2024_02_26_boardMonday, February 26, 2024
Board of Directors Regular Meeting
Time: 4:30 p.m.
Location: Costa Mesa Sanitary District - 290 Paularino Ave., Costa Mesa, CA 92626
***
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.
***
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 - 850 1825 3471
3. Click "Join."
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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 850 1825 3471#
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 real time during the meeting or
prior to the meeting 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 Scheafer
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Procedural
A. OPENING ITEMS
Subject :2. Pledge of Allegiance - President Scheafer
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Procedural
A. OPENING ITEMS
Subject :3. Invocation - Vice President Schafer
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Procedural
A. OPENING ITEMS
Subject :4. Roll Call - (If absences occur, consider whether to deem
those absences excused based on facts presented for the
absence such determination shall be the permission
required by law.)
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Procedural
Public Content
Michael Scheafer, President
Arlene Schafer, Vice President
Arthur Perry, Secretary
Robert Ooten, Vice Secretary
Brett Eckles, Director
A. OPENING ITEMS
Subject :5. Announcement of Late Communications - Unless
directed otherwise by the Board of Directors, all actions
shall be based on/memorialized by the latest document
submitted as a late communication.
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Procedural
A. OPENING ITEMS
Subject :6. Ceremonial Matters and Presentations
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Procedural
B. PUBLIC COMMENTS - This time has been set aside for
persons in the audience to make comments on items within
the subject matter jurisdiction of the Costa Mesa Sanitary
District that are not listed on this agenda. Members of the
public will have the opportunity to address the Board of
Directors about all other items on this agenda at the time
those items are considered. Under the provisions of the
Brown Act, the Board of Directors is prohibited from taking
action on oral requests but may refer the matter to staff or
to a subsequent meeting. The Board of Directors will
respond after public comment has been received. Please
state your name. Each speaker will be limited to four (4)
continuous minutes.
Subject :1. Public Comments
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Procedural
C. CONSENT CALENDAR - All matters listed on the
consent calendar are considered to be routine and may be
acted upon by one motion after public comment has been
received. Only Board of Directors may pull an item for
discussion. Reading of resolutions is waived and they will
be adopted and numbered. Now is the time for those in the
audience who wish to speak to items listed on the consent
calendar. Each speaker will be limited to four (4)
continuous minutes of comment on the consent calendar
as a whole.
Subject :1. Approve Consent Calendar
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Action (Consent)
Recommended Action :That the Board of Directors approve the Consent
Calendar as presented.
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :2. Approve the Board of Directors Study Session
Minutes of January 9, 2024
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent), Minutes
Recommended Action :That the Board of Directors approve the meeting
minutes as presented.
Minutes :View Minutes for Jan 9, 2024 - Board of Directors
Study Session
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Gina Terraneo, Management Analyst II
Date: February 26, 2024
Subject: Approve the Board of Directors Study Session Minutes ofJanuary 9, 2024
Summary
The recorded minutes of theJanuary 9, 2024Board 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 onJanuary 9, 2024.
Staff Recommendation
That the Board of Directors approve the meeting minutes as presented.
Legal Review
Not applicable.
Environmental Review
Consideration of public meeting minutesis an administrative matter and is exempt from the requirements of the California
Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency
while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District
has adopted CEQA Guidelines and Implementing Procedures that state on page 6 Projects does not include . C. Continuing
administrative or maintenance activities.
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the February 26, 2024 Board of Directors
Regular Meeting at District Headquarters and posted on the Districts website.
Alternative Actions
1. Do not approve the meeting minutes as presented.
2. Direct staff to report back with more information.
File Attachments
minutes_2024_01_09_ss.pdf (178 KB)
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :3. Approve the Board of Directors Regular Meeting
Minutes of January 22, 2024
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent), Minutes
Recommended Action :That the Board of Directors approve the meeting
minutes as presented.
Minutes :View Minutes for Jan 22, 2024 - Board of Directors
Regular Meeting
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Gina Terraneo, Management Analyst II
Date: February 26, 2024
Subject: Approve the Board of Directors Regular Meeting Minutes ofJanuary 22, 2024
Summary
The recorded minutes of the January 22, 2024 Board of Directors Regular Meetingare 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 onJanuary 22, 2024.
Legal Review
Not applicable.
Environmental Review
Consideration of public meeting minutesis an administrative matter and is exempt from the requirements of the California
Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency
while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District
has adopted CEQA Guidelines and Implementing Procedures that state on page 6 Projects does not include . C. Continuing
administrative or maintenance activities.
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the February 26, 2024 Board of Directors
Regular Meeting at District Headquarters and posted on the Districts website.
Alternative Actions
1. Do not approve the meeting minutes as presented.
2. Direct staff to report back with more information.
File Attachments
minutes_2024_01_22_rm.pdf (117 KB)
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :4. Approve the City/Districts Liaison Committee
Meeting Minutes of January 26, 2024
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent), Minutes
Recommended Action :That the Board of Directors approve the meeting
minutes as presented.
Minutes :View Minutes for Jan 26, 2024 - City/Districts Liaison
Committee Meeting
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Gina Terraneo, Management Analyst II
Date: February 26, 2024
Subject:City/Districts Liaison Committee Meeting Minutes ofJanuary 26, 2024
Summary
The recorded minutes of the January 26, 2024 City/Districts Liaison Committee Meeting are hereby submitted to the Board of
Directors for review and approval.
Analysis
Attached to the staff report are the minutes for the City/Districts Liaison Committee Meeting onJanuary 26, 2024.
Staff Recommendation
That the Board of Directors approve the meeting minutes as presented.
Legal Review
Not applicable.
Environmental Review
Consideration of public meeting minutesis an administrative matter and is exempt from the requirements of the California
Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency
while establishing its own procedures to list those specific activities which fall within each of the exempt classes, and the District
has adopted CEQA Guidelines and Implementing Procedures that state on page 6 Projects does not include . C. Continuing
administrative or maintenance activities.
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the February 26, 2024 Board of Directors
Regular Meeting at District Headquarters and posted on the Districts website.
Alternative Actions
1. Do not approve the meeting minutes as presented.
2. Direct staff to report back with more information.
File Attachments
minutes_2024_01_26_lc.pdf (202 KB)
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :5. Adopt Warrant Resolution No. CMSD 2024-08
Approving District Warrant Registers
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent)
Budgeted :Yes
Recommended Action :That the Board of Directors adopt Warrant Resolution No.
CMSD 2024-08 approving District warrants for the month
of January in the amount of $1,292,017.48.
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Sean Phan, Associate Accountant
Date: February 26, 2024
Subject: Adopt Warrant Resolution No. CMSD 2024-08 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 adopt Warrant Resolution No. CMSD 2024-08 approving District warrants for the month of February
in the amount of $1,292,017.48.
Analysis
Attached is theWarrant 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 whichfall within each of the exempt classes", and the District has adopted "CEQA Guidelines and Implementing
Procedures" that state onpage 6 "Projects" does not include .... C. Continuing administrative or maintenance activities."
Financial Review
Sufficient funds are available in the adopted budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the February 26, 2024 Board of
Directors Regular meeting at District Headquarters and posted on the District's websitewww.cmsdca.gov.
Alternative Actions
Refer item back to staff with further instructions.
File Attachments
WARRANT RESO 2024-08.pdf (202 KB)
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :6. Approve the Directors' Compensation and
Reimbursement of Expenses
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent)
Recommended Action :That the Board of Directors approve the compensation
and reimbursement of expenses as presented.
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Gina Terraneo, Management Analyst II
Date: February 26, 2024
Subject:Directors' Compensation and Reimbursement of Expenses
Summary
The Directors' Compensation and Reimbursement of Expensesare 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 expensesis an administrative matter and is exempt from the
requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.). Section
15300.4 of CEQA allows an agency while establishing its own procedures to list those specific activities which fall within each of
the exempt classes, and the District has adopted CEQA Guidelines and Implementing Procedures that state on page 6. "Projects
does not include . C. Continuing administrative or maintenance activities.
Financial Review
Not applicable.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the February 26, 2024 Board of Directors
Regular Meeting at District Headquarters and posted on the Districts 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_comp_expense_reimbursement.pdf (534 KB)
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :7. Approve Payroll Transparency Disclosure for
January 2024
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent)
Fiscal Impact :Yes
Budgeted :Yes
Recommended Action :That the Board of Directors approve and file
the report.
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Sean Phan, Associate Accountant
Date: February 26, 2024
Subject: Approve Payroll Transparency Disclosure for January 2024
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 whichfall within each of the exempt classes", and the District has adopted "CEQA Guidelines and Implementing
Procedures" that state onpage 6 "Projects" does not include .... C. Continuing administrative or maintenance activities."
Financial Review
Sufficient funds are available in the adopted budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the February 26, 2024 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 January 2024.pdf (224 KB)
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :8. Receive and File January 2024 Organics
Tonnage Report
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent)
Recommended Action :That the Board of Directors receive and file
this report.
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Marissa Pereyda, Management Analyst II
Date: February 26, 2024
Subject: Receive and File January2024 Organics Tonnage Report
Summary
In January 2024, CR&R collected 714.95tons of organic waste and recycled 682.03tons of organic waste.
Recommendation
That the Board of Directors receive and file this report.
Analysis
The chart below outlines the total organic waste tonnage collected from the organics program and the tons recycled and
landfilled. A graph depicting the total tonnage of organic waste collected during each month of the last five fiscal years is
attached to this report.
Fiscal Year 2023-24 Organics
Month Recycled Landfilled Total Collected
July 748.19 36.11 784.30
August 1003.96 48.46 1052.42
September 849.10 40.98 890.08
October 687.75 33.20 720.95
November 705.95 34.07 740.02
December 633.52 30.58 664.10
January 682.03 32.92 714.95
February
March
April
May
June
Legal Review
Not applicable.
Environmental Review
Consideration of the Organics Tonnage Report 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 with the complete agenda packet for the February 26, 2024, Board of
Directors Regular Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov.
Alternative Actions
Refer item back to staff with further instructions.
File Attachments
Organics_Tonnage_January_2024.pdf (212 KB)
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :9. Receive and File January 2024 Solid Waste
Diversion Report
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent)
Recommended Action :That the Board of Directors receive and file
this report.
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Marissa Pereyda, Management Analyst II
Date: February 26, 2024
Subject: Receive and File January2024 Solid Waste Diversion Report
Summary
In January2024, CR&R collected 3,277.21tons of solid waste and recycle ns of solid waste.d 1,966.33 to
Recommendation
That the Board of Directors receive and file this report.
Analysis
For the current fiscal year to date, the District's diversion rate is 61.22%. A tonnage summary for the past nineteen fiscal years is
attached to this report.
Legal Review
Not applicable.
Environmental Review
Consideration of the Solid Waste Diversion Report 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 with the complete agenda packet for the February 26, 2024, Board of
Directors meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov.
Alternative Actions
Refer item back to staff with further instructions.
File Attachments
Organics_Tonnage_January_2024.pdf (524 KB)
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :10. Approve the Occupancy Count of 23,104 and Direct
Staff to Prepare a Warrant to CR&R Environmental
Services for $258,450.59 for January 2024 Solid Waste
Collection Services
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent)
Recommended Action :That the Board of Directors:
1. Approve the occupancy count of 23,104: and
2. Direct staff to prepare a warrant to CR&R Environmental
Services for $258,450.59 in the February 2024 warrant
register for January 2024 solid waste collection services.
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Marissa Pereyda, Management Analyst II
Date: February 26, 2024
Subject: Approve the Occupancy Count of 23,104 and Direct Staff to Prepare a Warrant to CR&R Environmental
Services for $258,450.59 for January 2024 Solid Waste Collection Services.
Summary
The District's monthly payment to CR&R Environmental Services (CR&R) for solid waste collection services is calculated by
multiplying the set occupancy rate by the occupancy count, approved each month by the Board of Directors. The current
occupancy rate is $11.1864 and the January 2024 occupancy count presented to the Board of Directors is 23,104, for a total
$258,450.59payment of .
Recommendation
That the Board of Directors:
1. Approve the Occupancy Count of 23,104; and
2. Direct staff to prepare a warrant to CR&R Environmental Services for $258,450.59 in the February 2024 warrant register for
January 2024 solid waste collection services.
Analysis
The occupancy count is the number of active units in the District's jurisdiction receiving solid waste collection services. The
occupancy rate approved by the Board of Directors on August 21, 2023, effective July 1, 2023, is $11.1864. The District pays
CR&R $11.1864 per occupant, per month for solid waste collection services. The occupancy count is increased of decreased
monthly for new residential developments and demolitions.
As of January 31, 2024, the District's occupancy count was 23,104 with two (2) new accounts added since the last billing period.
The occupancy count approved by the Board of Directors for December 2023 was 23,102.
The District's payment to CR&R is calculated by multiplying the occupancy count by the occupancy rate. The payment
calculation for January 2024 is included below.
Occupancy Count X Occupancy Rate =Payment to CR&R
23,104 $11.1864 $258,450.59
District staff will continue to track the number of new and removed service addresses.
Legal Review
Not applicable.
Environmental Review
Consideration of the occupancy count 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 in 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 administration or maintenance activities.
Financial Review
Sufficient funds are available in the adopted FY 2023-24 budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the February 26, 2024, Board of
Directors Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov.
Alternative Actions
Refer item back to staff with further instructions.
File Attachments
January_2024_Occupancy_Report.pdf (143 KB)
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :11. Approve the Preparation of a Warrant to CR Transfer
for $210,453.04 in the February 2024 Warrant Register for
January 2024 Recycling and Disposal Services
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent)
Recommended Action :That the Board of Directors approve the preparation of a
warrant to CR Transfer for $210,453.04 in the February
2024 warrant register for January 2024 recycling and
disposal services.
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Marissa Pereyda, Management Analyst II
Date: February 26, 2024
Subject: Approve the preparation of a warrant to CR Transfer for $210,453.04 in the February 2024 warrant register for
January 2024 recycling and disposal services
Summary
The District pays CR Transfer monthly for the sorting of recyclables from mixed waste and landfill disposal of the remaining
waste. With the implementation of the Organics Recycling Program adopted by the Board, this payment also includes the
diversion of organic waste to an anaerobic digestion facility to be recycled into renewable natural gas to fuel the solid waste
collection trucks or to be processed into compost.
Recommendation
That the Board of Directors approve the preparation of a warrant to CR Transfer for $210,453.04 in the February 2024 warrant
register for January 2024 recycling and disposal services.
Analysis
The following chart outlines the total tonnage and payments due for residential and organic waste collection in Costa Mesa and
Newport Beach during January 2024. The tonnage rates approved by the Board of Directors on August 21, 2023, effective July
1, 2023, is $59.35 per ton for mixed waste recycling and disposal and $81.66 per ton for organics recycling.
Type of Waste Invoice No.Tonnage Rate Amount Billed
Residential Waste - Newport Beach 45320 92.35 $59.35 $5,480.98*
Residential Waste - Costa Mesa 45319 2469.91 $59.35 $146,589.19*
Total Residential Waste $152,070.17
Organics Recycling 45353 714.95 $81.66 $58,382.87*
Total Organics $58,382.87
Grand Total $210,453.04
*Due to weight ticket calculation rounding, some invoice totals may be off by a few cents.
Legal Review
Not applicable.
Environmental Review
Consideration of the CR Transfer warrant 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
Sufficient funds are available in the adopted FY 2023-24 budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the February 26, 2024, Board of
Directors Meeting held at 290 Paularino Avenue and posted on the District's website at www.cmsdca.gov.
Alternative Actions
Refer item back to staff with further instructions.
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :12. Receive and File January 2024 Contracts Signed
by the General Manager
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action (Consent)
Public Content
1.
2.
1.
2.
3.
4.
5.
6.
To: Board of Directors
From: Scott Carroll, General Manager
Date: February 26, 2024
Subject:Receive and File January 2024 Contracts Signed by the General Manager
Summary
At the January 24, 2019Board 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 monthsof January 2024.
Recommendation
That the Board of Directors receive and file this report.
Analysis
The following contracts were signed by the general manager in January 2024.
Contracts/Agreements
Security services for meetings/events when HQ is open to the publicPinkerton Consulting & Investigation, Inc..Contract
Sum: $100/hour, per agent (6 hour minimum)
Perform and complete a solid waste rate study.NBS Government Finance Group Contract Sum: $50,890
Purchase Orders
SmartCover Systems Renewal subscriptionfor high water alarming system.Cost: $22,218
Xylem Water Solutions USA, Inc. Preventive Maintenance on pumps for Victoria, Mendoza, and Elden Pump Stations.
Cost: $1,830
Jamison Engineering Contractors, Inc. Ultrasound testing of Elden Forcemain Tee. Cost:$4,450
Golden Bell Products, Inc. Spraying over 1,000 manholes to mitigate roaches in the sewer system.Cost: $28,050
K2 Calibrations Calibrating and certifying gas detectors.Cost: $633.13
Jamison Engineering Contractors, Inc. Installation of stainless steel safety tie-off points at the District Yard.Cost: $2,225
Legal Review
Not applicable
Environmental Review
Providing the Board of Directors a monthly list of contracts signed by the General Manager is anadministrative matterthat will not
result in direct or indirect physical changes in the environment and isnot considered a "project".
Financial Review
There is adequate funding in the budget to perform the contract services mentioned above.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the February 26, 2024 Board of Directors
regular meetingat District Headquarters and on District website at.www.cmsdca.gov
Alternative Actions
1. Direct staff to report back with more information.
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :13. Investment Report for the Month of
December 2023
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Action (Consent)
Recommended Action :That the Board of Directors approve the Investment
Report for the month of December 2023.
Goals :8.0 Finance
Public Content
To: Board of Directors
From: Marc Davis, District Treasurer
Date: February 26, 2024
Subject: Approve the Investment Report for the Month of December 2023
Summary
Attached is the Investment Report for the month of December 2023. 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 December 2023.
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 December 31, 2023. The District's investments are in compliance with the Statement of
Investment Policy adopted by the Board at the June 26, 2023 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 December 31, 2023, was
2.673%. The yield to maturity of the portfolio was 2.672%. The District's weighted average interest rate was 126 basis points
(1.256%) below the LAIF average monthly rate of 3.929% for the month of December 31, 2023. The weighted average number
of days to maturity for the District's total portfolio was 505 days (1.38 years). The duration of the underlying securities in LAIF as
of December 31, 2023 was 230 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 December, 2023 was
40.75%. The District has adequate cash reserves necessary to meet its obligations for the next six months.
A majority of the District's cash and investments is reserved or set aside for specific purposes. A description of the various
classifications of the District's cash and investments are as follows:
:Solid Waste Fund
- Equal to 30% of the operations budget of the Solid Waste Fund per Operations CodeOperating Reserve
Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval.
- Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period
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.
- Remaining available cash, which is currently used for rate stabilization and payment of organicsUndesignated
recycling costs.
:Wastewater Fund
- Equal to 25% of the operations budget of the Wastewater Fund per Operations CodeOperating Reserve
Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval.
- Set aside for capital improvement projects approved and budgeted by the Board,Reserved for Capital Outlay
but which have not yet been completed.
- Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period
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.
- Remaining available cash, which is available to be appropriated by the Board.Undesignated
- Collection of fixture fees which is a restricted revenue source and can only be used for newFacilities Revolving Fund
sewer facilities.
- Accumulation of funds for replacement of vehicles, equipment and computers.Asset Replacement Fund
- Accumulation of funds in accordance with the asset management model for long-termAsset Management Fund
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 1.577% for the year ending June 30, 2023. Through December 31, 2023,
the portfolio has earned a weighted average interest rate of 2.150%.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the February 26, 2024 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 - December 2023.pdf (669 KB)
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
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 :14. 2023 Annual Health Benefits Broker Fees
Report
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Action (Consent)
Fiscal Impact :Yes
Budgeted :Yes
Recommended Action :That the Board of Directors receive and file
the report
Goals :7.0 Human Resources Management
6.0 Administrative Management
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Dyana Bojarski, Administrative Services Manager
Date: February 26, 2024
Subject: 2023 Annual Health Benefits Broker Fees Report
Summary
As required by Section 1367.08 of the California Health and Safety Code and Section 10604.5 of the California Insurance Code,
the Costa Mesa Sanitary District must disclose any group health insurance premiums, fees, and commissions paid to all agents,
providers, and brokers.
Recommendation
That the Board of Directors receive and file the report.
Analysis
Section 1367.08 of the Health and Safety Code
A health care service plan shall annually disclose to the governing board of a public agency that is the subscriber of a group
contract, the name and address of, and amount paid to, any agent, broker, or individual to whom the plan paid fees or
commissions related to the public agency's group contract. As part of this disclosure, the health care service plan shall include
the name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public
agency. The compensation disclosure required by this section is in addition to any other compensation disclosure requirements
that exist under law.
Section 10604.5 of the Insurance Code
An insurer shall annually disclose to the governing board of a public agency that is the policyholder of a group health insurance
policy, the name and address of, and amount paid to, any agent, broker, or individual to whom the insurer paid fees or
commissions related to the public agency's group health insurancepolicy. As part of this disclosure, the insurer shall include the
name, address, and amounts paid to the specific agents, brokers, or individuals involved in transactions with the public agency.
The compensation disclosure required by this section is in addition to any other compensation disclosure requirements that exist
under law.
Summary of Health Benefits
CalPERS (California Public Employee Retirement Services) administers and negotiates rates and coverage for all District
medical plans. Services provided by CalPERS includes: plan design, negotiating with medical and pharmaceutical carriers,
developing and printing plan summaries, outlines and brochures, billing, claims processing, hosting an online database for
enrollments and changes, participant appeals and grievances, website design and maintenance, and free workshops/seminars
for employers, employees, and retirees.
All non-medical health plans which include dental, vision, life, long-term disability, voluntary AD&D, and other individual plans
such as accident, cancer, specified health event, hospital, and short-term disability are administered and/or brokered by SDRMA
(Special District Risk Management Authority) or Aflac (American Family Life Assurance Company). Services provided by
SDRMA and Aflac include: plan design options, negotiating rates and benefits with carriers, legal and compliance updates and
advice, open enrollment support, assistance with claims processing and resolution, and free workshops to staff.
Although the District obtains non-medical health plans through SDRMA, the disclosure codes do not apply because the agency
administers the non-medical programs through the California State Associations of Counties Excess Insurance Authority (CSAC-
EIA Health); it does not contract directly with brokers or insurance carriers of the Health Benefit Programs.
Agent, Broker, or Individuals Paid in Calendar Year 2023
Medical Broker/Administrator Medical Broker/Administrator
CalPERS
400 Q Street
Sacramento, CA 95811
AFLAC
1932 Wynnton Road
Columbus, GA 31999
The 2023 CalPERS Total Fees/Commissions amount was$664 and the percentage of premiums was .32%.
The 2023 Aflac Total Fees/Commissions amount was $3,446 and the percentage of premiums was 14.87%.
Plan
Year
Broker
/Administrator Coverage Premiums Total Fees &
Commissions
% or
Premiums
2023 CalPERS Medical $208,064 $664 .32%
2023 Aflac Non-
medical $23,179 $3,446 14.87%
Legal Review
Not applicable.
Environmental Review
Disclosure and discussion ofgroup health insurance premiums, fees, and commissions paid to agents or providersare
administrative matters and not a disturbance of the environment similar to grading or construction and the discussion is not a
project under CEQA or the Districts CEQA Guidelines.
Financial Review
The District paid a total of $231,243 in premiums for medical and non-medical expenses and $4,110 for fees and commissions in
2023.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for theFebruary 26, 2024 Board of Directors
regular meeting at District Headquarters and on the District's website.
Alternative Actions
Direct staff to report back with more information.
Consent
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.
Motion & Voting
To approve the Consent Calendar as presented.
Motion by Art Perry, second by Bob Ooten.
Final Resolution: Motion Carries
Aye: Arlene Schafer, Art Perry, Bob Ooten, Mike Scheafer
E. GENERAL MANAGER'S REPORTS
Subject :1. Consider Approving or Denying Claim - Karen
Millard 1022 W. Wilson Street
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action
Recommended Action :That the Board of Directors deny claim from Karen
Millard 1022 W. Wilson Street
Public Content
To: Board of Directors
From: Scott Carroll, General Manager
Date: February 26, 2024
Subject: Consider Approving or Denying Claim - Karen Millard 1022 W. Wilson Street
Summary
The claimant is seeking from the District for 24 years of overcharges to her property for solid waste and wastewater $5,866.36
collection services.
Recommendation
That the Board of Directorsdeny claim from Karen Millard 1022 W. Wilson Street
Analysis
On September 25, 2023 the District received a refund request from claimant regarding her property located at 1022 W Wilson St
(See Attachment 1). Claimant stated the District incorrectly categorized her property as a multi-family residence when it is a
single-family residence. Following a site inspection carried out by CMSD Code Enforcement, it was verified that 1022 W Wilson
is a single-family residence. Due to the misclassification, the District has been billing an incorrect annual rate for Solid Waste and
Wastewater for over twenty years.
Due to statute of limitations, staff approved to refund three prior fiscal years plus one current fiscal year. However, claimant sold
her property recently and has not paid for the current fiscal year 2023-24 assessments. Therefore, claimant was refunded three
prior fiscal years, FY2020-21 through FY2022-23.
On October 4, staff informed claimant that the District will issue a refund of for the fiscal years FY2020-21 through $855.40
FY2022-23, following the guidelines outlined in Section 9.02.040 of CMSDs Operations Code and in accordance with the Tort
Claims Act (Government Code Section 900 et seq) (See Attachment 2).
On October 5, the District received an appeal from claimant (See Attachment 3).
On October 6, the claimant was informed her appeal was denied (See Attachment 4).
On November 3, the District calculated and mailed claimant a refund check of .$855.40
On November 9, the District received a claim from Ms. Millard requesting a refund in the amount of $5,866.36for the period
from fiscal year 2000 to 2023. (See Attachment 5)
Below is the calculation of $855.40 for the three fiscal years, FY2020-21 through FY2022-23:
APN 422-051-05
Address:1022 W Wilson Street
Occ Code:Multi-family Resident Occ Code:Single-family Resident
Charged Placed on Assessment/Property Tax Bill Amount Should Be Charged
Fiscal Year Solid Waste Wastewater Total Solid Waste Wastewater Total
2020-21 481.20 108.42 589.62 240.60 92.38 332.98
2021-22 514.80 108.42 623.22 257.40 92.38 349.78
2022-23 545.76 153.66 699.42 272.88 101.22 374.10
2023-24 Ms. Millard sold her property in FY 2023-24. She did not pay for FY 23-24
Total $ 1,912.26 $ 1,056.86
On November 22, 2023, District Counsel mailed a written correspondence to claimant describing the reasoning for the District's
decision and a background on the applicable law. (See Attachment 6)
On December 4, 2023, claimant filed a claim in Small Claims Court claiming the District owes her $5,866.36. (See Attachment 7)
On January 29, 2024, a hearing was scheduled where the district and claimant were ordered to try to settle our differences in
mediation. During mediation, both parties could not reach a settlement; however, staff invited claimant to attend tonight's Board
meeting to seek Board approval of overturning staff's decision to deny her appeal and approve the full refund of . The $5,866.36
Board of Directors has ultimate authority to approve or deny District claims.
If the Board denies the claim, the trial date in Small Claims Court is set for .February 28, 2024
Legal Review
District Counsel has reviewed the claim and has provided assistance to staff. District Counsel will be available to answer legal
questions pertaining to statute of limitations.
Environmental Review
Considering approving or denying a claim 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 District issued a refund check to the claimant in the amount of . The amounts per solid waste and wastewater $855.40
accounts are described in the table above. If the Board approves the claim, an additional $5,010.96 will be refunded to the
claimant for a total amount of .$5,866.36
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the February 26, 2024 Board of Directors
regular meetingat District Headquarters and on District website at.www.cmsdca.gov
Alternative Actions
1. Approve theclaim from Karen Millard 1022 W. Wilson Street
File Attachments
Attachment 1.pdf (98 KB)
Attachment 2.pdf (796 KB)
Attachment 3.pdf (551 KB)
Attachment 4.pdf (710 KB)
Attachment 5.pdf (1,674 KB)
Attachment 6.pdf (90 KB)
Attachment 7.pdf (277 KB)
Motion & Voting
To deny the claim from Karen Millard 1022 W. Wilson Street.
Motion by Art Perry, second by Arlene Schafer.
Final Resolution: Motion Fails
Aye: Arlene Schafer, Art Perry
No: Bob Ooten, Mike Scheafer
E. GENERAL MANAGER'S REPORTS
Subject :2. Receive and File the Fiscal Year 2023-24 Mid-Year
Budget Review
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Receive and File
Goals :8.3 Finance - Forecast revenues and
expenditures
8.0 Finance
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Kaitlin Tran, Finance Manager
Date: February 26, 2024
Subject:Receive and File the Fiscal Year 2023-24 Mid-Year Budget Review
Summary
This report serves as a summary of the Districts spending through December 31, 2023 as well as staffs best estimate of
projected balances for the year-ended June 30, 2024.
Recommendation
That the Board of Directors receive and file the Fiscal Year 2023-24 Mid-Year Budget Review.
Analysis
This analysis report uses the Amended Budget, consisting of the adopted budget plus any approved prior year carryover
appropriations, as well as budget adjustments through December 31, 2023.
Solid Waste Fund Expenditure-The Solid Waste fund has an amended budget of $7,418,109.As of December 31,
2023, a total of 40% of the Solid Waste budget was expended. At this time, staff anticipates a budgetary savings of
$15,000 for the fiscal year, mainly due to savings in Maintenance/Operations.
Solid Waste & General Funds Revenue-The total Solid Waste and General Funds revenue budget for FY 2023-24 is
$7,372,900. As of December 31, 2023, the District received $4,169,119.
Wastewater Fund Expenditure- The Wastewater fund has an amended budget of $6,103,978 (excluding capital
improvement projects).As of December 31, 2023, atotal of 43% of the Wastewater Funds operating budget has been
expended. Staff anticipates budgetary savings of $140,000 due to Personnel and Maintenance/Operations.
Wastewater Fund Revenue-The total Wastewater Fund revenue budget for FY 2023-24 is $8,066,100. As of
December 31, 2023, the total Wastewater Fund revenue the District received is $4,505,207.
Capital Improvement Projects (CIP) The Capital Improvement Projects are expected to stay within the allocated budget. Please
refer to the attached report for a more comprehensive analysis.
Legal Review
Not applicable.
Environmental Review
Subject activity is exempt from the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code
Section 21000 et. seq.). Section 15300.4 of CEQA allows an agency while establishing its own procedures to list those specific
activities which fall within each of the exempt classes, and the District has adopted CEQA Guidelines and Implementing
Procedures that state on page 6 Projects does not include . C. Continuing administrative or maintenance activities.
Financial Review
See attached report.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the February 26, 2024 Board of Directors
regular meeting at District Headquarters and on District website at www.cmsdca.gov.
Alternative Actions
Refer the matter back to staff for additional information.
File Attachments
A - FY2023-24 Mid-Year Quarterly Budget Analysis.pdf (706 KB)
B - Expenditure Analysis.pdf (418 KB)
E. GENERAL MANAGER'S REPORTS
Subject :3. 2024 Christmas Tree Collection Program
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Action, Receive and File
Recommended Action :That the Board of Directors receive and file
this report.
Public Content
To: Board of Directors
Via: Scott Carroll, General Manager
From: Marissa Pereyda, Management Analyst II
Date: February 26, 2024
Subject: 2024 Christmas Tree Collection Program
Summary
Costa Mesa Sanitary District, in partnership with CR&R, provides an annual Christmas Tree Collection Program for District trash
customers. Trees collected by CR&R are processed atCR&R's Anaerobic Digestion (AD) Facility in Perris, California. This year,
the Christmas Tree Collection Program collected 6,207 Christmas trees totaling 31.19 tons.
Recommendation
That the Board of Directors receive and file this report.
Analysis
Per the 2018 Agreement with CR&R, CR&R was collecting Christmas trees for approximately twelve (12) days beginning the day
after Christmas. The 2023 First Amendment to the Agreement with CR&R modified the Christmas Tree Collection Program to
begin the day after New Years Day and continue for approximately twelve (12) days. This is the first year that collection started
the day following New Years Day. Customers are instructed to remove all ornaments, lights, tinsel, and tree stands; cut trees
taller than 6 feet in half; and place trees on the ground next to their carts.
Due to significant Christmas tree collection delays in 2022, the District contracted with a third-party hauler for 2023 collections to
supplement CR&R's Christmas tree collections. This year, CR&R assured District staff that CR&R was committed to the 2024
Christmas Tree Collection Program and that a third-party hauler would not be necessary.
CR&R had two (2) dedicated trucks collecting Christmas trees between January 2, 2024, and January 12, 2024. CR&R noted
that collections were decreasing and therefore shifted Christmas tree collection to the organics route drivers who collected both
Christmas trees and organics carts on January 15 and January 16. During this time, CR&R collected 6,207 Christmas trees
totaling 31.19 tons.
For comparison, in 2023 CR&R collected 6,130 trees totaling 60.74 tons.The difference in tonnage for a similar number of trees
collected in 2023 and 2024 can likely be attributed to Christmas tree collection beginning the day following New Years Day
instead of the day following Christmas Day. During this additional week, it's possible that trees lost moisture and/or needles and
therefore weighed less than they would have immediately after Christmas.
The District received 33 customer reports thatChristmas trees were not collected on their regular collection day and one
customer reported a missed collection directly to CR&R. CR&R returned to collect these missed Christmas trees on the following
business day. Two customers reported that their rescheduled pickup was not completed. These complaints were forwarded to
CR&R's Sustainability Specialist who coordinated same-day collection of those trees. Missed Christmas tree complaints received
after January 16, 2024, were collected with the large item collection vehicle. The last missed Christmas tree complaint received
by the District was on January 25, 2024.
The District pays the current organics rate of $81.66 per ton for CR&R to recycle Christmas trees. There is no additional charge
to the District for the collection and transportation of Christmas trees.The District's total cost for CR&R collecting and recycling
31.19 tons of Christmas trees is $2,546.98.
The number of Christmas trees collected and total tonnage for the previous ten (10) years is included below.
Legal Review
Not applicable.
Environmental Review
Review of the 2024 Christmas Tree Collection Program 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 District pays the organics recycling rate of $81.66 per ton for Christmas trees to be recycled at CR&R's Anaerobic Digestion
(AD) Facility. The District's total cost for CR&R collecting and recycling 31.19 tons of Christmas trees is $2,546.98. This amount
is included in the District's FY 2023-24 budgeted organics disposal costs.
Public Notice Process
Copies of this report are on file and will be included in the complete agenda packet for the February 26, 2024, Board of Directors
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.
F. ENGINEER'S REPORTS
Subject :1. Receive and File the District Engineer's Report and
Capital Improvement Projects Status
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action, Discussion
Preferred Date :Feb 26, 2024
Fiscal Impact :No
Budgeted :Yes
Budget Source :Operating Budget
Recommended Action :Receive and File the District Engineer's Report and
Capital Improvement Projects Status
Public Content
To: Board of Directors
From: Mark Esquer, District Engineer
Date: February 26, 2024
Subject: Receive and File the District Engineer's Report and Capital Improvement Projects Status
Summary
The District Engineer has provided a memorandum with a brief summary of major capital or other engineering activitiesfor the
period of mid-January to mid-February. The District Engineer's memorandum and Monthly CIP Financial Report is attached.
Recommendation
The Board of Directors receive and file the Engineer's Report.
Analysis
Attached is information regarding project or technical sewer activities for the Board of Directors' 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
The cost of preparing this report is contained within the operating budget. There aresufficient funds available in the adopted
budget.
Public Notice Process
Copies of this report are on file and will be included with the complete agenda packet for the February 26, 2024,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
2024 02 Monthly Engineers Report CMSD Memorandum.pdf (217 KB)
2024-01 Financial Section for CIP Updates.pdf (70 KB)
F. ENGINEER'S REPORTS
Subject :2. Delegate to the General Manager Authority to Award
the #351 Adams Ave Sewer Grade 5 Replacement Project
Contract to the Lowest Responsible Bidder
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Action, Discussion
Preferred Date :Feb 26, 2024
Absolute Date :Feb 26, 2024
Fiscal Impact :No
Dollar Amount :$154,000.00
Budgeted :Yes
Budget Source :Project #351 Adams Ave #138303 Grade 5 Sewer
Replacement
Recommended Action :The Board of Directors:
1. Adopt the 351 Adams Ave #138303 Grade 5 Sewer
Replacement project as Categorically Exempt per the
California Environmental Quality Act (CEQA) Section
15302, Class 2; and
2. Delegate Authority to the General Manager to award a
contract to the lowest responsive and responsible bidder in
an amount not to exceed $140,000; and
3. Approve a 10% contingency in the amount not to exceed
$14,000; and
4. Direct Staff to bring this Item for Ratification to the Board
of Directors March 2024 Meeting.
Public Content
To: Board of Directors
From: Mark Esquer, District Engineer
Date: 2/26/2024
File Attachments
project no. 351 Adams Avenue Sewer Grade 5 Urgent Repair Informal Bid Documents.pdf (4,799 KB)
project351_addendum1.pdf (1,161 KB)
project351_addendum2.pdf (337 KB)
F. ENGINEER'S REPORTS
Subject :3. FY 23-24 CIP Budget Adjustments and Create New
Project #352 Iowa #135734 Sewer Grade 5 Liner Project
and New Project #353 Gisler #150136 Sewer Grade 5
Replacement Project
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Subject: Delegate to the General Manager Authority to Award the #351 Adams Ave Sewer Grade 5 Replacement Project
Contract to the Lowest Responsible Bidder and Approve a 10% Contingency
Summary
The District has an 8" sewer main in Adams Avenue near the inlet to the Adams Pump Station. A sewer joint failed within the
slow lane of west-bound traffic. The joint can't be repaired by a non-dig or liner method. Therefore, the District must dig down
approximately seventeen feet to repair the joint and re-channel the downstream manhole.
The Project was designed, approved for bidding, and advertised and the bids will be opened on Wednesday, February 28, 2024. Due to time
constraints associated with the City's Adams Avenue Repaving project, the District must award a contract to perform the construction and
complete the work prior to the end of March 2024. Due to the tight timeframe, staff is requesting the Board of Directors delegation authority
to the General Manger to award a contract to the lowest responsive bidder and to approve a 10% contingency (based of the bid amount). In
addition, staff is requesting the Board of Directors adopt this project as Categorically Exempt.
Staff will take the project award to the March 2024 Board of Directors meeting for review and ratification.
Recommendation
The Board of Directors:
1. Adopt the #351 Adams Ave #138303 Grade 5 Sewer Replacement project as Categorically Exempt per the California
Environmental Quality Act (CEQA) Section 15302, Class 2; and
2. Delegate Authority to the General Manager to award a contract to the lowest responsive and responsible bidder in an amount
not to exceed $140,000; and
3. Approve a 10% contingency in the amount not to exceed $14,000; and
4. Direct Staff to bring this Item for Ratification to the Board of Directors March 2024 Meeting.
Analysis
The District must design and bid a sewer replacement project that consists of digging a hole to the District sewer, replacing
about 4 feet of pipe, repairing the District manhole & base, then repairing the street. The District Engineer is estimating that the
project budget be $187,000 to complete the urgent repair and the engineer's estimate of construction is $125,000.
The Board of Directors approved the creation this Project during the November 2023 Board of Directors Meeting. The Project was then
designed by RBH and Associates, approved for bidding by the District Engineer, and advertised for bidding. During the Pre-Bid meeting, the
potential for groundwater was discussed with perspective bidders. In addition, the District's consultant could not find groundwater information
for this specific construction location. The As a result of the discussion with contractors, the location being about 400 feet east of the Santa
Ana river, and to reduce the risk of a costly change order, the District Engineer hired a geotechnical engineering firm to conduct a soils
boring to determine if groundwater exists within the trench zone. The geotechnical work determined that groundwater level is about 2 feet
higher than the District sewer.
A bidding addendum advising the contractors of the groundwater level and that a bid item to address the groundwater was added to the bid
form, was issued to the contractors. A discussion with two constructors that are not bidding on this project, confirms that managing this
amount of groundwater will be manageable and that the contractors have different options to dewater the trench.
Legal Review
Legal Counsel has reviewed the contracts and approved to form.
Environmental Review
The proposed project will replace the existing sewer with the same size of pipe and does not increase capacity.The proposed
project provides for increased reliability because the sewer has failed and is at the end of useful life. The relocation/replacement
of an existing sewer with the same capacity as the existing facility 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 $187,000 and it appears adequate to cover the $20,530 design and contract administration fee, $8,400
geotechnical, traffic, and associated work, and the $154,000 construction and construction contingency.
Public Notice Process
Copies of this staff report are on file and will included with the entire agenda packet for the February 26, 2024 regular Board of
Directors meeting at District Headquarters and on the Districtwebsite.
Alternative Actions
1. Refer the matter back to staff for consideration of alternatives and return to a future meeting.
Type :Action, Discussion
Preferred Date :Feb 26, 2024
Absolute Date :Mar 25, 2024
Fiscal Impact :No
Budgeted :Yes
Budget Source :Various CIP Line items
Recommended Action :The Board of Directors approve:
1. FY 23-24 Capital Outlay Budget Adjustments, as
detailed in the Financial Review, below, for a no-cost
change to the FY CIP Budget; and
2. New Project #352 Iowa #135734 Sewer Grade 5 Liner
project Budget of $10,000; and
3. New Project #353 Gisler # 150136 Sewer Grade 5
Replacement project Budget of $125,350.
Goals :1.0 Sewer Infrastructure
Public Content
To: Board of Directors
From: Mark Esquer P.E., District Engineer
Date: February 26, 2024
Subject: FY 23-24 CIP Budget Adjustments and Create Two New Project #352 Iowa #135734 Sewer Grade 5 Liner project
and
New Project #353 Gisler # 150136 Sewer Grade 5 Replacement.
Summary
The District Engineer reviewed the current CIP project list, reprioritized the current year Capital Improvement Project budget, and
adjusted individual project budgets to accommodate two new urgent projects: Project #352 Iowa #135734 Sewer Grade 5 Liner
Project and Project #353 Gisler Park Sewer #150136 Sewer Grade 5 Replacement. Funds will be transferred from Project #334
Gisler Forcemain Replacement which has been deferred due to higher priority projects and current project needs.
The new Project 352 Iowa #135734 Sewer Grade 5 Liner (Project 352) provides for the lining of a failed pipe joint in Iowa Street.
While cleaning this sewer, the cleaning nozzle got stuck in the failed joint. The bottom of the joint is missing and is offset by an
inch or more.
The new Project 352 Gisler Park #150136 Sewer Grade 5 Replacement (Project 353) replaces a failed 24-foot long sewer in
Gisler Park. At least two pipe joints have completely failed and several spiral fractures were discovered while conducting a CCTV
video. The pipe is in such poor condition that the CCTV camera could not make it to the initial 12 feet of the 24-foot sewer. A 2-
inch tree root can also be seen going through the sewer. In addition, a 3-foot diameter, 18-inch deep sink hole has formed above
the pipeline. District staff monitors the sinkhole after each rainfall.
Project 309 City Manhole Adjustment Program has experienced several street overlay projects including Wilson Street (Costa Mesa), Bristol
Street (Newport Beach), and unincorporated County territory west and south of Mesa Drive & irvine Avenue. The current project budget is
short by $68,700.
Project 342 HQ Landscaping experienced several unknown conditions, including a failed waterproof building membrane repair and the need
to install a french drain to remove water away from the building, poor soil filtration and larger tree wells, and a deeper seepage pit.
Staff will review the proposed budget changes, appropriations, and recommendations in detail during the verbal report.
Recommendation
The Board of Directors approve:
1. 23-24 FY Capital Outlay Budget Adjustments, as detailed in the Financial Review, below, for a no-cost change to the FY CIP
Budget; and
2. New Project #352 Iowa #135734 Sewer Grade 5 Liner project Budget of $10,000; and
3. New Project #353 Gisler # 150136 Sewer Grade 5 Replacement project Budget of $125,350.
Analysis
The Board of Directors adopted a wastewater Capital Improvement Project (CIP) budget comprising 22 wastewater projects.
Since adoption of the FY24 CIP budget, District staff determined a need for a few urgent, unfunded projects: Project #352 and
Project #353. In addition, Project 309 and 342 must appropriate funds for unknown work items or unknown conditions that were
discovered nor envisioned during the budgeting process. District staff has reviewed the various projects, is proposing to defer
certain CIP projects, and is proposing to adjust the CIP budget to accommodate the urgent projects.
In order to maintain a balanced CIP outlay for this fiscal year, District staff reviewed project priorities and proposes to defer
projects or lengthen project implementation duration. One project, Project #334 Gisler Forcemain Replacement, was deferred so
funding could be used for new Project #351 Adams Avenue #138303 Grade 5 Replacement. Some of the remaining Project 334
funds will be used for the two new projects and to add funds for two existing projects.
Legal Review
Legal review is not required at this time.
Environmental Review
The replacement of an existing sewer pipe with the same capacity as the existing pipe 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 proposed$224,050 budget adjustments and new project request(s) is sufficient to cover the two urgent projects and two
budget adjustments: Project 352, Project 353, Project 309, and Project 342, respectively. Deferring and delaying lower priority,
less critical projects, along with approving the creation of two projects and reallocating CIP budgets, provides for no increase in
the CIP outlay for the current fiscal year. The $2,681,863 available CIP budget, as of January 31, 2024, includes encumbrances
and carryover adjustments from 2022-23 FY.
Account Description Account No.Increase Decrease
P334 Gisler Forcemain Replace 20-201334-4300 $224,050
P309 City MH Adjust program 20-201309-4300 $68,700
P342 HQ landscaping 20-201342-4300 $20,000
P352 Iowa #135734 Sewer Liner 20-201352-4300 $10,000
P353 Gisler Park #150136 Sewer
Replacement
20-201353-4300 $125,350
Public Notice Process
Copies of this Staff Board report are on file and will be included with the entire agenda packet for February 26, 2024, Regular
Board meeting at District Headquarters and on the District website at www.cmsdca.gov.
Alternative Actions
1. Refer the matter back to District staff for consideration of alternatives and return to a future meeting, or;
2. Do not approve recommended CIP budget adjustments and direct staff to continue with the existing CIP outlay.
G. TREASURER'S REPORTS
Subject :1. Investment Report for the Month of
January 2024
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Action
Recommended Action :That the Board of Directors approve the Investment
Report for the month of January 2024.
Goals :8.0 Finance
Public Content
To: Board of Directors
From: Marc Davis, District Treasurer
Date: February 26, 2024
Subject: Approve the Investment Report for the Month of January 2024
Summary
Attached is the Investment Report for the month of January 2024. As required by the District's Statement of Investment Policy,
the Investment Report delineates all investment activity during the month.
Recommendation
That the Board of Directors approve the Investment Report for the month of January 2024.
Analysis
This report lists the types of securities held in the District's portfolio, the institutions from which the securities were purchased,
maturity dates and interest rates as of January 31, 2024. The District's investments are in compliance with the Statement of
Investment Policy adopted by the Board at the June 26, 2023 regular meeting, as well as the California Government Code. The
market values in this report were provided by our third party custodian, Pershing, LLC, except for the Local Agency Investment
Fund (LAIF). The market value of LAIF was provided by the State Treasurer's Office. It does not represent the value of the
underlying securities within the pool, but rather the par or cost amount, which is the amount the District is entitled to withdraw.
This reporting practice is consistent with industry standard practices for similar funds.
The weighted average stated rate of return (current yield) for the District's investment portfolio as of January 31, 2024, was
2.626%. The yield to maturity of the portfolio was 2.626%. The District's weighted average interest rate was 139 basis points
(1.386%) below the LAIF average monthly rate of 4.012% for the month of January 31, 2024. The weighted average number of
days to maturity for the District's total portfolio was 505 days (1.38 years). The duration of the underlying securities in LAIF as of
January 31, 2024 was 212 days.
The District's investment portfolio is in compliance with its liquidity limitations, which requires that a minimum of 20.00% of the
portfolio must mature within one year. The percentage of the portfolio maturing in one year or less as of January 31, 2024 was
38.28%. The District has adequate cash reserves necessary to meet its obligations for the next six months.
A majority of the District's cash and investments is reserved or set aside for specific purposes. A description of the various
classifications of the District's cash and investments are as follows:
:Solid Waste Fund
- Equal to 30% of the operations budget of the Solid Waste Fund per Operations CodeOperating Reserve
Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval.
- Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period
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.
- Remaining available cash, which is currently used for rate stabilization and payment of organicsUndesignated
recycling costs.
:Wastewater Fund
- Equal to 25% of the operations budget of the Wastewater Fund per Operations CodeOperating Reserve
Section 4.030.020. The Operating Reserve can only be accessed with prior Board approval.
- Set aside for capital improvement projects approved and budgeted by the Board,Reserved for Capital Outlay
but which have not yet been completed.
- Equal to 5 months of budgeted operating expenses for the fiscal year toDesignated for Revenue Dry Period
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.
- Remaining available cash, which is available to be appropriated by the Board.Undesignated
- Collection of fixture fees which is a restricted revenue source and can only be used for newFacilities Revolving Fund
sewer facilities.
- Accumulation of funds for replacement of vehicles, equipment and computers.Asset Replacement Fund
- Accumulation of funds in accordance with the asset management model for long-termAsset Management Fund
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 1.577% for the year ending June 30, 2024. Through January 31, 2024, the
portfolio has earned a weighted average interest rate of 2.225%.
Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for the February 26, 2024 Board of Directors
regular meeting at District Headquarters (290 Paularino Avenue) and on the District's website at www.cmsdca.gov.
Alternative Actions
Refer the matter back to staff.
File Attachments
Investment Report - January 2024.pdf (673 KB)
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 days
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) - (Vice
Secretary Ooten)
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :
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 days
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) - (Secretary Perry)
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :
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 days
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) - (Vice President Schafer)
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :
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 days
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) -
(Vice President Schafer)
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :
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 days
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) - (President Scheafer)
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :
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 days
service rendered as a Director at the request of the Board
(not to exceed six days in one month), and certain
meetings are specified as being eligible as set forth in
District Operations Code § 3.01.030.For meetings not so
listed, the Board must approve the service for it to be
eligible for the per day compensation.
Subject :6. Other Meetings Qualifying for Reimbursement under
CMSD Ordinance No. 55, Operations Code Section
3.01.030
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :
L. ORAL COMMUNICATIONS AND DIRECTOR COMMENTS
Subject :1. Oral Communications and Director
Comments
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Discussion
M. ADJOURN TO CLOSED SESSION
Subject :1. Performance evaluation (Gov. Code §54957) Title:
General Manager
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Discussion
Public Content
Performance evaluation (Gov. Code §54957) Title: General Manager
M. ADJOURN TO CLOSED SESSION
Subject :2. Conference with labor negotiator (Gov. Code §54957.6)
Agency Designated Representative: President Scheafer
Unrepresented party: General Manager
Meeting :Feb 26, 2024 - Board of Directors Regular Meeting
Access :Public
Type :Discussion
Public Content
Conference with labor negotiator (Gov. Code §54957.6) Agency Designated Representative: President Scheafer Unrepresented
party: General Manager
O. CLOSING ITEMS
Subject :1. Adjourn
Meeting :Feb 26, 2024 - Board of Directors Regular
Meeting
Access :Public
Type :Procedural
Public Content
The next regular meeting of the Costa Mesa Sanitary District Board of Directors will be held at 4:30 p.m. on Monday, March 25,
2024 in the District's Boardroom, located at 290 Paularino Avenue, Costa Mesa, CA 92626.