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agendapacket_2018_11_14_cacWednesday, November 14, 2018 Citizens Advisory Committee WHEN: Wednesday, November 14, 2018 6:00 p.m. WHERE: Costa Mesa Sanitary District Headquarters 290 Paularino Avenue, Costa Mesa, CA 92626 CONTACT: Noelani Middenway, District Clerk PHONE: (949) 645-8400, Ext. 227 EMAIL: nmiddenway@cmsdca.gov A. Opening Items 1. Call to Order & Roll Call 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 Citizens Advisory Committee about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Citizens Advisory Committee are 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. Receive Public Comments C. ITEM 1. Approve the Citizens Advisory Committee Meeting Minutes of September 12, 2018 2. Approve the Citizens Advisory Committee Meeting Minutes of October 10, 2018 3. Draft Board of Directors Meeting Minutes of October 25, 2018 4. First Quarter Budget Review for FY 2018-19 5. A Comparison between City of Newport Beach and CMSD Solid Waste Contracts 6. Providing Solid Waste Services to Wastewater Customers 7. Review Ordinance No. 122 - Amending Chapter's 7 and 8 of the Operations Code Pertaining to Solid Waste D. Closing Items 1. Board/Staff Comments 2. Adjournment Wednesday, November 14, 2018 Citizens Advisory Committee WHEN: Wednesday, November 14, 2018 6:00 p.m. WHERE: Costa Mesa Sanitary District Headquarters 290 Paularino Avenue, Costa Mesa, CA 92626 CONTACT: Noelani Middenway, District Clerk PHONE: (949) 645-8400, Ext. 227 EMAIL: nmiddenway@cmsdca.gov A. Opening Items Citizens Advisory Committee Mike Carey, Chair Albert Graham, Jr., Vice Chair Andrew Nielsen Elodie Katz Jana Oak Mike McIlroy Monte Fields Phil Marsh Sue Lester Tom Brenneman Shayne Smith Subject 1. Call to Order & Roll Call Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Procedural B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Citizens Advisory Committee about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Citizens Advisory Committee are 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. Receive Public Comments Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Procedural C. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: November 14, 2018 Subject: Citizens Advisory Committee Meeting Minutes of September 12, 2018 Summary The recorded minutes of the September 12, 2018 Citizens Advisory Committee Meeting are hereby submitted to the Citizens Advisory Committee for review and approval. Analysis Attached to the staff report are the minutes for the Citizens Advisory Committee Meeting on September 12, 2018. Staff Recommendation That the Citizens Advisory Committee approves 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 November 14, 2018 Citizens Advisory Committee 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_2018_9_12_cac.pdf (57 KB) Subject 1. Approve the Citizens Advisory Committee Meeting Minutes of September 12, 2018 Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Action, Minutes Recommended Action That the Citizens Advisory Committee approves the meeting minutes as presented. Minutes View Minutes for Sep 12, 2018 - Citizens Advisory Committee C. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: November 14, 2018 Subject: Citizens Advisory Committee Meeting Minutes of October 10, 2018 Summary The recorded minutes of the October 10, 2018 Citizens Advisory Committee Meeting are hereby submitted to the Citizens Advisory Committee for review and approval. Analysis Attached to the staff report are the minutes for the Citizens Advisory Committee Meeting on October 10, 2018. Staff Recommendation That the Citizens Advisory Committee approves 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 November 14, 2018 Citizens Advisory Committee 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_2018_10_10_cac.pdf (68 KB) Subject 2. Approve the Citizens Advisory Committee Meeting Minutes of October 10, 2018 Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Action, Minutes Recommended Action That the Citizens Advisory Committee approves the meeting minutes as presented. Minutes View Minutes for Oct 10, 2018 - Citizens Advisory Committee C. ITEM Board of Directors Regular Meeting (Thursday, October 25, 2018) Members present Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent Art Perry Staff present Scott Carroll (General Manager), Alan Burns (District Counsel), Marc Davis (District Treasurer), Robin Hamers (District Engineer), Noelani Middenway (District Clerk), Gina Terraneo (Management Analyst II) Others present Charles Markel (resident, certificate recipient), Patricia Pilette (resident, certificate recipient), George Berg (resident, certificate recipient), Jim Mosher (resident) Meeting called to order at 5:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - President Scheafer President Scheafer called the meeting to order at 5:30 P.M. Procedural: 2. Pledge of Allegiance - President Scheafer President Scheafer led the Pledge of Allegiance. Procedural: 3. Invocation - Vice President Ferryman Vice President Ferryman led the Invocation. Procedural: 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.) District Clerk, Noelani Middenway, conducted roll call and noted that all Board Members were present except for Director Perry. President Scheafer acknowledged that Director Perry was absent and excused from the meeting. Procedural: 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. None at this time. Procedural: 6. Ceremonial Matters and Presentations President Scheafer presented Citizens Environmental Protection Academy attendees Charles Markel, Patricia Pilette, and George Berg with Certificates of Achievement for their participation in the educational series. He thanked all of the participants for their involvement on behalf of the Board of Directors. B. Public Comments Procedural: 1. Public Comments President Scheafer opened public comments. Subject 3. Draft Board of Directors Meeting Minutes of October 25, 2018 Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Receive and File Jim Mosher, a District resident, commented that he was expecting to see an agenda item summarizing the last Citizens Advisory Committee (CAC) meeting. Additionally, he provided comments regarding the subject of the closed session item at the October 9, 2018 Study Session and questioned the use of the government code cited in the item. General Manager, Scott Carroll, noted that the CAC meeting summary will be provided at the November Study Session and apologized for leaving this item off tonight's agenda. District Counsel, Alan Burns, responded that there are two sections of the government code that apply to the subject of the closed session item at the October 9, 2018 Study Session and he noted that the District was lawful in its use of the section cited. He added that the District may cite the other relevant section when discussing the subject in the future. Hearing no further discussion, President Scheafer closed public comments. C. CONSENT CALENDAR Action (Consent): 1. Approve Consent Calendar Recommendation: That the Board of Directors approve the Consent Calendar as presented. Action (Consent), Minutes: 2. Approve the Board of Directors Study Session Minutes of September 11, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the Board of Directors Regular Meeting Minutes of September 20, 2018 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Approve the Directors' Compensation and Reimbursement of Expenses Recommendation: That the Board of Directors approve the compensation and reimbursement of expenses as presented. Action (Consent): 5. Adopt Warrant Resolution No. CMSD 2019-4 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2019-4 approving District warrants for the month of September 2018 in the amount of $879,100.87. Action (Consent): 6. Approve Payroll Transparency Disclosure for September 2018 Recommendation: That the Board of Directors approve and file the report. Action (Consent): 7. Approve the preparation of a warrant to CR Transfer in the amount of $187,475.44 for September 2018 recycling and disposal services in the October 2018 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $187,475.44 for September 2018 recycling and disposal services to be ratified in the October 2018 warrant register. Action (Consent): 8. Accept the occupancy count as presented as 22,673 and direct staff to prepare a warrant to CR&R Environmental Services for $222,091.10 for September 2018 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,673 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for September 2018 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,091.10 to be ratified in the October 2018 warrant list. Action (Consent): 9. Receive and File Annual Report of Expenses- Fiscal Year 2017-18 Recommendation: That the Board of Directors receive and file the Annual Report of Expenses for the Fiscal Year 2017- 18. Motion: To approve the Consent Calendar as presented. Motion by Jim Ferryman, second by Arlene Schafer. Final Resolution: Motion Carries 4-0-1 with Director Perry not present Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. D. GENERAL MANAGER'S REPORTS Action: 1. Receive and File 2015-20 Strategic Plan Quarterly Update - 1st Quarter Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented the 1st Quarter Report for the 2015-2020 Strategic Plan. He noted that the District can begin planning for the next Strategic Plan if the Board of Directors wishes to do so. Mr. Carroll added that he will need direction regarding whether or not he will be facilitating the next Strategic Plan. Assistant Secretary Ooten noted that the report includes a goal of developing strategies to achieve 75% landfill diversion by 2020 and pointed out that 2020 is coming up soon. He requested to be updated on the strategies that are currently being used to reach this goal. Mr. Carroll explained that the District's new contract with CR&R includes 20 hours per week dedicated by a CR&R staff member to work toward achieving this goal. Discussion followed regarding utilizing community outreach to increase landfill diversion. President Scheafer shared that he discussed the state's solid waste regulations with Assemblyman Harper at a meeting yesterday. Assistant Secretary Ooten commented that the District is not likely to meet its goal by 2020 and suggested that the goal be changed if the District does not intend to meet it. Vice President Ferryman noted that he manages apartment properties in Santa Ana that utilize Waste Management. He shared that Waste Management is actively attempting to increase diversion and he noted that their fees have increased significantly. Assistant Secretary Ooten noted that he has not seen a plan for the CR&R staff member's efforts to increase diversion. President Scheafer commented that the public seems to understand how their trash should be separated. Secretary Schafer suggested that the District partner with the City of Costa Mesa to work towards achieving this goal. Assistant Secretary Ooten suggested that an item be placed on the next Liaison Committee Meeting to discuss how the City of Costa Mesa is meeting its diversion goal. Mr. Carroll noted that the City of Costa Mesa is in compliance with state law and explained that they utilize a per capita measurement rather than a diversion percentage. Assistant Secretary Ooten requested that representatives from the City of Costa Mesa be asked to attend a Study Session to explain why they use a per capita measurement as their benchmark. Mr. Carroll commented that it would be challenging to calculate the District's per capita measurement. He explained that the District provides the City of Costa Mesa with its data and the City submits a report to the state (CalRecycle) to show its compliance with state law. Assistant Secretary Ooten requested to see the City's report. Mr. Burns commented that the City of Norco, whom his firm represents, will be establishing a program to recycle organic material. There were no further comments or discussion and the report was received. Action: 2. Receive and File the First Quarter Budget Review for FY 2018-19 Recommendation: The Board of Directors receive and file this report. Mr. Carroll presented the First Quarter Budget Review for FY 2018-19. He noted that Miscellaneous Sewer Work is over budget by $71,500 in the Wastewater Fund and explained that this is due to the sanitary sewer overflow (SSO) that occurred this year. Mr. Carroll added that he will provide the full cost of the work once it is tabulated. There was no discussion and the report was received. Action: 3. CMSD 75th Anniversary - Consider Creating an Ad Hoc Committee on How to Celebrate CMSD's 75th Anniversary Recommendation: That the Board of Directors direct the creation of an Ad Hoc Committee on how to celebrate CMSD's 75th Anniversary. Mr. Carroll asked that the Board of Directors consider appointing two Board Members to the 75th Anniversary Ad Hoc Committee. He noted that the CAC appointed Chair Carey and Vice Chair Graham Jr. to the committee. Secretary Schafer volunteered to serve on the committee. Vice President Ferryman noted that Director Perry indicated interest in serving on the committee. President Scheafer noted that Secretary Schafer and Director Perry served on the 70th Anniversary Ad Hoc Committee and commented that they did a great job. He appointed Secretary Schafer and Director Perry to the 75th Anniversary Ad Hoc Committee. He added that Director Perry's appointment is contingent upon his consent, since he is not present. There was no further discussion. Action: 4. Award Jesse Blakely, Wastewater Maintenance Worker II, $100 for suggesting improved methods and procedures for maintaining the wastewater system Recommendation: That the Board of Directors approve awarding Jesse Blakely, Wastewater Maintenance Worker II, $100 for suggesting improved methods and procedures for maintaining the wastewater system. Mr. Carroll presented the Rewarding Ideas Program submission by Jesse Blakely, Wastewater Maintenance Worker II. He shared that Mr. Blakely suggested an enhancement to the District's asset management system to provide links to historical data and videos related to wastewater assets. Motion: To approve awarding Jesse Blakely, Wastewater Maintenance Worker II, $100 for suggesting improved methods and procedures for maintaining the wastewater system. Motion by Bob Ooten, second by Arlene Schafer. Final Resolution: Motion Carries 4-0-1 with Director Perry not present Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. Action: 5. Consider Adopting Ordinance No. 121 - Amending Chapter 6.07 of the Operations Code Pertaining to Grease Control Recommendation: That the Board of Directors adopt Ordinance No. 121 amending Chapter 6.07 of the Operations Code pertaining to Grease Control. Mr. Carroll noted that the Board of Directors received recommendations regarding the Fats, Oils, and Grease (FOG) Program during the September Study Session and Board Meeting. He noted that the recommendations were approved by the Board of Directors and the revised Ordinance No. 121 is now being presented for approval. President Scheafer opened public comments. Mr. Mosher commented that the ordinance does not specify who would conduct the hearings referred to in Section 6.07.170 and who is the "FOG Program Manager" referred to in various sections. Additionally, Mr. Mosher noted that there are several typographical errors and misspellings throughout the document. Hearing no further comments, President Scheafer closed public comments. Mr. Burns apologized for the errors and noted that they will be fixed and that the version in the packet was the track-changed version. He commented that the content of the ordinance is sound and typographical errors would be corrected when the "clean" version is proposed. Mr. Carroll noted that FOG program waivers are subject to his approval. Motion: To adopt Ordinance No. 121 amending Chapter 6.07 of the Operations Code pertaining to Grease Control, subject to the correction of all typographical and spelling errors in the ordinance. Motion by Arlene Schafer, second by Jim Ferryman. Final Resolution: Motion Carries 4-0-1 with Director Perry not present Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 6. Consider Contribution Program Application for Concerts in the Park Recommendation: That the Board of Directors approve the Costa Mesa Foundation's contribution application requesting a retroactive $2,500 sponsorship for the 2018 Concerts in the Park event series. Management Analyst II, Gina Terraneo, presented the Contribution Application submitted by the Costa Mesa Foundation for the amount of $2,500. She noted that the application was submitted after the event series took place; however, the District received the benefits associated with the Gold Level Sponsorship valued at $2,500. Ms. Terraneo explained that the sponsorship would advance the District's purpose because District staff promoted recycling and source separation at its community booth. President Scheafer commented that there is no excuse for a late submission, but he acknowledged that the late submission may be due to the uncertainty that the Costa Mesa Foundation faced with the event date and venue. He indicated that he would support the contribution because of these circumstances. Vice President Ferryman indicated agreement with President Scheafer. Secretary Schafer indicated agreement and commented that Concerts in the Park receives high turnout. Motion: To approve the Costa Mesa Foundation's contribution application requesting a retroactive $2,500 sponsorship for the 2018 Concerts in the Park event series, citing the contribution criteria determinations stated in the staff report. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 4-0-1 with Director Perry not present Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer President Scheafer requested that staff ask the Costa Mesa Foundation to submit its request on time next year. There was no further discussion. E. ENGINEER'S REPORTS Receive and File: 1. Receive and File the Monthly Capital Improvement Projects Status Report Recommendation: That the Board of Directors receive and file the report. Mr. Carroll requested that the Board of Directors pull and continue Item E3 to the November Study Session. The Board of Directors agreed to continue item E3. District Engineer, Robin Hamers, provided an overview of the Capital Improvement Projects Status Report. He noted that Phase 11 of the Grade 5 Repairs will begin soon, the Canyon Force Main and Pump Station Rehabilitation project will go out to bid next week, and the Indus Phase II Sewer project is currently undergoing the design process. Mr. Hamers reiterated that Item E3 regarding Project #318 will be provided at the November Study Session and it will include the information requested by the Board of Directors during the October Study Session. There was no discussion and the report was received. Receive and File: 2. Declaration of Conflict of Interest - 1626 Ohms Way, Costa Mesa Recommendation: That the Board of Directors receive and file the report. Mr. Hamers reported that his firm has been retained to do private engineering work on the property at 1626 Ohms Way in Costa Mesa. He noted that there is no sewer work involved in the project and the project will have no impact on the District. There was no discussion and the report was received. Action, Discussion: 3. #318 President Pump Station Reconstruction - Bid Opening and Rejection of Bids - Discussion on Options Moving Forward - Review of 3 Designs Recommendation: That the Board of Directors: 1. Reject all bids based on the high cost of the low bid and the lack of funds in the budget. 2A. Direct the General Manager to work with Finance to obtain additional funding in the amount of $802,000 to re-bid the project with the current plans and specifications. Please refer to the attached Alternative 01 (the current design) for the site plan. The expected low bid is $2.2 million and an additional 10% is reserved for construction contingencies and an additional 10% is reserved for contract administration and inspection. or 2B. Direct the General Manager and District Engineer to re-design the proposed pump station improvements to achieve a construction cost in line with the original engineer’s estimate of $1.45 million. Under this option, no additional funding is needed. The site plan for this option is shown in attached Alternative 02. or 2C. Direct the General Manager and District Engineer to revise the Alternative 01 plans to reduce cost by relocating the emergency storage vault so the incoming sewer main does not need relocation. The depth of the station will be reduced to less than 20 feet deep. The resulting design is shown in the attached Alternative 03 and the construction cost is probably close to $2 million. Mr. Hamers noted that this item will be continued to the November Study Session. Assistant Secretary Ooten suggested that Mr. Carroll schedule site visits for each of the Board Members. He commented that he visited the site and found it interesting. Lastly, he suggested that the pump station be reconstructed in the cul-de-sac. Mr. Hamers noted that this suggestion will be addressed in the November Study Session report. President Scheafer indicated agreement regarding scheduling site visits for the other Board Members. He then opened public comments. Mr. Mosher noted that the Budget Calculation attachment indicates that 10% of the project cost is allocated for Contract Administration and Inspection. He commented that based on Mr. Hamers' hourly rate, it could be inferred that thousands of hours of inspection work are anticipated for this project. Hearing no further comments, President Scheafer closed public comments. Mr. Hamers responded that the 10% Contract Administration and Inspection cost includes more than just inspection services. He noted that it includes project management services, review of engineering drawings, site visits, meetings with the contractor, approval of change orders, coordination with structural and engineering contractors, and inspection. There was no further discussion. F. TREASURER'S REPORTS None at this time. G. ATTORNEY'S REPORTS Mr. Burns shared that Luna & Sons Concrete, Inc. is being charged by the District Attorney with a violation of Penal Code 374.2 for illegally dumping concrete into the District's wastewater system and an arraignment will be held on November 16, 2018. President Scheafer thanked Mr. Burns for his report. Mr. Burns noted that the Board of Directors directed the District Attorney to file these charges. H. 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) - (Vice President Ferryman) Vice President Ferryman shared that OCSD discussed their State of the District event and an art contest that they hosted for Fountain Valley elementary schools. 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Vice President Ferryman noted that there was no SARFPA meeting. 3. Independent Special Districts of Orange County (ISDOC) - (President Scheafer) President Scheafer noted that he did not attend the ISDOC meeting because he attended the Newport-Mesa Unified School District's State of the Schools Breakfast instead. He commented that it was nice event. Secretary Schafer shared that the ISDOC meetings included a discussion about the Local Agency Formation Commission's (LAFCO's) Municipal Service Reviews (MSRs), homelessness in Orange County, and ISDOC membership. She noted that she will be the next Second Vice President of ISDOC. 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer noted that she will be traveling to Sacramento for CSDA next week. She also shared that she attended the Water Advisory Committee of Orange County (WACO) meeting and Vanguard University's groundbreaking ceremony. Discussion followed regarding the development on Vanguard's campus. Secretary Schafer added that she attended a Government Committee meeting for the Chamber of Commerce. 5. Special District Risk Management Authority (SDRMA) - (President Scheafer) President Scheafer noted that there was no SDRMA meeting in October. 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 President Scheafer shared that he attended the Orange County Council of Governments (OCCOG) meeting with Vice President Ferryman. He noted that there were presentations on the topics of solar panels and homelessness. Discussion followed regarding homelessness, Costa Mesa's anti-camping ordinance, and the Fairview Developmental Center. Assistant Secretary Ooten shared that he attended the ISDOC meeting today and heard the presentation regarding homelessness in Orange County. I. CLOSING ITEMS Discussion: 1. Oral Communications and Director Comments President Scheafer wished Secretary Schafer and Assistant Secretary Ooten good luck on the upcoming election for their seats on the Board of Directors. Discussion followed regarding the limitations on candidate sign placement in Costa Mesa. Procedural: 2. Adjourn President Scheafer adjourned the meeting at 6:35 P.M. C. ITEM To: Citizens Advisory Committee From: Scott Carroll, General Manager Date: November 14, 2018 Subject: First Quarter Budget Review for FY 2018-19 Summary This report serves as a summary of the District’s spending through September 30, 2018 as well as staff’s best estimate of projected balances for the year-ended June 30, 2019. Recommendation That the Citizens Advisory Committee receives and files this report. Analysis Based on the limited spending trends through September 30, 2018, staff is projecting to be on target in both the Solid Waste and Wastewater Funds. Please note, however, that projections with only three months or less of activity as the basis should not be relied upon. At this time of the year staff typically anticipates appropriations to be on budget at year-end. As the year progresses, these projections will become more precise. As of September 30, 2018, a total of 17.4% of the Solid Waste budget and a total of 24.3% of the Wastewater Fund’s operating budget for the 2018-19 fiscal year has been expended. Currently, the District is recruiting for two vacant Wastewater Maintenance Worker I positions. The Solar Panels project is expected to be completed by the second quarter. Special Programs and Operations and Maintenance are on track for the quarter; therefore, staff anticipates no budgetary savings at fiscal year-end. Please see the attached report for a more detailed analysis. Legal Review Not applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review See attached report. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the November 14, 2018 Citizens Advisory Committee meeting at District Headquarters and on District website. Alternative Actions 1. Refer the matter back to staff for additional information. Subject 4. First Quarter Budget Review for FY 2018-19 Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Action Recommended Action That the Citizens Advisory Committee receives and files this report. Goals 7.0 Finance File Attachments A-FY2018-19 First Quarter Budget Analysis .pdf (176 KB) B-Expenditure Analysis Through 09-30-2018.pdf (31 KB) C. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: November 14, 2018 Subject: A Comparison between City of Newport Beach and CMSD Solid Waste Contracts Summary Per direction received at the last Citizens Advisory Committee meeting, District staff has reviewed the City of Newport Beach residential trash contract to compare with CMSD's new solid waste contract. This report summarizes key similarities and differences between CMSD's and City of Newport Beach contracts with CR&R. Recommendation That the Citizens Advisory Committee receive and file this report Analysis Costa Mesa Sanitary District City of Newport Beach Contract Term 10 years – July 1, 2018 to June 30, 2028 7 years – March 31, 2014 to March 21, 2021 Option to Extend Two 5 year extensions following the initial term 3 years following the initial term Cost Adjustments Beginning 7/1/2019 CR&R may request a 2 year CPI increase – will not be automatic, will need to present their request to the Board of Directors for approval Beginning 7/1/2015 and all future years, CR&R may request an annual CPI Adjustment for disposal, fuel and all other costs not to exceed 5% annually. Carts New residents are entitled to two mixed waste carts and up to two organic carts (64 or 35 gallons) Any 3 cart of any kind is an extra $9 per month. Residents have the option to request carts 32, 64 or 96 gallons in size and as many as they need in quantity. Additionally, trash may be set out in bags, boxes or other containers. Trash Service Mixed waste cart (refuse and recyclables commingled) and an organic cart for green waste and food. Residents have option to participate in source separated recyclables program. City Retains option to transition to two-cart mixed waste and organics carts. CR&R’s compensation will increase by $77,115 per month ($925,380 per year) adjusted annually by CPI – capped at 2.5% per year Bulky Item Pickups Three large item pickups per calendar year with a maximum of 10 items at each pickup – No additional cost to residents or District Bulky Item Pickup – basic bulky item collection is unlimited for items weighing less than 50 lbs. (mattresses, couches, chairs and other small furniture). Enhanced Bulky Items – 4 times per year with a maximum of 4 items per collection (electrical appliances, sleeper couches) Subject 5. A Comparison between City of Newport Beach and CMSD Solid Waste Contracts Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Action, Receive and File Recommended Action That the Citizens Advisory Committee receive and file this report Goals 2.00 Solid Waste rd $500 a month paid by City Composting Event Annually Annually Christmas Tree Pickup Collecting trees from 12/26 past 1/6 every year For 3 weeks from 12/26 to 1/5 ADA Roll-out service With written doctor documentation – free of cost With written doctor documentation – free of cost Sharps Collection Program N/A – District has sharps collection boxes at 3 locations in City. CR&R provides residents with pre-paid mail- back containers to dispose of sharps - $2,083 a month paid by City Curbside HHW Collection Three pickups per calendar year – 25 gallons or 125 lbs. of HHW at each pickup No additional cost to residents or District On a call in basis $10,417 a month paid by City Community Shred Day N/A Two shred events each contract year Diversion Requirements Divert 50% of solid waste – will use its commercially reasonable efforts to achieve 75% diversion Divert 45% of solid waste – no more than 55% can go to the landfill Costs Occupancy Rate $9.7954 per household Recycling/Disposal Rate $51.97 per ton Organic Rate $71.50 per ton (guaranteed best rate) Monthly payments of: $304,220 for customer collection $500 Enhanced Bulky Item Collection $2,083 Sharps Collection Program $10,417 D2D HHW Program Payments to District/City CR&R will pay District $30,000 the first year and $35,000 every year thereafter to be adjusted annually by CPI to use for programs $35,000 a month for Transfer Station Operation Community Outreach Sustainability Coordinator will dedicate approximately 20 hours a week promoting CMSD programs Cart-to-Cart outreach Program N/A Other Services Must annually submit review of 33 OC Agencies net-to-hauler rates and justify rates as being within 10% of the average. 12 pickups per year of excess boxes or household furnishings left at a location vacated by resident. School Alkaline Battery Recycling Program – provides bins at school locations and lower battery disposal rate. Valet Service – for residents who don’t qualify for ADA Roll-out service they can pay $40 a month to roll-out their carts. CR&R pays for customer service studies to help city evaluate performance, no more than once every two years. Balboa Peninsula requires a second weekly collection on Saturday in the summer from Memorial Day to Labor Day Recently, CMSD consultant, Michael Balliet Consulting, LLC, received the City of Newport Beach active solid waste accounts and was able to recalculate the City's net-to-hauler rate, which is $14.32 per month (in the October 10 CAC staff report, the City's net-to-hauler rate was $13.74). CMSD's net-to-hauler rate is $17.88. Staff believes there are several factors the City of Newport Beach net-to-hauler rate is less than CMSD, which are described below. Newport Beach residents do not recycle green waste and/or organics (e.g. food scraps). CR&R is required to divert 45% of residential waste stream while at CMSD they're required to divert 50% and with reasonable efforts to achieve 75% diversion. The City of Newport Beach owns a solid waste transfer station at their Yard. The station is operated by CR&R staff. A transfer station reduces travel time to empty refuse truck loads. Recycling is not mandatory at the City of Newport Beach. Other differential factors between the City of Newport Beach and CMSD solid waste program is the City pays for the services from their General Fund, which is the same fund that pays for services such as police, fire, street maintenance, etc. Newport Beach residents do not receive a bill from CR&R for solid waste collection services nor do they have an assessment on their property tax roll like it's done at CMSD. However, on the City's municipal bill is a recycling fee of $3.00 a month per residential unit. The recycling fee pays for the Materials Recovery facility to separate and recycle trash that the residents commingle. Legal Review Not applicable Environmental Review A review of solid waste contracts 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 There is no financial impact. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the November 14, 2018 Citizens Advisory Committee meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Direct staff to report back with more information. C. ITEM To: Citizens Advisory Committee From: Scott Carroll, General Manager Date: November 14, 2018 Subject: Providing Solid Waste Services to Wastewater Customers Summary The Citizens Advisory Committee requested staff to place this item on the agenda for discussion. Recommendation That the Citizens Advisory Committee provide direction to staff. Analysis Below is a breakdown of how many homes in Newport Beach and the Santa Ana Heights area are receiving trash and sewer services from CMSD and how many of them are just sewer customers. The following link is a map of the District service boundaries. The Newport Beach areas that are not colored represent wastewater collection service only. http://www.cmsdca.gov/images/trash/TrashMapFINAL-4.png Trash & Sewer - Single Family 811 Units Trash & Sewer - Multi Family 140 Units Sewer Only - Single 830 Units Sewer Only - Multi-Family 778 Units Sewer Only - Commercial 116 Buildings Total: 2,675 In order for these Newport Beach residents to receive solid waste collection services from CMSD several factors have to be considered. 1. Objection from Newport Beach residents. Currently, Newport Beach residents that receive solid waste collection services from the City are not assessed or pay directly, via monthly bills, for said services because the City's charter requires the General Fund to pay for solid waste collection services. The General Fund is the same funds that pays for police, fire, parks and public works. Residents within CMSD service area will most likely object if they have to pay for this service, via assessments on their property tax roll. 2. Newport Beach City Council. The City Council would have to adopt a resolution approving CMSD providing the services to Newport Beach residents residing within the District's service area. 3. Local Agency Formation Commission (LAFCO). Every county in California has a LAFCO, which was created in 1963 when the State Legislature passed the Knox-Nisbet Act, as a way to improve regional planning and growth management. LAFCO's powers and responsibilities were substantively expanded in 2001 when the Legislature enacted the Cortese-Knox-Hertzberg Logoal Government Reorganization Act of 2000. LAFCO's must review and update spheres of influence every five years and prepare Municipal Service Reviews to evaluate the adequacy of service relative to current and future community needs. In short, LAFCO's have the power to dissolve, consolidate, incorporate, unincorporate and change boundaries for cities, the county and special districts. For more information about Orange County LAFCO, please visit www.oclafco.org. Before CMSD can provide solid waste collection services to Newport Beach residents residing within CMSD's service area CMSD must submit a proposal to OC LAFCO for approval consideration. The attachment describes the process in details, but a brief summation of the process is provided below. As mentioned in Number 2 above, the first step in the process is obtaining support from the Newport Beach City Council by adopting a resolution. CMSD Board of Directors must also adopt a resolution describing the organization's intent to expand its services. Subject 6. Providing Solid Waste Services to Wastewater Customers Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Action Recommended Action That the Citizens Advisory Committee provide direction to staff. CMSD will file an application and provide a service plan, maps, legal description, environmental findings, etc. OC LAFCO may perform a study to determine if the services provided by CMSD is more efficient and cost effective than the current service provider. OC LAFCO will hold a protest hearing with the residents that will be impacted by the proposed service change. If a majority protest exist, the proceedings are terminated and the status quo for solid waste collection service will remain. Legal Review Not applicable Environmental Review A review of solid waste and wastewater customers 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 The financial impact for the OC LAFCO process to expand services can be expensive. For instance, there is an initial deposit to OC LAFCO of $5,600 and there are costs for public noticing and publication, State Board of Equalization fees, compliance with California Environmental Quality Act (CEQA), verifying signatures Registrar of Voters, OC LAFCO staff and legal counsel, etc. It could cost as much as $20,000 for the process. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the November 14, 2018 Citizens Advisory Committee 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 LAFCO Annexation Process_2017_Resident.pdf (191 KB) C. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: November 14, 2018 Subject: Review Ordinance No. 122 - Amending Chapter's 7 and 8 of the Operations Code Pertaining to Solid Waste Summary On June 28, 2018, the Board of Directors approved a new solid waste agreement with CR&R Environmental Services. This new agreement introduces new services and terms that conflict with current language in the District's Operations Code. Staff is requesting the Citizens Advisory Committee review the proposed changes to Chapter's 7 and 8 of the Operations Code and provide feedback, if any. Recommendation That the Citizens Advisory Committee review Ordinance No. 122 - Amending Chapter's 7 and 8 of the Operations Code Pertaining to Solid Waste and recommend the Board of Directors adopt said ordinance. Analysis Attached is a copy of Ordinance No. 122 that identifies the recommended amendments (e.g. strike through and added texts). The amendments include moving all current definitions in Chapter 8, section 8.02.010 to chapter 2 so all definition can be found in one place. Other changes include updating basic service definition, updating the current 3rd container charge as well as adding a new section for the Door-to-Door Household Hazardous Waste program. In addition, existing section numbers were amended with the deletion of the definition section in chapter 8. After a review by the Citizens Advisory Committee, the ordinance will be presented to the Board of Directors for adoption in their regular meeting on November 29.. If approved, the amended code will go into effect 30 days after adoption. Legal Review District Counsel has reviewed and approved Ordinance No. 122 Environmental Review A review of solid waste ordinance 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 There are no fiscal impacts to the District for adopting Ordinance No. 122 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the November 14, 2018 Citizens Advisory Committee meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions 1. Do not adopt Ordinance No. 122 and direct staff to report back with more information. File Attachments Solid Waste Ordinance.pdf (58 KB) Ordinance No. 122 Final.docx (32 KB) Subject 7. Review Ordinance No. 122 - Amending Chapter's 7 and 8 of the Operations Code Pertaining to Solid Waste Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Action, Receive and File Recommended Action That the Citizens Advisory Committee review Ordinance No. 122 - Amending Chapter's 7 and 8 of the Operations Code Pertaining to Solid Waste and recommend the Board of Directors adopt said ordinance. Goals 2.00 Solid Waste D. Closing Items Subject 1. Board/Staff Comments Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Presentation D. Closing Items The next Citizens Advisory Committee meeting will be held on Wednesday, December 12, 2018 at 6:00PM at 290 Paularino Avenue, Costa Mesa. Subject 2. Adjournment Meeting Nov 14, 2018 - Citizens Advisory Committee Access Public Type Procedural