Over the years, the assessor's parcel number 422-102-09, located at 540 Bernard Street, has been overcharged for solid waste and wastewater services. This home had been classified as a multi-family home with three units based on information provided by the City of Costa Mesa. CMSD staff has confirmed that the City of Costa Mesa continues to classify this parcel as a multi-family home with three units although it is a single-family home. At the January Board Meeting, the Board of Directors requested this item be brought back for review because Mrs. Soffer did not clearly state in her letter the number of years she was requesting a refund for. On February 11, 2020, the Board of Directors received an update on the number of years the District was able to confirm of overpayment. Staff was only able to go back fifteen years and confirm charges placed, but staff believes this property has always been overcharged because the records were taken from the City of Costa Mesa. Mrs. Soffer is requesting a twenty year refund and she has provided copies of her paid property taxes for all twenty years. Attached is Mrs. Soffer's updated request for wastewater and solid waste refund, she is requesting a refund for twenty years. Below is a breakdown of the overpayment. FY Wastewater Charge Placed Actual Charge Owed Difference Solid Waste Charge Placed Actual Charge Owed Difference 19-20 $162.63 $92.38 $70.25 $674.64 $224.88 $449.76 18-19 $162.63 $92.38 $70.25 $648.00 $216.00 $432.00 17-18 $162.62 $92.38 $70.24 $648.00 $216.00 $432.00 16-17 $159.45 $90.57 $68.88 $648.00 $216.00 $432.00 15-16 $156.33 $88.79 $67.54 $648.00 $216.00 $432.00 14-15 $156.23 $87.05 $66.21 $648.00 $216.00 $432.00 13-14 $150.27 $85.34 $64.93 $648.00 $216.00 $432.00 12-13 $161.31 $69.00 $92.31 $684.00 $228.00 $456.00 11-12 $161.31 $69.00 $92.31 $718.23 $239.41 $478.82 Subject 2. Refund of Wastewater and Solid Waste Assessment - APN 422-102-09 Bernard Street Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors provide direction to staff on refund for APN 422-102-09. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#31/48 10-11 $161.31 $69.00 $92.31 $718.23 $239.41 $478.82 09-10 $161.31 $69.00 $92.31 $718.23 $239.41 $478.82 08-09 $148.56 $63.48 $85.08 $718.23 $239.41 $478.82 07-08 $138.78 $59.24 $79.54 $718.23 $239.41 $478.82 06-07 $95.28 $40.41 $54.87 $718.23 $239.41 $478.82 05-06 $79.41 $33.68 $45.73 $718.23 $239.41 $478.82 04-05 $67.10 $29.05 $38.05 $677.58 $225.86 $451.72 03-04 $62.13 $26.90 $35.23 $627.39 $209.13 $418.26 02-03 $58.62 $25.38 $33.24 $580.92 $193.64 $387.28 01-02 $55.83 $24.17 $31.66 $553.86 $184.62 $369.24 00-01 $53.16 $23.02 $10.14 $523.50 $174.50 $349.00 Total $2,494.37 $1,230.22 $1,264.15 $13,237.50 $4,412.50 $8,825.00 The table above shows a wastewater assessment overpayment of $1,264.15 and a solid waste assessment overpayment of $8,825.00 from fiscal year 2000-2001 through 2019-2020. Legal Review This matter is governed by the Tort Claims Act, Government Code Section 53082, the gift of public funds doctrine (Cal Constit. Art. 16, Section 6), and Costa Mesa Sanitary District Operations Code Chapter 9.02. Generally, the Board adopted a policy that for sewer charges paid for which no service was provided (after 1992), that recovery was limited to the period of 180 days from the date of payment if a claim was filed within that time period. With regard to trash overcharges, Government Code Section 53082 would not apply, so the claimant would be entitled to refund of amounts paid within one year of filing the claim, pursuant to the Tort Claims Act. 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 overpaid for the last 20 years for both the solid waste and wastewater is $10,089.15. If the Board of Directors approve an amount to be refunded, it would be paid from the solid waste and wastewater assessments collected in the current fiscal year. Staff has corrected the District's records to update the property from "a multi-family home with three units" to "a Single Family" for Fiscal Year 2020-21 solid waste and wastewater assessments. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the February 24, 2020 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 540 Bernard St.pdf (160 KB) 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#32/48 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: February 24, 2020 Subject: Award the Communications Support and Strategy RFP Summary After a competitive RFP process, District staff and the Solid Waste Ad Hoc Committee are recommending the communications firm, Tripepi Smith is awarded the Communications Support and Strategy RFP. Recommendation That the Board of Directors: 1) Approve budget adjustments in the amount of $28,000 in the Solid Waste Fund and $47,000 in the Wastewater Fund; and 2) Authorize the General Manager to enter into an agreement with Tripepi Smith. Analysis Per direction from the Board of Directors, staff released a Communications Support and Strategy request for proposal (RFP) on December 17, 2019. Five proposals were submitted by the January 17, 2020 due date. District staff evaluated the proposals and selected the top three proposals for an interview by the Solid Waste Ad Hoc Committee on January 29, 2020. The Committee requested that District staff revise the scope of services and request a 12-month cost proposal from each firm. On February 19, 2020, the Committee met to discuss the updated cost proposals, funding of the project and District staff’s analysis of the firms. After this extensive review process, the Committee and District staff are recommending that the RFP is awarded to the firm Tripepi Smith. The District’s mission is to protect our community’s health and the environment by providing solid waste and wastewater collection services but staff is unable to carry out the mission without the participation of its residents. Per the District’s 2019 citizen survey research and analysis, results showed that the majority of residents are unfamiliar with CMSD programs and services. Both the focus group and survey results supported the idea that CMSD should invest in promoting its programs because they are underutilized. A communications firm is needed to assist staff with: Increasing program awareness Increasing District visibility/recognition among District residents Implementing a consistent and effective social media presence Gaining tools and knowledge in effective outreach methods Establishing public relationships with related agencies (City of Costa Mesa, City of Newport Beach) Increasing knowledge of effective outreach methods to maximize resident engagement The goals and objectives would be easily measured by: Program participation and tonnage collected Attendance at District-sponsored events like CEPA and State of the District Number of likes and followers on social media Increased number of email subscribers and engagement Number of downloads of the Costa Mesa smartphone application and requests made through the system Subject 3. Award the Communications Support and Strategy RFP Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors: 1) Approve budget adjustments in the amount of $28,000 in the Solid Waste Fund and $47,000 in the Wastewater Fund; and 2) Authorize the General Manager to enter into an agreement with Tripepi Smith. Goals 4.0 Community Outreach & Communications 4.4 District branding 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#33/48 Improvement in the organics cart program (less contamination), increased participation and increased tonnage collected Increased diversion rate The District cannot continue to operate in anonymity. CMSD is providing essential services for the everyday lives of its residents, but only 28% of residents surveyed know what CMSD does. Additionally, 41% of those surveyed are unaware of the organics program which has been in place since 2015. District staff has revised and condensed the scope of services for this contract, not to change the overall scope of work, but to provide better direction and clarity to the project. Staff and the Committee believe Tripepi Smith is the most qualified and cost-effective firm to assist the District with getting where it needs to be. Tripepi Smith has extensive experience providing communication services to various local government agencies and is prepared to assist staff in carrying out the District’s mission and goals, as set by the Board of Directors. 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 Hiring a communication firm was not budgeted in the FY 2019-20. If the Board of Directors approve hiring Tripepi Smith, then the estimated total cost for the project is $94,000 per year. The one-year contract cost with Tripepi is $81,620, social media boosts are estimated at $5,000, an annual Mailchimp e-mail service subscription is $3,000, and printing costs are estimated to be $3,500. Staff rounded up this total to $94,000. The costs will be allocated evenly between the solid waste and wastewater funds with $47,000 in each fund. Staff reviewed the budget and the year-to-date expenses and found savings from different accounts to cover for the cost to hire the communication firm. Solid Waste CR&R Environmental Services is contributing $19,000 toward the project. There is $5,000 in savings in the Professional Services account from the Customer Satisfaction Survey and Waste Hauler Internal Audit. The Household Hazardous Waste account has $21,000 available, since the Door-to-Door HHW program is included in the renewal contract with CR&R. The District only pays for the HHW collection of fluorescent lights and batteries at the OCC Recycling Center. Staff is not anticipating spending for anti- Scavenging; therefore, $1,400 is available in the Anti-Scavenging account. The Public Info/Ed/Community Promotion account has $600 in savings from the State of the District/75th Anniversary event. Wastewater There are savings from the Citizens Environment Protection Academy (CEPA) and advertisements in the amount of $7,000, as well as $4,000 in the Public Info/Ed/Community Promotion account, making a total of $11,000 available. The Computer Licenses & Maintenance account has a budget of $5,400 for meeting video streamings. Staff was able to stream public meeting videos for an extremely low cost; therefore, there is $5,000 available from this account. Staff is not anticipating hiring a vendor to perform a closed- circuit television camera (CCTV) of the sewer main lines. Therefore, $20,000 is available from the Sewer Line CCTV Sewer Maintenance account. The Annual Sewer Maintenance account has $8,000 available and the Professional Services account has $3,000 in savings from the Customer Satisfaction Survey. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the February 24, 2020 Board of Directors regular meeting at District Headquarters and posted on the District's website. 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#34/48 Alternative Actions Refer item back to staff with further instructions. File Attachments Revised Scope of Service.pdf (81 KB) Tripepi Smith.pdf (1,081 KB) 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#35/48 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: February 24, 2020 Subject: Provide Direction Regarding Termination Provision of District Engineer Agreement Summary On January 27, 2020, the Board of Directors directed staff to work with new leadership of Robin B Hamers & Associates, Inc. (RBH). Michael Benesh is the new President of RBH after the sudden and unexpected passing of Robin Hamers. The General Manager and District Counsel believes an amendment to RBH existing Agreement needs to be amended to reflect the change in leadership at RBH. Recommendation That the Board of Directors provide direction to staff. Analysis Attached is the proposed amendment to RBH Agreement. The significant change in the amendment is the termination clause. The 2009 Agreement with RBH has a six-month termination. If the District desired to terminate the Agreement immediately and not allow Mr. Hamers to work for six months than the District had to pay Mr. Hamers the total of the last three months billings. The proposed amendment removes this language and replaces it with a termination notice of 30 days. Mr. Benesh does not agree with the revised termination notice in the amendment and believes the Board agreed the existing 2009 terms apply to him as well. Thirty days notice for termination is a standard provision in District's professional consulting agreements. Mr. Hamers was given special provisions due to his long personal service to the District in which Mr. Benesh does not have. Furthermore, the District no longer provides six month termination provision for any of its long-standing professionals, including District Counsel who has served for over twenty-five years, and Treasurer who is also long-standing. Each of these professionals are subject to a thirty-day termination provision. The Board agreed to give the new leadership of RBH an opportunity to prove it can continue serving the District as its Engineer in the same capacity as Rob Hamers did and directed staff to report back within six months. If, after six months, the District decides to go in a different direction, the District would need to retain RBH for another six months or pay RBH for three months of service if the agreement is terminated immediately. The existing Agreement provides that the Consultant is required to provide fourteen days notice that Rob Hamers has left the firm and the District has a right to terminate the Agreement within three days of being advised by RBH that Rob Hamers has left the firm. Although the Agreement does not anticipate death as the reason for leaving the firm, we have not received the “Notice” from the firm that Rob Hamers had left the firm. Legal Review District Counsel assisted in the preparation of this staff report. Environmental Review Subject 4. Provide Direction Regarding Termination Provision of District Engineer Agreement Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Action Recommended Action That the Board of Directors provide direction to staff Goals 1.0 Sewer Infrastructure 3.00 Partnerships 5.0 Administrative Management 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#36/48 The consideration of an engineering contract is an administrative matter. Under CEQA Guidelines §15300.4 each agency has been allowed to designate exempt classes. This activity is not a “project” under CEQA and falls within the administrative exemption of our implementing regulations. Financial Review Terminating the Agreement immediately and paying RBH for three months of service could cost between $33,000 to $75,000. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the February 24, 2020 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Approve Amendment No. 3 to Agreement for District Engineering Services. 2. Approve existing terms of 2009 Agreement apply to Michael Benesh. 3. Direct staff to seek another consulting firm to provide District Engineering Services. 4. Direct staff to bring back for discussion the recruitment of an in-house District Engineer. 5. Direct staff to report back with more information. Attachments 1. Amendment No. 3 t Agreement for Engineering Services 2. 2009 Agreement with Robin B. Hamers & Associates, Inc. File Attachments RBH Amendment No. 3.pdf (415 KB) RBH 2009 Agreement.pdf (771 KB) 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#37/48 F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Michael Benesh, District Engineer Date: February 24, 2020 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 February 24, 2020 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 Feb 2020 mtg.pdf (691 KB) Subject 1. Receive and File the Monthly Capital Improvements Project Status Report Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file the report. Goals 4.7 Demonstrate outstanding efforts in transparency 7.2 Develop a long term CIP 1.10 Abandon five pump stations on the west side in conjunction with Orange County Sanitation District companion project 1.4 System Wide Sewer Replacement and Repair Program 1.1 Manhole Cover Maintenance Program 1.0 Sewer Infrastructure 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#38/48 F. ENGINEER'S REPORTS To: General Manager, Alternate District Engineer From: District Engineer Re: Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 396 E. 21st St. (Mobile Homes) – Peter Zehnder Please be advised that I have been retained to do private engineering work for the property at 396 E. 21st Street, Costa Mesa, which is owned by Modern Mobile Ventures 1 LP. I have reason to believe that this project or those persons involved in that project may have the need for District engineering approvals in the future. I have been retained by Peter Zehnder and will be reporting this relationship as a source of income on my FPPC Statement of Economic Interests Form 700 next year. Pursuant to state law, District Operations Code Section 3.01.045, and my contract with the District: 1. I hereby notify you of this source of income or other relationship that causes me a conflict in approving any matters in my official capacity pertaining to this property and these persons. 2. I request that the General Manager alert the Alternate District Engineer that he is to provide all engineering approvals on behalf of the District with respect to these persons or that property. 3. That the Alternate District Engineer shall report directly to the General Manager and submit his bills for services directly to the General Manager. 4. That if any plans are required to be approved, that those shall show my seal and signature as private engineer of record, and the Alternate District Engineer shall provide his approval by signing as Alternate District Engineer. That these separate approvals shall be given on the same page and in a manner that clearly shows the separate capacities of each engineer in providing their respective approvals. 5. I request that the District Clerk maintain a copy of this Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer as a permanent record of the District or for as long as required under the District’s record retention schedule. I understand that this procedure does not allow me to enter into or influence the awarding of contracts in my official capacity in which I have a financial interest, which is a separate prohibition. (Gov. Code § 1090.) If I can provide further information about the identity of my source of income or about the scope of my assignment, please advise, and I will elaborate as necessary. Robin Hamers District Engineer File Attachments 396 E. 21st Street - Peter Zehnder - CMSD District Engineer Declaration of Conflict_of Interest 052019.pdf (115 KB) Subject 2. Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 396 E. 21st St. (Mobile Homes) – Peter Zehnder Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Receive and File 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#39/48 F. ENGINEER'S REPORTS To: General Manager, Alternate District Engineer From: District Engineer Re: Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer:126 E. 22nd St., Costa Mesa – St. Mary Armenian Apostolic Church LLC Please be advised that I have been retained to do private engineering work for the property at 126 E. 22nd St., Costa Mesa, which is owned by St. Mary Armenian Apostolic Church LLC. I have reason to believe that this project or those persons involved in that project may have the need for District engineering approvals in the future. I have been retained by St. Mary Armenian Apostolic Church LLC and will be reporting this relationship as a source of income on my FPPC Statement of Economic Interests Form 700 next year. Pursuant to state law, District Operations Code Section 3.01.045, and my contract with the District: 1. I hereby notify you of this source of income or other relationship that causes me a conflict in approving any matters in my official capacity pertaining to this property and these persons. 2. I request that the General Manager alert the Alternate District Engineer that he is to provide all engineering approvals on behalf of the District with respect to these persons or that property. 3. That the Alternate District Engineer shall report directly to the General Manager and submit his bills for services directly to the General Manager. 4. That if any plans are required to be approved, that those shall show my seal and signature as private engineer of record, and the Alternate District Engineer shall provide his approval by signing as Alternate District Engineer. That these separate approvals shall be given on the same page and in a manner that clearly shows the separate capacities of each engineer in providing their respective approvals. 5. I request that the District Clerk maintain a copy of this Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer as a permanent record of the District or for as long as required under the District’s record retention schedule. I understand that this procedure does not allow me to enter into or influence the awarding of contracts in my official capacity in which I have a financial interest, which is a separate prohibition. (Gov. Code § 1090.) If I can provide further information about the identity of my source of income or about the scope of my assignment, please advise, and I will elaborate as necessary. Michael Benesh District Engineer File Attachments St. Mary Apostolic Armenian Church- CMSD District Engineer Declaration of Conflict_of Interest 02062020.pdf (104 KB) Subject 3. Declaration of Conflict of Interest, Recusal and Referral to Alternate District Engineer: 126 E. 22nd St., Costa Mesa – St. Mary Armenian Apostolic Church LLC Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Receive and File 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#40/48 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 Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Information 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#41/48 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 Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Information 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#42/48 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 Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Information 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#43/48 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 Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Information 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#44/48 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 Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Information 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#45/48 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 Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Information 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#46/48 L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Discussion 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#47/48 M. ADJOURN TO CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION (Government Code Section 54956.9(d)(1) Steve Hodges v. Costa Mesa Sanitary District, Scott Carroll OCSC # 30-2019-01102477-CU-OE-CJC Subject 1. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION (Government Code Section 54956.9(d)(1) Steve Hodges v. Costa Mesa Sanitary District, Scott Carroll OCSC # 30-2019-01102477-CU-OE-CJC Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type 2/20/2020 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Private?open&login#48/48 O. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON MONDAY, MARCH 23, 2020 AT 4:30 P.M. IN THE DISTRICT'S BOARD ROOM, LOCATED AT 290 PAULARINO AVENUE, COSTA MESA. Subject 1. Adjourn Meeting Feb 24, 2020 - Board of Directors Regular Meeting Access Public Type Procedural