14 - Adopt FY 2013-14 & 2014-15 BudgetProtecting our community's health and the environment by providing solid waste and sewer collection services.
www.cmsdca.gov
Costa Mesa Sanitary District
….an Independent Special District
Memorandum
T o: Board of Directors
From: Scott Carroll, General Manager
Date: June 27, 2013
Subject: Adopt FY 2013-14 & 2014-15 Budget
Summary
Over the course of several meetings, staff received input from Board members and the
public regarding the proposed budget for Fiscal Years 2013-14 and 2014-15. Staff
incorporated changes to the budget, as per directed by the Board, and is presenting
the final version of the document for your approval consideration.
The total operating and capital budget for FY 2013-14 is $10,741,860 and for FY
2014 -15 the total operating and capital budget is $10,913,940. Attachment B is the
proposed budget for adoption.
S ta ff Recommendation
That the Board of Directors approves Resolution No. 2013 -835 adopting the Budget
for Fiscal Years 2013 -14 and 2014 -15 .
Analysis
Prior to developing the final budget document for tonight’s approval consideration,
several meetings were held to receive public comments as well as comments from the
Board. The following is a list of budget meetings held during the past few months.
March 14 – Public Workshop for sewer rate study
March 28 – Proposed spending plan for the next two fiscal years
April 18 – Projected revenues for the next two fiscal years
May 23 – Preliminary budget proposal for FY 2013-14 & 2014-15
The following is a brief overview of the final budget.
ITEM NO. 14
Board of Directors
June 27 , 2013
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REVENUES
FY 2013 -14 r evenues for the solid waste annual charge are de creasing by $256 ,000
because the proposed annual trash rates are decreasing from $228 ($19.00 a month)
to $216 ($18.00) per parcel . Staff is recommending a rate decrease because the Solid
Waste Fund Balance has an excess of $4 million. The overall solid waste revenues in
F Y 2013 -14 are decreasing by $189 ,000. In 2014 -15 the solid waste annual charge
will remain flat because the annual rate will remain at $216 ($18.00 a month). Total
solid waste revenues are projected to increase in 2014 -15 by $4,000 beca use of
investment earnings.
District liquid waste customers will see their rates adjusted to reflect fairness and
equity in the liquid waste fund; however, the adjustment is revenue neutral to the
District. In FY 2013 -14 total revenues derived from annual charges will remain
constant at $5.1 million. Total rev enues are increasing by $129,200 because of
projected increases in charges for services, sewer permits and inspection fees. In FY
2014 -15 the annual charge will increase by $121 ,000, which reflects a two percent
increase in accordance to the 2012 Sewer Rate Study. All other liquid waste revenue
sources will remain constant.
In FY 2013 -14 the proposed total District revenues for Solid and Liquid Waste funds
combined is $10,435 ,000 , decreasing from F Y 2012 -13 by $60,395 due to lowering
the trash rates. In FY 2014 -15, the proposed total combined revenue for both funds is
$10,560,000 , which is an increase from FY 2013 -14 by $125 ,000 due higher
anticipated property tax revenue as a result of dissolving the City’s Redevelopment
Agency from the Governor, the rate adjustment for sewer and slightly higher earnings
in investments.
EXPENDITURES
In FY 2013 -14 the proposed total expenditures, including Capital Improvemen t
Projects (CIP), is $10,741,860 . The p roposed expenditures are a decrease of
$1,576,112 from FY 2012 -13 primarily because CIP expendi tures are decreasing . For
instance, In September, 2012, the Board made a budget adjustment in the amount of
$700,000 for rehabilitating the Santa Ana and 23 rd St reet force mains. In January
2013, the Board made another adjustment to the budget in the amount of $176,185 to
perform the PICA analysis of force mains. In addition, there were some CIP
carryovers from the previous year.
In In FY 2014 -15 t he proposed total expenditu res , including CIP is $10,913,940 ,
which is an increas e of $172,080 . Expenditures are supposed to exceed revenues
because of excess solid waste fund balance. The District is balancing the budget
using funds from the solid waste fund balanc e. More details about the proposed
expenditures are described below.
Personnel – FY 2013 -14
The proposed expenditure budget for pers onnel is $1,5 95,100 . This budget includes
the reorganization of the Finance Department that includes reclassifying the
A ccounting Manager position to Finance Manager and the creation of an accountant
series where the District’s Accounting Specialist II will have an opportunity for
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June 27 , 2013
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professional development growth within the organization by reclassifying the position
to Assoc iate Accountant. The accountant series includes three accounting levels that
include associate accountant, accountant and senior accountant. In addition, the
Maintenance Assistant position is in the budget and the welder certification premium
pay was add ed to the budget at $5,000 per year.
Salaries account for a Cost of Living a djustment (COLA) of 2 .2 % (February to
February Consumer Price Index for Los Angeles, Orange and Riverside Counties ).
Every employee, with the exception of the General Manager, wi ll receive the C OLA on
July 1, 2013, as reaffirmed by the B oard on April 27, 2011 . Attachment C is the new
salary schedule for FY 2013/14.
As per Director Ooten’s request, Board of Director salaries have decreased by $7,000
because he is going to reques t compensation for three monthly meetings. Board
members currently receive $221.00 per attended meeting not to exceed six meetings
in a month.
District Benefits: There are no adjustments to health benefits. Employees will receive
$7 99 a month for singl e and $1,199 a month for family to cover health related
expenses. Expenses over this allotted amount are paid by the employee. Board
members are eligible to participate in the District’s health benefit plan, but must
reimburse the District 80% of health be nefit premiums. The District used to have on e
Board member participating on the District’s health benefit plan , but that Board
member is no longer on the plan. Currently, no Board members are participating on
the District’s health plan.
District Reti rement: On June 23, 2011 the Board of Directors approved a two tier
pension program where new employees will be on the 2% @ 60 formula and pay their
7% share of employee pen sion cost. There are only three employees where the
District is paying the full 7 % share of employee pension costs. All other employees
are making contributions to their pension.
On January 1, 2013, the District implemented Governor Brown’s Pension Reform Act
that requires new employee to be on a 2% @ 62 formula and pay their full sh are of
employee pension cost. Currently, the District has three vacant positions
(Maintenance Worker I , Permit Clerk , and Management Assistant). If these positions
are filled by applicants from the private sector or have not worked in the public sector
f or more than six months, these applicants will be on the 2% @ 62 formula. However,
if the applicants are currently employed in the public sector that has a reciprocity
agreement with CalPERS or has been unemployed from the public sector for less than
six months than these applicants will be on the District’s 2% @ 60 formula.
Personnel – FY 2014 -15
The proposed expenditure budget for pers onnel is $1,721,700 , which is an increase of
$126,600 from FY 2013 -14. The increase is due to a COLA assumption of 2.5% and
CalPERS rate increases for pension cost . Adjustments will need to be made once the
actual COLA and CalPERS rates are released. Attachment D is the new salary
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June 27 , 2013
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schedule for FY 2014 -15. T he hiring of a part -time Account Clerk was removed from
the budg et , but it may be brought back for Board consideration after further evaluation
by the new Finance Manager.
Maintenance & Operations – 2013 -14
The proposed expenditure budget for maintenance & operations , which includes Solid
Waste Programs, is $7,205,860 . The proposed expenditure budget is a decrease o f
$289,035 from FY 2012 -13 . At the May 2 3 rd Board meeting, the Board directed staff
to return to the budget the following items that were deleted from the proposed budget.
Exterior improvements to HQ - $15,000
T oughtop laptops , which includes licensing - $27 ,000
The above items are now in the final budget docume nt. In addition, items are
budgeted to further move the District’s Strategic Plan for achieving its vision, mission
and goals. For instance, $10,000 is budgeted for Strategic Goal No. 1.2., Inf low
Reduction Program and $200,000 for Strategic Goal No. 1.5., Sewer Line
Maintenance Cleaning Program. New items are budgeted to support new goals
identified in the Strategic Plan, such as:
Strategic G oal No. 1.1., Manhole Cover Maintenance Program - $25,000
Strategic Goal No. 2.1., Solid Waste Citizens Academy - $10,000
Strategic Goal No. 4.1., CMSD 70 th Anniversary – $20,000
Strategic Goal No. 4.2., CMSD Ap - $18,900
Strategic Goal No. 4.3., Implemen t Voice Broadcasting Program - $2,000
Maintenance & Operations – 2014 -15
The proposed expenditure budget for maintenance & operations, which includes Solid
Waste Programs, is $7,264,740 . The proposed expenditure budget is a n increase o f
$58,880 from FY 2 013 -14.
Items are budgeted fo r the Strategic Plan such $35,000 for Strategic Goal No. 5.1.,
Digital imaging of District records into electronic rec ords management system and
$14,000 for Strategic Goal No. 7.4., Produce a Comprehensive Annual Financial
R eport (CAFR).
CAPITAL IMPROVEMENT PROJECTS
In 2013 -14, the proposed CIP budget is $1,810,000 . The following is a breakdown of
the CIP projects for FY 2013 -14.
Westside Pump Station Abandonment Project $400,000
Force main upgrades $850,000
Replace e quipment at pump stations $260,000
Elden Pump Station valve and piping replacement $150,000
Generator at District Yard $150,000
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June 27 , 2013
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In 2014 -15, the proposed CIP budget is $1,787,000 . The following is a breakdown of
the CIP projects for FY 2014 -15.
Wes tside Pump Station Abandonment Project $400,000
Pump Station Coating & Manhole Repairs $300,000
Sewer Rehabilitation Grade 4s – Phase I $568,000
Generator at Harbor Pump Station $178,500
Manhole Rehabilitation (brick manholes) $340,500
Strategic Pl an Element & Goal
This item adh eres to the objective and strategy of Strategic Element 7 .0, Finance,
which states:
“Objective: To ensure the short and long -term fiscal health of the District.
Strategy: The District will forecast and plan revenue and ex penditures and
maintain appropriate reserves and investments to provide financial resources to fund
current and planned operations and projects.”
Legal Review
District Counsel has reviewed and approved Resolution No. 2013 -835.
Financial Review
Propos ed FY 2013 -14 Budget
Total revenue is $10,435 ,000 .
Total expenditure is $10,741,860
Expenditures ar e exceeding revenues in the Solid Waste Fund by $244,860 .
Expenditures exceeding revenues in the Solid Waste Fund is the objective to reducing
the undesign ated reserves, which has over $4.1 million. The undesignated reserves in
the Solid Waste Fund will balance the proposed budget.
Proposed FY 2014 -15 Budget
Total revenue is $10,560,000
Total expenditure is $10,913,940
Expenditures are exceeding revenues in the Solid Waste Fund by $361,860 .
Expenditures exceeding revenues in the Solid Waste Fund is the obj ective to reducing
the undesignated reserves, which is projected to have nearly $4 million. The
undesignated reserves in the Solid Waste Fund will bala nce the proposed budget.
Committee Recommendation
Not applicable
Board of Directors
June 27 , 2013
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Public Notice Process
Copies of this report are on file and will be included with the entire agenda packet for
the June 27 , 201 3 Board of Directors regular meeting at District Headquarters a nd on
District’s website.
Alternative Actions
1. Direct staff to report back with more information.
Attachment s A: Resolution No. 2013 -835
B: Proposed Budget for Adoption
C: FY 2013 -14 Salary Schedule
D : FY 2014 -15 Salary Schedule
Reviewed by:
Marc Da vis
District Treasurer/Interim Accounting Manager
RESOLUTION NO. 201 3 -835
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
COSTA MESA SANITARY DISTRICT, ADOPTING A BUDGET
FOR THE FISCAL YEAR S 2013 -14 & 2014 -15
WHEREAS, the Board of Directors has conducted a series of study sessions and other
public meetings to consider an appropriate budget; and
WHEREAS, the Board of Directors is now prepared to adopt a biennial budget for 2012 -
2013 and 2013 -2014;
WHERE AS, the Proposed Budget for fiscal year s 2013 -14 and 2014 -15 has been
prepared by order of the Board of Directors.
NOW, THEREFORE, BE IT RESOLVED as follows:
SECTION 1 : The Biennial Budget for the Costa Mesa Sanitary District for the fiscal year
beginning July 1, 201 3 and ending June 30, 201 4 , and for fiscal year beginning July 1, 2014 and
ending June 30, 2015 is hereby adopted as set forth in the Proposed Biennial Budget, subject to
minute action of any changes made to the Proposed Biennial Budget at the time of its adoption.
SECTION 2 : This budget is in compliance with District Operations Code Chapter 4.03.
PASSED AND ADOPTED by the Board of Directors of the Costa Mesa Sanitary D istrict at
a regular meeting held on the 2 7 th day of June 2013 .
James Ferryman Arthur Perry
President of the Board of Directors Secretary of the Board of Directors
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
COSTA MESA SANITARY DISTRICT )
I, SCOTT CARROLL , Clerk of the Costa Mesa Sanitary District, hereby certify that the
above and foregoing Resolution No. 2013 -835 was duly and regularly passed and adopted by the
said Board of Directors at a regular meeting thereof held on the 2 7 th day of June 2013 .
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Seal of the Costa
Mesa Sanitary District this 2 7 th day of June 2013 .
Clerk of the Costa Mesa Sanitary District
Costa Mesa Sanitary District
Proposed Budget for Adoption (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
Protecting our community’s health and the environment by
providing solid waste and sewer collection services
Attachment B
Costa Mesa Sanitary District
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
Board of Directors
James Ferryman
President
Michael Scheafer
Vice President
Arthur Perry
Secretary
Robert Ooten
Assistant Secretary
Arlene Schafer
Board Member
Submitted by:
Scott Carroll, General Manager/District Clerk
Prepared by:
Marcus Davis, District Treasurer/Interim Accounting Manager
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
Table of Contents
Page
General Manager/District Clerk Budget Message 1
Fund Structure 7
Budget Overview:
Solid Waste Fund 8
Liquid Waste Fund 12
Proposed Budget for Fiscal Year 2013 -14: 18
Line Item Budget 22
Budget Details for Selected Accounts
Proposed Budget for Fiscal Year 2014 -15: 28
Line Item Budget 32
Budget Details for Selected Accounts
General Manager/District Clerk Budget Message
1
June 27, 2013
To the Honorable President and Board of Directors:
It is my pleasure to submit to you the Costa Mesa Sanitary District (District) Proposed
Operating and Capi tal Improvement Budget for the Fiscal Y ear s 2013 -14 and 2014 -15 for your
consideration. With this budget, the District is moving to the adoption of a biennial budget.
Although this budget is for two years, I will bring it back again at the beginning of Fiscal Year
(FY) 2014 -15 should any amendments be required. This fiscal plan was developed to serve
not only as a monetary statement of services, programs and policies, but as a document that
reflects the many goals, programs and service priorities that the Costa Mesa Sanitary District
is committed in providing its citizens.
As previously discussed w ith the Board, this spending plan proposes a decrease in the solid
waste rates, and a reallocation in the liquid waste rate. The liquid waste rate reallocation is
based upon the results of the Sewer Rate Study completed and presented to the Board in
Decem ber 2012. This Study analyzed the generators of liquid waste and realigned the fees
based upon this analysis. It resulted in no net change in total revenue.
Staff has discussed the budget during the past 3 meetings with the Board. At the March 28,
2013 Board meeting, staff received input from the Board on an anticipated two -year spending
plan. On April 18, 2013, Staff discussed revenue needs to meet the anticipated spending
requirements for the biennial budget and opened, and subsequently continued, a public
hearing to discuss proposed rate changes. On May 23, 2013, Staff discussed the preliminary
biennial budget with the Board. This Proposed Budget is the culmination of these efforts over
the past few months.
Highlights of Proposed Budget for FY 20 13 -14
The following are some of the more significant changes between the proposed budget for FY
2013 -14 and the amended budget for fiscal year 2012 -13 .
Revenues :
Decrease in solid waste rates from $19.00 per month to $18.00 per month, a 5.26%
decrease;
Increase in property tax due to the dissolution of redevelopment agencies; and
Projected better recovery on inspection and other charges for services.
Expenses :
No election;
Reduction in capital outlay;
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Reduction in capital improvement projects.
A summar y of the Proposed Budget for FY 2013 -14 is as follows:
Proposed Amended
Budget Budget Increase (Decrease)
FY 2013 -14 FY 2012 -13 Amount Percent
Revenues:
Annual charge $ 9,750,000 $ 10,008,800 $ (258,800) -2.59%
Properety taxes 200,000 150,000 50,000 33.33%
Investment earnings 110,000 100,000 10,000 10.00%
Additional container charge 100,000 96,000 4,000 4.17%
Charges for services 155,000 53,000 102,000 192.45%
Other 120,000 87,595 32,405 36.99%
Total revenues 10,435,000 10,495,395 (60,395) -0.58%
Expenses:
Salaries and benefits 1,595,100 1,522,670 72,430 4.76%
Operations and maintenance 7,205,860 7,494,895 (289,035) -4.01%
Programs 130,900 246,722 (115,822) -46.94%
Capital improvement projects 1,810,000 3,053,685 (1,243,685) -40.73%
Total expenses 10,741,860 12,317,972 (1,576,112) -14.67%
Net income (loss) (306,860) (1,822,577) (1,515,717) -493.94%
Transfers in 1,810,000 3,309,185 (1,499,185) -45.30%
Transfers out (1,748,000) (1,748,000) - 0.00%
Total transfers (net) 62,000 1,561,185 (1,499,185) -96.03%
Net revenue $ (244,860) $ (261,392) $ (16,532) -6.75%
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A summary of the Proposed Budget for FY 2014 -15 is as follows:
Proposed Proposed
Budget Budget Increase (Decrease)
FY 2014 -15 FY 2013 -14 Amount Percent
Revenues:
Annual charge $ 9,871,000 $ 9,750,000 $ 121,000 1.24%
Properety taxes 200,000 200,000 - 0.00%
Investment earnings 114,000 110,000 4,000 3.64%
Additional container charge 100,000 100,000 - 0.00%
Charges for services 155,000 155,000 - 0.00%
Other 120,000 120,000 - 0.00%
Total revenues 10,560,000 10,435,000 125,000 1.20%
Expenses:
Salaries and benefits 1,721,700 1,595,100 126,600 7.94%
Operations and maintenance 7,264,740 7,205,860 58,880 0.81%
Programs 140,500 130,900 9,600 7.33%
Capital improvement projects 1,787,000 1,810,000 (23,000) -1.27%
Total expenses 10,913,940 10,741,860 172,080 1.57%
Net income (loss) (353,940) (306,860) (47,080) 13.30%
Transfers in 1,787,000 1,810,000 (23,000 ) -1.28 %
Transfers out (1,794,920 ) (1,748,000) (46,920 ) 2.61 %
Total transfers (net) (7,920 ) 62,000 54,080 -112.77 %
Net revenue $ (361,860 ) $ (244,860) $ (117.00 0) 32.33 %
Highlights of Proposed Budget for FY 2014 -15
The following are some of the more significant changes between the proposed budget for FY
2014 -15 and the proposed budget for fiscal year 2013 -14 .
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Revenues :
Increase of 2.00% in the annual charge for liquid waste.
Expenses :
Addition of election costs;
Salary adjustments and estimated PERS rate increases; and
Increase in contribution to th e Asset Replacement Fund.
Organizational Priorities
This biennial budget will be furthering the advancement of the District’s vision, mission and
core values, as identified in the amended Strategic Plan, by funding all seven of the strategic
elements along with the service goals the Board established to achieve by FY 2014 -15 . The
funding of the Strategic Plan will assure that operations and management of the District are
well supported for continued success.
CMSD will be focusing on several priorities during the next two years that will consist of public
safety, achieving zero sanitary sewer overflows and reducing residential waste stream from
entering the landfills. Public safety is of the highest priority for CMSD. Dilapidated manhole
covers can jeopardize the public’s safety, so staff will embark on a new two year program that
will inspect and rate the condition of every manhole cover owned by CMSD. CMSD owns
approximately 4,650 manhole covers. Staff will inspect half of all manhole covers in FY 13 -14
and rate them on a scale of 1 to 5 with 5 meaning eminent failure and the need of immediate
repair. Manhole covers rated 4 or less will be scheduled for repair at the appropriate time.
The inspection of the remainin g second half of manhole covers will be performed in FY 14 -15.
All information and data obtained from the inspection program will be logged into CMSD’s GIS
mapping system.
CMSD is getting close to achieving zero sanitary sewer overflows (SSO) on an annua l basis.
In the first six months of 2013, CMSD has experience one small SSO. This can be attributed
to the new cleaning schedule of mainlines and the preventive maintenance program of pump
stations. No longer is CMSD cleaning sewer pipes once every thre e years. A simpler
appr oach was developed by dividing the District into sections and cleaning slightly more than
one -h alf of the system each year which resulted in a decrease of travel time and increase
efficiency by concentrating work in selected areas ra ther than having to drive to certain areas
just to clea n selected sewer lines. C leaning sewers every two years is a safe and reliable
practice that will not lead to backups and sanitary sewer overflows. Sewer lines requiring
annual maintenance will contin ue being cleaned annually . Adequate funding is in the budget
to ensure the CMSD’s new cleaning program is continued for the next two years.
The final organizational priority for CMSD is reducing residential waste stream from entering
the landfill. CMSD’s philosophy of zero waste is to change people’s behavior of what they
throw away while at the same time offering them helpful programs to reduce and/or eliminate
household waste. CMSD believes that zero waste is not about getting to zero but instead it’s
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about being on the path to zero. On April 10, 2013, the Board of Directors adopted the
following zero waste objective:
The District will use the 4 R’s 'rethink –reduce –reuse –recycle' to achieve zero waste status by
2020 .
To achieve that objective, the Board adopted the following Zero Waste Goals:
Achieve 75% diversion by 2015 and 90% by 2020
CMSD Leads by Example
Collaborate with CCM and other organizations on upstream and downstream waste
Research a pilot volume base disposal program
Implement trash audit
Achieve a cultural change through education, outreach and marketing
Research organic waste program
Adequate funding is in the budget that will assist CMSD in meeting the above referenced goals
and staff will actively participate and collaborate wit h professional organizations along with
other with public and private entities to ensure these goals are on the path for completion.
Technology and Policy Issues
New and innovative technology is now an important part of doing business to help keep rates
stabilized and costs down. CMSD has been an industry leader for using trenchless technology
to repair sewer pipes and electromagnetic sensors to determine pipe wal l thickness. CMSD will
continue to use this technology in the next two years, but the organization will also embrace
other forms of technology to improve operational efficiencies such as laptops and wireless
access in the field for the sewer maintenance cr ew, digital imaging of records into electronic
records management system, digitally imaging and importing approved plans into GIS,
creating a smart phone ap, implementing a voice broadcasting program and considering
conversion technology for solid waste.
The policy issues the District currently faces are a reflection of the statewide en vironmental
policies such AB 341, which is designed to help meet California’s recycling goal of 75% by the
year 2020 . To meet this goal state officials are considering the elimination of green waste as
alternative daily cover (ADC) at the landfills. If the state changes its policy on ADC it will
greatly alter CMSD’s efforts to reducing the residential waste stream, which currently stands at
57.52%. Furthermore, lowering CM SD’s waste reduction rate of 57.52% will have an impact to
the Cities of Costa Mesa and Newport Beach compliance with Assembly Bill 939 (AB 939), that
se ts State diversion goals at 50%, and Senate Bill 1016 (SB 1016), the per capita disposal
measurement sy stem because these agencies are held responsible for complying with state
mandates. To ensure AB 341 does not impact CMSD and its partner agencies staff i s in the
process of evaluating all options to obtain a 75% reduction rate in cooperation with other pu blic
and non -profit organizations by the year 2020. The plan includes educational and public
outreach programs , innovative technology such as conversion technology, along with
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compliance measures to encourage residents to participate in waste reduction an d recycling
efforts.
Finally, I want to assure you that CMSD will stay committed to being one of the most
transparent local governments in California. CMSD has proven its dedication to being fully
transparent as well as open and accessible to the public and other stakeholders by receiving
the District Transparency Certificate of Excellence from the Special District Leadership
Foundation (SDLF). In order to receive the certification, CMSD had to complete eight essential
governance transparency requiremen ts, including conducting ethics training for all board
members, properly conducting open and public meetings, and filing financial transactions and
compensation reports to the State Con troller in a timely manner. CMSD also fulfilled fifteen
website require ments intended to readily provide to the public information such as boar d
agendas, video recording of board meetings , the current budget, and the most recen t financial
audit. This commitment will not waver because the public deserves to have an open and
t rustworthy government.
Conclusion
The District continues to grow and flourish as an organization. The biennial budget for FY
201 3 -14 and FY 2014 -15 continues the District’s history of responsible fiscal management.
Available resources are focused on ma intaining and improving services, the District’s facilities
and infrastructure and improving the quality of service to the patrons of Costa Mesa Sanitary
District. I believe that this budget maintains and enhances the District’s mission; Protecting
our co mmunity’s health and the environment by providing solid waste and sewer collection
services.”
Special Thanks
Many thanks to the Board of Directors for your review, advice, suggestions, and policy
direction during the budget process. I would also like to thank the CMSD staff for their
contributions and partici pation in the development of this biennial budget.
Respectfully submitted,
Scott C. Carroll
General Manager /District Clerk
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
7
Fund Structure
The District accounts for its revenue and expenses in six funds. Each fund represents a
separate accounting entity with separate purposes. The six funds and their purposes are as
follows:
1. Solid Waste Fund – This fund accounts for the annual charge for providing solid waste
services to the District’s customers. Expenses include operations and special
programs,
2. Liquid Waste Fund – This fund accounts for the annual charge for providing sewer
services to the District’s customers. Expenses include operations and capital
improvement projects.
3. Sewer Construction Fund – This fund is restricted and accounts for deposits received
from de velopers in lieu of constructing required sewer improvements associated with a
development project. The funds on deposit are held by the District until such time as
the District constructs the required sewer improvement. An annual budget is not
adopted f or this fund. Rather, as required projects are ready to be constructed, a
budget adjustment will be brought to the Board to appropriate the required monies.
4. Facilities Revolving Fund – This fund is restricted and accounts for the receipt and
disbursement of the capacity charges (fixture fees). Funds collected can only be used
for new sewer facilities and cannot be used for maintenance. An annual budget is not
adopted for this fund. Rather, as required projects are ready to be constructed, a
budget adju stment will be brought to the Board to appropriate the required monies.
5. Asset Replacement Fund – This fund is restricted and accounts for the accumulation of
resources for the eventual replacement of equipment. Rental charges are budgeted in
the Solid Wa ste and Liquid Waste Funds and serve as the funding source. When it is
time to replace an asset, funds are transferred to the appropriate fund from which the
purchase is made. An annual budget is not adopted for this fund.
6. Asset Management Fund – This f und is restricted and accounts for the accumulation of
resources for future capital improvement projects. The funds required to complete the
budgeted capital projects are transferred at the beginning of the fiscal year to this Fund.
When the project is r eady to be started, which is most likely in future fiscal years, then
funds are transferred back to the Liquid Waste Fund to fund the project. An annual
budget is not adopted for this fund.
This document contains the proposed operating and capital spendi ng plans for the Solid Waste
and Liquid Waste Funds of the District for FY 2013 -14 and FY 2014 -15. The following
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
8
subsections discuss the proposed budget for each fund, as well as the highlights of changes
from the prior amended budgets.
Solid Waste Fund
Fiscal Year 2013 -14
The proposed budget for the Solid Waste Fund for FY 2013 -14 as compared to the amended
budget for FY 2012 -13 is as follows.
Proposed Amended
Budget Budget Increase (Decrease)
FY 2013 -14 FY 2012 -13 Amount Percent
Revenues:
Annual charge $ 4,659,000 $ 4,915,000 $ (256,000) -5.21%
Property taxes 200,000 150,000 50,000 33.33%
Investment earnings 50,000 50,000 - 0.00%
Additional container charge 100,000 96,000 4,000 4.17%
Other 100,000 87,595 12,405 14.16%
Total revenues 5,109,000 5,298,595 (189,595) -3.58%
Expenses:
Salaries and benefits 517,400 469,520 47,880 10.20%
Operations and maintenance 4,705,560 4,789,600 (84,040) -1.75%
Programs 130,900 246,722 (115,822) -46.94%
Total expenses 5,353,860 5,505,842 (151,982) -2.76%
Net revenue $ (244,860) $ (207,247) $ (37,613) 18.15%
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
9
The following subsections highlight the more significant changes in the proposed budget for FY
2013 -14 as compared to the amended budget for FY 2012 -13.
Annual Charge
The proposed budget includes a reduction in the annual charge for solid waste from $19.00
per month to $18.00 per month, or 5.26%. This reduction is temporary and is being proposed
in an effort to reduce unspent funds that have accumulated over time. Staff will be monitoring
this reduction and propose to restore the rate to an appropriate level when the accumulated
funds are reduced to approximately $2.2 million.
P roperty Taxes
The proposed budget for property taxes represents an increase of $50,000 over the prior year.
This increase is attributable to the elimination of redevelopment agencies within the County
and the general property tax levy being reallocated d ue to the elimination.
Salaries and Benefits
Salaries and benefits are anticipated to increase by $47,880 , or 10.20 %, as compared to the
prior year amended budget . This increase is primarily due to the hiring of the Management
Assistant position and rec lassifying the Accounting Manager position to Finance Manager.
Operations and Maintenance
Operations and maintenance costs are anticipated to decrease by $84,040, or 1.75 %, as
compared to the prior year amended budget . This decrease is primarily attributable to the
following:
A reduction of $30,000 in election costs as no election will be held in FY 2013 -14;
A reduction of $19,000 in recycling costs due to a projected continued reduction in
tonnage;
An increase of $17,100 in asset replacement charges due to a full year rental rate
charged on the code enforcement officer’s vehicle.
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
10
Programs
Programs are proposed to decrease by $115,822, or 46.94%, from the prior year amended
budget. This decrease is primarily attributable to the following:
A r eduction of $60,000 in the household hazardous waste program as the District has
not experienced the success of this program that was expanded in August 2012 ;
A reduction of $62,595 in an AB 939 grant; and
An increase of $5,823 in educati onal programs.
Net Revenue
The proposed budget includes a net revenue deficit of $244,860. This deficit is a planned
deficit to help reduce the unspent funds that have accumulated over time in the Solid Waste
Fund.
Fiscal Year 2014 -15
The proposed budget for the Solid Waste Fund for FY 2014 -15 as compared to the proposed
budget for FY 2013 -14 is as follows.
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
11
Proposed Proposed
Budget Budget Increase (Decrease)
FY 2014 -15 FY 2013 -14 Amount Percent
Revenues:
Annual charge $ 4,659,000 $ 4,659,000 $ - 0.00%
Properety taxes 200,000 200,000 - 0.00%
Investment earnings 54,000 50,000 4,000 8.00%
Additional container charge 100,000 100,000 - 0.00%
Other 100,000 100,000 - 0.00%
Total revenues 5,113,000 5,109,000 4,000 0.08%
Expenses:
Salaries and benefits 565,300 517,400 47,900 9.26%
Operations and maintenance 4,769,060 4,705,560 63,500 1.35%
Programs 140,500 130,900 9,600 7.33%
Total expenses 5,474,860 5,353,860 121,000 2.26%
Net income (loss) (361,860) $ (244,860) (117,000) 47.78%
Transfers in - - - n/a
Net revenue $ (361,860 ) $ (244,860) $ (116,330) 47.51%
The following subsections highlight the more significant changes in the proposed budget for FY
2014 -15 as compared to the proposed budget for FY 2013 -14.
Annual Charge
The proposed budget includes no change in the reduced solid waste charge of $18.00 per
month. This reduction is temporary and is being proposed in an effort to reduce unspent funds
that have accumulated over time. Staff will be monitoring this reduction and propose to restore
the rate to an appropriate level when the accumulated funds are reduced to approximately
$2.2 million.
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
12
Salaries and Benefits
Salaries and benefits are anticipated to increase by $47,900 , or 9.26 %, as compared to the
prior year proposed budget . This increase is primarily due to a projected cost of living increase
of 2.00% and projected merit increases of 5.00%.
Operations and Maintenance
Operations and maintenance costs are anticipated to increase by $63,500, or 1.35 %, as
comp ared to the prior year proposed budget . This increase is primarily attributable to the
following:
An increase of $17,500 in election costs as an election will be held in FY 2014 -15;
An increase of $30,000 in trash hauler fees. However, the projected increase may not
come to fruition if CMSD and CR&R agree to a $0.25 fee reduction. Both sides will
consider a fee reduction in early FY 2013 -14; and
An increase of $19,000 in recycling costs. However, the projected increase may not
come to fruition if CMSD and CR&R agree to a $0.25 fee reduction. Both sides will
consider a fee reduction in early FY 2013 -14.
Net Revenue
The proposed budget includes a net revenue deficit of $361,860 . This deficit is a planned
deficit to help reduce the unspent funds th at have accumulated over time in the Solid Waste
Fund.
Liquid Waste Fund
Fiscal Year 2013 -14
The proposed budget for the Liquid Waste Fund for FY 2013 -14 as compared to the amended
budget for FY 2012 -13 is as follows.
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
13
Proposed Amended
Budget Budget Increase (Decrease)
FY 2013 -14 FY 2012 -13 Amount Percent
Revenues:
Annual charge $ 5,091,000 $ 5,093,800 $ (2,800) -0.05%
Investment earnings 60,000 50,000 10,000 20.00%
Charges for services 155,000 53,000 102,000 192.45%
Other 20,000 - 20,000 n/a
Total revenues 5,326,000 5,196,800 129,200 2.49%
Expenses:
Salaries and benefits 1,077,700 1,053,150 24,550 2.33%
Operations and maintenance 2,500,300 2,705,295 (204,995) -7.58%
Capital improvement projects 1,810,000 3,053,685 (1,243,685) -40.73%
Total expenses 5,388,000 6,812,130 (1,424,130) -20.91%
Net income (loss) (62,000) (1,615,330) 1,553,330 -96.16%
Transfers in 1,810,000 3,309,185 (1,499,185) -45.30%
Transfers out (1,748,000) (1,748,000) - 0.00%
Total transfers (net) 62,000 1,561,185 (1,499,185) -96.03%
Net revenue $ - $ (54,145) $ 54,145 -100.00%
The following subsections highlight the more significant changes in the proposed budget for FY
20 13 -14 as compared to the prior year amended budget .
Annual Charge
The annual charge required to fund the Liquid Waste Fund is virtually flat. In December 2012
the Board reviewed and approved a Sewer Rate Study that analyzed the generators of liquid
waste and proposed a realignment of the fee structure to better match th e flow. While different
classifications of user saw rate increases and decreases, overall there was no net change to
the total revenue generated.
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
14
Annual Liquid Waste Rates
Customer Class 2012 2013 2014 2015 2016 2017
Residential (Per Dwelling Unit)
Single Family 69.00 85.34 87.05 88.79 90.57 92.38
Multi Family 53.77 50.09 51.09 52.11 53.15 54.21
Non -Residential (Per 1,000 sq. ft.)
Commercial - Ave Strength 38.69 37.96 38.72 39.49 40.28 41.09
Commercial - High Strength 43.66 41.40 42.23 43.07 43.93 44.81
Industrial 113.72 97.44 99.39 101.38 103.41 105.48
Operations and Maintenance
Operations and maintenance costs are budgeted to de crease by $204,995 , or 7.58 %, from the
prior year amended budget . Th e significant components of this de crease are:
A reduction of $254,730 in capital outlay. In FY 2012 -13, the District purchased a sewer
combination truck and replaced its SCADA system. These two purchases totaled
approximately $400,000. In FY 2013 -14, the District plans to purchase a utility service
truck for approximately $150,000.
A reduction of $30,000 in election costs as no election will be held in FY 2013 -14;
An increase of $42,300 in asset replacement charges due to a full year rental rate
charged on the sewer combination truck and SCADA system.
Transfers In
Transfers in are proposed to decrease $1,499,185, or 45.30%, from the prior year amended
budget. In FY 2012 -13, additional tra nsfers were made from the Asset Management Fund in
order to fund the PICA analysis and Phase 3 sewer repairs. This funding is not included in the
proposed budget for FY 2013 -14.
Net Revenue
The proposed budget for the Liquid Waste Fund for FY 2013 -14 is balanced. It includes
contingency of $33,430.
Fiscal Year 2014 -15
The proposed budget for the Liquid Waste Fund for FY 2014 -15 as compared to the proposed
budget for FY 2013 -14 is as follows.
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
15
Proposed Proposed
Budget Budget Increase (Decrease)
FY 2014 -15 FY 2013 -14 Amount Percent
Revenues:
Annual charge $ 5,212,000 $ 5,091,000 $ 121,000 2.38%
Investment earnings 60,000 60,000 - 0.00%
Charges for services 155,000 155,000 - 0.00%
Other 20,000 20,000 - n/a
Total revenues 5,447,000 5,326,000 121,000 2.27%
Expenses:
Salaries and benefits 1,156,400 1,077,700 78,700 7.30%
Operations and maintenance 2,495,680 2,500,300 (4,620) -0.18%
Capital improvement projects 1,787,000 1,810,000 (23,000) -1.27%
Total expenses 5,439,080 5,388,000 51,080 0.95%
Net income (loss) 7,920 (62,000) (54,080) 112.77 %
Transfers in 1,787,000 1,810,000 (23,000) -1.28%
Transfers out (1,794,920) (1,748,000) (46,920) 2.61%
Total transfers (net) (7,920) 62,000 54,080 -112.77 %
Net revenue $ - $ - $ - n/a
The following subsections highlight the more significant changes in the proposed budget for FY
20 14 -15 as compared to the prior year amended budget .
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
16
Annual Charge
The annual charge is projected to be increased by 2.00% during FY 2014 -15 in accordance
with the Sewer Rate Study.
Salaries and Benefits
Salaries and benefits are anticipated to increase by $78,700 , or 7.30 %, as compared to the
prior year proposed budget . This increase is primarily due to a projected cost of living increase
of 2.00% and projected merit increases of 5.00%.
Operations and Maintenance
Operations and maintenance costs are anticipated to decrease by $4,620, or 0.18 %, as
compared to the prior year proposed budget . While this net decrease is imma terial, it does
consist of some larger differences as follows:
An increase of $32,500 in election costs as an election will be held in FY 2014 -15;
A reduction of $32,260 in professional services primarily due to an internal count audit
of parcels budgete d at $40,000 in FY 2013 -14 and this service not being needed in FY
2014 -15. Additionally, funding for CityWorks CMMS is reduced $14,300 in FY 2014 -15.
This is somewhat offset b y the need for an internal SSMP audit in FY 2014 -15 in the
amount of $20,000 .
A reduction of $47,300 in contract services primarily due to the elimination of the
temporary permit clerk in the amount of ($19,800), ductile iron pipe analysis ($15,000)
and GIS mapping services ($10,000).
An increase of $27,000 in asset replacement ch arges due to a full year rental rate
charged on the utility service truck to be purchased in FY 2013 -14.
An increase of $15,400 in sewer equipment maintenance primarily due to an increase in
vehicle maintenance.
Transfers In
Transfers in are proposed to decrease $23,000 due to a reduction in capital improvement
projects from FY 2013 -14.
COSTA MESA SANITARY DISTRICT
Proposed Budget (6 -27 -13)
Fiscal Years 2013 -14 and 2014 -15
17
Transfers Out
Transfers out are proposed to increase $46,920 due to increased funding required for the
Asset Management Fund in accordance with the Model.
Net Reven ue
The proposed budget for the Liquid Waste Fund for FY 2013 -14 is balanced. It includes
contingency of $202,690.
Capital Improvement Projects
Capital improvement projects are proposed as follows, by fiscal year:
Fiscal Year 2013 -14
Project No. Project Amount
101 West Side Pumping Station Abandonment $ 400,000
NEW Force Main Upgrades 850,000
NEW Replace Equipment at Pump Stations 260,000
NEW Elden PS Valve and Piping Replacement 150,000
NEW Generator at Yard 150,000
Total capital improvement projects for fiscal year 2013 -14 $1,810,000
Fiscal Year 2014 -15
Project No. Project Amount
101 West Side Pumping Station Abandonment $ 400,000
194 Sewer Manhole Rehabilitation 300,000
NEW Sewer Line Rehab Grade 4 Phase I 568,000
NEW Generator at Harbor Pump Station 178,500
NEW Manhole Rehabilitation 340,500
Total capital improvement projects for fiscal year 2014 -15 $1,787,000
COSTA MESA SANITARY DISTRICT
Proposed Line Item Budget
Fiscal Year 2013-14
SolidLiquid
WasteWaste
Fund Fund Total
Revenues:
Annual charge 4,659,000 $ 5,091,000 $ 9,750,000 $
Additional container charge100,000 - 100,000
Investment earnings 50,000 60,000 110,000
Contributions 25,000 - 25,000
Charges for services - 75,000 75,000
Sewer permits - 16,000 16,000
Inspection fees - 64,000 64,000
Property Taxes 200,000 - 200,000
Other 75,000 20,000 95,000
Total revenues 5,109,000 5,326,000 10,435,000
Expenses:
Salaries and benefits (administrative):
Regular salaries 335,200 435,800 771,000
Part-time salaries 34,300 7,500 41,800
Board salaries 14,400 57,300 71,700
Overtime 800 700 1,500
Auto allowance 2,400 2,400 4,800
Cell phone allowance 4,500 2,800 7,300
Incentive Pay 5,000 5,000 10,000
Tuition Reimbursement5,000 5,000 10,000
Compensated absences4,400 5,700 10,100
Cafeteria plan 30,700 46,100 76,800
Medicare 6,500 8,200 14,700
Social security 900 3,600 4,500
Retirement - employer39,900 48,200 88,100
Retirement - employee28,100 33,600 61,700
Deferred medical 3,400 4,400 7,800
Workers' compensation1,900 3,400 5,300
Subtotal administrative517,400 669,700 1,187,100
Salaries and benefits (sewer maintenance):
Regular salaries - 250,900 250,900
Overtime - 27,200 27,200
Compensated absences - 2,800 2,800
Cafeteria plan - 43,200 43,200
Medicare - 4,400 4,400
Retirement - employer - 30,200 30,200
Retirement - employee - 18,800 18,800
Deferred medical - 2,600 2,600
Cell phone allowance - 3,900 3,900
Incentive pay - 7,000 7,000
18
COSTA MESA SANITARY DISTRICT
Proposed Line Item Budget
Fiscal Year 2013-14
SolidLiquid
WasteWaste
Fund Fund Total
Workers' compensation - 17,000 17,000
Subtotal sewer maintenance- 408,000 408,000
Total salaries and benefits517,400 1,077,700 1,595,100
Operations and maintenance (administrative):
Professional services37,560 169,340 206,900
Engineering/architectural services- 90,000 90,000
Plan check/inspection - inside- 46,000 46,000
Plan check/inspection - outside- 42,000 42,000
Plan check/inspection - sewer lateral- 24,000 24,000
Legal services 47,250 87,750 135,000
Fiscal services 14,700 27,300 42,000
Medical/employment services200 1,800 2,000
Contract services 32,200 78,800 111,000
County collection fee 15,700 15,500 31,200
Trash hauler 2,370,000 - 2,370,000
Recycling/disposal2,081,000 - 2,081,000
Container collection costs13,500 - 13,500
Building maintenance 2,480 22,320 24,800
Equipment maintenance5,060 45,540 50,600
Office supplies 800 7,200 8,000
Multi media/copy/blueprint200 1,800 2,000
Postage 3,500 31,500 35,000
Public info/education/promo14,700 27,000 41,700
Small tools/equipment 70 680 750
EOC equipment & supplies400 3,600 4,000
Memberships/dues 10,730 34,020 44,750
Staff development 7,970 36,660 44,630
Board development 7,500 43,900 51,400
Mileage reimbursement 190 1,760 1,950
Liability insurance 6,500 58,500 65,000
Telephone 700 6,300 7,000
Gas - building 50 450 500
Water - building 150 1,350 1,500
Electric - building 950 8,550 9,500
Asset replacement 30,000 175,000 205,000
Capital outlay 1,500 13,500 15,000
Contingency - 33,430 33,430.00
Total operations and maintenance
(administrative)4,705,560 1,135,550 5,841,110
19
COSTA MESA SANITARY DISTRICT
Proposed Line Item Budget
Fiscal Year 2013-14
SolidLiquid
WasteWaste
Fund Fund Total
Operations and maintenance (sewer maintenance):
Pump station contract - 80,000 80,000
Sewer line maintenance contract- 200,000 200,000
GIS support - 20,000 20,000
Fats, oils and grease contract- 104,000 104,000
Televising sewer lines contract- 5,000 5,000
Annual sewer maintenance- 220,000 220,000
Inflow reduction program - 10,000 10,000
Sewer lateral program - 200,000 200,000
Equipment maintenance - 39,300 39,300
Small tools/equipment - 8,000 8,000
Materials and supplies - 25,000 25,000
Office Supplies - 2,000 2,000
Building maintenance - Yard- 13,950 13,950
Mileage reimbursement - 1,000 1,000
Telephone - Yard - 5,500 5,500
Gas - Yard - 400 400
Water - Yard - 1,500 1,500
Electric - Yard - 5,000 5,000
Water pumps - 2,000 2,000
Electric pumps - 80,000 80,000
Staff development - 5,100 5,100
Capital Outlay - 326,000 326,000
Liability insurance - 11,000 11,000
Total operations and maintenance
(sewer maintenance)- 1,364,750 1,364,750
Total operations and maintenance 4,705,560 2,500,300 7,205,860
Programs:
Sharps Program 10,200 - 10,200
Household hazardous waste50,000 - 50,000
Telephone book recycling10,000 - 10,000
Anti-scavenging 9,800 - 9,800
Educational programs40,900 - 40,900
Pharmaceutical program10,000 - 10,000
Total programs 130,900 - 130,900
20
COSTA MESA SANITARY DISTRICT
Proposed Line Item Budget
Fiscal Year 2013-14
SolidLiquid
WasteWaste
Fund Fund Total
Capital improvement projects:
#101 - Westside abandonment- 400,000 400,000
Force main upgrades - 850,000 850,000
Replace equipment at pump stations- 260,000 260,000
Elden PS valve and piping replacement- 150,000 150,000
Generator at Yard - 150,000 150,000
Total capital improvement projects- 1,810,000 1,810,000
Total expenses 5,353,860 5,388,000 10,741,860
Transfers in/out:
Transfer in from asset management fund- (1,810,000) (1,810,000)
Transfer in from asset replacement fund- - -
Transfer out to asset management fund- 1,748,000 1,748,000
Total transfers, net - (62,000) (62,000)
Total budget, net of transfers5,353,860 5,326,000 10,679,860
Net revenue (244,860)$ -$ (244,860)$
21
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2013-14
SolidLiquid
WasteWaste
Fund Fund Total
Professional services:
TRC telemetry computer/maint contract - Yard500 $ 4,500 $ 5,000 $
TRC telemetry computer/maint contract3,000 27,000 30,000
GovDelivery 300 2,700 3,000
Records management 3,500 31,500 35,000
Website maintenance 240 2,160 2,400
Website domain name 20 180 200
Compost bins 15,000 - 15,000
Aquavox SCADA - 12,000 12,000
Smartcover monitoring - 4,800 4,800
Manhole inspection program - 25,000 25,000
CityWorks - CMMS - 19,500 19,500
Internal count audit of parcels10,000 40,000 50,000
Diversion study 5,000 - 5,000
Total professional services37,560 $ 169,340 $ 206,900 $
Fiscal services:
Treasurer/Financial services contract10,500 $ 19,500 30,000
Audit contract 4,200 7,800 12,000
Total fiscal services 14,700 $ 27,300 42,000
Contract services:
Dig alert services -$ 500 $ 500 $
Temporary Staff 500 4,500 5,000
Interim contract permit technician2,200 19,800 22,000
Ductile iron pipe analysis - 15,000 15,000
Hydraulic modeling support - 7,500 7,500
GIS mapping services - 30,000 30,000
Kaplan consulting 5,000 - 5,000
Landbase data 1,500 1,500 3,000
HHW collection event 23,000 - 23,000
Total contractual services32,200 $ 78,800 $ 111,000 $
Building maintenance:
Janitorial contract- special cleaning150 $ 1,350 $ 1,500 $
Janitorial supplies 50 450 500
HVAC 100 900 1,000
Landscape maintenance 180 1,620 1,800
Pest control 40 360 400
Description
22
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2013-14
SolidLiquid
WasteWaste
Fund Fund Total Description
Termite tenting 250 2,250 2,500
OCSD sewer user fees 50 450 500
Building Security system 200 1,800 2,000
Paper products 100 900 1,000
Plumbing 50 450 500
Building maintenance supplies200 1,800 2,000
Misc. Supplies 200 1,800 2,000
Fire Extinguisher maintenance100 900 1,000
Electrical 110 990 1,100
Back patio storage 100 900 1,000
Head Quarters Roof maintenance/ repair100 900 1,000
Generator maintenance 500 4,500 5,000
Total building maintenance2,480 $ 22,320 $ 24,800 $
Emergency equipment and supplies:
Redundant wireless internet 400 $ 3,600 $ 4,000 $
Total emergency equipment and supplies400 $ 3,600 $ 4,000 $
Building maintenance - Yard:
Janitorial contract - special cleaning-$ 700 700
Janitorial supplies - 1,000 1,000
Building security - includes fire alarm monitoring- 2,000 2,000
Backflow testing - 200 200
Landscape maintenance - special services- 600 600
Pest control - 400 400
Air conditioning maintenance - 500 500
Tankless water heater maintenance- 500 500
Filter maintenance - 250 250
Fire suppression equipment maintenance- 1,000 1,000
Roll-up door maintenance - 1,500 1,500
OC sewer service - 1,200 1,200
Safety posters - 100 100
Installing concrete slab - 3,000 3,000
Miscellaneous building maintenance supples- 1,000 1,000
Total building maintenance - Yard-$ 13,950 13,950
Equipment maintenance:
Copier maintenance & copies1,200 $ 10,800 12,000
23
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2013-14
SolidLiquid
WasteWaste
Fund Fund Total Description
Printer ink and repairs 100 900 1,000
Phone updates/maintenance 100 900 1,000
Computer software licensing- RealQuest180 1,620 1,800
Computer software- Neogov 80 720 800
Surveymonkey 30 270 300
Fax machine 30 270 300
Computer equipment repair/upgrades-server backup400 3,600 4,000
SpringBrook annual maintenance fees2,000 18,000 20,000
ADP Timeclock 90 810 900
LaserFiche software annual support850 7,650 8,500
Total equipment maintenance5,060 $ 45,540 50,600
Equipment maintenance - sewer maintenance:
Vehicle maintenance -$ 15,000 $ 15,000 $
Diesel - 20,000 20,000
AQMD renewals/registration - 2,000 2,000
Gas monitor calibration/repairs- 1,700 1,700
Propane - 250 250
Diesel exhaust fluid for vac-con- 350 350
Total equipment maintenance - sewer
maintenance -$ 39,300 $ 39,300 $
Memberships/Dues
Local Agency Formation Commission (LAFCO)7,000 $ 13,000 20,000
Santa Ana River Flood Protection Agency (SARFPA)- 1,200 1,200
California Special Districts Association (CSDA)1,68 0 3,120 4,800
Costa Mesa Chamber of Commerce170 330 500
Independent Special Dist of OC (ISDOC)70 130 200
Costa Mesa Historical Society 30 70 100
National Notary Association 10 90 100
City Clerks Association of Calif (CCAC)20 180 200
Calif Society of Municipal Finance Officers (CSMFO)30 270 300
Government Finance Officer Association (GFOA)30 270 300
International City/County Mgmt Assoc. (ICMA)200 1,800 2,000
Liebert Cassidy Whitmore 350 3,150 3,500
Solid Waste Association of North America (SWANA)900 - 900
OC Tax Assessor 10 90 100
SpringBrook National Users Group10 90 100
State Water Resources Control Board Annual Permit F ee- 8,200 8,200
CWEA - 1,750 1,750
24
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2013-14
SolidLiquid
WasteWaste
Fund Fund Total Description
International Institute of Municipal Clerks (IIMC)2 0 180 200
PARMA - 100 100
Municipal Management Association of SoCal (MMASC)20 0 - 200
Memberships/Dues 10,730 $ 34,020 $ 44,750 $
Staff development:
CSDA conference 300 $ 2,700 $ 3,000 $
CSDA leadership summit 60 540 600
CSDA legislative days 100 900 1,000
CCAC conference 150 1,350 1,500
CSMFO meetings 60 540 600
CSMFO/GFOA conferences 150 1,350 1,500
Springbrook conference 600 5,400 6,000
Springbrook training 400 3,600 4,000
CalPERS conference 440 3,960 4,400
Liebert Cassidy Whitmore 220 1,980 2,200
ISDOC 20 160 180
ICMA - periodicals 20 180 200
SWANA conference 2,500 - 2,500
Chamber breakfast 10 140 150
Finance periodicals 40 360 400
Finance miscellaneous training seminars200 1,800 2,000
Career Track Seminars 80 720 800
Clerk continuing education 50 450 500
CCAC technical training for Clerks160 1,440 1,600
Staff recognition/monthly training and meetings200 1,800 2,000
Awards banquet 50 450 500
MMASC conference 1,400 - 1,400
Subscriptions 50 450 500
Skillpath training 360 3,240 3,600
Supervisor training 100 900 1,000
Miscellaneous 250 2,250 2,500
Total staff development 7,970 $ 36,660 $ 44,630 $
25
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2013-14
SolidLiquid
WasteWaste
Fund Fund Total Description
Staff development - sewer maintenance:
CWEA seminars -$ 1,500 1,500
CWEA training - 1,000 1,000
License upgrade testing - 800 800
Confined space license renewals- 800 800
Miscellaneous training - 1,000 1,000
Total staff development - sewer maintenance-$ 5,100 $ 5,100 $
Board development:
CASA conference -$ 10,800 $ 10,800 $
CASA - mid year - 8,800 8,800
CASA - Spring - 2,500 2,500
CSDA conference 900 8,100 9,000
CSDA legislative days 320 2,930 3,250
CWEA conference - 1,500 1,500
SWANA conference 4,450 - 4,450
SWANA chapter meetings 800 - 800
ISDOC quarterly meetings 60 540 600
Chamber breakfast 220 1,980 2,200
Mileage 100 900 1,000
SDRMA committee meetings 150 1,350 1,500
Misc seminars and training 500 4,500 5,000
Total travel/meetings/lodging7,500 $ 43,900 $ 51,400 $
Capital outlay (administrative):
Exterior maintenance/facelift at Headquarters1,500 $ 13,500 $ 15,000 $
Total capital outlay (administrative)1,500 $ 13,500 $ 15,000 $
Capital outlay sewer maintenance:
Utility service crane truck -$ 150,000 $ 150,000 $
Smarcovers - 20,000 20,000
Mendoza fence - 5,000 5,000
Manhole rings/covers - 20,000 20,000
Toughbook laptops - 15,000 15,000
Toughbook licenses - 12,000 12,000
Installation of wireless access for laptops- 30,000 30,000
Temporary electric panel - 7,000 7,000
26
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2013-14
SolidLiquid
WasteWaste
Fund Fund Total Description
Yard bin enclosure - 5,000 5,000
Replace electrical panels at pump station- 62,000 62,000
Total capital outlay sewer maintenance-$ 326,000 $ 326,000 $
27
COSTA MESA SANITARY DISTRICT
Proposed Line Item Budget
Fiscal Year 2014-15
SolidLiquid
WasteWaste
Fund Fund Total
Revenues:
Annual charge 4,659,000 $ 5,212,000 9,871,000
Additional container charge100,000 - 100,000
Investment earnings54,000 60,000 114,000
Contributions 25,000 - 25,000
Charges for services - 75,000 75,000
Sewer permits - 16,000 16,000
Inspection fees - 64,000 64,000
Property Taxes 200,000 - 200,000
Other 75,000 20,000 95,000
Total revenues 5,113,000 5,447,000 10,560,000
Expenses:
Salaries and benefits (administrative):
Regular salaries359,600 467,400 827,000
Part-time salaries37,900 9,200 47,100
Board salaries 14,400 57,300 71,700
Overtime 900 1,300 2,200
Auto allowance 2,400 2,400 4,800
Cell phone allowance4,200 3,100 7,300
Incentive Pay 5,000 5,000 10,000
Tuition Reimbursement5,000 5,000 10,000
Compensated absences4,800 6,100 10,900
Cafeteria plan 43,200 52,800 96,000
Medicare 7,000 8,800 15,800
Social security 900 3,600 4,500
Retirement - employer44,200 53,500 97,700
Retirement - employee30,200 36,100 66,300
Deferred medical3,600 4,700 8,300
Workers' compensation2,000 3,500 5,500
Subtotal administrative565,300 719,800 1,285,100
Salaries and benefits (sewer maintenance):
Regular salaries - 268,900 268,900
Overtime - 29,100 29,100
Compensated absences- 3,000 3,000
Cafeteria plan - 43,200 43,200
Medicare - 4,700 4,700
Retirement - employer- 34,400 34,400
28
COSTA MESA SANITARY DISTRICT
Proposed Line Item Budget
Fiscal Year 2014-15
SolidLiquid
WasteWaste
Fund Fund Total
Retirement - employee- 20,200 20,200
Deferred medical - 2,700 2,700
Cell phone allowance- 3,900 3,900
Incentive pay - 7,100 7,100
Workers' compensation- 19,400 19,400
Subtotal sewer maintenance- 436,600 436,600
Total salaries and benefits565,300 1,156,400 1,721,700
Operations and maintenance (administrative):
Professional services37,520 137,080 174,600
Engineering/architectural services- 94,000 94,000
Plan check/inspection - inside- 48,000 48,000
Plan check/inspection - outside- 44,000 44,000
Plan check/inspection - sewer lateral- 25,000 25,000
Legal services 47,250 87,750 135,000
Fiscal services12,200 22,800 35,000
Medical/employment services200 1,800 2,000
Contract services31,300 31,500 62,800
County collection fee16,100 15,900 32,000
Trash hauler2,400,000 - 2,400,000
Recycling/disposal2,100,000 - 2,100,000
Container collection costs14,000 - 14,000
Election Costs 17,500 32,500 50,000
Building maintenance2,230 20,070 22,300
Equipment maintenance5,110 45,990 51,100
Office supplies 820 7,380 8,200
Multi media/copy/blueprint210 1,890 2,100
Postage 3,500 31,500 35,000
Public info/education/promo14,630 27,170 41,800
Small tools/equipment80 720 800
EOC equipment & supplies610 5,490 6,100
Memberships/dues11,290 34,610 45,900
Staff development7,790 30,540 38,330
Board development7,500 43,900 51,400
Mileage reimbursement200 1,770 1,970
Liability insurance6,500 58,500 65,000
Telephone 700 6,300 7,000
Gas - building 50 450 500
Water - building 150 1,350 1,500
29
COSTA MESA SANITARY DISTRICT
Proposed Line Item Budget
Fiscal Year 2014-15
SolidLiquid
WasteWaste
Fund Fund Total
Electric - building 950 8,550 9,500
Asset Replacement30,000 201,000 231,000
Capital Outlay 670 6,080 6,750
Contingency - 202,690 202,690
Total operations and maintenance
(administrative)4,769,060 1,276,280 6,045,340
Pump station contract- 82,000 82,000
Sewer line maintenance contract- 204,000 204,000
GIS support - 15,000 15,000
Fats, oils and grease contract- 107,000 107,000
Televising sewer lines contract- 5,100 5,100
Annual Sewer Maintenance- 225,000 225,000
Inflow reduction program- 10,000 10,000
Sewer lateral program- 200,000 200,000
Equipment maintenance- 54,700 54,700
Small tools/equipment- 8,000 8,000
Materials and supplies- 25,000 25,000
Office Supplies - 2,000 2,000
Building maintenance - Yard- 10,950 10,950
Mileage reimbursement- 1,000 1,000
Telephone - Yard - 5,500 5,500
Gas - Yard - 400 400
Water - Yard - 1,500 1,500
Electric - Yard - 5,100 5,100
Water pumps - 2,000 2,000
Electric pumps - 82,000 82,000
Staff development- 4,950 4,950
Capital Outlay - 157,200 157,200
Liability insurance - 11,000 11,000
Total operations and maintenance
(sewer maintenance)- 1,219,400 1,219,400
Total operations and maintenance 4,769,060 2,495,680 7,264,740
Programs:
Sharps Program10,200 - 10,200
Household hazardous waste50,000 - 50,000
Operations and maintenance (sewer
30
COSTA MESA SANITARY DISTRICT
Proposed Line Item Budget
Fiscal Year 2014-15
SolidLiquid
WasteWaste
Fund Fund Total
Telephone book recycling10,000 - 10,000
Anti-scavenging9,800 - 9,800
Educational programs50,500 - 50,500
Pharmaceutical program10,000 - 10,000
Total programs140,500 - 140,500
Capital improvement projects:
#101 - Westside abandonment- 400,000 400,000
#194 - Sewer manhole rehabilitation- 300,000 300,000
Sewer line rehab grade 4 phase I- 568,000 568,000
Generator at Harbor pump station- 178,500 178,500
Manhole rehabilitation- 340,500 340,500
Total capital improvement projects- 1,787,000 1,787,000
Total expenses 5,474,860 5,439,080 10,913,940
Transfers:
Transfer in from asset management fund- (1,787,000) (1,787,000)
Transfer in from asset replacement fund(670) (6,080) (6,750)
Transfer out to asset management fund- 1,801,000 1,801,000
Total transfers, net (670) 7,920 7,250
Total budget, net of transfers5,474,190 5,447,000 10,921,190
Net revenue (361,190)$ -$ (361,190)$
31
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2014-15
SolidLiquid
WasteWaste
Fund Fund Total
Professional services:
TRC computer consulting/maint contract Bldg500 $ 4,500 5,000
TRC telemetry computer/maint contract Yard500 4,500 5,000
TRC telemetry computer/maint contract2,500 22,500 25,000
GovDelivery 300 2,700 3,000
Records management 3,500 31,500 35,000
Website maintenance 200 1,800 2,000
Webiste domain name 20 180 200
Compost bins 30,000 - 30,000
Internal SSMP audit - 20,000 20,000
Aquavix SCADA - 12,000 12,000
Smartcover monitoring - 7,200 7,200
Manhole cover inspection - 25,000 25,000
CityWorks - 5,200 5,200
Total professional services37,520 $ 137,080 174,600
Fiscal services:
Treasurer/Financial services contract7,300 $ 13,700 21,000
Audit contract 4,900 9,100 14,000
Total fiscal services 12,200 $ 22,800 35,000
Contract services:
Dig alert services -$ 500 500
Temporary Staff 500 4,500 5,000
Hydraulic modeling support - 5,000 5,000
GIS mapping services - 20,000 20,000
Landbase data 1,500 1,500 3,000
Kaplan consulting 10,000 - 10,000
ENRECOS 19,300 - 19,300
Total contractual services31,300 $ 31,500 62,800
Building maintenance:
Janitorial contract- special cleaning150 $ 1,350 1,500
Janitorial supplies 50 450 500
HVAC 100 900 1,000
Landscape maintenance 180 1,620 1,800
Pest control 40 360 400
OCSD sewer user fees 50 450 500
Building Security system 200 1,800 2,000
Paper products 100 900 1,000
Plumbing 50 450 500
Description
32
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2014-15
SolidLiquid
WasteWaste
Fund Fund Total Description
Building maintenance supplies 200 1,800 2,000
Misc. Supplies 200 1,800 2,000
Fire Extinguisher maintenance 100 900 1,000
Electrical 110 990 1,100
Back patio storage 100 900 1,000
Head Quarters Roof maintenance/ repair100 900 1,000
Generator maintenance 500 4,500 5,000
Total Building Maintenance2,230 $ 20,070 22,300
Emergency Equipment and Supplies:
AED/ CPR training 130 1,170 1,300
Survival backpacks 30 270 300
EOC Aerial map 50 450 500
Redundant wireless internet 400 3,600 4,000
Total Emergency Equipment and Supplies610 5,490 6,100
Building maintenance Yard:
Janitorial contract - special cleaning-$ 700 700
Janitorial supplies - 1,000 1,000
Building security - includes fire alarm monitoring- 2,000 2,000
Backflow testing - 200 200
Landscape maintenance - special services- 600 600
Pest control - 400 400
Air conditioning maintenance - 500 500
Tankless water heater maintenance- 500 500
Filter maintenance - 250 250
Fire suppression equipment maintenance- 1,000 1,000
Roll-up door maintenance - 1,500 1,500
OC sewer service - 1,200 1,200
Safety posters - 100 100
Miscellaneous building maintenance supples- 1,000 1,000
Total Building Maintenance Yard-$ 10,950 10,950
Equipment maintenance:
Copier maintenance & copies 1,200 $ 10,800 12,000
Printer ink and repairs 100 900 1,000
Phone updates/maintenance 100 900 1,000
Computer software licensing- RealQuest180 1,620 1,800
Computer software- Neogov 80 720 800
Surveymonkey 30 270 300
Fax machine 30 270 300
33
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2014-15
SolidLiquid
WasteWaste
Fund Fund Total Description
Computer equipment repair/upgrades-server backup400 3,600 4,000
SpringBrook annual maintenance fees2,000 18,000 20,000
ADP Timeclock 90 810 900
LaserFiche software annual support900 8,100 9,000
Total equipment maintenance5,110 $ 45,990 51,100
Equipment maintenance - sewer maintenance:
Vehicle maintenance -$ 25,000 25,000
Diesel - 25,000 25,000
AQMD renewals/registration - 2,000 2,000
Gas monitor calibration/repairs - 2,000 2,000
Propane - 300 300
Diesel exhaust fluid for vac-con - 400 400
Total equipment maintenance - sewer
maintenance -$ 54,700 54,700
Memberships/Dues
Local Agency Formation Commission (LAFCO)7,210 $ 13,390 20,600
Santa Ana River Flood Protection Agency (SARFPA)- 1,250 1,250
California Special Districts Association (CSDA)1,92 0 3,580 5,500
Costa Mesa Chamber of Commerce210 390 600
Independent Special Dist of OC (ISDOC)70 130 200
Costa Mesa Historical Society 50 100 150
National Notary Association 10 140 150
City Clerks Association of Calif (CCAC)20 230 250
Calif Society of Municipal Finance Officers (CSMFO)30 270 300
Government Finance Officer Association (GFOA)30 270 300
International City/County Mgmt Assoc. (ICMA)200 1,800 2,000
Liebert Cassidy Whitmore 350 3,150 3,500
Solid Waste Association of North America (SWANA)950 - 950
OC Tax Assessor 10 90 100
SpringBrook National Users Group10 90 100
State Water Resources Control Board Annual Permit F ee- 8,200 8,200
CWEA - 1,200 1,200
International Institute of Municipal Clerks (IIMC)2 0 230 250
PARMA - 100 100
Municipal Management Association of SC (MMASC)200 - 200
Memberships/Dues 11,290 $ 34,610 $ 45,900 $
34
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2014-15
SolidLiquid
WasteWaste
Fund Fund Total Description
Staff development:
CSDA conference 300 $ 2,700 $ 3,000 $
CSDA leadership summit 120 1,080 1,200
CSDA legislative days 100 900 1,000
CCAC conference 150 1,350 1,500
CSMFO meetings 60 540 600
CSMFO/GFOA conferences 40 360 400
Springbrook conference 280 2,520 2,800
Springbrook training 400 3,600 4,000
CalPERS conference 240 2,160 2,400
Liebert Cassidy Whitmore 110 990 1,100
ISDOC 20 160 180
ICMA - periodicals 20 180 200
SWANA conference 3,000 - 3,000
Chamber breakfast 10 140 150
Finance periodicals 40 360 400
Finance miscellaneous training seminars200 1,800 2,000
Career Track Seminars 80 720 800
Clerk continuing education 50 450 500
CCAC technical training for Clerk160 1,440 1,600
Staff recognition/monthly training and meetings200 1,800 2,000
Awards banquet 50 450 500
MMASC conference 1,400 - 1,400
Subscriptions 50 450 500
Skillpath training 360 3,240 3,600
Supervisor training 100 900 1,000
Miscellaneous 250 2,250 2,500
Total staff development 7,790 $ 30,540 38,330
Staff development - sewer maintenance:
CWEA renewal -$ 750 750
CWEA training - 1,600 1,600
License upgrade testing - 800 800
Confined space license renewals- 800 800
Miscellaneous training - 1,000 1,000
Total staff development - sewer maintenance-$ 4,950 4,950
35
COSTA MESA SANITARY DISTRICT
Budget Details for Selected Accounts
Fiscal Year 2014-15
SolidLiquid
WasteWaste
Fund Fund Total Description
Board development:
CASA conference -$ 10,800 10,800
CASA - mid year - 8,800 8,800
CASA - Spring - 2,500 2,500
CSDA conference 900 8,100 9,000
CSDA legislative days 320 2,930 3,250
CWEA conference - 1,500 1,500
SWANA conference 4,450 - 4,450
SWANA chapter meetings 800 - 800
ISDOC quarterly meetings 60 540 600
Chamber breakfast 220 1,980 2,200
Mileage 100 900 1,000
SDRMA committee meetings 150 1,350 1,500
Misc seminars and training 500 4,500 5,000
Total travel/meetings/lodging7,500 $ 43,900 51,400
Capital Outlay Admin & Operations
3 computer workstations 670 6,080 6,750
Subtotal Admin & Operations Capital Outlay670 $ 6,080 $ 6,750 $
Capital Outlay Sewer Maintenance
Smartcovers -$ 20,000 $ 20,000 $
Manholes - 15,000 15,000
Replace electrical panels at pump stations- 37,200 37,200
Replace equipment at pump stations- 85,000 85,000
Subtotal Sewer Maintenance Capital Outlay- 157,200 157,200
Total Capital Outlay 670 $ 163,280 163,950
36