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agendapacket_2019_05_16_cacThursday, May 16, 2019 Citizens Advisory Committee Special Meeting WHEN: Thursday, May 16, 2019, 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 2. Roll Call 3. Public Comments - Speakers will be limited to three minutes. The three minutes per speaker time allotted may be extended for good cause by a majority vote of the committee). 4. Ceremonial Matters - Introduction of new CAC members Judith Gielow, Judith Takaya, Steven Takahashi and recognizing the reappointment of Sue Lester and Monte Fields to the CAC. B. ITEM 1. Approve the Joint Board of Directors and Citizens Advisory Committee Meeting Minutes of March 13, 2019 2. Approved Board of Directors Special Meeting Minutes of March 28, 2019 3. Draft Board of Directors Regular Meeting Minutes of April 25, 2019 4. Preliminary Budget Review For FY 2019-2020 and FY 2020-2021 5. Alkaline Battery Recycling Program - Final Report 6. 2019 Compost & Donation Event 7. Consider Appointing Two CAC Members to Serve on the Policy Review Ad Hoc Committee 8. 2019 Topics to be Discussed at Future CAC Meetings 9. Consider Rescheduling Standard Meeting Day and Time for CAC Meetings C. CLOSING ITEMS 1. Committee Member & Staff Comments 2. Adjournment Thursday, May 16, 2019 Citizens Advisory Committee Special Meeting WHEN: Thursday, May 16, 2019, 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 Subject 1. Call to Order Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Procedural A. OPENING ITEMS Mike Carey, Chair Albert Graham, Jr., Vice Chair Andrew Nielsen Elodie Katz Judith Gielow Judith Takaya Mike McIlroy Monte Fields Phil Marsh Steven Takahashi Sue Lester Subject 2. Roll Call Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Procedural A. OPENING ITEMS Subject 3. Public Comments - Speakers will be limited to three minutes. The three minutes per speaker time allotted may be extended for good cause by a majority vote of the committee). Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Procedural A. OPENING ITEMS Subject 4. Ceremonial Matters - Introduction of new CAC members Judith Gielow, Judith Takaya, Steven Takahashi and recognizing the reappointment of Sue Lester and Monte Fields to the CAC. Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Presentation B. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: May 15, 2019 Subject: Joint Board of Directors and Citizens Advisory Committee Meeting Minutes of March 13, 2019 Summary The recorded minutes of the March 13, 2019 Joint Board of Directors and 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 Joint Board of Directors and Citizens Advisory Committee Meeting on March 13, 2019. 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 May 15, 2019 Joint Board of Directors and 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_2019_03_13_cac.pdf (69 KB) Subject 1. Approve the Joint Board of Directors and Citizens Advisory Committee Meeting Minutes of March 13, 2019 Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Action, Minutes Recommended Action That the Citizens Advisory Committee approves the meeting minutes as presented. Minutes View Minutes for Mar 13, 2019 - Joint Board of Directors and Citizens Advisory Com B. ITEM Board of Directors Special Meeting (Thursday, March 28, 2019) Members present Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent Arlene Schafer Staff present Scott Carroll (General Manager), Alan Burns (District Counsel), Robin Hamers (District Engineer), Marc Davis (District Treasurer), Noelani Middenway (District Clerk), Kaitlin Tran (Senior Accountant), Dyana Bojarski (Management Analyst II), Gina Terraneo (Management Analyst II) Others present Sue Lester (resident, Citizens Advisory Committee), Jim Mosher (resident), Mayor Katrina Foley (Costa Mesa), Tammy Letourneau (City of Costa Mesa) Meeting called to order at 4:31 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - President Ferryman President Ferryman called the special meeting to order at 4:31 P.M. Procedural: 2. 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 President Ferryman, Vice President Ooten, Director Scheafer, and Director Perry were present. She noted that Secretary Schafer was absent and excused from the meeting. Procedural: 3. Additions/Deletions to Closed Session None. Procedural: 4. Public Comments on Closed Session Items President Ferryman opened public comments. Seeing no one wishing to speak, he closed public comments. Procedural: 5. Recess to Closed Session President Ferryman adjourned the meeting to closed session at 4:33 P.M. to discuss the public employee performance evaluation of General Manager, Scott Carroll. B. CLOSED SESSION President Ferryman adjourned the closed session and recessed at 4:53 P.M. He noted that there was nothing to report from the closed session. Subject 2. Approved Board of Directors Special Meeting Minutes of March 28, 2019 Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Minutes Minutes View Minutes for Mar 28, 2019 - Board of Directors Special Meeting C. RECONVENE THE REGULAR MEETING OF THE COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS - 5:30 P.M. Procedural: 1. Pledge of Allegiance - President Ferryman President Ferryman reconvened the regular meeting at 5:29 P.M. and led the Pledge of Allegiance. Procedural: 2. Invocation - Vice President Ooten Vice President Ooten led the invocation. Procedural: 3. 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. Mr. Carroll noted that written communications were received from Jim Mosher, a Costa Mesa Sanitary District resident. He added that copies of these comments were provided for the Board and the public. D. CEREMONIAL MATTERS & PRESENTATIONS Presentation: 1. Recognizing Newport-Mesa Unified School District’s Early College High School for being named a 2019 California Distinguished School President Ferryman presented two proclamations recognizing the Newport-Mesa Unified School District (NMUSD) and Early College High School for being named a 2019 California Distinguished School. He noted that there were no representatives from these entities present to accept the proclamations. Presentation: 2. Recognizing the Citizens Advisory Committee Members for their Service President Ferryman presented a certificate of achievement to Sue Lester, a Citizens Advisory Committee (CAC) member, to recognize the completion of her first CAC term. He commended Ms. Lester on her contributions to the CAC. Director Perry asked how the proclamations will be delivered to NMUSD and Early College High School. Mr. Carroll noted that President Ferryman can attend an NMUSD Board Meeting to present the proclamations. E. PUBLIC COMMENTS Procedural: 1. Public Comments President Ferryman opened public comments. Seeing no one wishing to speak, he closed public comments. F. 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 February 12, 2019 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 February 28, 2019 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2019-9 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2019-9 approving District warrants for the month of February 2019 in the amount of $324,913.21. Action (Consent): 5. 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): 6. Payroll Transparency Disclosure for February 2019 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 $162,812.81 for February 2019 recycling and disposal services in the March 2019 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $162,812.81 for February 2019 recycling and disposal services to be ratified in the March 2019 warrant register. Action (Consent): 8. Accept the occupancy count as presented as 22,765 and direct staff to prepare a warrant to CR&R Environmental Services for $222,992.28 for February 2019 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,765 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for February 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $222,992.28 to be ratified in the March 2019 warrant list. Action (Consent): 9. Adopt Resolution No. 2019-912 Ordering that Publication of Ordinance No. 121 has Occurred Recommendation: That the Board of Directors Adopt Resolution No. 2019-912 Ordering that Publication of Ordinance No. 121 has Occurred. Action (Consent): 10. Adopt Resolution No. 2019-913 Ordering that Publication of Ordinance No. 122 has Occurred Recommendation: That the Board of Directors Adopt Resolution No. 2019-913 Ordering that Publication of Ordinance No. 122 has Occurred. Action (Consent): 11. Adopt Resolution No. 2019-914 Ordering that Publication of Ordinance No. 123 has Occurred Recommendation: That the Board of Directors Adopt Resolution No. 2019-914 Ordering that Publication of Ordinance No. 123 has Occurred. Action (Consent): 12. Receive and File 2018 Annual Health Benefits Broker Fees Report Recommendation: That the Board of Directors receive and file the report. Action (Consent): 13. Contracts Signed by General Manager Recommendation: That the Board of Directors receive and file this report. Action (Consent): 14. Approve the Investment Report for the Month of February 2019 Recommendation: That the Board of Directors approve the Investment Report for the month of February 2019. Motion: That the Board of Directors approve the Consent Calendar as presented. Motion by Bob Ooten, second by Mike Scheafer. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Director Scheafer asked if the warrant registers under Item F4 include a questionable charge from Edison that District staff previously discussed. Mr. Carroll replied that the item does include the Edison charge and noted that District staff will follow up on this issue. Director Scheafer requested an update on this issue at the next Study Session. There was no further discussion. G. GENERAL MANAGER'S REPORTS Action: 1. Citizens Advisory Committee (CAC) March 13, 2019 Meeting Overview Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented an overview of the March 13, 2019 CAC Meeting and welcomed questions. Director Scheafer inquired about the meeting attendance. Mr. Carroll noted that all CAC members were present, except for Chair Carey. Director Perry asked if the CAC discussed changing their meeting schedule due to Chair Carey's scheduling conflict. Mr. Carroll noted that the CAC decided to resume their discussion about the meeting schedule at the May meeting, when Chair Carey and the newly appointed CAC members are present. President Ferryman shared that Secretary Schafer is not present at this meeting due to an accident. He noted that she is stable and recovering. There was no further discussion and the report was received. Action: 2. Consider Appointing Five Members to the Citizens Advisory Committee to Serve a Two-Year Term Ending March 2021 Recommendation: That the Board of Directors appoint five members to the Citizens Advisory Committee to serve a two-year term ending March 2021. Ms. Middenway noted that the terms of 5 CAC members ended and the District welcomed applications for these vacancies. She thanked the 5 outgoing members (Jana Oak, Monte Fields, Shayne Smith, Sue Lester, and Tom Brenneman) and noted that the District received 9 applications for the vacant CAC seats. She presented the applications submitted by Jack Conness, Monte Fields, Judith Gielow, Sue Lester, Martin Quinn, Steven Takahashi, Judith Takaya, Rebecca Trahan, and Olga Reynolds for the Board's review and consideration. Director Scheafer noted that 2 of the 5 outgoing members submitted applications for reappointment. Motion: To appoint Monte Fields, Judith Gielow, Sue Lester, Steven Takahashi, and Judith Takaya to serve a two-year term on the CAC ending March 2021. Motion by Mike Scheafer Vice President Ooten noted that his list of nominees incudes Monte Fields, Judith Gielow, Sue Lester, Steven Takahashi, and Jack Conness. Amended Motion: To appoint Monte Fields, Judith Gielow, Sue Lester, and Steven Takahashi to serve a two-year term on the CAC ending March 2021. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Director Perry commented that Judith Tayaka attended one of the District's Town Hall Meetings for its Solid Waste Rate Study. He commented that he supports her nomination because she showed a great interest. Motion: To appoint Judith Takaya to serve a two-year term on the CAC ending March 2021. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Ms. Middenway restated the five appointed CAC members. There was no further discussion. Action: 3. Consider Approving General Manager's 2019 Performance Goals Recommendation: That the Board of Directors approve the General Manager's 2019 Performance Goals. Mr. Carroll noted that he presented his 2019 Performance Goals at the last Board Meeting and the Board had revisions. He noted that the Board's revisions are reflected here and he is seeking approval of the updated goals. Motion: To approve the General Manager's 2019 Performance Goals. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer President Ferryman commented that the Board feels that Mr. Carroll has done a great job and should be rewarded. Director Scheafer asked when the Board can discuss Mr. Carroll's compensation. District Counsel, Alan Burns, noted that the Board can discuss Mr. Carroll's compensation under Item J1. There was no further discussion. Action: 4. Consider Approving Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station Recommendation: That the Board of Directors approves the Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station. Mr. Carroll presented the proposed site access and license agreement and explained that the Board approved a previous agreement for this odor control treatment facility in 2017. He noted that the City of Costa Mesa owns the property on which the facility lies; however, the City was not included in the 2017 agreement. He added that the City will consider deeding the property to the District. Director Perry asked if it would be premature to approve the agreement now. Mr. Carroll responded that the District can approve this agreement now and wait to see what the City decides to do with the property. Director Scheafer confirmed that the odor treatment facility was created as a proactive measure by Orange County Sanitation District (OCSD) rather than a reaction to odor complaints directed at Mendoza Pump Station. District Engineer, Robin Hamers, noted that the facility is meant to treat odors from OCSD's trunk line located on Baker Street. Discussion followed regarding OCSD's trunk system, OCSD's odor monitoring, and previous odor complaints at the District's California Pump Station. Motion: To approve the Site Access and License Agreement with Orange County Sanitation District and City of Costa Mesa for a Permanent Odor Control Treatment Facility at Mendoza Pump Station. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 5. Consider Approving sending Steve Cano, Wastewater Superintendent and Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri-State Seminar in Las Vegas, Nevada Recommendation: That the Board of Directors approve sending Steve Cano, Wastewater Superintendent and Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri-State Seminar in Las Vegas, Nevada on August 6-8, 2019. Mr. Carroll described the Tri-State Seminar and noted that it is a large conference for water and wastewater professionals. Motion: To approve sending Steve Cano, Wastewater Superintendent and Jose (Tony) Gomez, SCADA Technician/Industrial Electrician to the 34th Annual Tri-State Seminar in Las Vegas, Nevada on August 6-8, 2019. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Director Perry requested that Mr. Cano and Mr. Gomez provide an overview of the conference to the Board at the Study Session following their attendance. There was no further discussion. Action: 6. Solar Photovoltaic System at CMSD HQ - Accept Improvements, File Notice of Completion, Exonerate Bonds Recommendation: The Board of Directors approves the following action: 1. Accept improvements as completed and file a Notice of Completion. 2. Authorize payment of 5% retention 35 days after Notice of Completion is recorded. 3. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Mr. Carroll shared that the installation of the solar photovoltaic system is complete and noted that the District has seen a decrease of approximately 45% in its energy costs at District Headquarters. He added that the project was under budget and District staff is now seeking Board action to accept improvements, file a notice of completion retention, and exonerate bonds. Motion: To approve the following: 1. Accept improvements as completed and file a Notice of Completion. 2. Authorize payment of 5% retention 35 days after Notice of Completion is recorded. 3. Exonerate Labor and Material Bond 35 days after Notice of Completion is recorded and exonerate Faithful Performance Bond one year after Notice of Completion is recorded. Motion by Art Perry, second by Mike Scheafer. Director Scheafer confirmed that the roof improvements were also completed. Vice President Ooten requested the electricity bill amounts. Mr. Carroll shared that the bill from November 2018 was $1,169.50 and the bill from December 2018 was $648.33. Discussion followed regarding an Edison bill for the District Yard facility that District staff will be looking into. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 7. Consider Directing Staff to Budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter Recommendation: That the Board of Directors consider directing staff to budget $50,000 in the FY 2019-20 and FY 2020-21 Budget for the restrooms at the permanent bridge shelter. Mr. Carroll noted that the Board approved contributing $50,000 toward the City of Costa Mesa's portable restroom at their temporary bridge shelter. He explained that this item involves contributing an additional $50,000 toward the City of Costa Mesa's permanent bridge shelter restrooms. He noted that the shelter is anticipated to be open in one year. Mr. Carroll reminded the Board that when considering any contribution, the Board must establish the purpose that the District is trying to serve with the contribution and explain how the contribution would advance the District's purpose. He noted that the contribution can establish the District's purpose of safely collecting and disposing wastewater by removing individuals from the streets that compromise sanitary conditions by relieving themselves in public. He added that the contribution can advance the District's purpose because the restrooms would prevent the homeless population from causing unsanitary conditions in the community. Lastly, Mr. Carroll noted that the Board can also contribute a lesser amount than $50,000. Director Scheafer asked Mr. Burns to elaborate on his legal review of the item. Mr. Burns explained that the District has the authority to plan, maintain and operate sewers, drains, and septic tanks, and to engage in sewage collection. He noted that this authority does not extend to paying for ongoing sewage bills for a restroom facility, but it could allow the District to fund the permanent facility under the Health & Safety Code. He added that the Board of Directors should make a finding on the matter of how the contribution would advance the District's purpose. Director Scheafer asked what the $50,000 would be used to pay for. Mr. Carroll invited representatives from the City of Costa Mesa to address this question. He noted that it would likely be used to pay for restroom maintenance, operations, and supplies. Director Scheafer asked if the District has any provisions to waive sewer fees for the City. Mr. Burns noted that the City would be assessed for sewer collection services under Proposition 218 and these fees cannot be waived by the District. Mr. Carroll noted that he does not know exactly how much the City would pay in sewer assessment fees for this facility. Director Scheafer commented that $50,000 seems like a lot of money for sewer fees. Costa Mesa Mayor, Katrina Foley, explained that the City is trying to make the streets safer and get individuals housed in an effort to address public sanitation issues. She noted that the permanent shelter facility will have bathrooms and showers, which the $50,000 would be used toward building and maintaining. She added that the City is investing $10 million in the facility, and she commented that the City would appreciate anything that the District can contribute because it is an investment in the quality, health, and safety of the community. Mr. Hamers confirmed that the District cannot waive sewer fees for restroom facilities that are permanently connected to its sewer system. He noted that the City also pays sewer fees for other parks and facilities that they own. Mayor Foley noted that the City is not requesting for sewer fees to be waived, but rather they are requesting a contribution for the building and maintenance of restroom facilities. Director Scheafer commented that from a personal perspective, he would like to contribute; however, as a guardian of ratepayer funds, he does not feel that he can make a decision without more specific information about how the requested funds will be spent. Mayor Foley explained that the property itself is costing the City $6.9 million and tenant improvements will cost approximately $3 million, which will include the building of a kitchen, laundry facilities, restrooms, and showers. She noted that the funds would be used toward the tenant improvements for the addition of restrooms to the facility. Director Scheafer commented that he does not support budgeting $50,000 per year for the next 2 years. He noted that he would like to see the District contribute $50,000 for the first year only, given that the funds are used for Mayor Foley's stated purpose. He added that the Board can revisit the additional request next year once the results of the first contribution are known. Mayor Foley noted that the City is dipping into its reserves to pay for the permanent shelter. She added that the City is not receiving county, state, or federal funding for the shelter, and she noted that she is fundraising for private donations for the project as well. She also noted that the request was broken down into 2 annual requests of $50,000 as opposed to 1 request for $100,000 in an effort to be less impactful on the District's budget. Director Perry indicated agreement with Director Scheafer. Director Scheafer confirmed that the City is receiving private donations for the shelter through the Costa Mesa Foundation. Mayor Foley requested that the District share the link on the City's website for donations. Director Scheafer commented that the Board has been proactive in its desire to help the City with addressing the issue of homelessness, thanks to the leadership of President Ferryman. Mr. Mosher commented that the shelter is an excellent and much needed project that is a worthy endeavor for a general purpose agency like the City. He commented that he does not think the District has the legal power to spend its funds on a contribution toward this project. He noted that to his knowledge, all the District's money is derived from sewer assessment fees that were previously discussed, which are assessed in order to give property owners a way to dispose of liquid and solid waste. He noted that districts must go through the Prop 218 process, which limits the ways that the District can spend its money. Mr. Mosher referenced his written comments, which state 4 conditions from the California Constitution that limit what a district can use its revenues for. He commented that he does not believe this contribution meets the 4 conditions. He noted that perhaps the District can identify other funds that it receives that are not derived from fees. Mr. Mosher noted that staff from the City of Newport Beach explained that their wastewater fund would never be used for a general purpose such as a public restroom. Mr. Burns responded that not all District services are covered under Prop 218, including special programs like the Sharps Disposal Drop Box. He noted that the District has other sources of revenue, such as general property tax revenue that is unrestricted. He commented that to say that all District funds are Prop 218 funds would be incorrect. District Treasurer, Marc Davis, confirmed that the property tax revenues that the District receives are in the Solid Waste Fund, and they should be used for solid waste purposes. Mr. Burns noted that the property tax revenues are not legally restricted to be used for solid waste purposes. He noted that they can be placed in either fund (wastewater or solid waste) for budgeting purposes. Ms. Lester commented that homelessness is a significant issue in the city. She stated that as a resident she supports the recommendation, as long as the District can legally make the contribution. She also shared appreciation for Mr. Mosher's input. Mr. Burns reiterated that the Board must make a finding to support the purpose of the contribution. Director Scheafer commented that the City can also place a plaque outside the restroom to acknowledge the District's contribution. Motion: To direct staff to budget $50,000 in the FY 2019-20 Budget for the restrooms at the permanent bridge shelter. Motion by Mike Scheafer, second by Bob Ooten. Director Perry asked Mr. Davis how much the District collects in state property taxes. Mr. Davis noted that the District gets approximately $250,000 per year in unrestricted revenues, which have been used for solid waste rate stabilization in past years. He noted that these funds have been accounted for in the Solid Waste Fund since he's been with the District, but he noted that they can probably be accounted for in a General Fund if the Board wished to have a General Fund. President Ferryman noted that a finding needs to be made. Mr. Burns noted that the courts will generally defer to the Board's judgement, as long as it is based on any reasonable evidence. Amended Motion: To direct staff to budget $50,000 of unrestricted funds in the FY 2019-20 Budget for the restrooms at the permanent bridge shelter, based on the finding that the contribution will enhance public health and sanitation and contingent upon the District receiving recognition for the contribution. Motion by Mike Scheafer, second by Bob Ooten. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Director Scheafer noted that this item should be brought back to the Board next year for discussion of the additional $50,000 request. Vice President Ooten requested that the District's upcoming community survey include a question to gage the public's response to this contribution. There was no further discussion. Action: 8. Consider Sponsoring State of the City Luncheon with Mayor Katrina Foley Recommendation: That the Board of Directors consider being a Silver Sponsor to the State of the City Luncheon with Mayor Katrina Foley for $1,500. Mr. Carroll presented the contribution request from the Costa Mesa Chamber of Commerce for the sponsorship of the State of the City Luncheon in the amount of $1,500. He reiterated the requirement of establishing the purpose that the District wishes to serve by making the contribution. He added that the Chamber of Commerce has agreed to place a statement promoting the Organics Recycling Program under the District's logo, which can be identified as the established purpose for the contribution. Director Perry indicated that he does not support giving this level of contribution to the Chamber of Commerce. Director Scheafer indicated agreement with Director Perry. He noted that the District has been consistent on taking this approach for the last several years. Ms. Lester commented that the District is not listed as a Chamber member on the Chamber's website. The Board noted that the District is a member of the Chamber. Ms. Lester indicated concern about contributing to an entity that does not recognize the District's membership publicly. She also noted that the luncheon attendees will mostly be businesses, which the District only services for wastewater collection. She commented that it seems like this contribution would support buying lunch for the attending District representatives in exchange for a brief mention at the event and on social media. Ms. Lester noted that the District is raising its solid waste rates significantly and it seems that there could be a better use for these funds, especially since it is not budgeted. Lastly, she commented that the Board receives compensation for attending meetings, which could create a scenario in which ratepayer funds are used to compensate the Board for the attendance of the luncheon and also for the sponsorship that covers the cost of their lunch. Director Scheafer commented that the Board does not place ceremonial functions, such as the State of the City, on their stipend reports. Ms. Lester indicated appreciation to Director Scheafer for his comment, but noted that she does not think the contribution is a good idea. Director Scheafer noted that whether or not the District sponsors the event, the Board would like to attend the luncheon. Mayor Foley commented that she did not know this item was on tonight's agenda. She commented that she hopes the Board attends the luncheon, whether or not they decide to sponsor it. She added that the District can provide her with any information that they would like her to include in the presentation regarding the District. Director Scheafer requested that Mayor Foley mention the District contributions for the shelter restrooms. Vice President Ooten commented that the District and the City should work together to meet their landfill diversion goals. Motion: To decline sponsoring the State of the City Luncheon. Motion by Mike Scheafer Substitute Motion: To approve a Silver Sponsorship to the State of the City Luncheon with Mayor Katrina Foley for $1,500. Motion by Bob Ooten This motion died due to lack of a second. Director Perry indicated support for Director Scheafer's motion and noted that he is not available to attend the luncheon. President Ferryman also indicated support for Director Scheafer's motion and noted that he will be attending the luncheon. Motion: To decline sponsoring the State of the City Luncheon. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 3-1-1 with Secretary Schafer not present Aye: Art Perry, Jim Ferryman, Mike Scheafer No: Bob Ooten Director Scheafer requested that District staff contact the Chamber of Commerce to ensure that the District is listed as a member on their website. There was no further discussion. H. 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. Hamers shared that District staff will bring the Board the President Pump Station alternatives and resident feedback at the April Study Session. He also noted that construction is nearly ready to begin on Canyon Pump Station. Director Scheafer asked if the cul-de-sac option for President Pump Station was abandoned. Mr. Carroll noted that a survey with photo simulations of each alternative was sent to residents and the District received 6 responses so far: 4 against the cul-de-sac alternative and 2 in favor of the cul-de-sac alternative. He added that the CAC opposed the cul-de- sac alternative. There was no further discussion and the report was received. Action: 2. 2277 Harbor Blvd., Costa Mesa Approval in Concept of District Sewer Main and Easement Vacation/Quitclaim Recommendation: The Board of Directors: 1. Approve in concept the developer request to vacate the sewer main and bring the matter back with a procedure and formal vacation documents. 2. Have the attorney for the District consider an indemnification agreement protecting the District for any claim associated with removing the sewer main. Mr. Hamers noted that the property owner of 2277 Harbor Blvd. is requesting that the District vacate the easement and sewer main on the property, which will be turned into a high density apartment complex. He noted that the Board is being asked to approve the recommendation in concept, with the next step being to assign the engineer for the developer to prepare appropriate legal documents and bring the item back to the Board formally at a future meeting. Director Scheafer asked if the easement is integral to the District's sewer system. Mr. Hamers noted that the easement is not integral to the system because it has only been used for the private property and a neighboring private property. Director Scheafer asked if it has any relationship to the Fairview Development Center. Mr. Hamers noted that the developer is being required to do a flow monitoring study in the Harbor Blvd. line and the District has not yet seen the results. He noted that he believes there will be available capacity for the development. Motion: To approve in concept the developer request to vacate the sewer main and bring the matter back with a procedure and formal vacation documents, and to have the attorney for the District consider an indemnification agreement protecting the District for any claim associated with removing the sewer main. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. I. TREASURER'S REPORTS Nothing to report. J. ATTORNEY'S REPORTS Action: 1. Consider Approving the Second Amendment to the General Manager's Employment Agreement Recommendation: That the Board of Directors considers approving the Second Amendment to the General Manager's Employment Agreement. Mr. Burns presented the Second Amendment to the General Manager's Employment Agreement for the Board's consideration. He noted that the District is required to present an oral report on this item prior to approving the written report, as a result of requirements created after the City of Bell scandal. He noted that the agreement includes a compensation adjustment of 3% incentive pay based on the General Manager's salary, which amounts to $5,471 (one-time, non base building, and non-PERSable), and up to $25 per month for a health club or gym membership of choice. Mr. Burns noted that Mr. Mosher provided written comments in which he correctly identifies that the District generally cannot pay an employee retroactively for work that has been performed; however, he noted that the constitutional provision has been qualified by the provision that an amount can be awarded to ensure continued loyalty and employment. He noted that the California Supreme Court upheld 2 cases recognizing that these kinds of payments may be required to ensure employee loyalty. Mr. Burns concluded therefore that this would be a legal payment. Mr. Mosher thanked Mr. Burns for his clarification. He noted that the contract gives the Board the right to change the General Manager's compensation or benefits after each annual review and suggested that the Board do this instead of providing incentive pay. He commented that this seems more logical. Vice President Ooten suggested amending the contract to include the Board's ability to give incentive pay. Director Scheafer noted that the Board already has the authority to give incentive pay by law, so he does not support amending the contract. President Ferryman indicated agreement with Director Scheafer. Motion: To approve the Second Amendment to the General Manager's Employment Agreement. Motion by Mike Scheafer, second by Art Perry. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 2. Consider Adopting Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment Recommendation: That the Board of Directors adopt Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment. Mr. Burns presented Ordinance No. 124, which gives the General Manager the authority to approve minor refunds (under $5,000) and disposal of surplus equipment. He noted that a provision was added to restrict employees from bidding on surplus property. He noted that Mr. Mosher suggested that the added provision be applied to contractors also, which can be added if the Board would like. Vice President Ooten shared that OCSD sought to donate old computers to schools, but they were told that this was considered a gift of public funds. He noted that the computers had to be auctioned off and asked if this provision is included in Ordinance No. 124. Mr. Burns noted that the ordinance gives the Board the authority to dispose of surplus equipment in a way that is of public benefit. He added that this may give the Board authority to donate equipment in the way that OCSD sought to, but he noted that he has not researched it to that extent. Mr. Mosher commented that it is the Board's responsibility to have the ordinance finalized in a way that is acceptable to them. He noted that the Board requested that the General Manager provide a monthly report indicating any refunds given or surplus equipment disposed of. He commented that it would be reasonable for this monthly report to be included in the ordinance. Mr. Mosher also indicated concern that the ordinance seems to give the General Manager a broad authority to give refunds to anyone who has paid the District any amount of money without being required to indicate why the refund is being given. He noted that the CAC also indicated confusion about the language in the ordinance regarding which types of refunds can be given. He explained that the authority to give refunds is already communicated in a number of places in the Operations Code, and therefore he suggested using the following statement: "The General Manager may, with notification to the Board, make any of the refunds described in the Operations Code, provided the amount of the refund is $5,000 or less." Mr. Burns commented that the standard that the District wants for refunds is a broad statement that encompasses all refunds, not just wastewater and solid waste refunds. He noted that the only other qualifiers include that the refund must be under $5,000 and that it meets all other legal requirements. President Ferryman concurred that this reflects the desire of the Board. Mr. Burns commented that he believes that the ordinance reads correctly as is. Director Scheafer indicated support for the ordinance as is. Motion: To adopt Ordinance No. 124 - Authority for Minor Refunds and Disposal of Surplus Equipment. Motion by Mike Scheafer, second by Art Perry. Vice President Ooten reiterated his desire to see a monthly report indicating all refunds given and surplus equipment disposed of. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 3. Consider Adopting Ordinance No. 125 - Establishing Regulations for District Facilities Recommendation: That the Board of Directors adopt Ordinance 125 - Establishing Regulations for District Facilities. Mr. Burns presented Ordinance No. 125, which would give the General Manager the authority to set hours of operation for District facilities and the ability to designate restricted areas within the facilities. He noted that the primary purpose of this ordinance is to allow the General Manager to alter District hours during holidays and to protect the District Yard from public access. Mr. Mosher commented that there are different types of hours of operation, including those at the District Yard facility, those for District Headquarters employees, and those for the Headquarters to remain open to the public. He noted that while the hours of the employees may be appropriate for the General Manager to change, it is a matter of public interest when the hours of public access to the Headquarters are changed. He commented that he does not believe the Board should give away the responsibility to oversee the hours of ratepayer access to the District. Additionally, Mr. Mosher noted that the Board was previously told that Mr. Burns accepted Mr. Mosher's suggested changes to Ordinances 124 and 125, which Mr. Burns refuted in memos attached to both staff reports. Vice President Ooten commented that the way for the Board to retain authority in this case is for the General Manager to report any changes made to the hours. He noted that historically this has only occurred during the holidays. He noted that the ordinance prevents the need for discussion, since the report can be placed on the Consent Calendar. Director Scheafer noted that the ordinance prevents the need for the Board's approval of any changes in hours. He asked if the public had any negative reactions to the District closing every other Friday. Mr. Carroll noted that the District did not receive public complaints in reaction to this change. Director Scheafer noted that the wastewater crews are on-call in case of emergencies. He further clarified that Vice President Ooten supports the ordinance, as long as Mr. Carroll provides notification of any changes made to the hours. Mr. Burns clarified that the Board would be notified of any changes, but they would not have the ability to vote on the change. He added that if the Board wishes to retain this authority, the ordinance will have to be changed. Ms. Lester confirmed that the District notifies the public when there are changes to their hours. She added that she supports the designation of restricted areas for the purpose of protecting staff and the public. Motion: To adopt Ordinance No. 125 - Establishing Regulations for District Facilities. Motion by Mike Scheafer, second by Art Perry. Director Scheafer noted that the District has a visible social media presence and any changes to the hours are announced to the public. Discussion followed regarding the importance of protecting the public from hazards associated with entering the District Yard facility. Final Resolution: Motion Carries 4-0-1 with Secretary Schafer not present Aye: Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. K. 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. Information: 1. Orange County Sanitation District (OCSD) - (President Ferryman) President Ferryman shared updates regarding the expansion and rehabilitation of OCSD's Plant 1 and a property that they are in the process of selling. Vice President Ooten also shared that 2 long-time employees were recognized at the meeting. Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry noted that he and President Ferryman did not attend SARFPA due to tonight's closed session. Information: 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Director Scheafer shared that Orange County Local Agency Formation Commission (OC LAFCO) dues were discussed at ISDOC, along with ISDOC's participation in the Special District Leadership Foundation (SDLF) scholarship program. Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer) Secretary Schafer was not present to report on CSDA. Information: 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Director Scheafer shared that Safety Education Day was held in Sacramento last Tuesday and will continue to be held in Sacramento. Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Vice President Ooten shared that he attended the Water Advisory Committee of Orange County (WACO) meeting, which included a presentation about climate change. Director Perry shared that he attended the District's 75th Anniversary Ad Hoc Committee Meeting and the Committee finalized the postcards that were made in partnership with the Costa Mesa Historical Society. He added that the Committee will not meet again until next fiscal year. He also shared that he attended a City Council Meeting. L. OLD BUSINESS None. M. NEW BUSINESS None. N. REPORT ON CLOSED SESSION ACTIONS Receive and File: 1. Report on Closed Session Actions President Ferryman reiterated that there was no reportable action from the closed session. O. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Director Scheafer wished Secretary Schafer a speedy recovery. P. CLOSING ITEMS Procedural: 1. Adjourn President Ferryman adjourned the meeting at 7:23 P.M. B. ITEM DRAFT Board of Directors Regular Meeting (Thursday, April 25, 2019) Members present Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Members absent None Staff present Scott Carroll (General Manager), Alan Burns (District Counsel), Robin Hamers (District Engineer), Marc Davis (District Treasurer), Noelani Middenway (District Clerk), Kaitlin Tran (Finance Manager), Dyana Bojarski (Management Analyst II) Others present Jim Mosher (resident), Saundra Jacobs (Santa Margarita Water District, Independent Special Districts of Orange County), Claudia Perez-Figueroa (CEPA Participant, Senior Field Representative for Assemblywoman Cottie Petrie- Norris), Michele Dulson (CEPA Participant), George Berg (CEPA Participant), Oliver Sheldon (CEPA Participant), Nancy Kunst (CEPA Participant), Judith Gielow (CEPA Participant), Doug Johnson (Ralph Andersen & Associates) Meeting called to order at 5:30 P.M. A. OPENING ITEMS Procedural: 1. Call to Order - President Ferryman President Ferryman called the meeting to order at 5:30 P.M. Procedural: 2. Pledge of Allegiance - President Ferryman President Ferryman led the Pledge of Allegiance. Procedural: 3. Invocation - Vice President Ooten Vice President Ooten 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. 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. B. CEREMONIAL MATTERS AND PRESENTATIONS Subject 3. Draft Board of Directors Regular Meeting Minutes of April 25, 2019 Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Minutes Minutes View Minutes for Apr 25, 2019 - Board of Directors Regular Meeting Procedural: 1. Presentation of a Proclamation Recognizing the week of May 5 through May 11, 2019 as Municipal Clerks Week President Ferryman presented District Clerk, Noelani Middenway, with a proclamation recognizing the week of May 5 through May 11, 2019 as Municipal Clerks Week. Procedural: 2. Presentation of Certificates of Completion to the Citizens Environmental Protection Academy Spring 2019 Attendees President Ferryman presented Certificates of Achievement to Claudia Perez-Figueroa, Michele Dulson, George Berg, Oliver Sheldon, Nancy Kunst, and Judith Gielow to acknowledge their participation in the Spring 2019 Citizens Environmental Protection Academy. C. PUBLIC COMMENTS Procedural: 1. Public Comments President Ferryman opened public comments. Saundra Jacobs, Board President of Santa Margarita Water District and President of the Independent Special Districts of Orange County, announced her candidacy for the Orange County Local Agency Formation Commission and requested the Board of Directors' support. Seeing no one else wishing to speak, President Ferryman closed public comments. D. 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 March 12, 2019 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent), Minutes: 3. Approve the Board of Directors Special Meeting and Regular Meeting Minutes of March 28, 2019 Recommendation: That the Board of Directors approve the meeting minutes as presented. Action (Consent): 4. Adopt Warrant Resolution No. CMSD 2019-10 Approving District Warrant Registers Recommendation: That the Board of Directors adopt Warrant Resolution No. CMSD 2019-10 approving District warrants for the month of March 2019 in the amount of $1,443,438.21. Action (Consent): 5. 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): 6. Payroll Transparency Disclosure for March 2019 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 $189,886.60 for March 2019 recycling and disposal services in the April 2019 warrant register Recommendation: That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $189,886.60 for March 2019 recycling and disposal services to be ratified in the April 2019 warrant register. Action (Consent): 8. Accept the occupancy count as presented as 22,774 and direct staff to prepare a warrant to CR&R Environmental Services for $223,080.44 for March 2019 collection Recommendation: That the Board of Directors accept the occupancy count as presented using 22,774 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for March 2019 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $223,080.44 to be ratified in the April 2019 warrant list. Action (Consent): 9. Contracts Signed by General Manager Recommendation: That the Board of Directors receive and file this report. Motion: That the Board of Directors approve the Consent Calendar as presented. Motion by Art Perry, second by Bob Ooten. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. E. PUBLIC HEARINGS None at this time. F. GENERAL MANAGER'S REPORTS Action: 1. Construction Inspection Program Recommendation: That the Board of Directors considers approving the following: 1. Enter into an agreement with County of Orange Public Works for construction inspection services for public works projects; and 2. Approve Robin B Hamers & Associates as construction inspector for private development; and 3. Approve a succession and knowledge transfer plan for inspection services where District Engineer will pass on his institutional knowledge to CMSD's Engineering Technician; and 4. Approve amending job title from Engineering Technician to Engineering Technician/Construction Inspector that includes inspecting public works projects; and 5. Approve hiring Robin B. Hamers & Associates as the Alternate Construction Inspector when CMSD Engineering Technician/Construction Inspector is on leave. General Manager, Scott Carroll, provided an overview of the proposed hybrid approach to construction inspection services. He explained that the proposal includes one year of private construction inspection services from Robin B. Hamers & Associates (RBHA) at a rate of $65 per hour and public works construction inspection services from Orange County Public Works (OCPW) at a rate of $97.62 per hour, followed by a transfer of services to in-house construction inspection services by District Engineering Technician, Bao Vong, at a fully burdened rate of $56.97 per hour. He noted that Mr. Vong is currently undergoing formal education and on-the-job training to prepare for this transition, and he noted that RBHA would act as an Alternate Inspector if Mr. Vong were on leave for vacation or sick time. District Counsel, Alan Burns, noted that further confirmation was sought regarding prevailing wage requirements. He explained that although a formal opinion was not provided, an informal opinion noted that the proposed private construction inspection services for RBHA are not subject to prevailing wage requirements. Director Perry noted that the RBHA rate for public works construction inspection services ($98 per hour) is very similar to the OCPW rate ($97.62 per hour). District Engineer, Robin Hamers, commented that the proposed RBHA rates are competitive. Director Perry questioned why the District would switch to OCPW if their rates are similar to RBHA and noted that RBHA is familiar with the District's wastewater system. He commented that he does not like the idea of switching to OCPW at this time. Mr. Hamers reiterated the hybrid proposal. Vice President Ooten commented that he would like to see a succession plan developed for the Engineering Technician, as well as completion of the appropriate education and exam. He added that he is not comfortable with OCPW performing inspections, because they are not as familiar with the District's wastewater system as Mr. Hamers is. Discussion followed regarding the education and experience necessary for conducting inspections. Vice President Ooten requested that staff come back with a timeline for Mr. Vong's completion of the appropriate education and training for the Inspector position within one or two years. Mr. Carroll clarified that there is a succession plan in place and it is presented in the staff report. He noted that the hybrid approach would result in cost savings and staff development. Mr. Hamers noted that he can mentor Mr. Vong to become an Inspector within one year under the proposed succession plan. He added that the Board seems to be indicating an interest in having Mr. Hamers provide both private and public works construction inspection services for the next year, instead of switching public works construction inspection services to OCPW. Vice President Ooten and Director Perry indicated agreement with Mr. Hamers. Mr. Carroll assured the Board that he believes that OCPW is capable of providing construction inspection services, but he noted that he supports the Board's decision. He added that his goal is to ensure that District staff has the opportunity to grow. Vice President Ooten indicated agreement with Mr. Carroll. Director Scheafer indicated support for giving District staff the opportunity to grow and expressed concern for OCPW performing inspection services. He confirmed the proposed rates for OCPW and RBHA. Lastly, he suggested that benchmarks are set for Mr. Vong's progression toward the Inspector position. Secretary Schafer reiterated the importance of creating a succession plan. Motion: To approve Robin B. Hamers & Associates as construction inspector for private and public works projects, to direct District staff to bring back an agreement for these services, and to direct District staff to develop a benchmark-driven succession plan for the District's Engineering Technician to complete the appropriate education and training to become the Engineering Technician/Construction Inspector. Motion by Art Perry, second by Arlene Schafer. Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action, Discussion: 3. Classification and Compensation Study Outcome Recommendation: That the Board of Directors approve new classification and bring existing classification into the recommended salary range. Management Analyst II, Dyana Bojarski, provided an overview of the Classification and Compensation Study and the importance of periodically reviewing personnel classifications and compensation. She introduced the consultant that conducted the study, Doug Johnson of Ralph Andersen & Associates. Mr. Johnson presented the study's findings, which included the recommended addition of an Office Specialist classification and the reclassifications of the Management Analyst II to an Administrative Services Manager, the District Clerk to a District Clerk/Public Information Officer, and the Maintenance Assistant to a Facilities Maintenance Worker in Fiscal Year 2019-2020. Additionally, he shared the recommendation to reclassify the Engineering Technician to an Engineering Technician/Construction Inspector in Fiscal Year 2020-2021. Mr. Johnson described the process for collecting the data that was used to develop the recommendations. Director Scheafer inquired about the deferred compensation plan. He commented that the study looks at what the employees do and how their salaries compare to those in similar positions in similar agencies. Mr. Carroll presented details to support the District's need for the Office Specialist position. Vice President Ooten asked which fund would pay for the Office Specialist position. He noted that this position is likely needed, but asked if this position was taken into consideration when conducting the solid waste rate study. Finance Manager, Kaitlin Tran, noted that the funding for the Office Specialist position depends on which department the position will assist. Mr. Carroll noted that District staff is including this position in its budget preparation for the next biannual budget. Secretary Schafer expressed strong support for the addition of the Office Specialist position. Director Scheafer commented that the Board of Directors' per diem/meeting rates are not fairly represented in Table 3 of the staff report. He noted that the District's code allows the Board to attend up to 6 meetings per month, while the water districts listed allow their Boards to attend up to 10 meetings per month. He explained that although the District's Board has a higher per diem/meeting rate, they attend fewer meetings per month and therefore are not compensated as highly. Director Scheafer asked if there is an approximation of how much the "added benefits" such as health, dental, vision, and pensions add to the compensation of other agencys' Boards. Mr. Johnson approximated about $400-$600 per Board Member. Director Scheafer commented that the District Board's compensation is considerably less than those of other Boards due to a lower meeting allowance and no added benefits. President Ferryman indicated concern regarding how the proposed recommendations will impact the District's reserves and overall financial health. Mr. Carroll noted that the District has not had a wastewater rate increase since about 2017, which makes the wastewater budget tight. However, he verified that District staff has incorporated the study's recommendations into its upcoming budget. He added that another wastewater rate study will need to be done in FY 2021-2022. President Ferryman confirmed that the District's salaries and compensation make up less than 20% of its total budget. Director Scheafer noted that the impact of the recommended actions is a nearly $82,000 annual increase to personnel salaries. He indicated agreement with Secretary Schafer's support for the recommendations. Motion: To approve the new classification and bring existing classifications into the recommended salary range. Motion by Bob Ooten, second by Mike Scheafer. Final Resolution: Motion Carries 4-1 Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer No: Jim Ferryman There was no further discussion. Action: 2. Consider Approving Cost of Living Adjustment (COLA) to salaries in FY 2019-20 to be equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area of 2.5% as outlined in the Employee Handbook Recommendation: That the Board of Directors approve a Cost of Living Adjustment (COLA) to salaries in FY 2019-20 to be equal to the February to February Consumer Price Index for the Los Angeles-Long Beach-Anaheim area of 2.5% as outlined in the Employee Handbook. Finance Manager, Kaitlin Tran, presented the proposed COLA increase of 2.5%, which would result in a $41,000 increase to salaries in the FY 2019-2020 budget. Motion: To approve a Cost of Living Adjustment (COLA) to salaries in FY 2019-20 to be equal to the February to February Consumer Price Index for the Los Angeles-Long Beach-Anaheim area of 2.5% as outlined in the Employee Handbook. Motion by Art Perry, second by Mike Scheafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 4. Request for Increase in Hourly Rate Harper & Burns LLP Recommendation: That the Board of Directors increase the Harper & Burns LLP hourly rate of $197.00 per hour in accordance with the CPI for the area for the ensuing years. Mr. Burns sat in the audience during this item. Mr. Carroll presented the proposed rate structure for Harper & Burns LLP and noted that it is their first requested rate increase in 4 years. Motion: To increase the Harper & Burns LLP hourly rate of $197.00 per hour in accordance with the CPI for the area for the ensuing years. Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 5. Request for Rate Adjustment - Davis Farr LLP Recommendation: That the Board of Directors approve the request for rate adjustment from Davis Farr LLP. District Treasurer, Marc Davis, sat in the audience during this item. Mr. Carroll presented the proposed rate adjustment for Davis Farr LLP and noted that their services include providing support services to the District's Finance department. He added that their last requested rate adjustment occurred in 2017. Motion: To approve the request for rate adjustment from Davis Farr LLP. Motion by Arlene Schafer, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. Action: 6. Adopt Resolution No. 2019-915 Authorizing Staff to Submit an Application for Household Hazardous Waste Grant (Thirty-Third Cycle) Recommendation: That the Board of Directors adopt Resolution No. 2019-915 Authorizing Staff to Submit an Application for Household Hazardous Waste Grant (Thirty-Third Cycle). Mr. Carroll presented Resolution No. 2019-915 to authorize District staff to submit an application for the Household Hazardous Waste (HHW) Grant to help offset the costs of the Door-to-Door HHW Collection Program. Vice President Ooten confirmed that the grant amounts to $50,000. Motion:To adopt Resolution No. 2019-915 Authorizing Staff to Submit an Application for Household Hazardous Waste Grant (Thirty-Third Cycle). Motion by Bob Ooten, second by Art Perry. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Secretary Schafer indicated support for seeking out grants. Director Scheafer requested that staff find out how much CR&R contributes toward HHW collection. There was no further discussion. Action: 7. Citizens Advisory Committee (CAC) Meeting Overview Recommendation: That the Board of Directors receive and file this report. Mr. Carroll noted that the CAC did not meet in April. He shared that the new CAC members underwent their orientation and noted that their next meeting will be on May 8th. Director Perry confirmed that the CAC will discuss their meeting schedule at their next meeting. There was no discussion and the report was received. Action: 8. Performance Measurement Program Update Report: January - March 2019 Recommendation: That the Board of Directors receive and file this report. Mr. Carroll presented the first quarter of the 2019 Performance Measurement Program Report. He noted that the recent rains caused an increase in inflow of rainwater (as shown on page 5 of the report), and the District plans to address this by conducting a study to identify the main points of entry for inflow. Discussion followed regarding possible points of entry, as well as rainfall, inflow, and infiltration data. Director Scheafer commented that the District's diversion rate has not increased. Discussion followed regarding working with the City of Costa Mesa to help increase the city's overall diversion rate. There was no further discussion and the report was received. Action: 9. Receive and File the Third Quarter Budget Review for FY2018-19 Recommendation: That the Board of Directors receive and file this report. Ms. Tran presented report details. She noted that as of March 31, 65.5% of the solid waste budget and 59.8% of the wastewater budget have been expended. She also noted that there is an anticipated savings of 1% in the solid waste fund and 6% in the wastewater fund at the fiscal year-end. Ms. Tran discussed the District's various accounts and their projected variances in detail. Secretary Schafer asked why the District does not have a pharmaceuticals drop box at the Costa Mesa City Hall. Mr. Carroll noted that the Police Station holds a medication collection event twice a year, and he commented that the District headquarters' drop box is a good opportunity for District visibility. Director Scheafer congratulated Ms. Tran on her promotion from Senior Accountant to Finance Manager. Director Perry confirmed that the District is currently recruiting for wastewater maintenance personnel. There was no further discussion and the report was received. Action: 10. Receive and File 2015-20 Strategic Plan Quarterly Update - FY 2018-19 3rd Quarter Recommendation: That the Board of Directors receive and file this report. Mr. Carroll noted that this quarterly updated is a standard report. He pointed out that in relation to Strategic Goal 1.8, the Orange Coast College Recycling Center collected 340 gallons of used cooking grease for recycling. There was no further discussion and the report was received. Action: 11. Approve out-of-state travel for Nabila Guzman, to attend the Waste Expo Conference in Las Vegas, Nevada. Recommendation: That the Board of Directors: 1. Approve out-of-state travel for Nabila Guzman, to attend the Waste Expo Conference in Las Vegas, Nevada. 2. Approve budget adjustment to fund out-of-state travel. Director Scheafer commented that he thinks it is a good idea to send Management Analyst I, Nabila Guzman, to the conference. Motion: To approve: 1. Out-of-state travel for Nabila Guzman, to attend the Waste Expo Conference in Las Vegas, Nevada. 2. A budget adjustment to fund out-of-state travel. Motion by Mike Scheafer, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no discussion. Action: 12. Consider Approving the Estancia Football Boosters Contribution Program Application Recommendation: That the Board of Directors: 1. Establish the purpose CMSD is trying to serve as a contributor to the Estancia High School Football Boosters Program; and 2. Describe how the expenditures will advance CMSD’s purpose; and 3. Consider contributing $500 for a 3'x5' stadium banner in Jim Scott Stadium. Director Perry recused himself from Item F12 due to his association with Estancia High School. Mr. Carroll presented the report details. He noted that the Board has made this contribution to Estancia High School historically. Motion: To approve the contribution of $500 for a 3'x5' stadium banner in Jim Scott Stadium in an effort to advance the District's purpose of recycling and diverting organic waste from landfills by promoting the Organics Recycling Program in a highly visible location. Motion by Arlene Schafer, second by Bob Ooten. Final Resolution: Motion Carries 4-0-1 Aye: Arlene Schafer, Bob Ooten, Jim Ferryman, Mike Scheafer Not Present at Vote: Art Perry There was no further discussion. Action: 13. Approve Payment of Administrative Civil Liability Associated with Sewer System Overflow Recommendation: That the Board of Directors: 1. Appropriate $56,936 to Settlements and Fees within the Wastewater Fund 2. Approve payment in the amount of $406,936 to the State Water Pollution and Cleanup Abatement Account for administrative civil liability associated with the SSO at Irvine Avenue President Ferryman noted that Jim Mosher, a District resident, wished to make a comment on this item. Mr. Mosher requested clarification about whether the final settlement payment listed in the staff report covers both sewer spills or just the sewer spill that took place in August 2013. Mr. Carroll verified that the payment covers both sewer spills, which took place in August and January. Motion: To: 1. Appropriate $56,936 to Settlements and Fees within the Wastewater Fund 2. Approve payment in the amount of $406,936 to the State Water Pollution and Cleanup Abatement Account for administrative civil liability associated with the SSO at Irvine Avenue Motion by Bob Ooten, second by Mike Scheafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer Director Perry confirmed that the payment deadline will be met. Director Scheafer thanked Mr. Burns and Mr. Carroll for their work on this item. There was no further discussion. G. ENGINEER'S REPORTS Receive and File: 1. Receive and File the Monthly Capital Improvement Project Status Report Recommendation: That the Board of Directors receive and file the report. Mr. Hamers presented the report and welcomed questions. There were no questions and the report was received. H. TREASURER'S REPORTS Action: 1. Approve the Investment Report for the month of March 2019 Recommendation: That the Board of Directors approve the Investment Report for the month of March 2019. Mr. Davis presented report details. He noted that the District's portfolio was earning 1.949% as of March 31. Discussion followed regarding interest rates. Motion: To approve the Investment Report for the month of March 2019. Motion by Art Perry, second by Arlene Schafer. Final Resolution: Motion Carries 5-0 Aye: Arlene Schafer, Art Perry, Bob Ooten, Jim Ferryman, Mike Scheafer There was no further discussion. I. ATTORNEY'S REPORTS Mr. Burns provided an update regarding the case of a contractor illegally dumping into the District's wastewater system and responded to comments made by Mr. Mosher at the April 16 Study Session regarding a one-time incentive payment made to the General Manager and a contribution of $50,000 made toward the City of Costa Mesa's permanent bridge shelter restrooms. He noted that the one-time incentive payment made to the General Manager, in his opinion and based on previously presented case law, is not a gift of public funds, nor is it in violation of any other state constitutional provisions. In regard to the contribution, Mr. Burns noted that case law shows that if the purpose of the contribution was to end a public health issue created by public urination and defecation, then there is a clear public purpose being served and therefore the contribution is not a gift of public funds and does not violate provisions. Mr. Mosher thanked Mr. Burns for his responses. He suggested that the District include the possibility of incentive payment in the General Manager's contract if the intention is to promote retention. He also commented that the District has a general fund that can be used to fund contributions like the one being discussed; however, he commented that he does not believe these funds are clearly marked in the District's financial statements. There was no further discussion. J. 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. Information: 1. Orange County Sanitation District (OCSD) - (President Ferryman) President Ferryman shared that OCSD introduced new directors. Information: 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Director Perry noted that there was no SARFPA meeting today. Information: 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Secretary Schafer discussed her upcoming meetings. Information: 4. California Special Districts Association (CSDA) - (Secretary Schafer) Nothing to report. Information: 5. Special District Risk Management Authority (SDRMA) - (Director Scheafer) Director Scheafer shared that he attended a meeting in Ojai on behalf of SDRMA. Information: 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Director Perry noted that he attended a Water Advisory Committee of Orange County (WACO) meeting. K. OLD BUSINESS None at this time. L. NEW BUSINESS None at this time. M. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Discussion: 1. Oral Communications and Director Comments Secretary Schafer shared that there have been trash collection issues in the College Park area. She also asked that the Board support the submittal of a nomination for Mr. Carroll as CSDA General Manager of the Year. Director Scheafer indicated agreement with Secretary Schafer regarding the nomination, and he commented that he would also like to see Management Analyst II, Gina Terraneo, nominated for CSDA Staff Person of the Year. He suggested that the Board have a credit card for use during travel. Lastly, he suggested that the Board discuss possibly starting meetings at 4:00 P.M. or 4:30 P.M. instead of 5:30 P.M. There were no further comments. N. CLOSING ITEMS Procedural: 1. Adjourn President Ferryman adjourned the meeting 7:41 P.M. B. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: May 16, 2019 Subject: Preliminary Budget Review For FY 2019-2020 and FY 2020-2021 Summary The following represents staff’s proposed preliminary Biennial Budget for the Fiscal Years 2019-2020 and 2020-2021. Staff is requesting feedback from the CAC on the attached preliminary budget. The two-year budget will be brought back to the Board, which will include CAC suggestions and/or recommendations, on May 23, 2019. Staff will be requesting the Board adopt the two-year budget on June 27, 2019. Recommendation That the Citizens Advisory Committee provide feedback to staff regarding the proposed FY 2019-20 and FY 2020-21 Budgets. Analysis Preliminary Budget FY 2019-2020: The total preliminary budget for FY 2019-2020 is $12,447,000. The Solid Waste Fund preliminary budget of $6,512,000 assumes that expenses will exceed revenues by $584,000 creating a deficit which will require the use of reserves to balance the budget. This deficit was planned to reduce reserves in the Solid Waste Fund when the Board lowered the annual rate from $239.41 in fiscal year 2013-2014 to the current rate of $216. In addition to lowering the annual rate, the Board of Directors voted to implement the Organics Program effective July 1, 2015 without increasing rates to further reduce reserves. The Solid Waste Fund has been operating at a deficit, therefore, the Board decided to conduct a solid waste rate study. Based on the rate study conducted, the Board of Directors recommended a five-year rate structure that will increase revenues and eliminate the deficit spending. A public hearing is scheduled for May 23, 2019 to determine whether there is a majority protest of the proposed rate increase by property owners, in accordance with Proposition 218 guidelines. If a majority protest does not exist, the Board will consider adopting the five-year rate structure on June 27, 2019, which will be as follows: Current Rate 2018-19 - $216 annually or $18.00 a month Proposed 2019-20 - $224.88 annually or $18.74 a month 2020-21 - $240.60 annually or $20.05 a month 2021-22 - $257.40 annually or $21.45 a month 2022-23 - $272.88 annually or $22.74 a month 2023-24 - $289.20 annually or $24.10 a month Subject 4. Preliminary Budget Review For FY 2019-2020 and FY 2020-2021 Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Action, Discussion Recommended Action That the Citizens Advisory Committee provide feedback to staff regarding the proposed FY 2019-20 and FY 2020-21 Budgets. Goals 7.2 Develop a long term CIP 7.1 Perform long term solid and liquid waste rate projections 7.0 Finance The Wastewater Fund reflects a balanced budget of $5,935,000. The fiscal year 2017-2018 was the last year of the five-year 2% rate increase from the 2012 Sewer Rate Study adopted by the Board. The District is not planning to increase wastewater rates for the next two years. Wastewater revenue is projected to increase slightly due to an increase in new accounts during the year. This preliminary budget included the Class and Compensation Study and the Cost of Living Adjustment (COLA) to salaries equal to the February to February Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area of 2.5% the Board of Directors approved on April 25, 2019. CR&R submitted a 5.8% CPI rate increase request on March 29, 2019. Per section 3.4 of the 2018 CR&R contract, hauler rates may be considered for a Consumer Price Index (CPI) adjustment every two years during the term of the agreement. The hauler may request a two-year CPI adjustment using prior years' data to be applied for the two future years. Per the contract, CPI increases are not automatic and need Board of Directors approval. The District is in the process of auditing the hauler's revenues to verify CR&R’s profit margin before the Board of Directors to approve or to reject the rate increase requested. While waiting on the Board of Director’s approval in June 2019, for budgeting purposes the preliminary budget included the maximum 5.8% rate increase. Staff is requesting Capital Outlay funds total budget of $138,000 for the continuation of replacement and upgrades to District's servers and software, replacement of two rooftop air condition units and a new Superintendent truck. Preliminary Budget FY 2020-2021: The total preliminary budget for FY 2020-2021 is $12,571,000. The Solid Waste Fund preliminary budget of $6,626,000 assumes that expenses will exceed revenues by $317,000 thus creating a deficit which will require the use of reserves to balance the budget. This will be the second year of a five-year rate increase. As mentioned previously, wastewater rate is stabilized until the rate study is conducted in the future. Wastewater revenue is projected to increase slightly due to an increase of new accounts during the year. The fiscal year 2020-2021 preliminary budget included the reclassification of the Engineering Technician to Engineering Technician/Construction Inspector as the Board of Directors approved in the Class and Compensation study on April 2019. In addition, staff included an estimate for the Cost of Living Adjustment (COLA) to salaries of 2.5% for budgeting proposes. Staff is requesting Capital Outlay funds total budget of $119,000 for the continuation of replacement and upgrades to District's servers and software and a new electric car for the Engineering Technician/Construction Inspector. Capital Improvement Projects: Staff is requesting $1,755,000 and $1,567,000 for Capital Improvement Projects for fiscal years 2019-2020 and 2020-2021, respectively. As shown on the attached Capital Improvement Project Summary, there are six projects which will not be complete by June 30, 2019, therefore staff will request that they be carried forward. 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 Please see the attached reports for a more detailed information. Public Notice Process Copies of this report are on file and will be included with the agenda packet for the May 16, 2019 Citizens Advisory Committee meeting at District Headquarters and on District website at www.cmsdca.gov. File Attachments Attachment A- Preliminary Budget FY 2019-2020.pdf (147 KB) Attachment B- Preliminary Budget FY 2020-21.pdf (116 KB) Attachment C- Preliminary CIP.pdf (48 KB) Solid Waste Summary.pdf (10 KB) Tonnage Chart.pdf (161 KB) Solid Waste Net Position.pdf (12 KB) Wastewater Net Position.pdf (12 KB) B. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: May 16, 2019 Subject: Alkaline Battery Recycling Program - Final Report Summary On July 16, 2013, the Board of Directors directed staff to implement an Alkaline Battery Recycling Pilot Program that focused on collecting used alkaline batteries from local schools. During the first year of the program (Fiscal Year 2013-2014), five schools participated and collected 4,453.9 pounds of alkaline batteries. Every year since then, there has been a steady increase in schools participating in the program and in the pounds of batteries collected. This year, a total of twenty schools participated and collected a total of 12,662 pounds of batteries. Staff is providing the Citizens Advisory Committee with a final report of this year's program, which took place from September of 2018 to April of 2019. Staff Recommendation That the Citizens Advisory Committee receive and file the report. Analysis A total of twenty schools within the District's service area participated in this year's program and collected a total of 12,662 pounds of alkaline batteries. Below is a chart illustrating the participating schools ranked by the total weight (in pounds) collected per school: Ranking School Battery Totals (in pounds)Reward 1st Place Davis Magnet School 3,233 $1,200 2nd Place Sonora Elementary 2,431 $1,000 3rd Place California Elementary 1,521 $800 4th Place Killybrooke Elementary 1,357 $500 5th Place Christ Lutheran School 895 $350 6th Place Kaiser Elementary 711 $350 7th Place Woodland Elementary 510 $350 8th Place Newport Heights Elementary319 $300 9th Place St. John the Baptist 314 $300 10th Place Waldorf School 309 $300 11th Place College Park Elementary 237 $300 12th Place St. Joachim Catholic School 181 $300 13th Place Early College High School 177 $300 14th Place Harper Elementary 119 $300 15th Place Victoria Elementary 86 $200 16th Place Wilson Elementary 81 $200 17th Place Adams Elementary 62 $200 18th Place TeWinkle School 47 $100 19th Place Page Academy 41 $100 20th Place Rea Elementary 31 $100 Total 12,662 $7,550 The program works as follows: 1. Mercury Disposal Systems, Inc. (MDS) sends two 5-gallon battery recycling containers to each participating school. Additional containers are available upon request. Subject 5. Alkaline Battery Recycling Program - Final Report Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Action (Consent) Recommended Action That the Citizens Advisory Committee receive and file the report 2. In order to remain time and cost-efficient, MDS staff collects the batteries upon request from each school. 3. MDS then tags the buckets with each school’s name, weighs them, and sends District staff the total tonnage collected per school. 4. MDS bills CR&R and CR&R bills the District for this service. This allows us to take advantage of CR&R’s low battery disposal cost of $0.76 per pound. 5. At the conclusion of the program, a CMSD Director presents the checks to the participating schools. This year, there was a significant increase in the number of participating schools and batteries collected. Staff believes that this is due to the Board of Director's decision to make revisions to the reward structure. Last year the Board of Directors approved a change to the reward structure that is more reflective of the school's collection efforts. Previously, every school that participated from 4th place forward would have only received $300 for their collection efforts and those who collected under 50 lbs would not have received a reward. Current Award Breakdown: 1st Place: $1,200 2nd Place: $1,000 3rd Place: $800 Over 1,000 lbs: $500 500 to 999 lbs: $350 100 to 499 lbs: $300 51 to 99 lbs: $200 Under 50 lbs: $100 The graphs below demonstrate these increases over the past 6 years: The Alkaline Battery Recycling Program promotes recycling and environmental stewardship among local schools. It is CMSD's hope that students will apply these principals at home, educate their families, and become good stewards of the environment. Additionally, the program benefits the District through increased visibility within the community, the development of partnerships with local schools, and credit towards the District's diversion rate. Legal Review Not applicable. Environmental Review The program establishes a convenient method for school children and their families dispose of batteries, ultimately preventing the batteries from being illegally placed in the trash and making their way to landfills. As presented, the District’s Alkaline Battery Recycling Program is not a disturbance to the environment directly or indirectly. Financial Review For Fiscal Year 2018-2019, the Battery Recycling program budget was $20,000. Below is the total cost breakdown for the current fiscal year. Fundraiser Rewards $7,550.00 Disposal Costs ($0.76 x 12,662 lbs. of batteries)$9,623.12 Total Program Cost $17,173.12 Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 16, 2019 Citizens Advisory Committee meeting at District Headquarters and posted on the District’s website. 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. B. ITEM To: Citizens Advisory Committee Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: May 16, 2019 Subject: Compost & Donation Event Summary The Costa Mesa Sanitary District (CMSD) Board of Directors established a goal of diverting 75% of the solid waste stream away from landfills, CMSD is currently diverting 60%. CMSD, in partnership with Orange Coast College Recycling Center, CR&R Environmental Services and Clothes for the Cause, held a drive-thru compost giveaway and textile collection event on Saturday, April 27, 2019 in efforts to improve the District's solid waste diversion rate. Recommendation That the Citizens Advisory Committee receive and file this report. Analysis The textile collection drive-thru event was held on Saturday, April 27th from 9:00 a.m. to 12:00 p.m., providing the community with a free and convenient way to dispose of unwanted clothes, shoes and other textiles for recycling. This year we combined the event with CR&R's free compost giveaway that provided District households with two free bags of mulch from CR&R's AD Facility. The event was held in the parking lot at the OCC Recycling Center, cones were set up on the left-hand side of the parking lot to separate the event and allow Recycling Center customers access to the parking spaces and both buy back counters. On the day of the event, Clothes for the Cause provided a trailer for collection purposes. Additionally, they provided CMSD with one volunteer who drove the trailer and collected donations. Clothes for the Cause is a local nonprofit organization who pays per pound of textiles collected. Items collected are reworn, recycled or repurposed and kept out of landfills. There were approximately 42 donors who donated 3,780 pounds of textiles. Per our agreement with Clothes for the Cause the District will be receiving $378 for the textiles donated that will go towards next year's Alkaline Battery Recycling Program costs. This was the District's first compost giveaway event and it was very successful. CR&R Environmental Services provided a flatbed trailer full of mulch and four volunteers to work the event. We asked residents to bring the free compost coupon that was provided in the Spring newsletter as well as provide proof of District residency to receive the free compost. There were approximately 217 cars that participated in the event and residents were still stopping by as staff was cleaning up and long after the event was over. The event attracted residents from South County and Huntington Beach who had heard about the event through social media or by posters at the OCC Recycling Center. During the morning portion of the event, the donation/compost giveaway line spilled into the street and caused some traffic problems. Because of this, staff is exploring the possibility of holding next year's event at a different location such as a parking lot at Orange Coast College or the OC Fair Grounds. Attached are pictures of the event. Staff utilized the following free outreach to promote the event: -Website Homepage -Spring Newsletter -PeachJar Flyer (NMUSD's email distribution) -Mail Chimp email distribution to 700+ CMSD Subscribers -Social Media (FB event, posts, shares to local public groups like I Heart CM, OC Earth Stewards, OC Coastkeeper, etc) -Assemblywoman Petrie-Norris shared on social media + website -Costa Mesa Mayor Foley and Council Member Reynolds shared on social media Subject 6. 2019 Compost & Donation Event Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Action, Receive and File Recommended Action That the Board of Directors receive and file this report Goals 2.00 Solid Waste -Shared with Cities of Costa Mesa and Newport Beach -What's Up Costa Mesa (Chamber of Commerce website +app event calendar) -Daily Pilot - Shared under local events Legal Review Not Applicable. Environmental Review Being a partial sponsor or coordinator of a community recycling event is an administrative matter and not a disturbance of the environment similar to grading or construction and not a project under CEQA or the District's CEQ Guidelines. Financial Review There were no costs associated with advertising the event or to utilize the OCC Recycling Center parking lot. CR&R Environmental Services provided the mulch and staff for free. Clothes for the Cause also provided one volunteer for free and paid CMSD ten cents per pound collected. The only cost to the District was staff time of three employees and breakfast. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 16, 2019 Citizens Advisory Committee meeting at District Headquarters and on District website at www.cmsdca.gov Alternative Actions Refer item back to staff with further instructions. File Attachments IMG_4421.JPG (3,288 KB) IMG_4416.JPG (4,080 KB) IMG_0654.JPG (6,137 KB) IMG_0660.JPG (7,953 KB) IMG_4415.JPG (4,101 KB) IMG_0672.JPG (5,308 KB) IMG_0676.JPG (7,597 KB) B. ITEM To: Citizens Advisory Committee From: Scott Carroll, General Manager Date: May 16, 2019 Subject: Consider Appointing Two CAC Members to Serve on the Policy Review Ad Hoc Committee Summary Every so often, the Board of Directors will form a temporary ad hoc committee to review District policies and ordinances to ensure the documents are up to date with existing laws and District procedures. The last time the Board formed an ad hoc committee to review policies and ordinances was in 2015. Recommendation That the Citizens Advisory Appoint Two Members to Serve on the Board of Directors Policy Review Ad Hoc Committee Analysis The Costa Mesa Sanitary District has three policy manuals. 1. The Administrative Regulations, which are internal procedures for administrative operations. The procedures apply to staff only. The General Manager has the authority to approve new and/or amended administrative polices, in accordance with Operations Code Section 3.02.060. 2. The Operations Code are local laws adopted by the Board of Directors and it’s these codes that govern CMSD. The Operations Code applies to staff, the Board of Directors and CMSD residents. 3. The Employee Handbook is a book of rules, policies and procedures regarding personnel matters such as recruitment, compensation and benefits, behavior standards and safety measures. The General Manager has authority to amend some policies in the handbook, but portions of the handbook are approved by the Board as well (e.g. compensation and benefits). The Committee will review all three manuals and report back to the CAC, and eventually the Board, with their recommended amendments, if any. Legal Review Not applicable at this time; however, District Counsel will provide comments to the Committee's suggested amendments. Environmental Review Revising subject documents is an administrative matter and is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review There are not financial impacts to the District for reviewing and updating District policies and ordinances. Subject 7. Consider Appointing Two CAC Members to Serve on the Policy Review Ad Hoc Committee Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Citizens Advisory Appoint Two Members to Serve on the Board of Directors Policy Review Ad Hoc Committee Goals 5.0 Administrative Management 5.4 Review and maintain Operations Code, policies and Administrative Regulations Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the May 16, 2019 Citizens Advisory Committee meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Direct staff to report back with more information B. ITEM To: Citizens Advisory Committee From: Scott Carroll, General Manager Date: May 16, 2019 Subject: 2019 Topics to be Discussed at Future CAC Meetings Summary According to Section III.D of the CAC Handbook, each year the CAC Chair will meet and consult with the Board President and General Manager to determine the District's goals and objectives for the following year and convey those needs to the CAC. On May 2, 2019, Chairman Carey met with President Ferryman and General Manager Scott Carroll to discuss potential topics for the CAC. Attached is a list of such topics. Recommendation That the Citizens Advisory Committee (CAC): 1. Review the list of topics to be discussed at future CAC meetings; and 2. Approve a list of topics to be forward to the Board of Directors for approval. Analysis Chairman Carey, President Ferryman and General Manager Scott Carroll came up with a list of twelve topics for the CAC. Additional topics may be added to the list by the Board, CAC or by staff and the topics assigned to the dates may be revised as well. The CAC meets every other month. The standard date and time of CAC meetings will be discussed and approved later tonight. Legal Review Not applicable Environmental Review Selecting topics to discuss at future CAC meetings and identifying goals and objectives for the coming year is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There are no financial impacts to the District for selecting future CAC topics and identifying goals and objectives. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the May 16, 2019 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 2019 CAC Topics to be Discussed.docx (14 KB) Subject 8. 2019 Topics to be Discussed at Future CAC Meetings Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Action Recommended Action That the Citizens Advisory Committee (CAC): 1. Review the list of topics to be discussed at future CAC meetings: 2. Approve a list of topics to be forward to the Board of Directors for approval. Goals 5.0 Administrative Management B. ITEM To: Citizens Advisory Committee From: Scott Carroll, General Manager Date: May 16, 2019 Subject: Consider Rescheduling Standard Meeting Day and Time for CAC Meetings Summary Currently, the Citizens Advisory Committee meets every other month on the second Wednesday at 6:00 pm. Some CAC members have conflicts in their schedule to meet on the second Wednesday and are requesting the CAC to consider rescheduling the standard meeting day and time. Recommendation That the Citizens Advisory Committee approve rescheduling the standard day and time for CAC meetings. Analysis The Citizens Advisory Committee meets every other month on the second Wednesday at 6:00 pm. This item is being brought before the CAC for consideration of changing the current meeting ay and time. Legal Review Not applicable Environmental Review Considering a new date and time for CAC meetings will not result in direct or indirect physical changes to the environment similar to grading or construction and is not considered a project under CEQA or the District's CEQA Guidelines. Financial Review There are no financial impacts to the District if the CAC reschedules their standard meeting day and time. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the May 16, 2019 Citizens Advisory Committee meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. Subject 9. Consider Rescheduling Standard Meeting Day and Time for CAC Meetings Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Action Fiscal Impact No Recommended Action That the Citizens Advisory Committee approve rescheduling the standard day and time for CAC meetings. Goals 5.0 Administrative Management C. CLOSING ITEMS Subject 1. Committee Member & Staff Comments Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Procedural C. CLOSING ITEMS Subject 2. Adjournment Meeting May 16, 2019 - Citizens Advisory Committee Special Meeting Access Public Type Procedural