HomeMy WebLinkAboutBUDGET AND FINANCE AGENDA 11-04-13Central
Sanitary District
SPECIAL MEETING OF THE
CENTRAL CONTRA COSTA
SANITARY DISTRICT
BUDGET AND FINANCE COMMITTEE
Chair McGill
Member Nejedly
Monday, November 4, 2013
3:00 p.m.
BOARD OF DIRECTORS:
JAMES A NEJEDLY
President
DAVID R WILLIAMS
President Pro Tem
PAUL H CAUSEY
MICHAEL R AICGILL
TAD J PILECKI
PHONE: (925) 228 -9500
FAX: (925) 676 -7211
www.centralsan.org
Collection System Operations (CSO) Main Conference Room
1250 Springbrook Rd.
Walnut Creek, CA 94597
INFORMATION FOR THE PUBLIC
ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA
Anyone wishing to address the Committee on an item listed on the agenda will be heard when the
Committee Chair calls for comments from the audience. The Chair may specify the number of minutes
each person will be permitted to speak based on the number of persons wishing to speak and the time
available. After the public has commented, the item is closed to further public comment and brought to the
Committee for discussion. There is no further comment permitted from the audience unless invited by the
Committee.
ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA
In accordance with state law, the Committee is prohibited from discussing items not calendared on the
agenda. You may address the Committee on any items not listed on the agenda, and which are within its
jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be
referred to staff for action or calendared on a future agenda.
AGENDA REPORTS
Supporting materials on Committee agenda items are available for public review at the Reception Desk.
4849 Imhoff Place, Martinez, and on the District's website at www.centralsan.org. Not every agenda item
is accompanied by written supporting material. Reports and information relating to agenda items
distributed within 72 hours of the meeting to a majority of the Committee are also available for public
inspection at the Reception Desk. During the meeting, information and supporting materials are available
in the meeting room.
AMERICANS WITH DISABILITIES ACT
In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra
Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone,
including those with disabilities. If you are disabled and require special accommodations to participate,
please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 -7303.
Budget and Finance Committee
November 4, 2013
Page 2
Call Meeting to Order
2. Public Comments
3. Old Business
*a. Review staff's responses to the Committee's request for information
regarding the following expenditures at the previous meeting:
Check Date Amount Vendor
196842- 197009 9/23/13 Various Various District Retirees
If the District's auditors audit the reimbursements for Medicare Part
B paid to District retirees.
Check Date Amount Vendor
197027 9/26/13 $2,612.34 Child Environmental
Directed staff to review other options for wet ash disposal.
*b. Review staff's response regarding an inquiry by Member Nejedly at a
previous meeting regarding the possibility of Pacific Gas and Electric
(PG &E) performing an energy audit
Staff Recommendation: Review staff's responses.
4. Risk Management
*a. Review Loss Control Report and discuss outstanding claims
Staff Recommendation: Review the report, discuss outstanding
claims and provide direction if needed.
5. Approve the Statement of Investment Policy No. BP 005 for District assets and
the Investment Guidelines Document for the Government Accounting Standards
Board (GASB) 45 Trust (Item 3.d. in Board Binder)
Staff Recommendation: Review and recommend Board approval.
Budget and Finance Committee
November 4, 2013
Page 3
6. Consider recommendation of the District's Deferred Compensation Advisory
Committee to consolidate management of the District's 457 and 401(a) Deferred
Compensation Plan assets under one carrier, ICMA -RC; approve the
Administrative Services Agreement between the District and ICMA -RC; and
authorize staff to execute the appropriate documents (Item 6.a. in Board Binder).
The estimated completion of transition is March 2013
Staff Recommendation: Review and recommend Board approval.
*7. Consider request from property owner for an installment payment plan for
delinquent charges related to the property located at 700 Via Hermosa in
Danville, to be placed on the Contra Costa County property tax roll for collection
in five annual installments starting in FY 2013 -14
Staff Recommendation: Consider request and provide recommendation to
full Board.
8. Receive update on preliminary administrative overhead calculations
Staff Recommendation: Receive the update and provide input if needed.
9. Review September 2013 Financial Statements and Investment Reports (Item 3.c.
in Board Binder)
Staff Recommendation: Review and recommend Board approval.
10. Review Expenditures (Item 3.b. in Board Binder)
Staff Recommendation: Review and recommend Board approval
11. Announcements
12. Suggestions for future agenda items
13. Visit warehouse at Collection System Operations (CSO) Building
Staff Recommendation: Visit the warehouse and provide input to staff if
needed.
14. Adjournment
* Attachment
3,41%
Central Contra Costa Sanitary District
November 4, 2013
TO: BUDGET AND FINANCE COMMITTEE
FROM: THEA VASSALLO, FINANCE MANAGE
VIA: ROGER BAILEY, GENERAL MANAGE i Q6j `,I
SUBJECT: EXPENDITURE FOLLOW -UP
At the October 14, 2013 Budget and Finance Committee meeting, staff was asked to
provide additional information on the following:
Check Date Amount Vendor
196842- 197009 9/23/13 Various Various District Retirees
During the audit process were the reimbursements for Medicare Part B paid
to District retirees reviewed by the auditors?
Per Vikki Rodriguez, CPA, of the District's auditors, Maze & Associates, the audit did
not specifically test reimbursements of Medicare Part B paid to District retirees. Ms.
Rodriguez requested that the District let her know if there is a concern. Attached is the
Human Resources Medicare Part B reimbursement procedures for your information,
which supports the conversation held at the October 14, 2013 Budget and Finance
Committee meeting.
MEDICARE PART S REIMBURSEMENT
PROCEDURE
The Medicare Part B reimbursement procedures for those retirees and spouses who
have reached age 65:
1. If you currently have Medicare premiums deducted from your Social Security
benefit, please submit a copy of "Your Benefit Amount' from Social Security by
March 15 of each year. You will be reimbursed the amounts specified on your
Social Security form.
2. If you currently pay out -of- pocket for your Medicare Part B premiums, you must
submit a copy of your "Notice of Medicare Premium Payment Due" and proof of
payment. Your request must be received no later than the 15th of the month prior
to the reimbursement or it will be processed the next quarter.
Acceptable proofs of payment are:
• Copy of your cancelled check (front and back), or
• Copy of your electronic bill payment confirmation showing the date,
amount paid, and payment confirmation number.
Medicare reimbursement deadlines are as follows:
• March 15 for the April reimbursement
• June 15 for the July reimbursement
• September 15 for the October reimbursement
• December 15 for the January reimbursement
Documentation may be submitted to Human Resources via mail, fax to (925) 335 -7744,
or email to jdvers @centralsan.org.
If you have any questions, please feel free to call Human Resources Analyst Judy
Rivers at (925) 229 -7108 or Human Resources Analyst Twila Mullenix at (925) 229-
7357.
3.b.
Central Contra Costa Sanitary District
October 30, 2013
TO: THEA VASSALLO, FINANCE MANAGER
DAVE ROBBINS, PROVISIONAL PLANT MAINTENANCE DIVISION
MANAGER r14
FROM: CRAIG MIZUTANif SENIOR ENGINEER
SUBJECT: CURRENT ENERGY SAVING /MONITORING ACTIVITIES
This memo presents current steps to monitor and audit energy usage at the Treatment
Plant.
Background
As reported in a previous memo, utility costs have been higher- than - normal for the past
several months as the Treatment Plant has imported a higher- than - normal amount of
electricity and natural gas. This is a result of several factors: Increased electrical import
to reduce natural gas consumption in the Cogeneration Unit for greenhouse gas
compliance; furnace operation on natural gas (more costly than landfill gas) due to
operational concerns; and loss of landfill gas availability due to the compressor
replacement by Bulldog Gas and Power. Treatment Plant staff is addressing these
immediate concerns and is investigating further reductions in energy cost and use.
Rebates
The District continually looks at ways to conserve energy. Historically, we have worked
with PG &E to pursue rebates as incentive to replace inefficient lighting fixtures; upgrade
variable frequency drives to more efficient units; replace inefficient heating, ventilation
and air conditioning equipment; and to increase the efficiency of the auxiliary boilers
and other equipment. District staff is currently pursuing rebates on new variable
frequency drives being installed under the Primary Treatment Renovations Project.
PG&E Turnkey Programs
On August 15, 2013, the District met with PG &E to review their "Sustainable Solutions
Turnkey" Program. This program promotes energy projects for facilities by identifying
alternative processes and providing "turnkey" implementation of such projects. PG &E
engages the engineering firm AECOM to evaluate the processes at facilities and
recommend projects to replace existing processes with newer energy efficient ones.
They also recommend new projects that would be beneficial towards demand and
energy reduction. The projects are identified, planned, and designed then constructed
through a design /build approach with PG &E, AECOM, and the owner working with pre-
determined contractors. The program is well suited for those agencies that do not
Thea Vassallo, Finance Manager
Dave Robbins, Provisional Plant Maintenance Division Manager
Page 2
October 30, 2013
possess the ability to carry out such projects on their own. During the initial meeting
with PG &E, it was not clear if there would be an applicable project at the District.
However, staff will work with PG &E to complete a feasibility checklist to determine if
there are projects that could be implemented under this program.
Independent Utility Rate Analysis
On October 22, 2013, Treatment Plant staff met with Utility Cost Management, LLC
(UCM). UCM analyzes utility bills for California customers in order to identify billing
errors, recover refunds, and to verify correct application of utility rates. There is no cost
for the analysis. UCM receives a percentage of any corresponding refunds or savings.
District staff regularly reviews utility rates and looks for billing errors; however, an
independent review could'be beneficial to the District and staff plans'to erigage'UCM'
for a review.
Ener-gy Audits
Treatment Plant staff will be meeting on November 14, 2013, with PG &E who will be
performing a "walk- through" energy audit. This audit will involve reviewing the
treatment process and identifying areas that have potential savings. The audit could
result in further studies such as participation in the California Wastewater Optimization
Program (a PG &E sponsored program for wastewater plants) or other programs (such
as the Turnkey Program listed above). The District has participated in the Wastewater
Optimization Program in the past, and PG &E is currently reviewing the status of the last
audit.
Summary
Utility costs have risen temporarily due to several uncontrollable conditions such as
equipment outages, shutdown of the landfill gas supply, and utility outages. Treatment
Plant staff will continue to monitor energy use and plan for energy saving projects and
programs to reduce utility costs.
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Central Contra Costa Sanitary District
November 1, 2013
TO: BUDGET AND FINANCE COMMITTEE
VIA: ROGER S. BAILEY, GENERAL MANAGER
DANEA E. GEMMELL, ENVIRONMENTAL SERVICES DIVISION MGR. 05J
THOMAS BRIGHTBILL, SENIOR ENGINEER 46
FROM: EARLENE MILLIER, ENGINEERING ASSISTANT III :�ej
SUBJECT: REQUEST FOR INSTALLMENT PAYMENT PLAN FOR DELINQUENT
CHARGES
A second living unit at 700 Via Hermosa in Danville was connected to the sanitary
sewer without payment of capacity fees, permit and inspection fees, and sewer service
charges. The property is owned by Rick and Leslie Broussard and Dorothy J.
Broussard. An application was begun at the permit counter by Dorothy Broussard in
2003, but was never completed. On the application, the project is described as "2nd unit
on property ". The Town of Danville performed the final building inspection for the
detached second dwelling on April 3, 2007.
District staff became aware of the unpermitted second living unit in October, 2012 as
part of the Outstanding Fees Report audit, and pursued collection of the fees. Staff
made repeated attempts to contact the property owners who live at the property, Rick
and Leslie Broussard, regarding the unpaid fees. Letters were mailed on December 6,
2012, April 25, 2013, and July 11, 2013. The April 25 letter stated that the District could
elect to use the tax roll for the collection of fees. The July 11 letter referenced the
Public Hearing to be held on July 25 and stated the subject of the hearing as placing
delinquent charges on the tax roll. These efforts did not result in collection of the
charges, which total $9,008.18 including delinquent charges and penalties. The
property owner did not respond to any of the correspondence.
A Notice of Public Hearing was published in the newspaper on July 11 and July 18 and
the Public Hearing was held on July 25, 2013. Delinquent charges for a total of nine
properties were the subject of this Public Hearing. The Broussards did not respond to
the Notice and did not attend the Public Hearing. However, the owner of a different
property did appear at the Public Hearing and requested an installment payment plan,
which the Board granted. After the Public Hearing on July 25, the Board adopted
Resolution number 2013 -018 to place the entire amount of the delinquent charges on
the 2013 -14 property tax roll for the Broussards' property and seven other properties.
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The delinquent charges for the eight properties, including the Broussards', were
subsequently sent to the Contra Costa Auditor - Controller's office and appeared on
property tax bills that were mailed in September through October.
Mrs. Leslie Broussard, one of the owners of the property at 700 Via Hermosa, contacted
staff by telephone on October 23, acknowledged receipt of the letters and requested an
installment payment plan due to financial hardship. She stated that she and her
husband were saving up money to hire an attorney to dispute the charges, and that is
why they did not contact the District or attend the July 25 Public Hearing.
The property owner has proposed payments that are approximately equivalent to paying
off the delinquent charges plus interest over five years. They have stated that they can
pay about $150.00 per month. Staff has placed this item on the November 21 Board
agenda. The property owners stated that they cannot afford to take time off of work to
attend one of our meetings. They also indicated that they had relied on guidance from
the Town of Danville during the permit process, and the Town told them they did not
have anything else they needed to do to finalize their building permit.
The property owners' request raises several issues. These include:
• Staff and the Board have invested significant time and effort in pursuing
collection, holding a Public Hearing, and putting the charges on the tax roll.
Does the Board want to reconsider their action at this point? An installment
payment plan which calls for an annual amount to be placed on the property tax
bill will require additional staff time and effort to create the needed documents
and place the annual amount on the tax roll. How is the District to be
compensated for this staff time?
• Is it appropriate to grant an installment payment plan to property owners who did
not obtain a permit or pay fees, did not arrange for an inspection of the
connection, did not respond to any of the several attempts to contact them, and
did not appear at the Public Hearing? Should they be granted an
accommodation that is generally not available to property owners who obtain
permits and pay fees when they are due, or who pay immediately upon finding
out that fees are owed?
• How much information does the Board want to obtain from property owners who
are requesting installment payment plans? A private sector business would
typically require completion of an application that would include a significant
amount of personal financial information, including information about the financial
hardship that is precipitating the request and possibly what other actions may
have been or could be taken by the property owner to pay the bill. Although staff
urged the Broussards to provide as much detail as they could about the
circumstances surrounding the connection and their current financial constraints,
we do not have much information. It is possible the property owners do not want
their private financial information to become part of a public record.
• Under state law, the District is limited to collecting three years of back sewer
service charge, and this is included in the delinquent charges. Should the District
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require payment for the older three years before entertaining a request for
installment payment of the remaining charges?
In light of the Board's earlier action to place the charges on the tax roll, staff does not
intend to make any recommendation regarding an installment payment plan. Staff
would like to include a Budget and Finance Committee recommendation in the
November 21 position paper.
EM
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