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Home My WebLink About06.d.1)b) Action Summary: Finance Committee meeting 11-10-15SPECIAL MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FINANCE COMMITTEE ACTION SUMMARY Tuesday, November 10, 2015 2:00 p.m. 2 "d Floor Conference Room 5019 Imhoff Place Martinez, California Committee: Chair Jim Nejedly Member Tad Pilecki Staff.• General Manager Roger Bailey Deputy General Manager Ann Sasaki Director of Administration David Heath Director of Engineering and Technical Services Jean -Marc Petit Finance Manager Thea Vassallo Purchasing and Materials Manager Stephanie King Planning and Development Services Division Manager Danea Gemmell Finance Administrator Todd Smithey Senior Engineer Thomas Brightbill (left after Item 4.) Senior Administrative Technician Cindy Granzella 1. Call Meeting to Order Chair Nejedly called the meeting to order at 2:00 p.m. 2. Public Comments None. 3. Old Business It, J_ /)I) BOARD OF DIRECTORS: MICHAEL R. MCGILL President TAD J. PILECKI President Pro Tem PAUL H. CAUSEY JAMES A. NEJEDLY DAVID R. WILLIAMS PHONE: (925) 228 -9500 FAX: (925) 372 -0192 www.centralsan.org a. Review staff's response to questions regarding an expenditure at the previous meeting: Finance Committee Action Summary November 10, 2015 Page 2 Check / Information Requested Date Amount Vendor (Responses are included in the Agenda Packet as Attachment 3.a. #206711 $3,725.00 Locus Chair Nejedly requested more information. 9/24/15 Technologies #206766 $3,806.25 Ampteks, Inc. Member Pilecki requested more information. 10/01/15 COMMITTEE ACTION: Reviewed staff's response. 4.* Receive presentation comparing actual water consumption data with Cost of Service Study (COSS) assumptions regarding billing rates for schools Ms. Gemmell distributed a handout with updated presentation slides (attached). She explained that the COSS used state and national averages to calculate per - student assumptions, which were used to establish the rate increase presented at the Board meeting held on June 4, 2015. The Board requested that staff review and confirm the assumptions for school water consumption data when available. Now that the consumption data is available and has been evaluated, a three -part analysis was performed, with an emphasis on comparing actual water consumption to the Fiscal Year 2015 -16 estimated wastewater flow based on student per capita assumptions. The results confirmed elementary and intermediate school assumptions used in the COSS, but found that high schools were estimated too high. Staff is recommending that the estimated consumption average be lowered from 15 to 10 gallons per student per day, and the billing rate adjusted accordingly. This presentation will be given to the full Board at the November 19 meeting, at which time a public hearing will need to be set to adjust rates by amending Exhibit A to uncodified Ordinance No. 258 setting current sewer service charge rates. Chair Nejedly suggested inviting members of the public who attended the June 4 meeting in opposition to raising rates. Chair Nejedly also suggested that staff speak to the high schools to get their input on this analysis. COMMITTEE ACTION: Received the presentation and provided input to staff. 5. Expenditures a. Review Expenditures Ms. Vassallo reviewed the expenditures included in the agenda materials. COMMITTEE ACTION: Reviewed and recommended Board approval. Finance Committee Action Summary November 10, 2015 Page 3 6. Update on status of draft (1) basic audited Financial Statements for Fiscal Years ended June 30, 2014 and 2015 — audit performed by Maze & Associates, and (2) Memorandum on Internal Control and Required Communication Ms. Vassallo stated that Maze & Associates confirmed with Brown and Armstrong, Contra Costa County Employee Retirement Association (CCCERA) auditors, that they had audited the December 31, 2014 allocation which was used for December 31, 2013 allocation of net pension liability and that the beginning balances were audited. Both documents are scheduled for presentation at the November 19, 2015 Board meeting. COMMITTEE ACTION: Received the information and recommended Board acceptance of both documents. 7. Announcements a. Future scheduled meetings: Tuesday, November 24, 2015 at 3:00 p.m. Tuesday, December 8, 2015 at 2:00 p.m. Tuesday, December 22, 2015 at 3:00 p.m. COMMITTEE ACTION: Received the announcements. 8. Suggestions for future agenda items None. 9. Adjournment — at 2:20 p.m. * Attachment Ihm School Billing Rates and Cost of Service Analysis Finance Committee Danea Gemmell Planning and Development Services Division Manager November 10, 2015 LCentral Contra Costa Sanitary District Cost of Service Study Recommended a Change in School Rates I Prior Basis Elementary Schools 5.0 gpd per student Cost . 5 gpd per student Intermediate Schools 5.3 gpd per student 10 gpd per student High Schools 5.6 gpd per student 15 gpd per student Central Contra Costa Sanitary District Wastewater Cost of Service Study May 21, 2015 Prepared by Rattelis Financial Consultants. Inc. 1 Billing Methodology • Most non - residential rates based on water consumption data - Separate irrigation meter data, where available, is removed from calculation - Winter Quarter Average (December to March) is used for approximately 10% of customers • Schools are based on Student Count School Rates Adopted June 4, 2015 Elementary $5.77 per student Based on 5 gpd per student Intermediate $11.34 per student Based on 10 gpd per student High School $16.93 per student Based on 15 gpd per student 2 Board of Directors requested that staff review water consumption to validate the basis for the updated school rates Challenges • Only 16 of 84 schools have separate irrigation meters or recycled water • Large variations in schedule (winter break) affect Winter Quarter estimates • Significant site variations between schools (turf area, swimming pools, etc.) 3 MEMMEnR L Z= 3 Three -part Analysis 1. Separate irrigation meters (9 month actual water consumption) compared to COS basis 2. Winter quarter average estimates (9 month) for ALL schools compared to COS basis 3. Actual water consumption (12 month) compared to total estimated wastewater rd Water Consumption Compared to Billed Wastewater Flow (Test 3) 25,000 I High I Intermediate Elementcrl Schools I I Schools I ghoa!> 1 20,00) I I I 1 I I I 1 I I 15,00) I 1 I I 1 1 I I I I I I I I I I 10,020 1 1 1 1 I I I I t I 1 I I I 5,000 ll_ �II 1 ^� i•1� I II. I ��IIrSI�I� !IIIIIIIIII" III "r'�3?�i ,�t�¢�� 4Y �i}i I 1 iri�i�itiI 0 ■ CY 2014 Water Coruumlxion JHC.F) , 2015- 16 Billed Wastewater Flow(HCF) 02015-16 Billed Wastewater Flow a115pilstudentlday(HCF) rd Results Three -part Analysis supports • Elementary Schools 5 gallons per student /day • Intermediate Schools 10 gallons per student /day • High Schools 10 gallons per student /day vs. 15 gallons per student /day Proposed Revisions to Adopted Rates for Schools Elementary $5.77 per student Based on 5 gpd per student Intermediate $11.34 per student Based on 10 gpd per student High School $11.34 per student Based on 10 gpd per student C Impact • 15 high schools revised to 10 gallons per student per day basis $108,460 adjustment (reduction) Next Steps • Hearing to amend rate ordinance • Adjust bills for 15 high schools to new rates • Recalculate and resend bills (direct bills) or revise tax bills for April 10 (second installment) • Send letters to affected school districts M Questions, comments, discussion