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HomeMy WebLinkAbout05a.2 District Financial Plan and Proposition 218 Notice. 5. a. 2~ Central Contra Costa Sanitary District March 1, 2010 TO: BOARD OF DIRECTORS FROM: JAMES M. KELLY, GENERAL MANAGER ~~~ / SUBJECT: UPDATE ON DISTRICT FINANCIAL PLAN AND CONSIDERATION OF POSSIBLE PROPOSITION 218 NOTICE The January 21, 2010 Board Meeting focused on the District's Financial Plan and consideration of rates. Based on information available at the time the needed rates were: Rate Year 2010-11 2011-2012 2012-13 2013-14 2014-15 Even Rate $16 $16 $16 $17 $17 No Increase This Year -- $20 $20 $21 $21 The Board comments on the Financial Plan/Rates were what would be the rates if increases were every other year, what is the viability of moving from CCCERA to the CaIPERS' retirement plan, and should the District consider paying down its UAAL at CCCERA. Attachment 1 shows the impact of the every other year increase. Consideration of moving the Retirement Plan to CaIPERS has been addressed separately. Evaluation of paying down the District's UAAL is underway; final consideration should be after CCCERA completes depooling. Attachment 1 assumes no increase this year and increases every other year thereafter. In short, the every other year increase scenario results in.approximately two times the annual increase, but every other year. As stated in the 2010 Financial Plan, the District does not have to raise rates this year, although raising rates this year would result in lower increases in future years: If the Board is to consider a rate increase this year, a Proposition 218 Notice must be mailed to our customers. In order to meet the 45-day noticing requirement, mailing the Proposition 218 Notice should, be approved at the March 18, 2010 Board meeting. Staff will be seeking the Board's direction at the March 4, 2010 Board Meeting regarding whether or not formal Board consideration of mailing the Proposition 218 Notice should be placed on the March 18, 2010 Board meeting agenda. JMK/jl Attachment N:WDMINSUPWDMIN\DIST-SECWliscellaneous\KELLY -Prop 218 Memo to Board.doc i Actual Actual Projected »»»»> »»»»> »»»»> » »»»> »»»»> »»>»» »»»»> »»»»> »»»»» »»»» 2007-2008 2008-20U9 2009-2010 20 10-2011 2 011-2012 2012-2013 2 013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2 018-2019 2 019-2020 Assumptions: Annual Sewer Service Charge/RUE 165,695 166,741 167,741 168,741 169,741 170,741 171,741 172,741 173,741 774,741 175,741 176,741 177,741 No. of New Connections (end of year) 1,647 847 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 -Daht Service - - - - - - - - - - - - -O&M 242 260 292 300 316 330 34I_ 358 370 386 401 421 437 -Capital Upgrade/Replacement 58 51 1_9 _ i 1 3.5 21 A4 28 51 35 55 __ 35 54 Total 300 311 311 311 361 3!iI 3HIi SN6 421 421 45E aS6 491 -0lcrease'Yhls year" 11 11 - 40 - 35 - 35 - 35 - 35 -Percent Increase each year as1 % as] : o.oo°~° o.oo% 12.es^: o.oos; o.e]°r. o.oov e.o]=: o.oo°o eat°~. o.ooa° ]sew. Connection Fee -Gravity Zone 4,524 4,923 5,298 5,481 5,658 5,833 6,006 6,176 6,345 6.512 6,677 6,940 7,001 Debt Service Debt Service Revenue 3,870 3,867 4,240 5,654 5,521 5,548 5,534 5,527 3,772 3,762 6,590 6,38A 6,387 Translers (from)Ito other tuntls) 0 0 (0) (0) (0) (O) (0) (0) 0 (0) (O) (0) (0) Debt Service Expense 3 870 3iE7 4 240 5654 5521 5.548 6534 5 527 3172 3762 6 590 6 384 8.381 0 0 0 0 0 Q 0 0 0 0 0 0 0 Operations & Maintenance. Total Operating Revenues 52,200 55,300 60,700 63,300 67,100 70,600 73,600 77,560 80,700 84,400 88,600 93,200 97,1 U0 Total Operating EZpenses, LE85 Reuree/OPf 50,200 52,700 53,100 56,700 60,000 63,900 67,400 71,100 74,300 78,300 ft2,200 86,800 90,900 Retiree Benefits/OPEB Contributions 5,000 5.200 5.000 6,500 6,500 6,500 6,000 6,000 6,000 6.000 6.000 6.000 6,000 [i,o0u~ 12c1~n, 2,600 100 600 300 200 400 400 100 400 400 200 Capital: Total Capital Revenues 35.400 28,500 20,000 21,500 27,100 24,600 28,500 26,700 34,200 35,400 39,800 32,800 36,900 Bond Proceeds 30,000 32,000 Total Capital t_xp=nd,iu~y _ ;i3.A00 36,800 32,500 29,600 29200 30,800 31200 30,700 33,200 43,400 51,400 39,600 40900 2,000 ', N,3i ii~l 17,500 18.1 OOi (2.1001 (6,2U0) 17Jn07 ~, dnln.I 1,000 24,000 (I I ti001 16.8001 13.900) Total Revenue Over Expense and 2009 Bands ,1,i>>_ ii ~ 20100 ,-. _ fl, 11~n1J t:~~uu] t.~_„i., ~; 1400 24100 li ne,~ 1~. i,: - ,w6 2007-2008 2006-2009 2009-2010 2010-2011 2011-2012 2012-201 20132014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 O&M Funds Available 6,800 4,200 6,800 6,900 7,500 7,800 8,000 8,400 8,900 8,900 9,300 9,700 9,900 35% Debt Coverage 6.11 5.18 4.73 3.12 4.09 3.88 4.53 4.21 7.50 6.92 4.82 4.48 5.05 O&M Prudent Funtl Balance Percent 17.72% 11.72% 7.16% 10.71`-~ 10.28`6 10.62"-b 10.56°~ 1U.33°-0 10.41% 10.36% 10.01% 9.98% 9.94% Funds Required/Funds Available eo.ooa - -- - - - _. _. _ ]0.006 - - -- --._ _- __. --- 60p00 - - - - - _ - - - _- . ~ - ~ ~ ..-tom. ~. -- _.._ . . ~ so.ooo -- - ---- -- - ~ 40,600 _- - ~ - ~ = c ~ .. ~ . ~ - y" . . . 8 30.000 - - -- 20.000 ~ - - - - - - - 10.000 - - -- - - - - .200]2068 2066-200 20092010 201 U-2011 201/2012 2012-2013 20132014 201A~2016 2015-2016 2016201] 201]-2018 2010-2018 2018-2020 Yaer Attachment 1 CENTRAL CONTRA COSTA SANITARY DISTRICT Actual and Projected Revenues and Expenses Fiscal Years 2007-2008 through 2019-2020 Agenda Item 5.a.3) Board Meeting of March 4, 2010 Written Announcements: Conferences/Events a) CWEA Conference Staff Attendance The California Water Environmental Agency's 82"d Annual Conference will be held at the Sacramento Convention Center from April 20 to April 23, 2010.. Eight employees will be attending. The employees are attending to moderate, present a paper on the Municipal Regional Permit, to chair various Committees such as the Operations Challenge Committee and the Collection Systems Committee; attend classes pertaining to SmartCovers, CCTV and leak detection; and to attend several relevant meetings. Although the Safety Person of the Year for Collection System Operations has not been named yet, they usually attend also. There are no employees attending from Plant Operations. b) Staff Attendance at WERF Research Council Director of Engineering Ann Farrell will travel to Washington, D. C. from March 17 to March 19, 2010 to fulfill her role as a member of the Water Environment Research Foundation (WERF) Research Council. In this role, she provides input on what areas of research emphasis would be most beneficial to address issues currently facing utilities. Her expenses will initially be paid by the District and reimbursed by WERF. General Uadates c) Contra Costa Clean Water Program Inspection .Service Agreement The Contra Costa Clean Water Program (CWP) executed the Stormwater Inspection Service Agreement and forwarded an original signed copy to the District. The CWP also processed individual agreements with the participating cities so the CWP staff did not authorize the District to start work under this agreement until they received the necessary paperwork. Four cities processed the necessary paperwork in December 2009 and work has started in those cities. The remaining five cities processed the required paperwork in January and February 2010, so work is now being conducted in all 9 central county cities participating under the agreement. Walnut Creek continues to implement the Stormwater Inspection Program using city staff. The agreement is formatted to enable Walnut Creek to participate in the service agreement in the future should their staff decide to do so. d) Environmental Protection Agency Source Testing Update The District's multiple-hearth incinerators are currently regulated under Section 112 of the Clean Air Act. Under these requirements, the District has an excellent compliance record. However, the United States Environmental Protection Agency (EPA) is now under a court order to determine if sewage sludge should be classified as a solid waste. If sewage sludge is determined to be a solid waste, the District's multiple- hearth incinerators will be regulated under Section 129 of the Clean Air Act. The EPA is scheduled to decide by April 15, 2010. If the EPA decides to regulate sewage sludge incinerators (BSI's) under Section 129 of the Clean Air Act, they must develop new emission. standards for BSI's by December 2010. In order to meet this aggressive rulemaking schedule, the EPA issued an information collection request (ICR) to nine wastewater agencies in the United States that utilize sludge incineration. Central Contra Costa Sanitary District (the District) was one of the agencies receiving the ICR. The purpose of the ICR is to collect accurate pollutant emissions data to develop the new emission standards. Each of the nine agencies was required to conduct extensive emissions testing on their sludge incinerators and submit the results to the EPA by February 17, 2010. District staff conducted five days of emissions testing during the week of December 15, 2009. The analytical work was completed in late January 2010. The emissions data was submitted to the EPA on February 16, 2010. A preliminary review of the test results indicates that the emissions are reasonably consistent with previous emissions tests. On a positive note, no dioxin was detected in the emissions, and the concentration of PCBs was very low. Assuming that the EPA determines that sewage sludge is a solid waste, the EPA will analyze the emissions data from the nine selected agencies, and will develop new emissions limits for BSI's. The Board will be updated as information becomes available. e) Reuse Room Closure During Renovations Construction began on Monday, March 1St on the HHW Improvements Project. In order to expedite the completion of the Reuse Room/Staff area, the Reuse Room was closed to the public on Monday and will remain closed until around the middle of May. In the interim, arrangements have been made with the Delta Diablo Sanitation District's HHW Program to accept reuse materials collected by our facility. Staff will deliver the reusable materials to their facility in Antioch weekly. Notification of the closure is posted at the facility, as well as on our website and HHW InfoLine. It directs reuse room patrons to the Delta Diablo Reuse Room. The Delta facility will not be able to accept all of the reusable materials we collect, so staff expects to store onsite about half of what will be collected during the 8-10 weeks the room will be closed. The stored materials will be made available to the public once the reuse room reopens. Staff would like to thank the Delta Diablo HHW Program for their assistance.