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Home My WebLink About12.c.1)b) Minutes 06-27-16 Finance Committee 12 . c . l ) b) Central Contra Costa Sanitary District x g REGULAR MEETING OF THE BOARD OF DIRECTORS: TAD J.PILECKI CENTRAL CONTRA COSTA Pie,idet« SANITARY DISTRICT PAUL H.CAUSEY Presidolf Pro Tem FINANCE COMMITTEE MICHAEL R.MCCILL JAMES A.NEJEDLY DAVID R. WILLIAMS MINUTES PHONE: (925)228-9500 FAX: (925)372-0192 Monday, June 27, 2016 www.cenrralson.org 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair Tad Pilecki Member Jim Nejedly (Alternate for Paul Causey) Invited Guest: Andrew Brown of HighMark Capital Management (left after Item 4.) Staff: General Manager Roger Bailey Deputy General Manager Ann Sasaki Finance Manager Thea Vassallo Planning and Development Services Division Manager Danea Gemmell Purchasing and Materials Manager Stephanie King Senior Engineer Thomas Brightbill (left after Item 5.) Senior Administrative Technician Cindy Granzella 1 . Call Meeting to Order Chair Pilecki called the meeting to order at 3:00 p.m. 2. Public Comments None. 3. Old Business a. Review staff's response to questions regarding expenditures at the April meeting: Finance Committee Minutes June 27, 2016 Page 2 Checkl Date Amount Vendor Information Requested #209108 $18,573.17 Air Systems Chair Pilecki asked if the valve leaks were due 3/24/16 1111. to an operational defect. Mr. Lopez said he would look into the life expectancy of the valves. COMMITTEE ACTION: Reviewed staff's responses. 4. Review and discuss HighMark Capital Management Governmental Accounting Standards Board (GASB) 45 Trust First Quarter Report and supplemental report dated May 31 , 2016 — Invited guest.Andrew Brown of HighMark Capital Management Mr. Brown reviewed the discussion highlights included in the agenda materials. He stated that the asset allocation is currently underweight in both stocks and bonds. The international allocation is currently at 11.25%, slightly overweight, and should absorb the brunt of the market disruption related to Great Britain's recent vote to exit the European Union (Brexit). Mr. Brown predicts that the Federal Reserve System will be a big driver on the economy in the coming months, as will the new United States President. He does not anticipate a significant long-term economic impact due to the recent Brexit news. He did mention that the current cash allocation is at 3%, and stated that there is an opportunity to look at alternate funds, which will not require the stock or bond market to go up in order to get a positive return. He offered to bring additional information to a future Committee meeting for consideration. COMMITTEE ACTION: Reviewed and provided input to staff. 5.* Review draft Position Paper to conduct public hearing to consider placing the following items on the Fiscal Year 2016-17 Contra Costa County tax roll for collection: 1) Fiscal Year 2016-17 Sewer Service Charge; 2) Fiscal Year 2016-17 Capacity Use Charges; 3) Fiscal Year 2016-17 Assessments for: • Contractual Assessment Districts (CADs); • Alhambra Valley Assessment Districts (AVADs); and • Other fee installment payment programs. Finance Committee Minutes June 27, 2016 Page 3 Mr. Brightbill distributed an updated draft Position Paper, including the draft resolution and exhibits. Chair Pilecki asked if the Sewer Service Charge could be included in the Position Paper for the July 21 Board meeting. COMMITTEE ACTION: Reviewed and recommended Board approval. 6. Expenditures a. Review Expenditures COMMITTEE ACTION: Reviewed and recommended Board approval. Requested additional information on the following: Check 1 Date Amount Vendor Information Requested #209928 $23,605.39 Coast Crane Chair Pilecki asked if these repairs were for 5/19/16 Company the boom truck purchased in 1993. If so, it is probably approaching the end of its life. 7. Review May 2016 Financial Statements and Investment Reports Ms. Vassallo reported that there are significant variances on the revenue and expenses. Operations and Maintenance (O&M) revenue is currently running $3.1 million favorable, and Sewer Construction (SC) revenue is running $3.4 million favorable. Running expenses are running $4.6 million favorable. Ms. Vassallo stated that $3.6 million in variances have already been accounted for in the Fiscal Year 2016-17 budget ($3.1 million in O&M and SC revenues and $500,000 in O&M expenses.) COMMITTEE ACTION: Reviewed and recommended Board approval. 8. Announcements a. Future scheduled meetings: Monday, July 25, 2016 at 3:00 p.m. Monday, August 22, 2016 at 3:00 p.m. (Need to reschedule) Monday, September 26, 2016 at 3:00 p.m. (Need to reschedule) b. Receive list of Scheduled/Parking Lot items Ms. Vassallo stated that information on the cost of earthquake insurance will be provided to the Committee for discussion at a future meeting. Finance Committee Minutes June 27, 2016 Page 4 9. Suggestions for future agenda items None. 10. Adjournment— at 3:43 p.m. * Attachment Central Contra Costa Sanitary District BOARD OF DIRECTORS e Itzn5N POSITION PAPER (COMMittee '1111'11andout UK AF1 Board Meeting Date: July 21, 2016 Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AND CONSIDER ADOPTION OF A RESOLUTION DIRECTING THAT THE FISCAL YEAR 2016-17 SEWER SERVICE CHARGES, CAPACITY USE CHARGES, ASSESSMENTS FOR CONTRACTUAL ASSESSMENT DISTRICTS, ASSESSMENTS FOR ALHAMBRA VALLEY ASSESSMENT DISTRICTS AND CHARGES FOR OTHER FEE INSTALLMENT PAYMENT PROGRAMS BE COLLECTED ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL Submitted by: Initiating Dept./Div.: Thea Vassallo, CPA, CMA Finance Manager Administration / Finance & Accounting Thomas Brightbill, Senior Engineer Engineering & Technical Services / Planning & Development Services Reviewed and recommended for Board action: D. Gemmell—Planning & Development Services Div. Mgr. J.M. Petit—Director of Engineering&Technical Services K.Alm Roger S.Bailey Counsel for the District General Manager ISSUE: District Code and state law require a public hearing for placing the Sewer Service Charges (SSC), Capacity Use Charges, assessments for Contractual Assessment Districts (CADs), assessments for Alhambra Valley Assessment Districts (AVADs), and charges for other fee installment payment programs on the Contra Costa County tax roll for collection. A resolution of the Board of Directors passed by four affirmative votes is needed to place charges on the Contra Costa County property tax roll for collection. RECOMMENDATION: Conduct a public hearing and adopt a resolution directing that the Fiscal Year 2016-17 Sewer Service Charges, Capacity Use Charges, assessments for CADs, assessments for AVADs, and charges for other fee installment payment programs be collected on the Contra Costa County property tax roll. FINANCIAL IMPACTS: The estimated County-imposed fee for collection of the charges on the tax roll is $100,000. ALTERNATIVESMONSIDERATIONS: Direct collection of these charges by District staff is an alternative. However, it is economical and efficient to collect the charges on the property tax bills. Owners of the properties subject to Capacity Use Charges, CAD and AVAD assessments, and charges for installment payment programs have signed agreements that the charges will be placed on the property tax roll. BACKGROUND: The SSC has been collected on the County tax roll since its inception in 1976. Contra Costa County imposed a fee for collecting the SSC on the tax roll in Fiscal Year 1982-83. N:\EnvrSRV\Capacity Use Charge Program\Ordinances\2016 SSC Cap Use-CAD-AVAD-Installment Payment Ordinance\7-21- 2016 Pos Paper-CONDUCT HEARING to Place Charges on tax roll.doc Page 1 of 2 POSITION PAPER Board Meeting Date: July 21, 2016 Subject: CONDUCT A PUBLIC HEARING TO RECEIVE COMMENTS ON AND CONSIDER ADOPTION OF A RESOLUTION DIRECTING THAT THE FISCAL YEAR 2016-17 SEWER SERVICE CHARGES, CAPACITY USE CHARGES, ASSESSMENTS FOR CONTRACTUAL ASSESSMENT DISTRICTS, ASSESSMENTS FOR ALHAMBRA VALLEY ASSESSMENT DISTRICTS AND CHARGES FOR OTHER FEE INSTALLMENT PAYMENT PROGRAMS BE COLLECTED ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL Certain commercial tenants and commercial property owners have entered into written agreements to participate in the District's Capacity Use Program for payment of Capacity Fees over a fifteen-year period. These businesses are listed in Exhibit A. Property owners who have formed CADs have agreed to pay for sewer improvements over a ten-year period. These properties are listed in Exhibit B. Property owners who have formed AVADs have agreed to pay for sewer improvements over a fifteen-year period. These properties are listed in Exhibit C. Certain property owners have entered into written agreements to participate in the District's fee installment payment programs. These properties are listed in Exhibit D. Payments are to be collected by placing assessments and charges on each property owner's tax bill. Legal notices were published in the Contra Costa Times and the San Ramon Valley Times for the public hearing. Notice of the public hearing was also posted on the District's website. COMMITTEE RECOMMENDATION: The Finance Committee reviewed this matter at their June 27, 2016 meeting. RECOMMENDED BOARD ACTION: Conduct a public hearing and adopt a resolution directing that the Fiscal Year 2016-17 SSC, Capacity Use Charges, assessments for CADs, assessments for AVADs, and charges for other fee installment payment programs be collected on the Contra Costa County property tax roll. Four affirmative votes are required for adoption. Attached Supporting Documents: i. Proposed Resolution 2. Exhibit A 3. Exhibit B 4. Exhibit C 5. Exhibit D N:\EnvrSRV\Capacity Use Charge Program\Ordinances\2016 SSC Cap Use-CAD-AVAD-Installment Payment Ordinance\7-21- 2016 Pos Paper-CONDUCT HEARING to Place Charges on tax roll.doc Page 2 of 2 RAr RESOLUTION NO. 2016- A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT DIRECTING THAT THE FISCAL YEAR 2016-17 SEWER SERVICE CHARGES, CAPACITY USE CHARGE PROGRAM CHARGES, ASSESSMENTS FOR CONTRACTUAL ASSESSMENT DISTRICTS, ASSESSMENTS FOR ALHAMBRA VALLEY ASSESSMENT DISTRICTS AND CHARGES FOR OTHER FEE INSTALLMENT PAYMENT PROGRAMS BE COLLECTED ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL WHEREAS, the Central Contra Costa Sanitary District (District) has previously developed and instituted a Sewer Service Charge Program for services and facilities furnished by the District to finance yearly Operation and Maintenance of the District; and WHEREAS, the Sewer Service Charge is collected through a direct charge to the users; and WHEREAS, the District has entered into written agreements with certain commercial tenants and commercial property owners to participate in the District's Capacity Use Charge Program for payment of Capacity Fees in annual installments over a fifteen-year period; and WHEREAS, the District has entered into written agreements with certain property owners who have formed Contractual Assessment Districts to pay for sewer improvements in annual installments over a ten-year period; and WHEREAS, the District has entered into written agreements with certain property owners who have formed Alhambra Valley Assessment Districts to pay for sewer improvements over a fifteen-year period; and WHEREAS, the District has entered into written agreements with certain property owners for payment of Capacity Fees and other certain charges over various periods; and WHEREAS, District Code provides that the District may elect to collect current charges on the property tax roll as provided by Section 5470 and following, of the California Health and Safety Code; and WHEREAS, it is considered economical and efficient to collect the Sewer Service Charges for the 2016-17 fiscal year on the Contra Costa County property tax roll; and WHEREAS, it is considered economical and efficient to collect the Capacity Use Charge Program charges for the 2016-17 fiscal year on the Contra Costa County property tax roll; and WHEREAS, it is considered economical and efficient to collect the assessments for the Contractual Assessment Districts for the 2016-17 fiscal year on the Contra Costa County property tax roll; and Resolution No. 2016- Central Contra Costa Sanitary District Page 2 of 2 WHEREAS, it is considered economical and efficient to collect the assessments for the Alhambra Valley Assessment Districts for the 2016-17 fiscal year on the Contra Costa County property tax roll; and WHEREAS, it is considered economical and efficient to collect the charges for fee installment payment programs for the 2016-17 fiscal year on the Contra Costa County property tax roll; NOW, THEREFORE, be it resolved by the Board of Directors of the District that the Fiscal Year 2016-17 Sewer Service Charges, the Capacity Use Charge Program charges for the commercial tenants and commercial property owners as listed in Exhibit "A", the Fiscal Year 2016-17 assessments for Contractual Assessment Districts as listed in Exhibit "B", the Fiscal Year 2016-17 assessments for Alhambra Valley Assessment Districts as listed in Exhibit "C", and the Fiscal Year 2016-17 charges for other fee installment payment programs as listed in Exhibit "D" are to be collected on the Fiscal Year 2016-17 Contra Costa County Property Tax Roll, and that said Exhibits "A" through "D" inclusive are attached hereto and by this reference made a part hereof. Passed and adopted this 21St day of July 2016 by the Central Contra Costa Sanitary District Board of Directors by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District EXHIBIT A Central Contra Costa Sanitary District 2016-17 Capacity Use Agreement Program Charges A Capacity Use Agreement provides for the payment of certain commercial capacity fees over a fifteen year period. The annual charge is based on water consumption and waste strength and is placed on the Contra Costa County property tax roll for collection. Agmt.End APN Levy Amount Business Name Address Year 125-050-028 Pho Lee Hoa Phat 508-P Contra Costa Blvd, PH 2018 164-340-051 Fortune City Restaurant 6660 Alhambra Ave, Martinez 2017 178-160-017 Lift Lounge and Grill 1321 Locust St, WC 2017 178-191-008 Eleve Restaurant 1677 N. Main St, WC 2023 178-250-029 Sasa Restaurant 1432 N. Main St, WC 2023 184-060-018 Va de Vi Bistro&Wine Bar 1511 Mt. Diablo Blvd, WC 2018 208-041-009 Masala Indian Fusion 499 San Ramon Vly Blvd, Danville 2017 208-340-004 Chow Restaurant, Danville 445 Railroad Ave, Danville 2023 213-010-037 Los Panchos, San Ramon 3104-C & D Crow Cyn PI, SR 2019 213-610-033 Canyon View Dining Hall 680 Bollinger Cyn Way, SR 2021 213-701-002 Papaya Grill 280 Marketplace, SR 2023 243-170-030 Chow Restaurant 53/55 Lafayette Circle, Lafayette 2017 243-170-030 Roam Artisan Burger 23 Lafayette Circle, Lafayette 2027 273-021-005 Turquoise Mediterranean Grill 70 Moraga Way, Orinda 2022 243-050-002 Rancho Cantina 3616 Mt. Diablo Blvd., Lafayette 2028 243-222-020 Park Plaza Restaurants 3535-3539 Plaza Way, Lafayette 2027 148-202-071 Heavenly Cafe 3116 Oak Road, Walnut Creek 2030 233-031-021 Boneheads Texas BBQ 3422 Mt. Diablo Blvd., Lafayette 2030 241-030-011 Bistro Burger&Grill 3651 Mt. Diablo Blvd., Lafayette 2030 127-040-020 EI Aguila Mexican Cuisine 1300 Contra Costa Blvd., Pleas. Hill 2031 uRAFT EXHIBIT B Central Contra Costa Sanitary District 2016-17 Contractual Assessment District (CAD) Charges Contra Costa County GA Levy Contractual Assessment Districts provide for the payment of sewer improvement costs in residential areas over a ten year period. The annual assessment is placed on the Contra Costa County property tax roll for collection. CAD Number and Name Expires APN Levy Amount Parcels Total $$ CAD 10-1 : Sunnybrook Road after 2020-21 187-110-010-1 $1,443.04 187-110-012-7 $1,443.04 187-110-013-5 $1,443.04 187-110-014-3 $1,443.04 187-110-015-0 $1,443.04 187-110-016-8 $1,443.04 187-110-021-8 $1,443.04 187-110-022-6 $1,443.04 187-110-023-4 $1,443.04 187-110-024-2 $1,443.04 187-110-026-7 $1,443.04 187-110-027-5 $1,443.04 187-110-031-7 $1,443.04 13 $18,759.52 CAD 2010-2: Vista Del Orinda after 2021-22 265-153-010-3 $2,518.98 265-140-006-7 $2,518.98 265-140-008-3 $2,384.54 3 $7,422.50 CAD 2011-1: St Mary's Road after 2022-23 236-100-004-1 $6,068.98 236-070-024-5 $3,736.78 2 $9,805.76 CAD 2012-1: Smith Road after 2023-24 196-070-007-6 $4,435.54 196-070-008-4 $4,392.34 196-061-004-4 $4,422.76 3 $13,250.64 Total 16 $26,182.02 EXHIBIT C Central Contra Costa Sanitary District 2016-17 Alhambra Valley Assessment District (AVAD) Charges Contra Costa County Cl Levy Alhambra Valley Assessment Districts provide for the payment of sewer improvement costs in the Alhambra Valley Trunk Sewer area over a fifteen year period. The annual assessment is placed on the Contra Costa County property tax roll for collection. AVAD Number and Name Expires APN Levy Amount Parcels Total $$ AVAD 2007-1: Alhambra after 2023-24 366-020-009-2 $3,356.76 Valley Trunk Sewer 366-020-010-0 $2,745.54 366-030-018-1 $2,745.54 366-040-004-9 $2,745.54 366-040-009-8 $2,745.54 366-040-014-8 $2,094.34 366-051-001-1 $2,745.54 366-052-004-4 $2,745.54 366-070-003-4 $2,094.34 366-070-005-9 $2,745.54 366-070-006-7 $2,745.54 366-080-001-6 $2,745.54 366-080-003-2 $2,745.54 366-080-004-0 $2,745.54 366-080-006-5 $2,745.54 366-101-001-1 $2,745.54 366-102-001-0 $2,745.54 366-102-006-9 $2,745.54 366-102-007-7 $2,745.54 366-102-009-3 $2,745.54 366-102-011-9 $2,745.54 366-102-012-7 $2,745.54 367-130-004-8 $2,745.54 367-130-024-6 $2,745.54 24 $65,201.78 AVAD 2007-2: Gordon / after 2023-24 367-100-002-8 $2,514.22 Millthwait 367-100-004-4 $2,514.22 367-100-009-3 $2,514.22 367-100-012-7 $2,514.22 367-100-013-5 $2,514.22 367-100-015-0 $2,514.22 367-100-017-6 $2,514.22 367-100-018-4 $2,514.22 367-100-019-2 $2,514.22 AVAD Number and Name Expires APN Levy Amount Parcels Total $$ 367-111-002-5 $2,514.22 367-111-005-8 $2,514.22 367-121-002-3 $2,514.22 367-121-004-9 $2,514.22 367-122-001-4 $2,514.22 367-123-003-9 $2,514.22 367-123-004-7 $2,514.22 367-123-005-4 $2,514.22 367-130-012-1 $2,514.22 367-130-013-9 $2,514.22 19 $47,770.18 AVAD 2007-3: Reliez Valley after 2023-24 365-150-080-7 $3,567.98 Road 366-010-003-7 $3,567.98 366-010-009-4 $3,567.98 366-020-001-9 $3,567.98 366-020-002-7 $3,567.98 366-020-005-0 $3,567.98 366-020-008-4 $3,746.54 7 $25,154.42 AVAD 2007-4: Monteira Lane after 2023-24 366-020-011-8 $2,733.92 366-020-016-7 $1,380.52 2 $4,114.44 AVAD 2007-6: Quail Lane after 2023-24 365-100-015-4 $4,034.80 365-110-021-0 $4,686.02 365-110-022-8 $4,686.02 365-120-003-6 $4,197.56 365-120-004-4 $4,197.56 367-150-013-4 $3,546.34 6 $25,348.30 AVAD 2008-7: Via Vaqueros after 2024-25 367-130-034-5 $3,165.04 1 $3,165.04 Total: 59 $170,754.16 UP"%R EXHIBIT D Central Contra Costa Sanitary District 2016-17 Capacity Fee Installment Payment Program and AVAD Extended Financing Program Charges A Capacity Fee Installment Payment Program agreement provides for the payment of residential capacity fees and other fees over a ten year period, or a fifteen year period in the case of AVAD financing. The annual assessment is placed on the Contra Costa County property tax roll for collection. Agmt. No. Address Expires APN Levy Amount Capacity Fee Installment Payment Program: 10-494 211 Canon Drive, Orinda after 2022-23 264-110-020-7 $1,008.42 10-1022 31 Charles Hill Circle, Orinda after 2021-22 260-072-005-2 $742.52 11-134 805 Hutchinson Road, Walnut Creek after 2020-21 139-071-009-1 $740.62 11-154 3 Kim Court, Martinez after 2020-21 162-230-006-7 $922.82 11-549 1459 Sunnybrook Road, Alamo after 2020-21 187-110-014-3 $740.62 11-605 4 Amberwood Lane, Walnut Creek after 2020-21 143-010-021-2 $740.62 11-1195 18 Vista del Orinda, Orinda after 2021-22 265-153-010-3 $960.74 11-1274 1440 Laurenita Way, Alamo after 2021-22 192-011-014-3 $742.52 12-221 1448 Sunnybrook Road, Alamo after 2021-22 187-110-022-6 $742.52 13-549 222 Smith Road, Alamo after 2023-24 196-070-007-6 $796.90 14-236 1488 Sunnybrook Road, Alamo after 2023-24 187-110-026-7 $796.90 14-516 1449 Sunnybrook Road, Alamo after 2023-24 187-110-015-0 $796.90 15-1194 133 Via Serena, Alamo after 2025-26 198-063-007-1 $807.26 16-520 1407 Entrada Verde Place, Alamo after 2025-26 192-020-022-5 $807.26 AVAD Extended Financing Program: 10-1280 75 Millthwait Drive, Martinez after 2026-27 367-123-002-1 $2,740.04 10-1287 5124 Alhambra Vly. Rd., Martinez after 2025-26 367-130-002-2 $3,338.12 11-732 140 Via Vaqueros, Martinez after 2026-27 367-130-021-2 $3,357.58. 12-44 151 Gordon Way, Martinez after 2026-27 367-100-005-1 $2,740.04 13-619 2635 Reliez Valley Road, Martinez after 2027-28 365-150-005-4 $3,942.16 14-1621 3 Millican Court, Martinez after 2025-26 367-090-016-0 $2,842.90 15-218 5103 Alhambra Valley Road, Martinez after 2025-26 366-040-015-5 $3,094.02 Total: 21 parcels $32,393.06