HomeMy WebLinkAboutFinance MINUTES 05-09-22 (Special) Page 2 of 5
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CONTRACENTRAL •STA SANITARY DISTRICT 5019 IMHOFF
SPECIAL MEETING OF THE BOARD OF DIRECTORS:
DAVID R. WILLIAMS
CENTRAL CONTRA COSTA President
SANITARY DISTRICT BARBARA D.HOCKETT
President Pro Tena
FINANCE COMMITTEE MARIAHNLAURITZEN
MICHAEL R.MCGILL
TAD J PILECKI
MINUTES
PHONE: (925)228-9500
Monday, May 9, 2022 FAX.- (925)372-0192
2:30 p.m. www.eentralsan.org
(All attendees participated via videoconference)
Committee:
Chair Mike McGill
Member Tad Pilecki (Alternate for Member D. Williams)
Staff.-
Roger S. Bailey, General Manager
Kenton Alm, District Counsel
Katie Young, Secretary of the District
Philip Leiber, Director of Finance and Administration
Steve McDonald, Director of Operations
Danea Gemmell, Planning and Development Services Division Manager (left during Item 4.b.)
Edgar Lopez, Capital Projects Division Manager (left during Item 4.b.)
Kevin Mizuno, Finance Manager
Benjamin Johnson, Internal Auditor (left during Item 4.b.)
Thomas Brightbill, Senior Engineer (left after Item 4.a.)
Olivia Ruiz, Accounting Supervisor
Christopher Thomas, Accounting Supervisor (left during Item 4.b.)
Christina Gee, Management Analyst (left during Item 4.b.)
Amelia Berumen, Assistant to the Secretary of the District
1. Notice
This meeting was conducted virtually in accordance with the provisions stipulated in
Assembly Bill 361 and adopted by the Central San Board of Directors on May 5, 2022.
The agenda included instructions for options in which the public could participate.
2. Call Meeting to Order
Chair McGill called the meeting to order at 2:30 p.m.
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3. Public Comments
None.
4. Agenda Items
a. Review draft Position Paper to conduct a public hearing to receive public
comment and consider adopting uncodified Ordinance No. amending the
Schedule of Capacity Fees, Rates and Charges, replacing Ordinance No. 309
in accordance with District Code chapter 6.12
Mr. Brightbill discussed the agenda material to be reviewed and considered
at the upcoming and recently set June 16 public hearing. He stated there
were not many changes made from the previous year and that staff
continues to use the buy-in fee method for investment equalization amongst
new and existing customers. Additionally, Table 1 (provided as Attachment 4
in the materials) was expanded to include a value of contributed assets and
equity. The calculation of the fees follows the WEF'and AWWAI manuals
and has been reviewed by Central San's financial planning consultant,
Raftelis.
Mr. Brightbill responded to various questions and used scenario situations
for explanation and Committee discussion.
Mr. Alm discussed pending legislation regarding the Grayson Assembly Bill
(AB) 2536. The bill had been an attempt to eliminate the use of the buy-in
concept for capacity fees as a means to bring down impact fees paid on new
construction. It would restrict the fees to costs for direct benefits to that
specific development. Elimination of the buy-in concept for capacity fees
would pose a large problem, fortunately, at present the modified language
does not include elimination of that concept.
Chair McGill notated the use of the term Contra Costa Times in the draft
Position Paper and opined it should instead reflect the circulation title East
Bay Times. A brief discussion ensued about staff's protocol for noticing and
correspondence with the Contra Costa Times Legal Notices division. Some
potential wordsmith options were discussed; staff will collaborate on a
language update to address this comment.
As it pertained to the methodology of fee setting, the Committee recalled the
last study done in 2017 with Black and Veatch and asked when it would be
revisited. Ms. Gemmell replied that staff will include in the cost of service
review this year as part of consultant Raftelis'review. She advised staff will
bring forth a policy item discussion on cost of service, capacity fees will be
WEF defined as Water Environment Federation; AWWA defined as American Water Works Association
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included in that presentation. In response to a notion to include cost of
service studies for capacity fees on the same schedule as cost of service
reviews for Sewer Services Charges, Mr. Alm cautioned against doing so.
He stated the statute requires studies to be conducted every five years;
however, based on the prior discussion of AB 2536, Central San would need
to do conduct a study regardless as it would set forth certain criteria and the
methodology may change next year.
At the conclusion of the questions and discussion, the Committee concurred
to conduct the public hearing to consider the proposed Ordinance to amend
the fees as presented.
COMMITTEE ACTION: Recommended the Board conduct the public
hearing and consider adoption of the proposed uncodified Ordinance.
b. Review proposed Fiscal Year 2022-23 Central San Operations and
Maintenance, Self-Insurance, and Debt Service budgets
Mr. Leiber and Mr. Mizuno provided an in-depth review of the agenda
materials, including updated (highlighted) presentation information that was
also provided immediately afterwards to the agenda materials available on
the District's website. Staff responded to several questions posed during the
discussion of the various budgetary sections.
Strategic Plan:
As it pertained to the slides regarding Strategic Plan priorities that reflect on
the budgetary aspect to achieve the goals, Member Pilecki suggested
including a line to address potential projects that are being pursued with
EBMUD2 and SFPUC2 as part of those priorities. It was concurred to include
this important task.
Member Pilecki inquired about the (**) footnote on the bottom of slide 9,
"excludes overall contributions to reserves,"and whether that was a global
comment to the entire summary. Mr. Leiber explained the footnote was not
specific to any particular figures; other than, sources are higher than what is
currently being spent.
Use of Funds:
One of the updates was to slide 11, which provided an explanation of the net
contribution to a reserve budget highlighted at the bottom of the slide.
The policy practice has been to collect funds in advance of when it may be
needed. The budget reflects an increase in Operations and Maintenance
2 EBMUD defined as East Bay Municipal Utility District; SFPUC defined as San Francisco Public Utilities
Commission
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(O&M) and a decrease in Capital, which equated to the reserve contribution
of$22 million.
Source of Funds:
Mr. Leiber highlighted that to-date no funds have yet been drawn from the
State Revolving Fund (SRF) loan acquired for the original Solids Handling
Facility Improvements Project. Staff anticipates $42 million to be drawn from
that source during FY 2022-23, a total of$100 million is anticipated to be
drawn for elements of the project that remain in the scope from the original
$173 million loan versus new scope in the revised project that will need to be
funded from other sources.
It was reiterated during the discussion to ensure the City of Concord be
made aware of the budget review meetings schedule and is also invited to
the June 16 public hearing. The Committee requested staff include additional
slides to the final Board presentation providing information on the
Concord/Clayton reimbursement revenue and how it is expected to be
impacted by the June 2021 pension UAAL3 payoff.
On slide 18, it was requested that the content either be updated to include
footnote references to the asterisked columns, or removed for clarity.
The Committee was satisfied with the responses provided by staff to their
questions.
COMMITTEE ACTION: Reviewed and provided input to staff.
5. Announcements
None.
6. Suggestions for Future Agenda Items
None.
7. Future Scheduled Meetings
Tuesday, May 24, 2022 at 2:00 p.m.
Tuesday, June 21, 2022 at 2:00 p.m.
Tuesday, July 26, 2022 at 2:00 p.m.
8. Adjournment— at 4:44 p.m.
3 UAAL defined as unfunded actuarial accrued liability
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