Loading...
HomeMy WebLinkAboutBOARD MINUTES 03-25-93 67 MINUTES OF THE ADJOURNED REGULAR BOARD MEETING OF THE DISTRICT BOARD OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT HELD ON MARCH 25, 1993 The District Board of the Central Contra Costa Sanitary District convened in an adjourned regular session in the Second Floor Conference Room, 5019 Imhoff Place, Martinez, County of Contra Costa, State of California, at 2 p.m. on Thursday, March 25, 1993. President Clausen called the meeting to order. The Secretary of the District noted the attendance of the following Board Members. 1. ATTENDANCE PRESENT: Members: Menesini, Hockett, Rainey, Clausen ABSENT: Members: Dalton Member Dalton entered the meeting at the hour of 2: 15 p.m. 2. PUBLIC COMMENTS None 3. BUDGET AND FINANCE WORKSHOP SESSION TO REVIEW THE CAPITAL IMPROVEMENT BUDGET AND 10-YEAR CAPITAL IMPROVEMENT PLAN a. President Clausen stated that the Budget and Finance Committee met with staff to review the Capital Improvement Budget (CIB) and 10-Year Capital Improvement Plan (CIP). This matter is very important and so complicated that the Committee felt it must be presented to the full Board of Directors. Mr. Roger J. Dolan, General Manager,.Chief Engineer, stated that this is a very unusual year because of the taking of the ad valorem tax revenue by the State. Forty percent of the ad valorem tax revenue has already been taken and it is expected that the remainder will be taken this year. Some of the work in the Capital Improvement Program has already begun, while some of the aspects are uncertain at this time because of the funding uncertainties. Mr. Dolan stated that it is staff's intent to layout options and begin the dialogue on a possible Sewer Service Charge rate increase. It is likely that the Capital Improvement Plan and Capital Improvement Budget will be somewhat uncertain through the meeting of June 10, 1993. While there will probably be a recommended Capital Improvement Plan, flexibility with regard to funding must be preserved pending the outcome of the State's decision concerning ad valorem tax revenue and the June 10, 1993 hearing on the Sewer Service Charge rate. Mr. Dolan introduced Mr. Jarred Miyamoto-Mills, Principal Engineer, who stated that the District's Capital Improvement Program is intended to provide environmental protection and stewardship of public resources by planning for the future to reduce overflows, address new regulatory mandates, and accommodate planned growth, and by prioritizing and scheduling needed capital improvements to meet current regulations. In the 10-Year Capital Improvement Plan expenditures of $250 million are budgeted. Of that amount, 71 percent is to protect public health and environment, 15 percent is to accommodate planned future growth, and 14 percent is to respond to community concerns. The total authorization for the Capital Improvement Budget is $77 million, with an additional authorization of $35 million to be requested in June 1993. Member Dalton entered the meeting at the hour of 2: 15 p.m. Mr. Miyamoto,.Mills stated that current revenue sources are not adequate to provide for planned project work. Options available to deal with this shortfall include: 0'3' 25 93 68 . Defer needed project work; . Add an "existing facilities" charge for new users; . Raise service charges; . Issue additional debt (limited by debt repayment capability); and . Obtain new funding sources such as the State Revolving Loan Fund and the Clinton Economic Stimulus/lnfrastructure Program. Mr. Miyamoto-Mills reviewed various scenarios using a CIP expenditure cap versus a Sewer Service Charge increase. Board discussion followed with regard to timing and amount of a possible Sewer Service Charge rate increase, simplification of the chart for use in communicating with the public, and the plight of other public agencies faced with revenue shortfalls. Mr. Robert A. Baker, Deputy Chief Engineer, presented detailed information on the proposed cutbacks from the 1992-1993 Capital Improvement Plan and the impacts of each for the Base Case, Scenario A, Scenario B, Scenario C, and Scenario D. President Clausen requested that staff provide information related to the projected cost savings of the Ultraviolet Disinfection Project in addition to the improved safety features. Át 3:33 p.m., President Clausen declared a recess, reconvening at the hour of 3:37 p.m., with all parties present as previously designated. Board discussion followed concerning possible public information efforts to be used to communicate the need for a Sewer Service Charge rate increase and the ongoing work done by the District to protect the public health and environment. President Clausen requested that staff inquire of the County whether the O&M and capital components of the Sewer Service Charge can be separated on the tax bill and what cost, if any, would be associated with that. Member Rainey suggested that a series of newspaper stories could be done featuring the revenue shortfall and the impact on all of the special districts. Member Menesini suggested that a brainstorming session be conducted to identify the kinds of things that are happening that will make good news stories and could bring the District to the forefront. Member Hockett left the meeting at the hour of 4:50 p.m., indicating that she had a prior engagement and requesting that she be excused. Mr. Dolan summarized the discussion, stating that there appears to be a level of satisfaction with the scenarios presented. Sory1e further consideration will be given to a one-year rate adjustment with a second year rate adjustment if needed. The Board indicated a wish to consider further the subject of public information and public education. This matter can be broached with the Sanitation and Water Agencies of Contra Costa County at the meeting this evening. In addition, some thought will be given to generating news stories of public interest on such things as the Pleasant Hill Overflow Protection Project, the Residential Metals Study, saving money through educating the public, and innovative project work by individuals at the District. The Capital Improvement Budget and 10-Year Capital Improvement Program will be calendared for Board consideration at the April 15, 1993 Board Meeting and for Board decision at the May 6, 1993 Board Meeting; however, flexibility must be maintained until the June 10, 1993 rate hearing because both the CIB and CIP are dependant on rates. Member Rainey asked that the O&M Budget and the Capital Improvement Budget be considered together so any savings on the O&M Budget can be considered to offset the revenue shortfall in the Capital Improvement Budget. Mr. Dolan stated that the essence of the discussion to date has been to keep the CIB and the O&M Budgets separate, making necessary cuts in both budgets. Any savings realized can then be used for unknown projects and requirements that may arise. Mr. Dolan recommended that costs of all new programs be controlled as much as possible and no new programs be undertaken that are not mandatory. Mr. Dolan stated that staff will brainstorm the public information program and bring it back to the Board for comments. 03 25 93 69 4. REPORTS None 5. ANNOUNCEMENTS None 6. ADJOURNMENT There being no further business to come befor.e the Board, President Clausen adjourned the meeting at the hour of 5: 10 p.m., to reconvene at 6:30 p.m., this evening, Thursday, March 25, 1993, at the Velvet Turtle, 100 Chilpancingo Parkway, Pleasant Hill, California, for a meeting of the Sanitation and Water Agencies of Contra Costa County to discuss areas of mutual concern. Pr:øside of the Board of Directors, al Contra Costa Sanitary District, County of Contra Costa, State of California COUNTERSIGNED: / ( Lt ~¿ L ( S~cr t y of the Central Co ra Cò a Sanitary District, County of Contra Costa, State of California 03" 25 93