HomeMy WebLinkAbout03.a. Review Draft Position Paper Approving Proposed Revisions to Board Policy No. BP 030 - Cost of Service StudyPage 1 of 3
Item 3.a.
DCENTRALSAN
MEETING DATE: AUGUST 1, 2023
BOARD OF DIRECTORS
POSITION PAPER
DRAFT
SUBJECT: REVIEW DRAFT POSITION PAPER APPROVING PROPOSED REVISIONS
TO BOARD POLICY NO. BP 030 -COST OF SERVICE STUDY
SUBMITTED BY: INITIATING DEPARTMENT:
KATIE YOUNG, SECRETARY OF THE SECRETARYOF THE DISTRICT
DISTRICT
REVIEWED BY: THOMAS BRIGHTBILL, SENIOR ENGINEER
DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION
MANAGER
ROGER S. BAILEY, GENERAL MANAGER
ISSUE
Revisions to Board of Directors (Board) policies must be approved by Central San's Board.
BACKGROUND
The policy is up for its biennial review and staff would like to propose revisions to update the language in
the policy. No substantive changes were made.
ALTERNATIVES/CONSIDERATIONS
The Board could elect to not accept the changes.
FINANCIAL IMPACTS
None.
COMMITTEE RECOMMENDATION
This item was reviewed at the August 1, 2023 Administration Committee meeting. The Committee
staffs recommended changes.
August 1, 2023 Regular ADMIN Committee Meeting Agenda Packet - Page 3 of 27
Page 2 of 3
RECOMMENDED BOARD ACTION
Approve the proposed revisions to BP 030 - Cost of Service Study
Strategic Plan Tie -In
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility, Strategy 3 - Maintain financial stability
and sustainability
GOAL FIVE: Safety and Security
Strategy 2 - Protect personnel and assets from threats and emergencies
ATTACHMENTS:
1. Proposed Revisions to BP 030 - Cost of Service Study
August 1, 2023 Regular ADMIN Committee Meeting Agenda Packet - Page 4 of 27
Page 3 of 3
Number: BP 030
Related Admin. Procedure AP 030
Authority: Board of Directors
Effective: July 6, 2017
Revised: September 5, 2019
Reviewed: 0'%�2TAugust 1, 2023
Initiating Dept./Div.: Administration/Finance
BOARD POLICY
COST OF SERVICE STUDIES
PURPOSE
Central San, as a public utility, calculates and sets rates based on the cost of providing
services to customers. The State of California Government Code, including Sections
54999.7 and 53756, have the effect to require that public agencies periodically conduct
a cost of service study for both capital charges and sewer service fees. This policy
directs Central San to comply with these requirements. An accompanying
administrative procedure provides other guidance related to the need to ensure
adequate cost support exists for changes in Central San rates.
POLICY
A new or updated cost of service study shall be prepared not less frequently than
required by California law and may be appropriate more frequently in certain
circumstances, to be assessed by staff each time rate changes are proposed.
Staff shall report to the Board at the time of the proposed rate change on whether
the most recent Cost of Service study and applicable updates remain a valid
basis for the proposed rates. An administrative procedure addressing this
assessment is maintained by the General Manager.
A cost of service study or update addressing rates subject to Proposition 218
shall generally be conducted not less than once every five years. This policy is
also consistent with state law specifying that any public agency providing utility
service to a public school or other public agency, s-on„nn pyh'i^ S^hee must
perform a cost of service study for Gapital nharges not less than once every ten
years.
[Original Retained by the Secretary of the District]
August 1, 2023 Regular ADMIN Committee Meeting Agenda Packet - Page 5 of 27