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Home My WebLink AboutBUDGET & FINANCE ACTION SUMMARY 05-03-10Central Contra Costa Sanitary District REGULAR MEETING OF THE BOARD OF DIRECTORS: CENTRAL CONTRA COSTA A,/c7/AELR.M000.L SANITARY DISTRICT Yresiden! HARBARA U. HIX.'K(f7T BUDGET AND FINANCE COMMITTEE rre~r~e^~vn,7~m ACTION SUMMARY Chair Nejedly Member Hockett OF.'RALD R. L!lCEY MAR/U M. MENESIN/ JAMES A. NE/7fULY PHONE: (925J 228-9500 FAX' (925) 676-7211 www. cen7ralsan. org Monday, May 3, 2010 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California PRESENT: Jim Nejedly, Barbara Hockett, Jim Kelly, Randy Musgraves, Debbie Ratcliff, Curt Swanson 1. Call Meeting to Order Chair Nejedly called the meeting to order at 3 p.m. 2. Public Comments None. 3. Old Business COMMITTEE ACTION: None. 4. Claims Management a. Review new and outstanding claims There were two new claims. The first was for a homeowner in Lafayette where sewage seeped out of the overflow device and under the foundation of fhe home. This has been cleaned. Estimated clean-up costs not to exceed $2, 000. The second claim was for two clean-ups due to pressure forcing sewage out of a toilet as a result of hydro cleaning the RaytlM Paper Budget and Finance Committee May 3, 2010 Page 2 main line. Staff reported a vehicle accident where a District truck had backed out of a parking space when a vehicle struck the truck. The District truck had minimal damage. An elderly woman was driving the other vehicle and failed to stop after making contact. Her car received a fair amount of damage. Staff has discussed the facts surrounding the accident with the driver's insurance company. There are questions as to fault. Staff is recommending to the insurance company that each cover and repair their own vehicle. A claim has not yet been submitted to the District. COMMITTEE ACTION: None. 5. Reports and Announcements 'a. Position Paper considering the formation of Contractual Assessment District (CAD) for properties on Sunnybrook Road in Alamo -Curt Swanson (Item 7.a. In Board Binder) Curt Swanson indicated that the CAD program is still in place even though no money has been lent by the District in about seven years. He indicated that Sunnybrook Road would be a small CAD in the amount of approximately $150,000 and recommended that the District lend the amount, as the interest rate charged would exceed the amount being earned by District investments in LAIF. He also recommended that future CADs be reviewed and funded (if Board approved) on a case-by-case basis considering the use of District funds as well as loans. COMMITTEE ACTION: Recommend Board approval. b. Pre-purchase of Natural Gas The General Manager indicated that the District previously purchased natural gas at a good price, and, given the current market rates, recommended that staff purchase additional natural gas in the next two weeks depending upon the rates. Staff will advise the Board of future purchase(s). COMMITTEE ACTION: Concurred with General Manager recommendation. Budget and Finance Committee May 3, 2010 Page 3 c. e. Arbitrage Audit for the Refinancing of the 1998 Revenue Bonds A final arbitrage audit was performed on the 1998 Bonds that were refinanced in November 2009. Staff reported that the District has filed for a refund of arbitrage monies ($18,378) that were previously paid to the IRS on the 1998 Revenue Bonds in 2003. This is due to total interest earned on the reserve account for the life of the bonds being less than the interest paid out on the bonds. COMMITTEE ACTION: Received the report. Response from CCCERA regarding data request for de-pooling by employer (Item 6.a.4) in Board Binder) Randy Musgraves reported that he will attend a CCCERA Board meeting on Wednesday, May 5 and report out at the Board meeting on May 6 regarding the District's request to receive de-pooling data and/or receive a commitment from the CCCERA Board to provide adequate time to receive the data and information allowing the District to audit The Segal Company (CCCERA's Actuary) and comment to the CCCERA Board before action is taken by the Board to de-pool at the employer level. COMMITTEE ACTION: Received the report. Chevron Property Tax Refund -Phase 2 Chevron has asked for a second property tax reassessment for fiscal years 2007-08 through the present. There is no information on the dollar amount yet. The first property tax reassessment resulted in a decrease of anticipated property tax revenue to the District of approximately $112, 000 over the next two fiscal years. COMMITTEE ACTION: Received the report. f. Lemongrass Bistro Capacity Use Charge An article was given to the Committee which confirmed that the connection fee had been paid previously by a restaurant in 1954. Staff will refund the first installment payment made by the Lemongrass Bistro. COMMITTEE ACTION: Received the report. Budget and Finance Committee May 3, 2010 Page 4 g. Update on District Financial Plan and Public Response to Proposition 218 Notice The General Manager presented a Sewer Service Charge Rate Chart that was requested by President McGill which compared different rate scenarios, including an every-other-year rate increase scenario. Also, it was reported that the District has received 7 letters, 60 a-mails and 79 voicemails in response to the Proposition 218 Notice. This information is related to item 8.a. in the Board agenda binder. COMMITTEE ACTION: Received the report. 6. Review Expenditures a. Review expenditures (Item 3.a. in Board Binder) There were no outstanding questions. b. Review P-Card expenditures COMMITTEE ACTION: Recommended Board approval of Expenditures. 7. Review March 2010 Financial Statements (Item 3.b. in Board Binder) COMMITTEE ACTION:- Recommended Board approval of Financial Statements. 8. Closed Session a. Conference with Legal Counsel -Anticipated Litigation -initiation of litigation pursuant to Government Code Section 54956.9(c). • One potential case. COMMITTEE ACTION,: No closed session was necessary. 9. Adjournment - at 3:25 p.m. * Attachment Sunnybrook Road CAD Sewer Main Extension ^ Meets CAD formation criteria ^ Potentially serves 16 properties. ^ 1,100 feet of 8-inch sewer; 3 MH ^ Sewer Main Estimate: $150,000 ^ Cost per property: $9,375 , ^ Annual Payment: $1,260 Source of Funds for CAD Financing ^ Select source of funds case by case. ^ Use Sewer Construction Fund Reserves for project cost of $150,000. ^ Interest rate of 6% generates $51,000 over 10 years. .5.a. i .n.~ 4y .'~..d Annual Payment Variation Based on Participation ^ 13 Participants Cost/Participant: $11,540 Annual Payment: $1,552 ^ 10 Participants Cost/Participant: $15,000 Annual Payment:$2,020 Costs Ineligible for CAD Financing ^ Connection fee: $5,451 ^ Lateral sewer on private property: $2,000 to $4,000 depending on length & restoration. ^ Septic tank abandonment: $1,500 ^ Upfront costs range from $8,951 to $10,951 2