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HomeMy WebLinkAboutAGENDA BACKUP 02-19-98 ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS Page 1 of 2 BOARD MEETING OF NO. February 1 9, 1998 4. CONSENT CALENDAR f. DATE TYPE OF ACTION February 11, 1998 ACCEPT AND EXECUTE LICENSE AGREEMENT SUBJECT ACCEPT LICENSE AGREEMENT FROM UNION PACIFIC RAILROAD COMPANY FOR THE MARTINEZ EAST SIDE TRUNK SEWER CROSSING AT FERRY STREET, DISTRICT PROJECT NO. 4950 SUBMITTED BY Andrew J. Antkowiak, Associate Engineer INITIATING DEPT/DIV Engineering Department/Infrastructure Division JSSUE: Board of Directors' approval is required for acceptance of license agreements. BACKGROUND: A license agreement is required for the new 24-inch trunk sewer crossing of Union Pacific Railroad right of way at Ferry Street in Martinez. This trunk sewer is a portion of the Martinez East Side Trunk Sewer Project scheduled for construction later this year. The terms and conditions of this license are designed to protect Union Pacific's interests and to provide the District with long-term rights across the railroad right of way. The cost of the license is $2,900, which includes a one-time license fee of $1,900 and an administrative fee of $1,000. At its July 17, 1997 meeting, the District Board of Directors found the Martinez East Side Trunk Sewer project to be exempt from the California Environmental Quality Act (CEOA). RECOMMENDATION: Accept the License Agreement from Union Pacific Railroad Company at a cost of $2,900. Authorize General Manager-Chief Engineer to execute the license agreement. Authorize staff to record said document with the Contra Costa County Recorder. AJA 0f0 INITIATING DEPARTMENT/DIVISION -II cws H:\PP\License Agreement 4950.wpd 9/16/96 ,J: c: ~ g o .- .<= u .E '0 .- ~ '" .... .;;; .. o u .- .l:: DRAWING N.T.S. ~ -/11/- I SUlSUN BAY N.T.S. CARQUlNEZ STRAIT ~ < -' -' ... Di PACtfECO ~ N , PROPOSED NBN SewER -.. .......""... ............. ....-. DR \. r:,~ ~ ~~/ Central Contra Costa Sanitary District 00 '" $! 00 '" l!! a, .., ~ MARTINEZ EAST SlOE TRUNK SEWER - X4950 ATTACHMENT 1 LOCATION MAP ~ Central Contra Costa Sanitary Disbict BOARD OF DIRECTORS i?iiiii'I:::':::::'::'.i.Ei?iil:':':::::'::Ui::iil:':':::::::::Ci:???: BOARD MEETING OF ii!i!l!iR:;;,;;;:;::,i!iii!iiii'.,liiiiii,:):itRIf!i,:::;;:;;;:;:!I::::::i:i:i:i February 19, 1998 Page 1 of 2 NO. 4. CONSENT CALENDAR g. DATE February 11, 1998 TYPE OF ACTION ACCEPT CONTRACT/AUTHORIZE NOTICE OF COMPLETION SUBJECT ACCEPT CONTRACT WORK FOR THE LANDSCAPING IMPROVEMENTS PROJECT, DISTRICT PROJECT 8165, AND AUTHORIZE THE FILING OF THE NOTICE OF COMPLETION SUBMITTED BY Munawar Husain, Associate Engineer INITIATING DEPTIDIV Engineering Department/Plant Engineering Division ISSUE: Construction has been completed on the Landscaping Improvements Project, District Project 8165, and the work is now ready for acceptance. BACKGROUND: This project was undertaken to provide environmentally friendly landscaping around the Household Hazardous Waste Collection Facility (HHWCF) and at the adjacent former concrete batch plant. The project addresses the requirements of the County Land Use Permit for the HHWCF and also improves the appearance of the entrance to the District facilities. An Integrated Pest Management (IPM) demonstration area has been added to the landscaping area to demonstrate planting and maintenance techniques that can be used to minimize the use of toxic garden products. Landscaping irrigation is being provided using recycled water from the Treatment Plant. Details of the project are also included on pages GI-33 through GI-35 of the Fiscal year 1997-98 Capital Improvement Budget. See Attachment 1 for the location of the work completed under this project. The construction contract was authorized to be awarded to Contra Costa Landscaping, Inc., of Martinez, California, on March 6, 1997, by the District Board of Directors. The contractor was issued a Notice to Proceed on May 8, 1997. The contract work has been completed. A plant establishment and maintenance period was required after contract completion and this work has also been completed. It is appropriate to accept the contract work at this time. The total authorized budget for this project is $311,000. An accounting of project costs will be provided to the Board at the time of project close out. RECOMMENDAllON: Accept the contract work for the Landscaping Improvements Project, District Project 8165, and authorize the filing of the Notice of Completion. ~ AND RECOMENDED FOR BOARD ACTION RAB 9116/96 INITIATING DEPARTMENTIDIVISlON JlI; M-l RSK lAM WEB IF L:\POSITION\HUSAIN\8165ACCE.PT Page 2 of 2 A 11 ACHMEN1 1 LANDSCA~NGIMPROVEMENTSPROJECT,DP8165 PROJECT LOCATION IloIiOFF DR i / ,,'/ /~/ /~/ // // // _ PCOject locot'''' ;i , /1;/ " ) ,/ -. ,/ /:/ // o 200 . FEET n:\spCImQpS\cip\lonon.dcJl PED\l:\position\husain\8165attc.grf ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS Page 1 of 3 February 1 9, 1 998 NO. 4. CONSENT CALENDAR h. BOARD MEETING OF February 9, 1 998 TYPE OF ACTION ACCEPT ANNEXATION FOR PROCESSING DATE SUBJECT AUTHORIZATION FOR P.A. 98-1 (MARTINEZ) AND 98-2 (ALAMO) TO BE INCLUDED IN A FUTURE FORMAL ANNEXATION TO THE DISTRICT SUBMITTED BY Dennis Hall, Associate Engineer INITIATING DEPT/DIV Engineering Department/Infrastructure Division Parcel No. Area Owner/Address Parcel No. & Acreage Remarks Lead Agency 98-1 Martinez (10A7) Andrew P. Thomas 27 Barber Lane Martinez, CA 94553 APN: 162-180-005 (0.5 Ac.) Existing house with a failing septic system; must connect to the public sewer system. Project is exempt from CEOA. CCCSD 98-2 Alamo (78A7) Elaine M. Ridener 149 Wayne Avenue Alamo, CA 94507 APN: 201-022-001 (1.33 Ac.) Existing house with a failing septic system; must connect to the public sewer system. Project is exempt from CEOA. CCCSD RECOMMENDATION: Authorize P.A. 98-1 and P.A. 98-2 to be included in a future formal annexation. DH JSM REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPARTMENT/DIVISION LV ;JI;f H:\PP\Annx98-1.dh.wpd 8/6/96 PROPOSED ANNEXATION P.A.98-1 WAYNE ~ \::Y / a: a: rL <Ii ~ II: '" :e II: o !!:. >- ... ~ o () d d * D.COBB 15422 O.R. 762 RIDENER 12772 C.R. 751 APPROVED fOR ANNEX 6-5-17 P.A. 17-6 c > Z < F r- m CD ~ 9 o 2: ~ C3 PROPOSED ANNEXATION P.A.98-2 ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS mm??IJ:.:.:;:;:.::'I1:'='::;:;::::".'::.::::::\I:.:.:m;:;:.:.:;:;:I.:.::m:::.:::;:::\II.:.:.:'(:\m~e::.:.:;:;:.::_'~r:.:\(.:::::.::":B.:.:::::::::II.:.:::::::.::':???:ttBOARDMEETlNGOF :~:~{:f~ :;:;:;:::, ::;:::: :" .... : :~:~ t ; .:::::. ," ::. }~:: :;:;:;{ ":" :: ;:;:;{ .;.;.;.;: :;" .:~:~:~:~:~:~:~:~:~:~:~: r~:~:}~::::;~:~:~:~:~:~:::::::::::~:~:::::::::::~:::::~:~:::::::~:~:::::~:::::::::::~:~:::::!:~:::::fr::::~:}~:::::~:~:~:::::::::::~:~:~:~:::::::::::::::::::~:~:::::::~:~:~:~:~:~:~:~:~:~:~ Page 1 of 1 NO. DATE February 11, 1 998 4. CONSENT CALENDAR i. TYPE OF ACTlON SET PUBLIC HEARING DATE SUBJECT ESTABLISH MARCH 19,1998, AS THE DATE FOR A PUBLIC HEARING TO RECEIVE COMMENTS ON PROPOSED REVISIONS TO CHAPTERS 6.20 AND 9.12 OF THE DISTRICT CODE REGARDING REBATE SEWAGE FACILITIES SUBMITTED BY Jarred Miyamoto-Mills, Principal Engineer INITlA TlNG DEPT tOlV Engineering/Planning ISSUE: The District Code requires that a public hearing be held prior to the Board of Directors' consideration of proposed revisions to Chapters 6.20 and 9.12 of the Code regarding Rebate Sewage Facilities. BACKGROUND: During the Board's recent deliberations regarding Contractual Assessment Districts, several questions about rebates for special facilities were raised. Additionally, work on financing arrangements for the Dougherty Tunnel and Trunk Sewer have identified the need to establish rebate charges in advance of facilities construction when interim sewer service is provided by temporary pumping stations. In response to these issues, staff reviewed the District's rebate program which provides for reimbursement of design and construction costs to installers of sewage facilities which can serve customers other than the installer, and has drafted a revision of the District Code regarding rebates. The proposed revisions were discussed with the Board's Ad Hoc Rebate Committee on January 8, 1998. Appropriate notices for the public hearing will be posted at the District Office and published in the Contra Costa Times, and the draft ordinance to implement these revisions will be on file with the Secretary of the District. RECOMMENDAllON: Establish March 19, 1998, as the date for a public hearing to receive comments on proposed revisions to Chapters 6.20 and 9.12 of the District Code regarding Rebate Sewage Facilities. ~ AM) RECOMMENDED FOR BOARD ACTION INITlATlNG DEPARTMENTtOIV1Sl0N 1/ nte- JMM DJC 9/16/96 ~ Central Contra Costa Sanitary District Page 1 of 3 NO. 7. ENGINEERING a. DATE February 11, 1 998 TYPE OF ACTION AUTHORIZE AGREEMENT SUBJECT AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH GEOSYNTEC CONSULTANTS TO DEVELOP A PREUMINARY REMOVAL ACTION WORKPLAN AND TO PROVIDE EXPERT CONSULTATION DURING NEGOTIATIONS WITH THE DEPARTMENT OF TOXIC SUBSTANCE CONTROL AT A COST NOT TO EXCEED $150,000 SUBMITTED BY Randy Schmidt, Associate Engineer INITIATING DEPTIDIV Engineering/Planning ISSUE: Board authorization is required for the General Manager-Chief Engineer to execute professional services agreements for more than $50,000. BACKGROUND: Approximately 30 years ago, petroleum by-product sludge from Shell Oil was deposited at the District treatment plant site for embankment stabilization. Over the years the material has been further mixed with soil and spread over a wider area by various earthwork projects. The District has conducted numerous soil borings and studies to identify the contamination area and the chemical characteristics of the waste material. Based on early studies, the initial estimation of clean-up costs was nearly $100 million. Due to a better understanding of the waste characteristics, changes in regulatory requirements and the positive results of the Health Risk Assessment, the projected cost of remediation has been greatly reduced. The majority of the petroleum sludge is located east of the existing secondary treatment facilities. This area may be needed for future treatment facilities. All of the soil petroleum sludge must be managed in a manner approved by the Department of Toxic Substances Control (DTSC). The District entered into a "Voluntary Agreement" with DTSC in July 1995 for management of the contaminated soil. The Voluntary Agreement requires a "Site Investigation Workplan," a "Baseline Human Health Risk Assessment," a "Preliminary Removal Action Workplan," and a "Final Removal Action Plan" prior to design of a soil remediation project. After a rigorous competitive review of experienced consultants, in 1994 the District engaged GeoSyntec Consultants to assist the District in the following activities: 1) negotiating the Voluntary Agreement, 2) preparing the Site Investigation Workplan, 3) testing groundwater and soil leachability, and 4) conducting the Baseline Human Health Risk Assessment. They have completed their previous contract tasks on time and $18,000 under budget. They have developed an excellent working relationship with both District and DTSC staff as demonstrated by DTSC approval of the Baseline Health Risk Assessment in December 1997. This approval established that the current condition of the Basin A soil does not present an eminent threat to public health and thus the District will be allowed to follow a more reasonable soil remediation plan and schedule. REVI3\B) AND RECOMMENDED FOR BOARD AC710N AS DJC RAB fM- J)J f)1$ INITIATING DEPARTMENTIDIVlSlON H:\OATA\POSPAPER\0219Basin.wpd 9/16/96 DATE February 11, 1 998 Page 2 of 3 SUBJ ECT AUTHORIZE THE GENERAL MANAGER-CHIEF ENGINEER TO EXECUTE AN AGREEMENT WITH GEOSYNTEC CONSULTANTS TO DEVELOP A PRELIMINARY REMOVAL ACTION WORKPLAN AND TO PROVIDE EXPERT CONSULTATION DURING NEGOTIATIONS WITH THE DEPARTMENT OF TOXIC SUBSTANCE CONTROL AT A COST NOT TO EXCEED $150,000. The next step is the preparation of a Preliminary Removal Action Workplan for DTSC review and approval. The Workplan will contain the Engineering Evaluation of potential remediation alternatives, a Public Participation Plan, and the preliminary CECA assessment. District staff will prepare the Public Participation Plan and the preliminary CECA assessment. Staff recommends that GeoSyntec Consultants prepare the engineering evaluation at a cost not to exceed $150,000. The estimated consultant cost through pre-design for soil remediation is $560,000 as detailed in Attachment 1. The actual cost will depend largely on the final DTSC-approved method of soil remediation. Shell Oil has been paying a portion of the project costs in accordance with the District agreement dated March 1996. RECOMMENDATION: Authorize the General Manager-Chief Engineer to execute an agreement with GeoSyntec Consultants to develop a Preliminary Removal Action Workplan and to provide expert consultation during negotiations with DTSC at a cost not to exceed $150,000. ATTACHMENT 1 CONSULTANT SUMMARY FOR BASIN A SOIL REMEDIATION Previous Work Consultant Peliminary Endangerment Assessment Prepare Voluntary Agreement Site Investigation Workplan Groundwater and Soil Leachability Testing Baseline Health Risk Assessment Future Work Preliminary Removal Action Workplan Alternatives Risk Analysis Address DTSC Comments Quarterly Groundwater Monitoring Regulatory Support Completion Date Costs Woodword-Clyde July 1993 $230.000 Subtotal $230,000 GeoSyntec GeoSyntec GeoSyntec GeoSyntec July 1995 June 1996 May 1997 December 1997 Subtotal GeoSyntec GeoSyntec GeoSyntec GeoSyntec GeoSyntec April 1998 May 1998 November 1998 December 1998 December 1998 Subtotal $ 20,000 $ 43,000 $ 69,000 $ 48.000 $180,000 $ 67,000 $ 32,000 $ 17,000 $ 9,000 $ 25.000 $150,000 TOTAL $560,000 ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS Page 1 of 2 1.!!.IIIj,IIII.:I!!:IRII.I:III.II::.I. ~F~ry 19,1998 NO. 8. HUMAN RESOURCES a. DATE February 11, 1998 TYPE OF ACT10N ADOPT SALARY RANGE SUBJECT ADOPT SALARY RANGE OF S-83, $5703-$6896, FOR THE CLASSIFICATION OF MANAGEMENT INFORMATION SYSTEM ADMINISTRATOR SUBMITTED BY Paul Morsen, Deputy General Manager NllATlNG DEPTIDIV AdministrativeJl-\uman Resources ISSUE: Board approval is required to modify the salary range of a job classification. BACKGROUND: Upon the resignation of the previous Management Infonnation System Administrator, Andrew Sniderman, and after Board approval to fill the position, staff engaged Shannon and Associates to conduct an open, promotional recruitment to fill the vacancy. The Shannon firm was selected based on their experience in the recruitment of individuals for computer -related positions within public agencies; they were originally involved in the recruitment of Mr. Sniderman to the Disbict. The firm has contacted a number of individuals for the District's position over the past two months but has received very few applications. Potential applicants have responded that the salary for the position is too low within the rnat'1<etpIace; therefore, there is IitIIe interest According to Principal Consultant John Shannon, the salary range must be increased by at least $850 per month to be competitive. Consequently, staff is requesting that the current salary of s.n, $4936-$5980 be changed to S-83, $5703-$6896. Within the District's organizational structure, S-83 is the salary range paid to senior engineers. Senior engineers have comparable supervisorial and technical responsibilities, spans of control and breadth of duties as the Management Information System Administrator. The Board Personnel Committee has reviewed this issue and recommends approving this request The attached memorandum from the Management SupportlConfidential Group also indicates their support. RECOMMENDATION: Approve the change in salary range for the Management Information System Administrator from s.n, $4936- $5980 to S-83, $5703-$6896. 1E\lEMB)N6J~FOR8QlIRDN:nON ENGINEER INITlATlNG DEPARTMENTIDMSlON ~~ ;-0' PM C:\WP51 \DOCSIMISADMR.PPR 9/16196 CENTRAL CONTRA COSTA SANITARY DISTRICT MANAGEMENT SUPPORT / CONFIDENTIAL GROUP February 11,1998 Memo to: Cathryn Freitas ~~~ From: Curtis Swanson, President Subject: Change in Salary Range for MIS Administrator MS/CG has reviewed and concurs with the proposed change in the salary range for the Management Information System Administrator from S-77 to S-83. ~ Central Contra Costa Sanitary District BOARD OF DIRECTORS :::::~:.':':::::'::::I1:::::;:;:::::::&::':::::'::':'I':':m;:::':':;:;:'I:':::.::::::;:::::::::II':'::r:':~~~:::::.':':::::':::.:r:::'::fl:':::::':::::II':':::::::::'.::':::::,:::::::::~::::: BOARD MEETIFNGeObFruary 1 9, 1 998 :;:::; "::;:::;:. ,".:.",' ..... :;:;: ;:;::, "':'".; ::. ::::;:; :;:;:;:;,- ...... ;:;:;:;:; .:.:.:.:. :;" "::::;:;:;:;: ~:~:~:::::~:~:~:~:~:~:::::::::::~:~:::::::::::~:::::~:~:::::}~:::f::::::::::::~:::::~:~::;::::~:~:~:::::~:t~:::::~:~:~:~:::::::::~:~:~:~::::::::::::::;::::~:~:~::;:{:~:~:~:~ Page 1 of 4 NO, 11. BUDGET & FINANCE a. DATE TYPE OF ACTION February 11, 1998 RECEIVE BUDGET REVIEW SUBJECT RECEIVE THE 1997-1998 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31, 1997 AND ESTABLISH THE SEWER SERVICE CHARGE RATE FOR FISCAL YEAR 1998-99 TO CONTINUE AT THE CURRENT RATE OF $188 AS ORDAINED IN ORDINANCE NO. 200 ADOPTED BY THE BOARD ON JUNE 5, 1997 SUBMITTED BY Debbie Ratcliff, Controller INITIATING DEPT iOlV Administrative/Finance & Accounting ISSUE: A report of the results of a comparative review of actual and budgeted Operations and Maintenance (O&M) revenues and expenses for the first six months of the 1997-1998 fiscal year is provided in the Position Paper with the main focus being on the projections of revenue and expense for the full fiscal year 1997-1998 as compared to the annual budget. Based on these projections, no change to the current Sewer Service Charge rate of $1 88 is recommended for the 1998-1999 fiscal year. BACKGROUND: The table on Attachment A compares actual revenue and expense for the first six months of the fiscal year to the six-month budget. Annual projections of revenue and expense are then compared to the annual budget. Variance explanations are provided below: Revenue: Based on the results of the first six months of the 1997-1998 fiscal year, a revenue projection has been made for the full fiscal year. Total revenue is projected to be $29,681,732 for the fiscal year, compared to budgeted revenues of $28,900,650 resulting in projected revenues being $781,082 more than the fiscal year budget. This is mainly due to the Board's decision on January 27, 1998 to retain the net balance of insurance recoveries in the amount of $501,229 for Acme Litigation costs and to return these monies to the Running Expense Fund, higher interest income of $73,000 due to a higher than budgeted interest rate and inter-fund balance, a projected increase of $65,000 in Miscellaneous Income mainly due to the transfer of unclaimed rebate monies to revenue, pursuant to Government Code Section 50050, and a projected increase in Sewer Service Charge revenue of $40,000 offset by minor shortfalls in other revenue accounts. The Household Hazardous Waste revenue account is projected to be $154,000 more than budget due to increased billings to the participating cities based on higher than expected operating expenses resulting from higher than expected usage by the public. Expense: Based on the results of the first six months of the 1997-1998 fiscal year, expense projections have been made for the full fiscal year. Total District expenses are projected to be $29,192,913 compared to a budget of $29,280,235 resulting in a favorable variance of $87,322. Variance explanations by department follow: REVEMD AND RECOMMENDED FOR BOARD ACT10N DR %~ :).'-(/-9' ~r PM IEF GINEER INITIATING DEPARTMENTIDIVlSlON p/[ ~ G :\FINANCE\6MOPP. WPD 9116/96 DATE February 11, 1 998 Page 2 of 4 SUBJ ECT RECEIVE THE 1997-1998 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31, 1997 AND EST ABUSH THE SEWER SERVICE CHARGE RATE FOR FISCAL YEAR 1998-99 TO CONTINUE AT THE CURRENT RATE OF $188 AS ORDAINED IN ORDINANCE NO. 200 ADOPTED BY THE BOARD ON JUNE 5, 1997 Administrative: The Administrative Department projects expenses of $5,701,720 compared to a budget of $5,746,179 resulting in a favorable variance of $44,459. This is mainly due to unfilled positions resulting in a savings of $179,000 in Salaries, Wages and Benefits; a $50,800 savings in production costs for the Pollution A-evention A-ogram and general savings in the other public information programs. A-ojected major over expended accounts and overage amounts are: Technical Services of $145,000 due to using agency temporaries to perform some of the work associated with the vacant positions; and Recruitment of $54,000 mainly due to usage of outside recruiters for two vacancies unknown at the time of budget preparation. Other minor savings and overages result in the total net savings of $44,459. Engineering: The Engineering Department projects expenses of $4,944,077 compared to a budget of $4,676,067 resulting in an anticipated over-expenditure of $268,010. The major reason for this is due to greater than expected costs for the operation of the Household Hazardous Waste Collection Facility in the amount of $565,075 due to three times as many customers than anticipated. A-ojected major under expended accounts and amounts are: Salaries, Wages and Benefit savings of $243,677 due to vacancies and increased capital work in some cost centers, a $30,000 savings in Technical Services due to budgeted services not being needed, and a savings of $25,000 in Public information because budgeted A-oposition 218 notifications will not be sent this year. Other minor savings and overages result in the total net overage of $268,010. Collection System Operations: The Collection System Operations Department projects expenses of $4,330,455 compared to a budget of $4,518,862 resulting in anticipated savings of $188,407. This is mainly due to savings in Salaries, Wages, and Benefits of $157,767 and Outside Repairs and Maintenance savings of $42,000 due to reductions in outside contract work for paving due to partnering with the cities to eliminate duplicate construction work on easements and manholes. Other minor savings occurred in Gasoline, Oil & Fuel, Operating Expenses, and Spoils Removal. A projected major over expenditure in Technical Services in the amount of $60,000 is due to using agency temPOraries to perform work associated with vacant positions. Other minor savings and overages result in the total net savings of $188,407. Plant Operations and Pumping Stations: The Plant Operations and Pumping Stations Department project expenses to be $14,216,661 compared to an annual budget of $14,339,127 resulting in a net savings of $122,466. This is mainly due to savings of $110,000 in Utility expense in electricity caused by a greater amount of cogeneration uptime which reduced demand charges from P.G. & E., offset by the increased cost of natural and landfill gas; a savings of $82,000 in Technical Services from funds being budgeted for special regulatory studies and employee training which probably will not be completed during this fiscal year. Other minor savings and overages in several accounts result in the total net savings of $122,466. DATE February 11, 1998 Page 3 of 4 SUBJECT RECEIVE THE 1997-1998 OPERATIONS AND MAINTENANCE BUDGET REVIEW FOR THE SIX MONTHS ENDED DECEMBER 31, 1997 AND ESTABLISH THE SEWER SERVICE CHARGE RATE FOR FISCAL YEAR 1998-99 TO CONTINUE AT THE CURRENT RATE OF $188 AS ORDAINED IN ORDINANCE NO. 200 ADOPTED BY THE BOARD ON JUNE 5, 1997 Sewer Service Charge Rate Setting Issues Based on total projected revenues of $29,681,732, and total projected expenses of $29,192,913, a surplus of $488,819 would be applied to the Running Expense Fund balance compared to the budgeted deficit of $379,585. This would increase the fund balance to $8,007,699 at June 30, 1998. The surplus described above will be partially offset in the future by increased retirement costs due to the Supreme Court decision in the Ventura Case where additional cash benefits and wages must be included as base wages for retirement calculation purposes. Staff estimates that retirement costs could increase by $100,000 to $400,000 annually. The retirement office has made some decisions on which additional wages should be included; however, no decisions have been made yet as to retroactivity. Accordingly, this number will be adjusted at that time. Also, the Household Hazardous Waste Facility will generate additional expenses due to the success of the facility which will be partially offset by revenue from the contract cities. Finally, there are unknown variables such as staff retirements and new hires, and changes in the cost of utilities and chemicals. All things considered, staff is confident that reserves are adequate to cover any increased costs next year and that no increase is required on the Sewer Service Charge. Next year at this time, the Board will be presented with a five-year Operations and Maintenance Plan which will help in determining and setting the Sewer Service Charge rate for future years. Ordinance No. 200 was approved by the Board on June 5, 1997 establishing the 1997-98 Sewer Service Charge rates beginning July 1, 1997 and continuing thereafter until further action of the Board of Directors. Since no change to the Sewer Service Charge is being recommended, the existing ordinance can continue in place, and no public hearing is necessary. RECOMMENDATION: Receive the 1997-1998 Operations and Maintenance Budget Review for the six- months ended December 31, 1997 and projections for the full fiscal year, and establish the Sewer Service Charge rate for fiscal year 1998-1999 to continue at the current rate of $188, as ordained in Ordinance No. 200 adopted by the Board on June 5, 1997. Page 4 of 4 e::( I- z: I..LJ ::E ::I: U e::( l- I- e::( N C;; (') ..... a> N ~ 6" (') 0 e- cD N 0 ~ ..j ..- t::- o CD '<t 0 C III <ft- 'C III > 0 6" N N m 6" ..... co 6" ~ ~ 0 0 a> a> It) 0 0 ..- It) 0 0 0 O. '<t '<t ..... 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