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2021_06_28_board6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 1/3 Monday, June 28, 2021 Board of Directors Regular Meeting Time: 4:30 P.M. IMPORTANT NOTICE REGARDING JUNE 28, 2021 REGULAR BOARD MEETING This meeting is being conducted utilizing teleconferencing and electronic means consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. *** The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary. In accordance with Executive Order N-29-20, the public may only view the meeting online and not in the District's Board Room. *** To participate in the meeting by computer: 1. Copy and paste the following into your browser - https://us02web.zoom.us/join 2. Enter the Meeting ID number - 832 0989 2356 3. Click "Join." *** To join the meeting with a mobile device: 1. Download the Zoom app at the Google Play Store (for Android devices) or the App Store (for Apple devices) 2. Open the Zoom app. Select "Join a Meeting." 3. Enter Zoom Meeting ID. Select "Join Meeting." *** To join the meeting by phone: 1. Call 1-669-900-6833. 2. You will be asked to enter the Meeting ID number. Dial 832 0989 2356# 3. Lastly, you will be asked to enter your Participant ID. Press the # symbol again to bypass this step. *** Public Comments: Members of the public can submit any comments in writing for the Board of Directors' consideration by sending them to the District Clerk, Noelani Middenway, at nmiddenway@cmsdca.gov. Those comments will be made part of the official public record of the meeting. *** Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained from the District Clerk's Office. *** In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS 1. Call to Order - President Ooten 2. Pledge of Allegiance - President Ooten 3. Invocation - Vice President Scheafer 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 2/3 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. 6. Ceremonial Matters and Presentations B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. 1. Public Comments C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 1. Approve Consent Calendar 2. Approve the Board of Directors Special Meeting Minutes of May 6, 2021 3. Approve the Board of Directors Study Session Minutes of May 11, 2021 4. Approve the Board of Directors Regular Meeting Minutes of May 24, 2021 5. Approve the Directors' Compensation and Reimbursement of Expenses 6. Approve Payroll Transparency Disclosure for May 2021 7. Adopt Warrant Resolution No. CMSD 2021-12 Approving District Warrant Registers 8. Approve the preparation of a warrant to CR Transfer in the amount of $199,529.84 for May 2021 recycling and disposal services in the June 2021 warrant register 9. Accept the occupancy count as presented as 23,024 and direct staff to prepare a warrant to CR&R Environmental Services for $238,609.22 for May 2021 collection 10. Receive and File the May 2021 Organics Tonnage Report 11. Receive and File the April 2021 Solid Waste Diversion Report 12. Approve the Investment Report for the Month of May 2021 13. Receive and File the May 2021 Contracts Signed by the General Manager D. PUBLIC HEARINGS 1. Adopt Ordinance No. 132 and Resolution No. 2021-939 confirming Wastewater Annual Charges and Resolution No. 2021-940 confirming Solid Waste Annual Charges respectively for FY 2021-22 to be collected with the General Taxes and Direct the District Clerk to File with the County Auditor. E. GENERAL MANAGER'S REPORTS 1. Adopt Resolution No. 2021-941 Adopting the Biennial Budget for Fiscal Years 2021-22 and 2022-23 2. Consider Approving a Budget Adjustment of $96,500 to Purchase Two New Bypass Pumps 3. Consider Awarding Contract for IT Management Services to Acorn Technology Services 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 3/3 4. Consider Awarding Agreement with EEC Environmental for Managing the District's Fats Oil and Grease (FOG) Control Program 5. Consider Approving a Sole Source Agreement with Michael Balliet Consulting, LLC for Solid Waste Consulting Services 6. Oral Presentation - Orange County Sanitation District Regional Sewer Line Repair in Costa Mesa 7. Consider Establishing a Different Start Time for Board of Directors Study Session Meetings 8. Consider Voting for One Candidate to the California Special Districts Association Board of Directors - Seat A - Southern Network for the January 1, 2022 - December 31, 2024 Term F. ENGINEER'S REPORTS 1. Receive and File Capital Improvement Projects Status Report 2. Consider Awarding Contract to GCI Construction, Inc. for Project #322 Iowa Street PS Sewer Force Main Replacement 3. Consider Approving Resolution No. 2021-942 Vacating and Quitclaiming a Sewer Easement Not Necessary for Public Use G. TREASURER'S REPORTS 1. Consider Adopting Resolution 2021-943 Approving the Statement of Investment Policy and Delegating the Investment Function to the District Treasurer for Fiscal Year 2021-22 H. ATTORNEY'S REPORTS I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request  of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030.  For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. 1. Orange County Sanitation District (OCSD) - (President Ooten) 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) 4. California Special Districts Association (CSDA) - (Secretary Schafer) 5. Special District Risk Management Authority (SDRMA) - (Vice President Scheafer) 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 J. OLD BUSINESS K. NEW BUSINESS L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS 1. Oral Communications and Director Comments M. ADJOURN TO CLOSED SESSION N. RECONVENE TO OPEN SESSION O. CLOSING ITEMS 1. Adjourn 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 1/68 Monday, June 28, 2021 Board of Directors Regular Meeting Time: 4:30 P.M. IMPORTANT NOTICE REGARDING JUNE 28, 2021 REGULAR BOARD MEETING This meeting is being conducted utilizing teleconferencing and electronic means consistent with State of California Executive Order N-29-20 dated March 17, 2020, regarding the COVID-19 pandemic. *** The livestream of the meeting can be viewed by clicking the "Video" icon on this page (which will be made available at the start of the meeting) or by visiting www.youtube.com/CostaMesaSanitary. In accordance with Executive Order N-29-20, the public may only view the meeting online and not in the District's Board Room. *** To participate in the meeting by computer: 1. Copy and paste the following into your browser - https://us02web.zoom.us/join 2. Enter the Meeting ID number - 832 0989 2356 3. Click "Join." *** To join the meeting with a mobile device: 1. Download the Zoom app at the Google Play Store (for Android devices) or the App Store (for Apple devices) 2. Open the Zoom app. Select "Join a Meeting." 3. Enter Zoom Meeting ID. Select "Join Meeting." *** To join the meeting by phone: 1. Call 1-669-900-6833. 2. You will be asked to enter the Meeting ID number. Dial 832 0989 2356# 3. Lastly, you will be asked to enter your Participant ID. Press the # symbol again to bypass this step. *** Public Comments: Members of the public can submit any comments in writing for the Board of Directors' consideration by sending them to the District Clerk, Noelani Middenway, at nmiddenway@cmsdca.gov. Those comments will be made part of the official public record of the meeting. *** Obtaining Agenda Materials: The public is entitled to copies of all documents that are made part of the agenda packet. If any document or other writing pertaining to an agenda item is distributed to all or a majority of the Board after the packet is prepared, a copy of that writing may be obtained from the District Clerk's Office. *** In Compliance with ADA: Contact District Clerk, Noelani Middenway, at (949) 645-8400, 48 hours prior to meeting if assistance is needed (28 CFR 35.102.35.104 ADA Title II). A. OPENING ITEMS Subject 1. Call to Order - President Ooten Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Procedural 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 2/68 A. OPENING ITEMS Subject 2. Pledge of Allegiance - President Ooten Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Procedural 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 3/68 A. OPENING ITEMS Subject 3. Invocation - Vice President Scheafer Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Procedural 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 4/68 A. OPENING ITEMS Robert Ooten, President Michael Scheafer, Vice President Arlene Schafer, Secretary Arthur Perry, Director Brett Eckles, Director Subject 4. Roll Call - (If absences occur, consider whether to deem those absences excused based on facts presented for the absence – such determination shall be the permission required by law.) Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Procedural 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 5/68 A. OPENING ITEMS Subject 5. Announcement of Late Communications - Unless directed otherwise by the Board of Directors, all actions shall be based on/memorialized by the latest document submitted as a late communication. Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Procedural 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 6/68 A. OPENING ITEMS Subject 6. Ceremonial Matters and Presentations Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Procedural 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 7/68 B. Public Comments - This time has been set aside for persons in the audience to make comments on items within the subject matter jurisdiction of the Costa Mesa Sanitary District that are not listed on this agenda. Members of the public will have the opportunity to address the Board of Directors about all other items on this agenda at the time those items are considered. Under the provisions of the Brown Act, the Board of Directors is prohibited from taking action on oral requests but may refer the matter to staff or to a subsequent meeting. The Board of Directors will respond after public comment has been received. Please state your name. Each speaker will be limited to four (4) continuous minutes. Subject 1. Public Comments Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Procedural 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 8/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Subject 1. Approve Consent Calendar Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors approve the Consent Calendar as presented. All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 9/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: June 28, 2021 Subject: Approve the Board of Directors Special Meeting Minutes of May 6, 2021 Summary The recorded minutes of the May 6, 2021 Board of Directors Special Meeting are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Special Meeting on May 6, 2021. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 28, 2021 Board of Directors Regular Meeting held via teleconference 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_2021_05_06_sm.pdf (85 KB) Subject 2. Approve the Board of Directors Special Meeting Minutes of May 6, 2021 Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 10/68 Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jun 22, 2021 11:37 AM :: Submitted by Gina Terraneo. Routed to Lucy Jacobo for approval. Jun 22, 2021 4:12 PM :: Approved by Lucy Jacobo. Routed to Scott Carroll for approval. Jun 23, 2021 2:41 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 23, 2021 4:33 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 11/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: June 28, 2021 Subject: Approve the Board of Directors Study Session Minutes of May 11, 2021 Summary The recorded minutes of the May 11, 2021 Board of Directors Study Session are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the minutes for the Board of Directors Study Session on May 11, 2021. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Legal Review Not applicable. Environmental Review Consideration of public meeting minutes is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 28, 2021 Board of Directors Regular Meeting held via teleconference 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_2021_05_11_ss.pdf (83 KB) Subject 3. Approve the Board of Directors Study Session Minutes of May 11, 2021 Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 12/68 Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jun 22, 2021 11:56 AM :: Submitted by Gina Terraneo. Routed to Lucy Jacobo for approval. Jun 22, 2021 4:13 PM :: Approved by Lucy Jacobo. Routed to Scott Carroll for approval. Jun 23, 2021 2:41 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 23, 2021 4:33 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 13/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: June 28, 2021 Subject: Approve the Board of Directors Regular Meeting Minutes of May 24, 2021 Summary The recorded minutes of the May 24, 2021 Board of Directors Regular Meeting are hereby submitted to the Board of Directors for review and approval. Staff Recommendation That the Board of Directors approve the meeting minutes as presented. Analysis Attached to the staff report are the minutes for the Board of Directors Regular Meeting on May 24, 2021. 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 June 28, 2021 Board of Directors Regular Meeting held via teleconference 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_2021_05_24_rm.pdf (104 KB) Subject 4. Approve the Board of Directors Regular Meeting Minutes of May 24, 2021 Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent), Minutes Recommended Action That the Board of Directors approve the meeting minutes as presented. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 14/68 Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jun 22, 2021 1:00 PM :: Submitted by Gina Terraneo. Routed to Lucy Jacobo for approval. Jun 22, 2021 4:11 PM :: Approved by Lucy Jacobo. Routed to Scott Carroll for approval. Jun 23, 2021 2:42 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 23, 2021 4:33 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 15/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, District Clerk & Public Information Officer Date: June 28, 2021 Subject: Directors' Compensation and Reimbursement of Expenses Summary The Directors' Compensation and Reimbursement of Expenses are hereby submitted to the Board of Directors for review and approval. Analysis Attached to the staff report are the Directors' Compensation and Reimbursement of Expenses. Staff Recommendation That the Board of Directors approve the compensation and reimbursement of expenses as presented. Legal Review Not applicable. Environmental Review Consideration of the compensation and reimbursement of expenses is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6. "Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 28, 2021 Board of Directors Regular Meeting at District Headquarters and posted on the District’s website. Alternative Actions 1. Do not approve the compensation and reimbursement of expenses as presented. 2. Direct staff to report back with more information. File Attachments board_compensation_june.pdf (427 KB) Subject 5. Approve the Directors' Compensation and Reimbursement of Expenses Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors approve the compensation and reimbursement of expenses as presented. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 16/68 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. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 17/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Autumn Alvarez, Accounting Clerk Date: June 28, 2021 Subject: Approve Payroll Transparency Disclosure for May 2021 Summary Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Recommendation That the Board of Directors approve and file the report. Analysis Attached is the Payroll General Ledger Distribution Report summarizing each payroll during the month. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include .... C. Continuing administrative or maintenance activities." Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 28, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. File Attachments Payroll Transparency Disclosure May 2021.pdf (1,215 KB) Subject 6. Approve Payroll Transparency Disclosure for May 2021 Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors approve and file the report. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 18/68 Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jun 18, 2021 12:49 PM :: Submitted by Autumn Alvarez. Routed to Kaitlin Tran for approval. Jun 20, 2021 7:00 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 22, 2021 10:18 AM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 23, 2021 4:33 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 19/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Autumn Alvarez, Accounting Clerk Date: June 28, 2021 Subject: Adopt Warrant Resolution No. CMSD 2021-12 Approving District Warrant Registers Summary Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were paid. Recommendation That the Board of Directors approve and file the report. Analysis Attached is the Warrant Resolution, which ratifies the payment of certain claims and demands and specifies the funds from which they were paid. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include .... C. Continuing administrative or maintenance activities." Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 28, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. Subject 7. Adopt Warrant Resolution No. CMSD 2021-12 Approving District Warrant Registers Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent) Budgeted Yes Recommended Action That the Board of Directors adopt Warrant Resolution No. CMSD 2021-12 approving District warrants for the month of May in the amount of $1,214,424.34. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 20/68 File Attachments WARRANT RESO 2021-12.pdf (488 KB) Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jun 18, 2021 1:08 PM :: Submitted by Autumn Alvarez. Routed to Kaitlin Tran for approval. Jun 20, 2021 7:02 PM :: Rejected by Kaitlin Tran Jun 22, 2021 5:29 PM :: Submitted by Autumn Alvarez. Routed to Kaitlin Tran for approval. Jun 22, 2021 6:36 PM :: Rejected by Kaitlin Tran Jun 23, 2021 10:31 AM :: Submitted by Autumn Alvarez. Routed to Kaitlin Tran for approval. Jun 23, 2021 2:47 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 23, 2021 2:56 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 23, 2021 4:33 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 21/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 28, 2021 Subject: Approve the preparation of a warrant to CR Transfer in the amount of $199,529.84 for May 2021 recycling and disposal services in the June 2021 warrant register Summary This payment to CR Transfer is for the sorting of recyclables from the mixed waste and disposal of the remaining waste at the landfill. With the implementation of the Organics Recycling Program adopted by the Board, this payment also includes the diverting of the organics waste to the Anaerobic Digestion facility to be recycled into fertilizer or renewable natural gas to fuel the refuse trucks. Recommendation That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $199,529.84 for May 2021 recycling and disposal services to be ratified in the June 2021 warrant register. Analysis Below is a chart depicting the total tonnage and payments due for residential and organic waste collected in Costa Mesa and Newport Beach. Due to weight ticket calculation rounding, monthly invoices may be slightly off by a few pennies. Invoices that are slightly off are marked by an asterisk below. Type of Waste InvoiceTonnageRate Amount Billed Residential Waste - Costa Mesa 40936 1,217.93 $54.98$66,961.78* Residential Waste - Costa Mesa 40983 1,205.58 $54.98$66,282.76* Residential Waste - Newport Beach40937 28.42 $54.98$1,562.53 Residential Waste - Newport Beach40984 36.03 $54.98$1,980.93 Total Residential Waste 2,487.96 $136,788.00 Organics 40974 408.29 $75.65$30,887.14 Organics 41018 421.08 $75.65$31,854.70 Total Organics 829.37 $62,741.84 Grand Total 3,317.33 $199,529.84 Legal Review Not Applicable Environmental Review Subject 8. Approve the preparation of a warrant to CR Transfer in the amount of $199,529.84 for May 2021 recycling and disposal services in the June 2021 warrant register Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $199,529.84 for May 2021 recycling and disposal services to be ratified in the June 2021 warrant register. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 22/68 Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 28, 2021 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions Refer item back to staff with further instructions. Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jun 23, 2021 6:19 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for approval. Jun 23, 2021 6:25 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 24, 2021 10:48 AM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 24, 2021 5:12 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 23/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 28, 2021 Subject: Accept the occupancy count as presented as 23,024 and direct staff to prepare a warrant to CR&R Environmental Services for $238,609.22 for May 2021 collection. Summary Accept the occupancy count as presented using 23,024 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2021 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,609.22 to be ratified in the June 2021 warrant list. Recommendation That the Board of Directors accept the occupancy count as presented using 23,024 as the correct number of active units and direct staff to prepare a warrant to CR&R Environmental Services for May 2021 collection based on this occupancy report so long as the contractor fulfills the obligations of the agreement in the amount of $238,609.22 to be ratified in the June 2021 warrant list. Analysis The occupancy count is the number of residential customers that the District pays CR&R for the trash truck to stop and pick-up trash. The District pays CR&R $10.3635 per occupant, per month. Each month, new residential customers in brand-new developments contact the District to establish new trash service. District staff contacts CR&R to approve the drop-off of carts at the residence, which results in an increase in the occupancy count as shown on the attached list. As of May 31, 2021, total District occupancy was at 23,024 with ten (10) new accounts added and zero (0) accounts removed since the last billing period. District staff will continue to track the number of new service addresses. The payment calculation is based on the following: District's Current Rate for May 2021: 23,024 x $10.3635 =$238,609.22 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 Subject 9. Accept the occupancy count as presented as 23,024 and direct staff to prepare a warrant to CR&R Environmental Services for $238,609.22 for May 2021 collection Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors approves the preparation of a warrant to CR Transfer in the amount of $238,609.22 for May 2021 recycling and disposal services to be ratified in the June 2021 warrant register. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 24/68 Sufficient funds are available in the adopted budget to pay for the services provided. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 28, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. Alternative Actions Refer item back to staff with further instructions. File Attachments Occupancy Report Official- May 2021 Revised.pdf (112 KB) Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jun 23, 2021 6:20 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for approval. Jun 23, 2021 6:25 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 24, 2021 10:48 AM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 24, 2021 5:13 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 25/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 28, 2021 Subject: Receive and File the May 2021 Organics Tonnage Report Summary A total of 829.37 tons of organic waste were collected in May 2021. Recommendation That the Board of Directors receive and file this report. Analysis Below is a graph depicting the total tonnage of organic waste collected during each month of the last five fiscal years. Additionally, a graph is included breaking down the total tonnage collected and how much material was recycled and landfilled from the organics program. Subject 10. Receive and File the May 2021 Organics Tonnage Report Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 26/68 Legal Review Not applicable. Environmental Review Consideration of the Organics Tonnage Report 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 CEQA Guidelines. 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 June 28, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website. File Attachments Organics Chart.png (9 KB) Organics Graph.png (16 KB) Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jun 23, 2021 6:19 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for approval. Jun 23, 2021 6:26 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 24, 2021 10:49 AM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 24, 2021 5:13 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 27/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 28, 2021 Subject: Receive and File the May 2021 Solid Waste Diversion Report Summary Per direction from the Board of Directors the monthly solid waste diversion report has been temporarily suspended due to inaccurate data as a result from the COVID-19 pandemic. Recommendation That the Board of Directors receive and file this report. Analysis Per direction from the Board of Directors at the April 14, 2020 Study Session meeting, the monthly solid waste diversion report has been temporarily suspended. Due to the COVID-19 pandemic, CR&R Environmental Services temporarily suspended their recycling processing at their Stanton Materials Recovery Facility (MRF) where the District's mixed waste is processed from March to September 2020. Below is a chart of all solid waste collected over the last seventeen years. Subject 11. Receive and File the April 2021 Solid Waste Diversion Report Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors receive and file this report. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 28/68 File Attachments Tonnage.png (36 KB) Workflow Legal Review Not applicable. Environmental Review Consideration of the Solid Waste Report 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 CEQA Guidelines. 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 June 28, 2021 Board of Directors Regular 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. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 29/68 Workflow Jun 23, 2021 6:19 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for approval. Jun 23, 2021 6:26 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 24, 2021 10:50 AM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 24, 2021 5:14 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 30/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Marc Davis, District Treasurer Date: June 28, 2021 Subject: Approve the Investment Report for the Month of May 2021 Summary Attached is the Investment Report for the month of May 2021. As required by the District’s Statement of Investment Policy, the Investment Report delineates all investment activity during the month. Recommendation That the Board of Directors approve the Investment Report for the month of May 2021. Analysis This report lists the types of securities held in the District’s portfolio, the institutions from which the securities were purchased, maturity dates and interest rates as of May 31, 2021. The District’s investments are in compliance with the Statement of Investment Policy adopted by the Board at the June 22, 2020 regular meeting, as well as the California Government Code. The market values in this report were provided by our third party custodian, Pershing, LLC, except for the Local Agency Investment Fund (LAIF). The market value of LAIF was provided by the State Treasurer’s Office. It does not represent the value of the underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw. This reporting practice is consistent with industry standard practices for similar funds. The weighted average stated rate of return (current yield) for the District’s investment portfolio as of May 31, 2021, was 0.565%. The yield to maturity of the portfolio was 0.567%. The District’s weighted average interest rate was 25 basis points (0.250%) above the LAIF average monthly rate for May 2021 of 0.315%. The weighted average number of days to maturity for the District’s total portfolio was 807 days (2.21 years). The duration of the underlying securities in LAIF as of May 31, 2021 was 287 days. The District’s investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the portfolio must mature within one year. The percentage of the portfolio maturing in one year or less as of May 31, 2021 was 41.24%. The District has adequate cash reserves necessary to meet its obligations for the next six months. The rating on one of the District's investments, Wells Fargo medium term note, is BBB+ by Standard & Poor's. Moody's continues to rate the security as A2. The California Government Code requires that the security be rated in the top three ratings by a nationally recognized rating agency, which the security is. The security was placed on the District's watch list and the ratings will continue to be monitored. The District's Investment Policy allows for a security to continue to be held if it falls out of compliance. A majority of the District’s cash and investments is reserved or set aside for specific purposes. A description of the various classifications of the District’s cash and investments are as follows: Solid Waste Fund: Operating Reserve - Equal to 30% of the operations budget of the Solid Waste Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Subject 12. Approve the Investment Report for the Month of May 2021 Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent) Recommended Action That the Board of Directors approve the Investment Report for the month of May 2021. Goals 8.0 Finance 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 31/68 Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. Undesignated - Remaining available cash, which is currently used for rate stabilization and payment of organics recycling costs. Wastewater Fund: Operating Reserve - Equal to 25% of the operations budget of the Wastewater Fund per Operations Code Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval. Reserved for Capital Outlay - Set aside for capital improvement projects approved and budgeted by the Board, but which have not yet been completed. Designated for Revenue Dry Period - Equal to 5 months of budgeted operating expenses for the fiscal year to cover the cash deficit during the period in which the District does not receive any of its annual charges from the County of Orange. The revenue dry period is from June through October. Undesignated - Remaining available cash, which is available to be appropriated by the Board. Facilities Revolving Fund - Collection of fixture fees which is a restricted revenue source and can only be used for new sewer facilities. Asset Replacement Fund - Accumulation of funds for replacement of vehicles, equipment and computers. Asset Management Fund - Accumulation of funds in accordance with the asset management model for long-term replacement of sewer pipes and related infrastructure. Legal Review Legal review is not required. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not include….C. Continuing administrative or maintenance activities.” Financial Review The portfolio was budgeted to earn an average rate of 1.392% for the year ending June 30, 2021. Through May 31, 2021, the portfolio has earned a weighted average interest rate of 0.733%. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021 Board of Directors regular meeting at District Headquarters (290 Paularino Avenue) and on the District’s website at www.cmsdca.gov. Alternative Actions Refer the matter back to staff. File Attachments Investment Report - May 2021.pdf (656 KB) Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jun 23, 2021 5:13 PM :: Submitted by Marc Davis. Routed to Noelani Middenway for approval. Jun 24, 2021 5:16 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 32/68 C. CONSENT CALENDAR - All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. To: Board of Directors From: Scott Carroll, General Manager Date: June 28, 2021 Subject: Receive and File the May 2021 Contracts Signed by the General Manager Summary At the January 24, 2019 Board of Directors meeting, the Board directed the General Manager to submit a list of contracts he signed during the previous month. Below are the contracts he signed in the months of May 2021. Recommendation That the Board of Directors receive and file this report. Analysis Below are the contracts signed by the General Manager in the month of May 2021: Contracts 1. Ardurra Group – Temporary inspection services. Cost: $140.00 an hour 2. Eco Partners – Create and print quarterly newsletter. Cost: $40,592 3. Tripepi Smith – Community outreach and branding consultant. Cost: $63,820.50 Purchase Orders 4. C Wells Pipeline Material, Inc. – Procured two check valves for Project #318, President Pump Station Rehabilitation. Cost: $5,268.98 5. California Fuels & Lubricants – Fuel for fleet. Cost: $40,000 Legal Review All contracts are reviewed and approved by District Counsel before contracts are executed. Environmental Review Providing the Board of Directors a monthly list of contracts signed by the General Manager is an administrative matter that will not result in direct or indirect physical changes in the environment and is not considered a "project". Financial Review There is adequate funding in the budget for the expenses referenced above. Public Notice Process Subject 13. Receive and File the May 2021 Contracts Signed by the General Manager Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action (Consent) Fiscal Impact Yes Budgeted Yes Recommended Action That the Board of Directors receive and file this report Goals 5.0 Community Outreach & Communications 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 33/68 Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021 Board of Directors meeting at District Headquarters and on District website at www.cmsdca.gov. Alternative Actions 1. Direct staff to report back with more information. Workflow All matters listed on the consent calendar are considered to be routine and may be acted upon by one motion after public comment has been received. Only Board of Directors may pull an item for discussion. Reading of resolutions is waived and they will be adopted and numbered. Now is the time for those in the audience who wish to speak to items listed on the consent calendar. Each speaker will be limited to four (4) continuous minutes of comment on the consent calendar as a whole. Workflow Jun 15, 2021 3:52 PM :: Submitted by Scott Carroll. Routed to Noelani Middenway for approval. Jun 15, 2021 4:07 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 34/68 D. PUBLIC HEARINGS To: Board of Directors Via: Scott Carroll, General Manager From: Alan Burns, District Counsel Date: June 28, 2021 Subject: Adopt Ordinance No. 132 and Resolution No. 2021-939 confirming Wastewater Annual Charges and Resolution No. 2021-940 confirming Solid Waste Annual Charges respectively for FY 2021-22 to be collected with the General Taxes and Direct the District Clerk to File with the County Auditor. Summary The District adopted the procedures authorized by Health and Safety Code Section 5470 that allows solid waste and wastewater charges to be collected on the assessment roll. To do so we must adopt a report assessing the charges against the parcels every year. The proposed resolutions make those assessments. Recommendation The Board of Directors adopt Ordinance No. 132 and Resolution No. 2021-939 confirming the Wastewater and Resolution No. 2021-940 confirming the Solid Waste Annual Charges respectively for FY 2018-19 to be collected with the general taxes and direct the Finance Manager to file with the County Auditor. Analysis The District has adopted the procedures provided in Health and Safety Code Section 5470 to allow our solid waste and wastewater collection charges to be collected with other taxes on the County assessment roll. To be able to do so, the District went through a mailed notice proceeding and the process was implemented in the early 1990s. Since that implementation, Proposition 218 was passed (Article XIIID of the California Constitution) which required that fees must be justified as proportional and in other ways proper whenever a new fee or increase is needed. That proceeding also requires mailed notice and a protest hearing. In FY 2021-22 the fee for wastewater collection will remain the same and the fee for year no fee for solid waste collection will increase 7%. The District followed the Proposition 218 procedures in considering the increase in solid waste charges and a protest hearing was held on June 27, 2019, and the protest failed. In accordance with Government Code Section 54756, the District is required to give notice at least 30 days before each increase goes into effect. The notice for the 7% increase in the solid waste collection fee was mailed, in a form of a postcard, to property owners 30 days prior to tonight's meeting. Attached as Exhibit 1 is a copy of the postcard notice. The District is required to annually assess both the solid waste and wastewater charges by parcel for the Assessor. The procedure to assess parcels must be adopted after a noticed public hearing, in which notice is published two weeks before in an appropriate newspaper. The District will provide the County with an electronic version of a report which contains a description of each property receiving services and the charges. The real property may be described by reference to the assessor’s parcel map description. Subject 1. Adopt Ordinance No. 132 and Resolution No. 2021-939 confirming Wastewater Annual Charges and Resolution No. 2021-940 confirming Solid Waste Annual Charges respectively for FY 2021-22 to be collected with the General Taxes and Direct the District Clerk to File with the County Auditor. Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action Fiscal Impact Yes Recommended Action The Board of Directors adopt Ordinance No. 132 and Resolution No. 2021-939 confirming the Wastewater and Resolution No. 2021-940 confirming the Solid Waste Annual Charges respectively for FY 2018-19 to be collected with the general taxes and direct the Finance Manager to file with the County Auditor. Goals 1.0 Sewer Infrastructure 2.0 Solid Waste 8.0 Finance 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 35/68 The hearing should be held to consider objections or protests to the assessments. Upon conclusion of the hearing, the Board may adopt the resolution approving the assessments to be filed with the Auditor. The Clerk must then file the assessments with the Auditor before August 10. She must confirm that the charges were adopted by the Board. The Auditor must then enter the charges against the parcels on the assessment roll. The charges are then collected by the Assessor and if the charges are not paid, there are procedures for liens, penalties and collections. Legal Review District Counsel has reviewed and approved this report along with ordinance and resolutions that are attached hereto. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “Projects” does not include......C. Continuing administrative or maintenance activities.” Financial Review The assessed rates for both Wastewater and Solid Waste will remain the same as the prior year. See below charts for each individual customer class rate. Wastewater Rates for FY 2021-22 Sold Waste Collection Rates for FY 2021-22 Customer Class Rate Customer Class Per Month Per Year Residential (Per Dwelling Unit) Single Family $21.45 $257.40 Single Family Residential $ 92.38 Multi-Family Residential 54.21 Non-Residential (Per 1000 sq. ft. Commercial – Ave Strength $ 41.09 Commercial – High Strength 44.81 Industrial 105.48 Public Notice Process In accordance with Government Code Section 54756, the District gave proper 30 days notice, in the form of a postcard mailed to every property owner, before the solid waste fee increase went into effect. In addition, the hearing was properly noticed with two weeks newspaper notice in accordance with Government Code Section 6066. Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021 Board of Directors regular meeting at District Headquarters and on the District’s website www.cmsdca.gov. Alternative Actions 1. Do not adopt the ordinance and/or resolutions and refer the matter back to staff. File Attachments 2021 Postcard Notice.pdf (149 KB) Newspaper Notice.pdf (130 KB) Prop 218 CERTIFICATION OF ASSESSMENT.docx (15 KB) ORDINANCE NO, 132.pdf (70 KB) Reso. 2021-939 Imposing Charges on the Assessment Roll for Wastewater.pdf (42 KB) Reso. 2021-940 Imposing Charges on the Assessment Roll for Solid Waste.pdf (42 KB) Workflow Workflow Jun 10, 2021 5:33 PM :: Submitted by Scott Carroll. Routed to Lucy Jacobo for approval. Jun 22, 2021 10:18 AM :: Forced Approval by Scott Carroll as the document publisher. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 36/68 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Kaitlin Tran, Finance Manager Date: June 28, 2021 Subject: Adopt Resolution No. 2021-941 Adopting the Biennial Budget for Fiscal Years 2021-22 and 2022-23 Summary Over the course of several meetings, staff received input from the Board of Directors and the public regarding the District’s proposed biennial budget for Fiscal Years (FY) 2021-22 and 2022-23. Staff has incorporated all recommendations into the budget, as directed by the Board, and is pleased to present the proposed budget for adoption. After the May Study Session Meeting, Staff had two minor adjustments in the Professional Services Account and the Liability Insurances Account. The total budget presented for adoption for FY 2021-22 is $13,219,500 and for FY 2022-23 is $13,338,400, as shown in attachments A and B. Recommendation The Board of Directors Adopt Resolution No. 2021-941 Adopting the Biennial Budget for Fiscal Years 2021-22 and 2022-23. Analysis Proposed Budget FY 2021-22 (Attachment A): Beginning of the FY 2019-20 budget, the District created a General Fund to account for the unrestricted financial resources of the general government. These unrestricted resources consist primarily of general property taxes and investment earnings. Staff is assuming a 2% increase in property tax revenue each year. The proposed preliminary property tax revenues are $333,000 and $340,000 for FY 2021-22 and FY 2022-23, respectively. Property tax revenues are unrestricted revenues previously recorded in the Solid Waste Fund for rate stabilization. Staff is proposing the Board continue to transfer this revenue to the Solid Waste Fund through this budgetary process. If more revenue is received than the budgeted amount at fiscal year-end, staff recommends the Board of Directors transfer the revenue, as per the District goal, to either the Solid Waste or the Wastewater Fund. The total proposed budget for FY 2021-22 is $13,219,500. The Solid Waste Fund proposed budget of $6,491,100 assumes that expenses will exceed revenues by $244,500 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 $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 conducted a solid waste rate study in 2019. Based on the rate study conducted, the Board of Directors recommended a five-year rate structure. The proposed Solid Waste budget reflects the 3rd year of the 7% rate increase from the 2019 study. The proposed budget does not include CR&R 5.6% Consumer Price Index (CPI) request. Fiscal Year 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 % Increased 0.0%4.1%7%7%6%6% Annual Rate 216.00 224.88 240.60 257.40 272.88 289.20 Subject 1. Adopt Resolution No. 2021-941 Adopting the Biennial Budget for Fiscal Years 2021-22 and 2022-23 Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action Fiscal Impact Yes Recommended Action The Board of Directors Adopt Resolution No. 2021-941 Adopting the Biennial Budget for Fiscal Years 2021-22 and 2022-23. Goals 8.2 Finance - Adopt a balanced budget 8.0 Finance 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 37/68 Month Rate 18.00 18.74 20.05 21.45 22.74 24.10 The Wastewater Fund proposed budget of $6,395,400 assumes that expenses will exceed revenues by $431,600 creating a deficit which will require the use of reserves to balance the budget. The FY 2017-18 was the final year of the five-year 2% rate increase from the 2012 Sewer Rate Study adopted by the Board. The District is planning to conduct a wastewater rate study in FY 2021-22. The proposed budget does not include any new positions. Staff included an estimate for the COLA to salaries of 1% for budgeting proposes. Staff is requesting Administration and Operation Capital Outlay funds of $342 400 for the continuation of replacement and upgrades to District's servers and software, replacement of one rooftop air condition unit, a pick-up truck for the Permits Department, and installation of a drought tolerant landscape and a photovoltaic system battery storage at headquarters. Of that amount, staff is proposing to transfer out $235,000 from the Facility Revolving Fund and transfer into the Wastewater Fund to cover for the installation costs of the drought tolerant landscape and a photovoltaic system battery storage. Proposed Budget FY 2022-23 (Attachment B): The total preliminary budget for FY 2022-23 is $13,338,400. The Solid Waste Fund reflects a balanced budget of $6,643,600. This will be the fourth year of a five-year rate increase of 6%. The proposed budget does not include CR&R 5.6% Consumer Price Index (CPI) request. The preliminary Wastewater Fund budget of $6,354,800 assumes that expenses will exceed revenues by $282,800, creating a deficit which will require the use of reserves to balance the budget. The FY 2022-23 proposed budget does not include any new positions or COLA. Included in the Administration and Operation Capital Outlay budget of $38,300 are the continuation of replacement and upgrades to District's servers and software, and replacement of one rooftop air condition unit. Capital Improvement Projects: Staff is requesting $1,802,000 and $1,767,000 for Capital Improvement Projects (CIP) for fiscal years 2021-22 and 2022-23, respectively. Incomplete projects in FY 2020-21 will be requested to be carried forward into FY 2021-22. The following is a breakdown of the proposed CIP by fiscal year: Project Description FY2021-22 FY2022-23 City MH Adjustment Program #309 $70,000 $70,000 MH Surface Repair Program #311 72,000 72,000 Brick Manhole Rehab #324 130,000 130,000 Calcium Removal Ph1 #327 75,000 400,000 Ductile Iron Pipe Rehab #328 400,000 - Gisler Force Main Replacement #334 520,000 - Sewer Siphon Lining #335 250,000 300,000 Grade 4 Sewer Repairs #336 120,000 170,000 Air-Vac Rehab and Removal #337 165,000 165,000 Elden PS Force main Valve Rehab #338 - 260,000 21st Street FM Rehab #339 - 200,000 Total $1,802,000 $1,767,000 Legal Review District Counsel reviewed this staff report and resolutions that are attached hereto. 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 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 38/68 Proposed FY 2021-22 Budget: total revenues are $12,543,400; total expenses including transfers are $13,219,500; the deficient budget of $676,100 will be balanced using the Solid Waste and Wastewater Funds' reserves. Proposed FY 2022-23 Budget: total revenues are $13,055,600; total expenses including transfers are $13,338,400; the deficient budget of $282,800 will be balanced using the Wastewater Fund's reserves. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021 Board of Directors regular meeting at District Headquarters and on District website www.cmsdca.gov Alternative Actions 1. Refer the matter back to staff for additional information. File Attachments Attachment A- 2021-22 Proposed Budget.pdf (762 KB) Attachment B 2022-23 Proposed Budget.pdf (759 KB) AD#7783411 Notice of Public Hearing Biennial Budget.pdf (113 KB) Attachment C. Budget Resolution 2021-941.docx (31 KB) Workflow Workflow Jun 21, 2021 1:43 PM :: Submitted by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 22, 2021 10:21 AM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 24, 2021 5:10 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 39/68 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manger From: Kaitlin Tran, Finance Manager Date: June 28, 2021 Subject: Consider Approving a Budget Adjustment of $96,500 to Purchase Two New Bypass Pumps Summary The District has two emergency mobile bypass pumps, unit 1010 and unit 1008. These units are the oldest units in the fleet (unit 1010 is thirteen years old and unit 1008 is eleven years old), and as such, they will no longer be permitted to operate in California after December 31, 2021. The pumps are currently stored at the Rob Hamers District Yard and serve as bypass pumps for emergencies, such as failures at a pump stations or sewer main failures where repairs are needed. The City of Costa Mesa also uses our pumps regularly each year for draining its facilities or small emergencies due to storm weather. Recommendation The Board of Directors approve the budget adjustment to purchase two new bypass pumps. Analysis The District registers these bypass pumps with the Air Quality Management District (AQMD) every three years. The District received a notice from the AQMD that by December 31, 2021, the two bypass pumps, unit 1010 and unit 1008, will not be allowed to operate due to new emission requirements. The District will be purchasing two new units and then auction off the two old units where they can be operated in different states such as Arizona or Nevada. Staff obtained quotes from Xylem and Charles King Company in which the lowest bid is from Charles King. The District will be purchasing two units from Charles King Company for $106,500 using savings in the following accounts: There is enough money in the existing budget for this purchase; however, funds from several accounts would have to be transferred to the Capital Outlay Sewer Maintenance account. The transfer totals $96,500, which is over the allotted amount the general manager is Subject 2. Consider Approving a Budget Adjustment of $96,500 to Purchase Two New Bypass Pumps Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action Fiscal Impact Yes Dollar Amount $96,500.00 Recommended Action The Board of Directors approve the budget adjustment of $96,500 to purchase two new bypass pumps. Goals 1.13 Sewer Infrastructure - Inventory equipment and replacement parts 1.1 Sewer Infrastructure - Prevent Sanitary Sewer Overflows (SSOs) 8.0 Finance 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 40/68 authorized to transfer. Per Operations Code, Chapter 4.03, Section 4.03.101(h), transfers over $50,000 must be approved by the Board of Directors. “(h) The General Manger shall have the authority to transfer up to fifty thousand dollars ($50,000) from savings, from account to account or between personnel, maintenance and operations and capital outlay unless otherwise prohibited by law. Funds shall not be transferred between the solid and liquid waste funds. Transfers over fifty thousand dollars must be approved by the Board of Directors. (Ord. 82, 2011)” Legal Review Not applicable. Environmental Review Approving budget adjustments are administrative matters and are exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 ”Projects” does not include …. C. Continuing administrative or maintenance activities. Financial Review The two new bypass pumps will be purchased out of the Capital Outlay Sewer Maintenance account. There is $10,000 available in the Capital Outlay Sewer Maintenance account. A budget adjustment of $96,500 will be needed to transfer into the Capital Outlay Sewer Maintenance account as follow: Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021 Board of Directors regular meeting at District Headquarters and on District website www.cmsdca.gov Alternative Actions Direct staff to report back with more information. File Attachments Charles King Company- Quote 6.15.21.pdf (8 KB) Xylem Quote-1 Godwin CD150S John Deere.pdf (66 KB) Xylem Quote-2 Godwin CD150S JCB.pdf (105 KB) Workflow Workflow Jun 23, 2021 6:55 PM :: Submitted by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 24, 2021 11:39 AM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 24, 2021 5:09 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 41/68 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Gina Terraneo, Management Analyst II Date: June 28, 2021 Subject: Consider Awarding Contract for IT Management Services to Acorn Technology Services Summary Since July 1, 2015, the Costa Mesa Sanitary District has contracted with Lan Wan Enterprise to provide full-service information technology (IT) management services. On May 3, 2021, the District released a request for proposal (RFP) for full-service information technology (IT) management services in accordance with the competitive bidding procedures outlined in the District's Operations Code. As a technical service, IT management is not subject to the District's five-year contract term limitation (Operations Code Section 4.04.070); however, it is considered a best practice to invite competitive bids periodically to ensure that the District receives the best value for its contracted services. The District received 10 proposals in response to its RFP, and after a thorough evaluation of best value criteria, District staff is recommending that the contract be awarded to Acorn Technology Services. Staff Recommendation To award the contract for information technology (IT) management services to Acorn Technology Services in the amount of $148,435.00 for a term of three (3) years. Analysis As shown in the attached RFP for comprehensive IT management services, the District utilized the following timeline for the RFP process: RFP available: May 3, 2021 Deadline for submittal of questions: May 14, 2021 Site Walkthroughs: May 17-21, 2021 Staff responses to questions: May 21, 2021 Deadline for submittal of proposal: May 27, 2021 Proposal opening & evaluation: June 1-14, 2021 (evaluation period was extended from June 8 to 14 due to the volume of proposals received) Subject 3. Consider Awarding Contract for IT Management Services to Acorn Technology Services Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action, Discussion, Receive and File Preferred Date Jun 28, 2021 Absolute Date Jun 28, 2021 Fiscal Impact Yes Dollar Amount $148,435.00 Budgeted Yes Budget Source Professional Services Recommended Action To award the contract for information technology (IT) management services to Acorn Technology Services in the amount of $148,435.00 for a term of three (3) years. Goals 6.7 Administrative Management - Optimize the use of technology to drive efficiency, productivity, and customer service 6.0 Administrative Management 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 42/68 Agreement preparation: June 14-23, 2021 (agreement preparation period was adjusted to account for evaluation period extension) Agreement presented to Board of Directors for review & award: June 28, 2021 In response to the attached RFP, the District received a total of 10 proposals from the following IT firms: Scientia Consulting Group Valeo Networks Lan Wan Enterprise Orange Crew Intelesys Acorn Technology Services Breeze IT Image Source Techstrata C3 Tech After conducting a thorough review of the 10 proposals, District staff completed a best value evaluation of each proposal by assigning weighted scores for the cost of services (30%), responsiveness to proposal requirements (15%), experience providing similar services to similar agencies (15%), ability to provide services (25%), and distinguishing characteristics (15%). Acorn Technology Services unanimously received the highest overall scores from all raters. District staff then conducted reference checks from other current Acorn clients, such as the City of Monrovia, City of La Quinta, City of South Pasadena, City of Huntington Beach, the Annenberg Foundation Trust at Sunnylands, and SmartStop Self Storage. All references shared glowing reviews of Acorn's responsiveness, complex problem-solving abilities, security/recovery planning, and overall understanding of government agency needs. No negative feedback, hesitations, or concerns were shared during the reference checks. Acorn Technology Services' proposed fees are as follows: Initial Assessment Fee: $6,775 Monthly Fee for 3-Year Term: $3,935 Year 1 Total Year 2 Total Year 3 Total 3-Year Total $53,995 $47,220 $47,220 $148,435 *For comparison, the District's previous contract fees with Lan Wan Enterprise were $3,900 monthly ($46,800 annually); however, Lan Wan Enterprise submitted a proposal with a new fee of $4,600 monthly ($55,200 annually) to meet the RFP's scope of services. This increase in cost is due to a requested increase in on-site service hours from 16 hours per month to 24 hours per month. Although the District received 3 proposals with lower monthly fees from Scientia Consulting Group ($2,238), Orange Crew ($3,750), and C3 Tech ($3,250), District staff determined that these 3 firms did not sufficiently demonstrate an understanding of the scope of services and did not have sufficient experience providing similar services to government agencies. The remaining firms proposed substantially higher fees. For these reasons, District staff is recommending that the Board of Directors award the contract to Acorn Technology Services. Legal Review District Counsel has reviewed and approved the proposed contract to form. Environmental Review Consideration of a contract award for IT services 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 The costs for the transition of IT management services from Lan Wan Enterprise to Acorn Technology Services are as follows: Lan Wan Contract Extension: $7,800 ($3,900 per month for 2 months) A 2-month contract extension is needed to allow Lan Wan Enterprise to assist Acorn Technology Services with the transition of IT management services. Acorn Technology Services Contract One-time Initial Assessment Fee: $6,775 Monthly Fee: $3,935 (special rate for a 3-year term) Total Cost for FY21-22: $$53,995 FY 21-22 Total FY 22-23 Total FY 23-24 Total 3-Year Total 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 43/68 $53,995 $47,220 $47,220 $148,435 These transition and contract costs have been included in the proposed FY 2021-2022 and FY 2022-2023 budget to cover the cost of the proposed contract with Acorn Technology Services. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 28, 2021 Board of Directors Regular Meeting held via teleconference and posted on the District’s website. Alternative Actions 1. Do not approve the contract as presented. 2. Direct staff to report back with more information. File Attachments 2021-05-03 - IT Management Services Request for Proposal.pdf (541 KB) Acorn Technology Services Proposal.pdf (5,251 KB) 2021-07-01 - Acorn Technology Services - Agreement.pdf (719 KB) Workflow Workflow Jun 22, 2021 1:12 PM :: Submitted by Gina Terraneo. Routed to Kaitlin Tran for approval. Jun 22, 2021 2:05 PM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 22, 2021 2:32 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 23, 2021 4:35 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 44/68 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: June 28, 2021 Subject: Consider Awarding Agreement with EEC Environmental for Managing the District's Fats Oil and Grease (FOG) Control Program Summary The District's Fats, Oils and Grease (FOG) control program was developed to comply with the State of California’s 2006 General Waste Discharge Requirements for Sanitary Sewer Systems (WDR). The program seeks to minimize the discharge of FOG into the District's sewer system and avoid sanitary sewer overflows (SSOs), which are deemed a potential health hazard to the public. Recommendation That the Board of Directors approves Agreement with EEC Environmental for Managing the District's Fats Oil and Grease (FOG) Control Program Analysis FOG regulations are codified within the District's Operation Code Title 6 Chapter 6.07 Any person(s) in violation of this or any other ordinance is subject to enforcement as specified within the Operations Code. Significant FOG contributors within the District are restaurants or Food Service Establishments (FSE). FSE's established after 2006 are required to install grease interceptors or grease traps, which are plumbing devices designed to intercept grease and solids before they enter the sewer system. FSE's are required to keep accurate maintenance records of their grease collection device and perform Best Management Practices (BMP) for preventing FOG from entering the sewer system. The District retained EEC Environmental to enforce the District's FOG Control Program, but the Agreement between CMSD and EEC expires on June 30, 2021. On April 19, 2021, CMSD solicited proposals from qualified FOG control experts to manage our FOG Control Program. Staff is aware of three consulting firms that provide FOG control management services to local government agencies in Orange County. Proposals were due on May 20, 2021. EEC Environmental is the only firm that submitted a proposal to CMSD. Staff has reviewed EEC's proposal and determined it is responsive to the "Scope of Service" described in the RFP and the firm has demonstrated it is qualified and experience to managing FOG control programs, and they have the ability to provide the services. EEC's proposal is $7,525 less than its current contract with CMSD. Staff has determined that EEC's proposal is considered "Best Value" and therefore, recommends the Board approve the attached Agreement with EEC Environmental. Legal Review District Counsel has reviewed and approved the Agreement. Environmental Review Subject 4. Consider Awarding Agreement with EEC Environmental for Managing the District's Fats Oil and Grease (FOG) Control Program Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action Fiscal Impact Yes Budgeted Yes Budget Source Wastewater Fund Recommended Action That the Board of Directors approves Agreement with EEC Environmental for Managing the District's Fats Oil and Grease (FOG) Control Program Goals 1.0 Sewer Infrastructure 1.8 Sewer Infrastructure - Enforce the District's Fats, Oils & Grease (FOG) Program 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 45/68 The work by EEC on behalf of the District is inspecting food service establishments to determine compliance, and inspections are categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15309 Inspectionsas a “Class 9” activity described as: Class 9 consists of activities limited entirely to inspections, to check for performance of an operation, or quality, health, or safety of a project, including related activities such as inspection for possible mislabeling, misrepresentation, or adulteration of products. Financial Review The cost to have EEC Environmental provide FOG control management services to CMSD is $102,950 annually. The annual amount is within the general manager's authority to sign the Agreement; however, the term of the Agreement is for five years. The five-year value of the Agreement is $514,750, which is over the general manager's authority to sign agreements and why the Agreement is being considered for Board approval. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Do not approve the Agreement with EEC Environmental. 2. Direct staff to report back with more information. File Attachments FOG Control Agreement - EEC Environmental.pdf (17,815 KB) Workflow Workflow Jun 15, 2021 1:15 PM :: Submitted by Scott Carroll. Routed to Kaitlin Tran for approval. Jun 16, 2021 11:10 AM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 22, 2021 10:22 AM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 23, 2021 4:35 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 46/68 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Nabila Guzman, Management Analyst I Date: June 28, 2021 Subject: Consider Approving a Sole Source Agreement with Michael Balliet Consulting, LLC for Solid Waste Consulting Services Summary In October 2020, the Costa Mesa Sanitary District released a request for proposal (RFP) for a Solid Waste Performance Audit, SB 1383 Compliance Analysis, and Implementation Plan Development. Michael Balliet Consulting, LLC (MBC) was the only firm to submit a bid for the RFP. MBC's bid was a responsive proposal, and the District entered into an agreement with MBC on December 1, 2020. Recommendation That the Board of Directors determine sole sourcing for solid waste consulting services is in the best interest of the District and direct the General Manager to enter into an Agreement with Michael Balliet Consulting, LLC in the amount of $34,000 per year for a term of two- term that will total $68,000 Analysis Michael Balliet Consulting completed the solid waste performance audit and SB 1383 compliance analysis in February 2021. The results of the fiscal year 2019-2020 CR&R audit were presented to the Board of Directors on March 9, 2021. As a result of the audit and per direction provided at the March 9, 2021 Study Session Meeting, the District would benefit from year-round consulting assistance beginning on July 1, 2021. MBC has submitted a two-year (FY 2021-22 and FY 2022-23) proposal for assisting the District three major areas, they are as follows: 1, Franchise Hauler Compliance a. Revise annual hauler review into quarters – making annual review unnecessary as a separate scope of work b. Perform annual rate review of CR&R customers and County-wide survey c. Review and revise contract revisions to address concerns and deficiencies d, Assist/Advice on hauler negotiations e. Attendance at quarterly hauler meetings f, On-call assistance to CMSD Subject 5. Consider Approving a Sole Source Agreement with Michael Balliet Consulting, LLC for Solid Waste Consulting Services Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action, Discussion, Receive and File Fiscal Impact Yes Dollar Amount $68,000.00 Budgeted Yes Budget Source Solid Waste Fund Recommended Action That the Board of Directors determine sole sourcing for solid waste consulting services is in the best interest of the District and direct the General Manager to enter into an Agreement with Michael Balliet Consulting, LLC in the amount of $34,000 per year for a term of two term that will total $68,000 Goals 2.0 Solid Waste 2.1 Solid Waste - Focus on generating less contaminated materials 2.6 Solid Waste - Improve waste stream and recycling reporting 2.8 Solid Waste - Recycle green waste and food scraps 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 47/68 2. SB 1383 Compliance a, Assist with implementation of SB 1383 measures from annual review report b. Provide reports/advice on legislative changes related to solid waste c, Assist in preparing required notices and coordinate contamination monitoring d, Oversee “high diversion rate” facility studies and related activities should the two-cart system remain in place. e. Assist the CMSD staff in developing and executing an overall compliance strategy. f. Assist in report preparation and attend CMSD Board meetings as needed. g, On-call assistance to CMSD staff for any compliance or franchise question/issue. 3. Quarterly waste composition studies covering all 8 mixed waste routes annually a. Coordinate load selection and sorting assistance procedures with CR&R. b. Schedule and conduct random samplings of two different mixed waste collection loads each quarter. Over the contract year, each of the eight (8) routes will have load samples examined. c. Oversee sorting, weighing and categorizing each load into general trash, recoverable recyclables, and organic waste fractions. Within the organic waste fraction, we will segregate and measure both food waste and green waste to help identify where expanding outreach/education is needed. Outlined in the District's Operations Code (Section 4.04.120(f)), the Board of Directors, on the recommendation from the General Manager, can sole-source a contract if it is in the best interest of the District. Below is a list of reasons the General Manager is recommending sole sourcing: MBC is the only firm that submitted a proposal on November 10, 2020 for the Solid Waste Performance Audit, SB 1383 Compliance Analysis, and Implementation Plan Development MBC has demonstrated knowledge and expertise of SB 1383 by giving a presentation on the subject at the 2021 virtual Citizens Environmental Protection Academy Enhanced coordination with the City of Costa Mesa regarding SB 1383 implementation because MBC is consulting for the City of Costa Mesa as well. For the reasons stated above, District staff is recommending that the Board of Directors determine sole sourcing for solid waste consulting services is in the best interest of the District and direct the General Manager to enter into an Agreement with Michael Balliet Consulting, LLC in the amount of $34,000 per year for a term of two term that will total $68,000. Legal Review District Counsel will review and approve Agreement before the document is fully executed. Environmental Review Consideration of a contract award for solid waste consulting services 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 The annual cost for the Solid Waste Consulting Services is $34,000 or $68,000 for two years. It is included in the proposed Biennial Budget FY 2021-22 and FY 2022-23. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 28, 2021 Board of Directors Regular Meeting held via teleconference and posted on the District’s website. Alternative Actions 1. Direct staff to report back with more information. File Attachments MBC - Proposal to Provide Annual Consulting Services.pdf (157 KB) Workflow Workflow Jun 23, 2021 7:14 PM :: Submitted by Nabila Guzman. Routed to Kaitlin Tran for approval. Jun 24, 2021 10:39 AM :: Approved by Kaitlin Tran. Routed to Scott Carroll for approval. Jun 24, 2021 11:09 AM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 24, 2021 5:16 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 48/68 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Mark Esquer, District Engineer Date: June 28, 2021 Subject: Oral Presentation - Orange County Sanitation District Regional Sewer Line Repair in Costa Mesa Summary On May 26, 2021 a twelve-inch Orange County Sanitation District (OC San) regional sewer line that serves Costa Mesa Sanitary District (District) was damaged during construction of the I-405 Freeway Widening Project. The sewer line location underneath the I-405 Freeway and adjacent to the CarMax property made this repair very difficult and time-consuming. The repairs consisted of digging down to the pipe, removing the interfering portion of foundation pile(s), and replacing the damaged portion of pipe. The I-405 contractor was able to place the sewer back into service by Friday morning, May 28th. Recommendation The Board of Directors receive and file this report. Analysis The damaged sewer line is located between the southbound I-405 Freeway and the rear CarMax parking lot located near College and Gisler Avenues. The sewer damage resulted from the Caltrans/I-405 contractor pushing three large steel beam foundation piles through the OC San sewer line. It appears that the contractor incorrectly marked the location of the sewer line after they had pot-hole-located and back-filled the existing sewer. Soon after being notified, District staff was dispatched and found high sewage levels in our system. OC San's initiation of bypass truck- pumping prevented sewer spills from our system. Neither agency experienced a sewage overflow. OC San conducted the pumping operation in the Ikea parking lot; it continued 24-hours a day until the sewer repair was completed. The pumper-truck operation is how the District's sewage was bypassed to the OC San treatment plant. The bypass pumper-truck operation involves 5,000-gallon pumper trucks transporting sewage from the Ikea parking lot to an OC San manhole on Gisler Avenue, just west of the In-N-Out Burger restaurant. On May 28 at approximately 7:00 am, the regional sewer line was repaired and sewage was once again flowing from this pipe. Attached is a slide presentation by the District Engineer, who will be making a presentation to the Board of Directors. Legal Review Not applicable Environmental Review Giving a presentation regarding a sewer repair project from OC San is an administrative matter and is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public esources 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 This project had no financial impacts to the District. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021 Board of Directors regular meeting at District Headquarters and on District’s website. Subject 6. Oral Presentation - Orange County Sanitation District Regional Sewer Line Repair in Costa Mesa Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Discussion Goals 1.0 Sewer Infrastructure 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 49/68 Alternative Actions 1. Direct staff to report with more information. File Attachments 2021 06 OC San Sewer Repair PowerPoint.pdf (7,606 KB) Workflow Workflow Jun 15, 2021 4:07 PM :: Submitted by Scott Carroll. Routed to Mark Esquer for approval. Jun 22, 2021 7:11 PM :: Approved by Mark Esquer. Routed to Scott Carroll for approval. Jun 23, 2021 2:43 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 23, 2021 4:36 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 50/68 E. GENERAL MANAGER'S REPORTS To: Board of Directors From: Scott Carroll, General Manager Date: June 28, 2021 Subject: Consider Establishing a Different Start Time for Board of Directors Study Session Meetings Summary Currently, the start time for Board of Directors study session meetings is 9:30 am. Director Eckles has requested to place this item on the agenda for discussion. Recommendation That the Board of Directors give direction to staff. Analysis On the second Tuesday of every month are Board of Directors study session meetings. The meetings begin at 9:30 am. Director Eckles is requesting a discussion among Board members to possibly change the start time to a different time. Legal Review Not applicable Environmental Review Consideration of establishing a different start time for Board of Directors study session meetings 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 There are no fiscal impacts to CMSD for establishing a different start time for Board of Directors Study Session meetings Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021 Board of Directors regular meeting at District Headquarters and on District’s website. Alternative Actions 1. Direct staff to report with more information. Workflow Subject 7. Consider Establishing a Different Start Time for Board of Directors Study Session Meetings Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action Fiscal Impact No Recommended Action That the Board of Directors give direction to staff. Goals 6.0 Administrative Management Workflow Jun 15, 2021 2:41 PM :: Submitted by Scott Carroll. Routed to Noelani Middenway for approval. Jun 15, 2021 4:09 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 51/68 E. GENERAL MANAGER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Noelani Middenway, CMC, District Clerk Date: June 28, 2021 Subject: California Special Districts Association Board of Directors Ballot - Term January 1, 2022 - December 31, 2024; Seat A - Southern Network Summary The California Special Districts Association (CSDA) Board of Directors is holding an election for Seat A of the Southern Network for the term of January 1, 2022 - December 31, 2024. One candidate will need to be selected and voted for electronically by July 16, 2021. Recommendation That the Board of Directors nominate and vote for one candidate for the CSDA Board of Directors Southern Network, Seat A, and direct General Manager, Scott Carroll, to electronically vote for said candidate. Analysis The California Special Districts Association (CSDA) Board of Directors is holding an election for Seat C of the Southern Network for the two-year term of 2021 – 2023. Candidate statements are attached for the following nine candidates seeking election: Jo MacKenzie* Jan Bissell Kelly Gregg Rickey Manbahal Jo-Anne Martin Paulina Martinez-Perez Rachel Mason David E. Raley John Skerbelis Voting will be conducted electronically with a deadline of July 16, 2021. Legal Review Not applicable. Environmental Review The consideration of candidates and voting is an administrative matter and is not a disturbance of the environment, similar to grading or construction, and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review Not applicable. Public Notice Process Copies of this report are on file and will be included in the complete agenda packet for the June 28, 2021 Board of Directors regular meeting at District Headquarters and posted on the District’s website at www.cmsdca.gov. Alternative Actions That the Board of Directors direct staff to abstain from voting. Subject 8. Consider Voting for One Candidate to the California Special Districts Association Board of Directors - Seat A - Southern Network for the January 1, 2022 - December 31, 2024 Term Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action Recommended Action That the Board of Directors vote for one candidate for the California Special Districts Association Board of Directors - Term 2021-2023; Seat A - Southern Network 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 52/68 File Attachments csda_candidates_seatA.pdf (7,630 KB) 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 53/68 F. ENGINEER'S REPORTS To: Board of Directors Via: Scott Carroll, General Manager From: Mark Esquer, District Engineer Date: June28, 2021 Subject: Capital Improvement Projects Status Report Summary The District Engineer has provided a memorandum with a brief summary of major activities for the period of mid-May to mid-June. The District Engineer's memorandum is attached. Also attached is a detailed summary of the Capital Improvement Project activities and associated project cost expenses for the previous calendar month. Recommendation That the Board of Directors receive and file the report. Analysis Attached is information regarding project or technical sewer activities for the Boards use and information. Legal Review Not Applicable. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6 “”Projects” does not include …. C. Continuing administrative or maintenance activities.” Financial Review Sufficient funds are available in the adopted budget. Public Notice Process Copies of this report are on file and will be included with the complete agenda packet for the June 28, 2021 Board of Directors Regular meeting at District Headquarters and posted on the District’s website www.cmsdca.gov. Alternative Actions 1. Refer item back to staff with further instructions. File Attachments CIP Updates June 2021 Meeting.pdf (1,031 KB) 2021 06 Monthly Engineers Report.pdf (434 KB) Workflow Subject 1. Receive and File Capital Improvement Projects Status Report Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action Preferred Date Jun 28, 2021 Fiscal Impact No Budgeted Yes 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 54/68 Workflow Jun 22, 2021 5:03 PM :: Submitted by Mark Esquer. Routed to Mark Esquer for approval. Jun 22, 2021 5:04 PM :: Approved by Mark Esquer. Routed to Scott Carroll for approval. Jun 23, 2021 2:55 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 23, 2021 4:36 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 55/68 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: June 28th, 2021 Subject: Consider Awarding Contract to GCI Construction, Inc. for Project #322 Iowa Street Pump Station Sewer Force Main Replacement Summary The project work generally consists of replacing the Iowa Street Pump Station force main. Contractors were required to bid on installing two new force mains. Two force mains are being installed for redundancy purposes and reducing risk for sewer spills while performing work on one of the force mains. Bids, received from three contractors, were opened on May 20, 2021, and ranged from $168,018 to $244,800. The Bid Register showing bidder details is attached to this report. The Engineer's estimate for this project is $160,000 and was based on unit prices from the recently bid 19th Street Force Main project. However, construction costs have dramatically increased over the last few months and the engineers estimate did not account for the dramatic increase. The large increase results from the unavailability of raw materials for the manufacture of pipe, valves, and fittings. As an example, the resin that is required to manufacture PVC pipe is in short supply and the PVC pipe manufacturers can't keep production in line with construction demands. In addition, the manufacture of ductile iron fittings is experiencing backlog of orders due to the unavailability of iron and other metals used in fabrication and casting. The lead-time for these products between 16 an 30 weeks out. Recommendation That the Board of Directors: 1. Award a contract for installing two force mains to the lowest responsive and responsible bidder, GCI Construction, Inc., in the amount of $168,018; and 2. Approve a contingency of 10% in the amount of $16,801.80. Analysis Three bids were received and the results are as follows: Contractor Bid GCI Construction, Inc. $168,018 GRFCO, Inc. $226,000 The Roberts Incorporated $244,800 Subject 2. Consider Awarding Contract to GCI Construction, Inc. for Project #322 Iowa Street PS Sewer Force Main Replacement Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action Preferred Date Jun 28, 2021 Fiscal Impact No Dollar Amount $168,018.00 Budgeted Yes Budget Source Capital Improvement Project Budget Recommended Action 1. Award a contract for installing two force mains to the lowest responsive and responsible bidder, GCI Construction, Inc., in the amount of $168,018. 2. Approve a contingency of 10% in the amount of $16,801.80. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 56/68 Staff checked the licensing requirements for the low bidder, GCI Construction, who has completed a number of projects for the District in the past, and found everything in order, therefore, a recommendation to award the contract is being made. Legal Review District Counsel is reviewing the contract being considered and will approve to form. Environmental Review The replacement of an existing sewer force main pipe with a same capacity as the existing pipeline is categorically exempt under the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15302 as a “Class 2” project as stated under 15302(c) “Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity“. Financial Review The Project budget is $270,000 in the Capital Improvement Project budget, and is sufficient to cover the cost for this project. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021, Board of Directors Meeting at District Headquarters and on District’s website. Alternative Actions 1. Reject the bids. 2. Refer the matter back to staff for additional information. File Attachments Iowa PS Contract.pdf (1,648 KB) bid_register_322_rev1.pdf (49 KB) Workflow Workflow Jun 15, 2021 7:20 PM :: Submitted by Mark Esquer. Routed to Mark Esquer for approval. Jun 22, 2021 5:04 PM :: Approved by Mark Esquer. Routed to Scott Carroll for approval. Jun 23, 2021 2:49 PM :: Rejected by Scott Carroll Jun 23, 2021 3:22 PM :: Submitted by Mark Esquer. Routed to Mark Esquer for approval. Jun 23, 2021 3:22 PM :: Approved by Mark Esquer. Routed to Scott Carroll for approval. Jun 23, 2021 3:45 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 23, 2021 4:36 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 57/68 F. ENGINEER'S REPORTS To: Board of Directors From: Mark Esquer, District Engineer Date: June 28th, 2021 Subject: Consider Approving Resolution No. 2021-942 Vacating and Quitclaiming a Sewer Easement Not Necessary for Public Use Summary The District was granted a 6-foot easement in 1956 to serve two houses located on Orange Avenue. A subsequent tract development created an opportunity to build sewers within dedicated street right-of-way, so the sewer to serve the two houses on orange avenue was not built within said easement. The 1956 easement cuts diagonally across the middle portion of Lot 2 of Tract 4245, otherwise known as 2454 Norse Avenue. The District has not used said easement nor do we plan to use said easement. The current property owner has requested the District vacate said easement as its location across the property impacts building opportunities for this Lot. The Health and Safety Code Section 6514 provides for vacating an easement that is no longer required for the purposes of the District. Also, the Streets and Highways Code Section 8330 also provides for vacation of an easement that has been superseded by relocation and that has not been used for 5 years. Since the various properties involved are and have been served by sewers within dedicated street right-of-way and the District does not intend to use said easement, the District recommends vacating said easement and quitclaiming to the property owner. Recommendation That the Board of Directors approve Resolution No. 2021-942 vacating and quitclaiming a sewer easement across the 2454 Norse Avenue property. Analysis The two properties on Orange Avenue and the various Lots within Tract No. 4245 are all currently served by sewers within street right-of- way. Furthermore, it is not practical to use said easement because it is only 6-feet wide. In addition, said easement travels along the middle portion of Lot 2 located at 2454 Norse avenue, thus impacting the building opportunities of the property owner. Legal Review District Counsel has reviewed this item and has drafted a Resolution that provides for vacating said easement and quitclaiming to the property owner. Environmental Review Vacating a portion of a sewer main, manholes, and easement is categorically exempt from the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) under Section 15301 as a “Class 1” “minor alteration of existing public or private structures”, as further described in Section (b) as “Existing facilities of both investor and publicly-owned utilities used to provide .... sewerage ...”. Financial Review There are no fiscal impacts to the District for approving the resolution. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021, Board of Directors Meeting at District Headquarters and on District’s website. Subject 3. Consider Approving Resolution No. 2021-942 Vacating and Quitclaiming a Sewer Easement Not Necessary for Public Use Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action Fiscal Impact No Budgeted No Recommended Action That the Board of Directors approve Resolution No. 2021-942 vacating and quitclaiming a sewer easement across the 2454 Norse Avenue property. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 58/68 Alternative Actions 1. Reject recommended action. 2. Refer the matter back to staff for addressing issues or providing additional information. File Attachments 2455 Norse Easement Vacation 210604.pdf (319 KB) Resolution No 2021-942.pdf (1,267 KB) Workflow Workflow Jun 22, 2021 5:02 PM :: Submitted by Mark Esquer. Routed to Mark Esquer for approval. Jun 22, 2021 5:04 PM :: Approved by Mark Esquer. Routed to Scott Carroll for approval. Jun 23, 2021 2:54 PM :: Approved by Scott Carroll. Routed to Noelani Middenway for approval. Jun 24, 2021 5:17 PM :: Final approval by Noelani Middenway 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 59/68 G. TREASURER'S REPORTS To: Board of Directors From: Marc Davis, District Treasurer Date: June 28, 2021 Subject: Consider Adopting Resolution 2021-943 Approving the Statement of Investment Policy and Delegating the Investment Function to the District Treasurer for Fiscal Year 2021-22 Summary Attached is the proposed Statement of Investment Policy for Fiscal Year 2021-22 (Policy). The Policy documents the Board’s guidelines under which the District Treasurer can invest the District’s idle funds. Recommendation That the Board of Directors adopt Resolution 2021-943 approving the Statement of Investment Policy and delegating the investment function to the District Treasurer for Fiscal Year 2021-22. Analysis California Government Code §53646(a)(2) allows the District Treasurer to submit an annual investment policy to the Board for consideration. It is not a requirement to do so, but staff believes it is prudent to continue this practice. The enclosed Policy documents the Board’s objectives surrounding the selection of investments, as well as those investments in which the Board has authorized. It also provides limitations on specific investments. The responsibility for placing investments rests with the Board. California Government Code §53607 allows the Board to delegate the investment function to the District Treasurer for a period of one year. The attached Resolution approves the Policy and delegates the investment function to the District Treasurer for the 2021-22 fiscal year. The Policy has been attached in two versions. A clean version that the Board will be considering for approval, and a red-lined version so that the Board can review the proposed changes to the Policy. Once approved, the Policy will be distributed to the brokers assisting the District with the investment of its idle funds. Legal Review District Counsel has reviewed Resolution 2021-943 as to form. Environmental Review Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures “to list those specific activities which fall within each of the exempt classes”, and the District has adopted “CEQA Guidelines and Implementing Procedures” that state on page 6, “”Projects” does not include….C. Continuing administrative or maintenance activities.” Financial Review The Statement of Investment Policy guides the Treasurer in how to invest the District’s idle funds. The amount of investment earnings to be generated as a result of the investing function is based upon the market conditions at the time of investment. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the June 28, 2021 Board of Directors regular meeting at District Headquarters and on the District’s website at www.cmsdca,gov. Subject 1. Consider Adopting Resolution 2021-943 Approving the Statement of Investment Policy and Delegating the Investment Function to the District Treasurer for Fiscal Year 2021-22 Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Action Recommended Action That the Board of Directors adopt Resolution 2021-943 approving the Statement of Investment Policy and delegating the investment function to the District Treasurer for fiscal year 2021-22. Goals 8.5 Finance - Evaluate the District's Investment policy annually 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 60/68 Alternative Actions 1. Do not adopt Resolution and retain investment function at the Board level 2. Refer the matter back to staff Attachments Attachment 1 – Resolution Number 2021-943 Attachment 2 – Statement of Investment Policy for Fiscal Year 2021-22 Attachment 3 – Statement of Investment Policy for Fiscal Year 2021-22 (redline version) File Attachments Attachment 1 - Investment Resolution No 2021-943.pdf (66 KB) Attachment 2 - Statement of Investment Policy for Fiscal Year 2021-22.docx (55 KB) Attachment 3 - Statement of Investment Policy for Fiscal Year 2021-22 (Redline).docx (58 KB) Workflow Workflow Jun 23, 2021 11:40 AM :: Submitted by Marc Davis. Routed to Lucy Jacobo for approval. Jun 24, 2021 5:30 PM :: Forced Approval by Noelani Middenway as the document publisher. 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 61/68 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 1. Orange County Sanitation District (OCSD) - (President Ooten) Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Information 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 62/68 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 2. Santa Ana River Flood Protection Agency (SARFPA) - (Director Perry) Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Information 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 63/68 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 3. Independent Special Districts of Orange County (ISDOC) - (Secretary Schafer) Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Information 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 64/68 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 4. California Special Districts Association (CSDA) - (Secretary Schafer) Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Information 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 65/68 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 5. Special District Risk Management Authority (SDRMA) - (Vice President Scheafer) Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Information 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 66/68 I. LOCAL MEETINGS: In accordance with AB 1234 (Gov. Code 53232.3), a report is required to be given by a Director for any meeting for which expense reimbursement of any kind is provided. Note: For meetings for which the per diem compensation is sought, the Operations Code provides that such compensation is authorized for each day’s service rendered as a Director at the request of the Board (not to exceed six days in one month), and certain meetings are specified as being eligible as set forth in District Operations Code § 3.01.030. For meetings not so listed, the Board must approve the service for it to be eligible for the per day compensation. Subject 6. Other Meetings Qualifying for Reimbursement under CMSD Ordinance No. 55, Operations Code Section 3.01.030 Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Information 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 67/68 L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS Subject 1. Oral Communications and Director Comments Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Discussion 6/24/2021 BoardDocs® Pro https://go.boarddocs.com/ca/cmsdca/Board.nsf/Public 68/68 O. CLOSING ITEMS THE NEXT REGULAR MEETING OF COSTA MESA SANITARY DISTRICT BOARD OF DIRECTORS WILL BE HELD ON JULY 26, 2021 VIA TELECONFERENCE. Subject 1. Adjourn Meeting Jun 28, 2021 - Board of Directors Regular Meeting Type Procedural