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HomeMy WebLinkAbout04.a. Follow-up to questions asked at January meeting re: specifica expenditures Page 1 of 4 Item 4.a. CENTRAL SAN February 23, 2021 TO: FINANCE COMMITTEE FROM: KEVIN MIZUNO, FINANCE MANAGER REVIEWED BY: PHILIP R. LEIBER, DIRECTOR OF FINANCE AND ADMINSTRATION ROGER S. BAILEY, GENERAL MANAGER SUBJECT: FOLLOW-UP TO QUESTIONS ASKED AT THE JANUARY 26, 2021 FINANCE COMMITTEE MEETING REGARDING ASPECIFIC EXPENDITURE At the January 26, 2021 Finance Committee meeting, questions regarding payments on the attached expenditure reports required additional research by staff to be followed-up at a later Committee meeting. Following additional review of supporting documents and follow-up with personnel from Divisions involved, information regarding this issue is summarized below: • Expenditures List Page 13 of 72, 1 ronbrook UV, $48,300 (8629)for"Quartz sleeves for UV lamps" and page 54 of 72, 1ronbrook UV. $48,300 (invoice #8629) and $14,280 (invoice #8632) Committee Question: Please explain why the #8629 invoice number appears twice and additional background on the UV sleeve purchases given the large quantities that the District appears to have purchased between these three invoices. Staff Response: The original invoice paid to I ronbrook UV that appeared on page 13 of 72 was issued via check #301322 on 12/17/20 in the amount of$48,300. The vendor subsequently contacted the District indicating that the check was never received, so it was voided and reissued as check#301523 on 1/14/21, which appears on page 54 of 72. Therefore the quantity purchased as presented on the expenditures list was only 3,000, not 6,000. As to the UV sleeves and their use in the treatment process, we have over 10,000 sleeves in use at all times on Banks in use at UV. Following/during every re-lamp task we complete, we likely use 50-100 new sleeves. We completed 9 Re-Lamps last year. We also replace for corrective reasons. Probably another 25-50 per month. Reliability engineering has an ongoing project to re-wires Banks. This requires a full complement of sleeves for each Bank completed. We completed the rewire of 6 Banks(416 lamps/bank), plus some spares last year, using another 2,500-2,750 sleeves. This does not account for the other rewires we completed in 2018/2019. • Expenditures List Page 18 of 72, SWRCB Fees, $15.269 (invoice #WD-0175178) and $280.251 (invoice #W D-0180784) and other public agency fees included in the expenditures report February 23, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 4 of 178 Page 2 of 4 Committee Question: Please clarify what the difference is between the two invoices paid to SWRCB, and provide additional background on the the payment to the San Francisco Estuary Institute as well as other public agency fees incurred annually by Central San (i.e. BACWA, etc.) Staff Response: The first invoice paid to State Water Resources Control Board (SWRCB) in the amount of$15,269 was for the Waste Discharge Requirement (WDR) and was budgeted for and paid by the Collection System Operations Division. The second invoice paid to the SWRCB in the amount of$280,251 pertains to the annual National Pollutant Discharge Elimination System (NPDES) and was budgeted for and paid by the Treatment Plant Operations Division. The amount paid to the San Francisco Estuary Institute (SFEI) pertains to the annual participant fee for the Regional Monitoring Program (RMP)for 2021. As part of Central San's permit with the San Francisco Bay Regional Water Quality Control Board, the District has opted to pay into the RMP for water quality in the San Francisco Bay, which is administered by the San Francisco Estuary Institute. Attached is a table and pie chart summarizing the total FY 2020-21 budget for public agency and outside organization fees/services to provide some additional insight on the amount and nature of similar costs incurred by Central San annually, which represents approximately 1.8% of this year's total Operations and Maintenance (O&M) budget. Strategic Plan re-In GOAL THREE: Fiscal Responsibility Strategy 2—Ensure integrity and transparency in financial management ATTACHMENTS: 1. Summary of FY 2020-21 Budget for Public Agency& Outside Org Fees February 23, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 5 of 178 Attachment 1 Summary of various public agency fees/services and outside organizational fees budgeted in FY 2020-21 Department/Division FY 2020-21 Comments Budget Governance Office of the General Manager 42,550.00 Various outside organization fees comprised primarily of CASA,CSDA,Water Reuse Association membership fees Office of the Secretary of the District 75,000.00 Annual LAFCO independent special district's apportionment Administration Finance Division 150,600.00 Almost entirely for property tax administration fee incurred on tax levy Human Resources Division 48,600.00 Various safety fees/permits due to the State of California including EPA verification fees,hazardous materials busines plan(HMBP),County hazmat generator fee,etc. Purchasing Division 1,000.00 Communications& Intergovernmental Relations Division 14,300.00 Engineering Office of the Director of Engineering&Technical Services 6,000.00 Planning& Development Services Division 123,282.00 Largely for sewer service charge billing and recording fee(separate from tax levy admin charge listed above) Capital Projects Division 1,000.00 Environmental&Regulatory Compliance Division 443,500.00 Largely for Bay Area Clean Water Agencies(BACWA)related expenses,North American Clean Water Agencies(NACWA)membership fees,and Water Environmental Research Foundation membership Operations Collection System Operations Division 35,000.00 SWRCB Waste Discharge Requirement(WDR) Plant Operations Division 675,700.00 Largely for SWRCB National Pollutant Discharge Elimination System(NPDES)annual fee, Regional Monitoring Program,annual Bay Area Air Quality Management District(BAAQMD)permit,and other health risk assessment BAAQMD permits Plant Maintenance and Pump Stations Division 29,305.00 Recycled Water Recycled Water-Treatment Plant Division 21,600.00 Grand Total 1,667,437.00 February 23, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 6 of 178 Outside and Public Agency Fees FY 2020-21 Budget 3% 6% 3% 4% 7% 41% 9% 27% ■ Plant Operations Division ■ Environmental & Regulatory Compliance Division ■ Finance Division ■ Planning & Development Services Division ■ Office of the Secretary of the District ■ Human Resources Division ■ Office of the General Manager ■ All other divisions February 23, 2021 Regular FINANCE Committee Meeting Agenda Packet- Page 7 of 178