HomeMy WebLinkAbout04.a. CONDUCT PUBLIC HEARINGS ON THE FY 2010-2011 O&M, DEBT SERVICE FUND, SELF-INSURANCE BUDGETS & ESTABLISHMENT OF FY 2010-11 SEWER SERVICE CHARGE RATES, AND PLACE ON CCC TAX ROLL FOR COLLECTIONCentral Contra Costa Sanitary District
' ~ BOARD OF DIRECTORS
POSITION PAPER
Continued..from June 3, 2010
Board Meeting Date: June 17, 2010 No.: 4.a.:;_Public:.Hearings _
Type of Action: CONDUCT PUBLIC HEARING
subject: CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE
FY 2010-2011 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE
FUND BUDGET AND THE SELF-INSURANCE FUND BUDGET, AND FOR THE
ESTABLISHMENT OF THE FY 2010-2011 SEWER SERVICE CHARGE RATES,
AND ON PLACING FY 2010-2011 SEWER SERVICE CHARGES ON THE COUNTY
TAX ROLL FOR COLLECTION
Submitted By: Initiating DeptJDiv.:
DEBBIE RATCLIFF ADMINISTRATIVE /
CONTROLLER FINANCE & ACCOUNTING
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
D. Ratcr R. Musgrav ~M--j~~-
James elly,
General Manager
ISSUE: The District Code and State law require public hearings for the establishment
of the Sewer Service Charge rates for FY 2010-2011 and on placing the FY 2010-2011
Sewer Service Charges on the County tax roll for collection. An uncodified ordinance
passed by four affirmative votes is needed to increase the Sewer Service Charge. A
resolution passed by four affirmative votes is needed to place the charges on the
Contra Costa County tax roll. Although not required by law, the District will hold a public
hearing to receive public comment on the FY 2010-2011 Operations and Maintenance
Budget, Debt Service Fund Budget and the Self-Insurance Fund Budget.
RECOMMENDATION: Conduct two separate Public Hearings and upon their
respective conclusions, take the following actions, if considered appropriate:
Approve and adopt the FY 2010-2011 Operations and Maintenance Budget
(O&M), Debt Service Fund Budget and Self-Insurance Fund Budget
Approve an uncodified ordinance increasing the Sewer Service Charge by $16
for a total Sewer Service Charge of $327 per residential unit effective beginning
FY 2010-2011.
Approve a resolution authorizing collection of the 2010-2011 Sewer Service
Charges on the County tax roll.
N:WDMINSUPWDMINIPDSPAPER\Conduct Public Hearing 2010-2011 Budgets 8 SSC 06.03-10.doc
POSITION PAPER
Board Meeting Date: June 17 , 2010
sub/ecr. CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE
FY 2010-2011 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE
FUND BUDGET AND THE SELF-INSURANCE FUND BUDGET, AND FOR THE
ESTABLISHMENT OF THE FY 2010-2011 SEWER SERVICE CHARGE RATES,
AND ON PLACING FY 2010-2011 SEWER SERVICE CHARGES ON THE COUNTY
TAX ROLL FOR COLLECTION
FINANCIAL IMPACTS: The draft FY 2010-2011 O&M Budget is based on a $0 rate
increase in the Sewer Service Charge for a total of $311 per residential unit equivalent,
allocating $300 to Operations and Maintenance and $11 to the Sewer Construction
Fund. At the January Financial Workshop, staff recommended a $16 Sewer Service
Charge increase. In April, the Board approved sending a Proposition 218 Notice to
property owners advising them of a possible Sewer Service Charge increase of up to
$16 for a total Sewer Service Charge of $327. If the Board approves an increase in the
Sewer Service Charge, staff recommends that it be allocated to the Sewer Construction
Fund to support the capital program.
Also, a $4.3 million allocation towards the unfunded liability associated with GASB 45
post retirement benefits is included in the draft 2010-2011 budget. This allocation will
remain unencumbered until action by the Board. The proposed $16 Sewer Service
Charge increase would generate approximately $2.6 million in new revenue for fiscal
year 2010-2011 with the recommendation that it be allocated to the Sewer Construction
Fund. From the total $327 Sewer Service Charge, $300 would be allocated to O&M
and $27 to the Sewer Construction Fund. This allocation was set with the goal of
restoring approximately a 10% O&M prudent reserve. The proposed budget would
result in a decrease to O&M reserves at fiscal year end of $640,000 for a projected
O&M reserve balance at June 30, 2011, of $5.5 million.
ALTERNATIVES/CONSIDERATIONS: The Board could decide not to increase the
Sewer Service Charge for FY 2010-2011, keeping the Sewer Service Charge at the
current $311, or choose another amount of increase up to $16 which was included in
the Proposition 218 Notice sent to customers in April.
Effective with the 1982-1983 fiscal year, Contra Costa County imposed a fee for
collecting the Sewer Service Charge on the tax roll. The County fee, which
approximates $100,000 annually, is much more economical than the alternative of
direct billing by the District.
N:WDMINSUPWDMINIPOSPAPER\Conduct Public Headng 2010-2011 Budgets 8 SSC 06-03-t0.doc
POSITION PAPER
Board Meeting Date: June. 17 , 2010
Sub]ecr. CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE
FY 2010-2011 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE
FUND BUDGET AND THE SELF-INSURANCE FUND BUDGET, AND FOR THE
ESTABLISHMENT OF THE FY 2010-2011 SEWER SERVICE CHARGE RATES,
AND ON PLACING FY 2010-2011 SEWER SERVICE CHARGES ON THE COUNTY
TAX ROLL FOR COLLECTION
BACKGROUND: The FY 2010-2011 Operations and Maintenance Budget was
submitted for review at the May 20, 2010, Board Meeting. A detailed presentation was
made to the Board at that meeting and a copy of the overheads used is attached (see
Attachment 1).
A Proposition 218 notice, which requires the District to provide at least a 45 day notice
to all rate paying property owners for a Sewer Service Charge rate increase, was sent
in April 2010. Approximately 105,200 Proposition 218 notices were mailed. As of May
28, 2010, a total of 149 telephone calls, a-mails and letters have been received (see
Attachment 2). This is less than .1 % of total notices mailed.
Legal notices were published in the Contra Costa Times and the San Ramon Valley
Times for the June 3, 2010, Public Hearing to receive public comment on the FY 2010-
2011 Operations and Maintenance Budget, Debt Service Fund Budget and the Self-
Insurance Fund Budget, for the establishment of the Sewer Service Charge rate for FY
2010-2011, and on collection of the 2010-2011 Sewer Service Charges on the County
tax roll.
It is recommended that two separate hearings be held to consider the matters
described.
Hearing to receive aublic comment on the FY 2010-2011 Operations and
Maintenance (O&M) Budget, Debt Service Fund Budget and Self-Insurance Fund
Budget and for the establishment of the Sewer Service Charge rate up to $327 for
FY 2010-2011:
The FY 2010-2011 O&M Budget and Debt Service Fund Budget were submitted
to the Board of Directors for initial review at the May 20, 2009, Board Meeting
and the Self-Insurance Fund Budget was approved by the Board at the April 1,
2010, Board Meeting. All three are scheduled for approval and adoption at the
June 3, 2010, Board Meeting. Upon approval of the three budgets and
determination of adequate levels of reserves, the Board must establish the 2010-
2011 Sewer Service Charge rates.
N:WDMINSUP\ADMIN\POSPAPER\Conduct Public Hearing 2010-2011 Budgets & SSC 06-03-10.doc
POSITION PAPER
Board Meeting Date: June 17 , 2010
sub/ecr. CONDUCT PUBLIC HEARINGS TO RECEIVE PUBLIC COMMENT ON THE
FY 2010-2011 OPERATIONS AND MAINTENANCE BUDGET, DEBT SERVICE
FUND BUDGET AND THE SELF-INSURANCE FUND BUDGET, AND FOR THE
ESTABLISHMENT OF THE FY 2010-2011 SEWER SERVICE CHARGE RATES,
AND ON PLACING FY 2010-2011 SEWER SERVICE CHARGES ON THE COUNTY
TAX ROLL FOR COLLECTION
Hearing to consider collection of the FY 2010-2011 Sewer Service Charges on the
County tax roll:
The law requires that a public hearing be held each year before the Sewer
Service Charge can be placed on the County tax roll. The Sewer Service
Charge has been collected on the County tax roll since inception of the service
charge in 1976. Collection on the tax roll provides the most economical and
efficient means for the District to collect the charges for approximately 105,000
accounts.
RECOMMENDED BOARD ACTION: Conduct two separate public hearings and upon
their respective conclusions, take the following actions, if considered appropriate:
• Approve and adopt the FY 2010-2011 Operations and Maintenance Budget,
Debt Service Fund Budget and Self-Insurance Fund Budget (requires 3 votes)
and
• Approve an uncodified ordinance increasing the Sewer Service Charge by $16
for a total Sewer Service Charge of $327 per residential unit effective beginning
FY 2010-2011. (requires 4 votes)
Approve a resolution authorizing collection of the FY 2010-2011 Sewer Service
Charges on the County tax roll. (requires 4 votes)
N:W,DMINSUPWDMIN\POSPAPER\Conduct Public Hearing 2010-2011 Budgets 8 SSC 06-03-t0.doc
BASED ON $327 SEWER SERVICE CHARGE
AND WILL BE MODIFIED IF
BOARD APPROVES A DIFFERENT AMOUNT
ORDINANCE NO.
AN UNCODIFIED ORDINANCE OF THE
CENTRAL CONTRA COSTA SANITARY DISTRICT
ADOPTING A SCHEDULE OF SEWER SERVICE CHARGE RATES
IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.24.030
WHEREAS, the District has previously developed and instituted a Sewer Service
Charge Program to finance the services and facilities furnished by the District, and
WHEREAS, it is reasonable and necessary that all users of the District's wastewater
and household hazardous waste collection, treatment, recycling, reuse and disposal
services and facilities, including those temporary users served under Special Discharge
Permits, contribute their appropriate portion of the funding for such District services and
facilities; and
WHEREAS, the Board of Directors of the District has reviewed the current Schedule of
Sewer Service Charge Rates and has determined that the annual residential sewer
service charge rate should be increased by $16.00 per living unit to $327.00 per living
unit and that non-residential sewer service charge rates be increased by proportionally
similar amounts as the residential sewer service charge rate; and
WHEREAS, Chapter 6.24.030 of the District Code provides the enabling authority for
the District to implement the proposed uncodified Schedule of Sewer Service Charge
Rates; and
WHEREAS, a properly noticed public hearing to receive comments and protests and to
consider the proposed uncodified Schedule of Sewer Service Charge Rates was held
on June 3, 2010; and
WHEREAS, in adopting this Ordinance, the Board of Directors finds that:
a. Written notices of the proposed increase in sewer service charge rates were
sent by first class U.S. mail to every owner of property connected in the
District at least 45 days prior to the Public Hearing on the proposed increase
conducted on June 3, 2010.
b. All written protests against the proposed increase in the sewer service charge
rates, including those provided in person, by facsimile, email and U.S. mail,
were considered and tallied at the Public Hearing conducted on June 3, 2010,
and the District was not presented with protests by a majority of the owners of
the identified parcels affected by this change.
N:WDMINSUP\ADMIN\DIST-SEC\Ordinances\Oraft - SSC Ordinance 2010-11.DOC
c. The amount of the charge imposed does not exceed the proportional cost of
the service attributable to the properties receiving service and the charge is
only imposed on those properties actually receiving service or for those which
service is immediately available.
d. This action is categorically exempt from the California Environmental
Quality Act (CEQA) pursuant to Section 15273 (a) (1-4) of the District CEQA
Guidelines.
NOW, THEREFORE, the Board of Directors of the District does ordain as follows:
Section 1 (To be Uncodified)
The "Schedule of Sewer Service Charge Rates' as set forth in full in Exhibit "A" to this
Ordinance, which exhibit is incorporated in full herein by this reference, is hereby
adopted in uncodified form pursuant to the provisions of District Code Section 6.24.030.
As of the effective date of this Ordinance, Sewer Service Charges shall be charged at
such rates and for such categories of users as set forth in said Schedule, and shall
remain in effect until amended or replaced by ordinance.
Section 2
All ordinances, parts of ordinances and any provision of Resolution 2008-063 in conflict
with the provisions of this ordinance are repealed. The provisions of this ordinance,
insofar as they are substantially the same as existing provisions relating to the same
subject matter shall be construed as restatements and continuations thereof and not as
new enactments. To the extent this ordinance or any portion or section of this ordinance
is determined invalid or unconstitutional, such portions of Resolution 2008-063 shall
remain in effect and such rates and charges due thereunder for any categories of users
shall remain due and payable as if those portions of Resolution 2008-063 had not been
repealed.
With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken,
prior to the effective date of this Ordinance, under any chapter, ordinance, or part of an
ordinance, such chapter, ordinance or part of an ordinance shall be deemed to remain
in full force for the purpose of sustaining any proper suit, action, or other proceedings,
with respect to any such violation, right, liability or appeal.
Section 3
This Ordinance shall be a general regulation of the District and shall be published once
in the Contra Costa Times, and the San Ramon Valley Times newspapers of general
circulation within the District, and shall be effective on July 1, 2010. This ordinance
shall be kept on file with the Secretary of the District.
N:WDMINSUPWDMIN\DIST-SEC\Ordinances\Draft- SSC Ordinance 2010-11.DOC
PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa
Sanitary District on the 171h day of June, 2010, by the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Michael R. McGill
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Elaine R. Boehme
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
Kenton L. Alm
District Counsel
N:WDMINSUPWDMIN\DIST-SEC\Ordinances\Draft - SSC Ordinance 2010-11.DOC
EXHIBIT "A"
Schedule of Sewer Service Charge Rates (Uncodified)
This schedule of Sewer Service Charges (to be effective July 1, 2010, was established
by Central Contra Costa Sanitary District Ordinance No. _, adopted June 3, 2010.
User Group Fiscal Year
2010 - 2011
Residential (rate per living unit):
Single Family Dwellings, Mobile Homes, Townhouses, Condominium Units,
Multi-Famil Units $327.00 ~
Commercial INon-Industrial (rates per hundred cubic feet):
Bakeries $8.36
Supermarkets w/garbage disposals $6.31
Mortuaries $5.95
Restaurants $6 1 g
Others $3.03
Minimum Annual Charge - $340.00
Industrial (rates per unit specified):
Wastewater Flow (million gallons per year) $1,668.00
Biochemical Oxygen Demand (1,000 lbs. per year) $695.00
Total Suspended Solids (1,000 lbs. per year) $497.00
Peak (Demand) Flow (million gallons per day) $200,418.00
Minimum Annual Charge $340.00
Special Discharge Permits 8 Contractual Agreements: Determined Individually
Page 1
Schedule of Sewer Service Charge Rates (continued)
N:W DMINSUPW DMI N\DIST-SEC\Ordinances\Draft - SSC Ordinance 2010-t t.DOC
User Grou Fiscal Year
2010-2011
Mlxed Use (shared water meter; rates per hundred cubic feet):
Rate Group XA $3.35
Rate Group XB $3.66
Rate Group XC $3 98
Rate Group XD $4 29
Rate Group XE $4.61
Rate Group XF $4.93
Rate Group XG $5.24
Rate Group XH $5.56
Rate Group XI $5 67
Rate Group XJ $6.51
Rate Group XK $6 82
Rate Group XL $7 14
Rate Group XM $7.45
Rate Group XN $~ ~~
Rate Group XO $8 09
Minimum Annual Charge $340.00
Page 2
Schedule of Sewer Service Charge Rates (continued)
N:\ADMINSUPWDMIMDIST-SEC\Ordinances\Draft- SSC Ordinance 2010-11.DOC
User Grou Fiscal Year
2010-2011
Institutional (rates per hundred cubic feet unless otherwise noted):
Churches
$3.03
Schools (Daycare, Preschool, University) $3.03
Schools (Elementary) $4.18 /student
Schools (Intermediate) $4.42 /student
Schools (High School) $4.671 student
Fraternal 8 Service Organizations $3.03
Local & State Institutions $3.03
Other Tax Exempt (Except Federal) $3.03
Federal Institutions $3.03
Utilities with Special Tax Status ~ $3.03
Independent Living Facilities, Rest Homes, & Convalescent Hospitals $3.03
Minimum Annual Charge $340.00
Page 3
N:\ADMINSUP WDMIN\DIST-SEC\Ordinances\Draft - SSC Ordinance 2010-11.DOC
RESOLUTION NO. 2010-
A RESOLUTION DIRECTING THAT THE FY 2010-2011
SEWER SERVICE CHARGES BE
COLLECTED ON THE COUNTY TAX ROLL
WHEREAS, the 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 Code provides that the District may elect to collect current and
delinquent charges on the tax rolls as provided by Sections 5470 and following of the
Health & Safety Code; and
WHEREAS, it is considered to be economically and efficient to continue the existing
practice and collect the Sewer Service Charges for the 2010-2011 fiscal year on the
county tax roll;
NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Central
Contra Costa Sanitary District, that the FY 2010-2011 Sewer Service Charges are to be
collected on the County of Contra Costa tax roll.
PASSED AND ADOPTED this 17th day of June 2010, by the District Board of the
Central Contra Costa Sanitary District by the following vote:
AYES: Members:
NOES: Members
ABSENT: Members
COUNTERSIGNED:
Elaine R. Boehme
Secretary of the Central
County of Contra Costa
Approved as to form:
Michael R. McGill
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Contra Costa Sanitary District
State of California
Kenton L. Alm
Counsel for the District
N:WDMINSUPWDMIN\RATCLIFF\Resolution 2010-2011 sewer service charges.doc
Attachment 1
2010-2011 OS~M BUDGET
ASSUMPTIONS
REVENUE ASSUMPTIONS:
Sewer Service Charge - $311
$300 Allocated to 08.M
$11 Allocated to Sewer Construction
Total Budgeted Ad Valorem Tax $12.9 million:
$5.7 M111Ion Allocated to Debt Service Fund
$7.2 Million Allocated to Sewer Construction Fund
EXPENSE ASSUMPTIONS:
$7.5 Million allocation for GASB 45 post retirement benefits
($4.3 Million to Trust, remainder is retiree health premiums)
Retirement Expense- 1.31% increase in rate
Increases to Healthcare costs for active employees:
- Healthnet-12.5%
- Kaiser -11.2%
Increases to Healthcare costs for retirees
- Healthnet-16.1%Weighted Average
- Kaiser - 7.6% Weighted Average
Administrative Overhead percentage-117%
(Of Capitalized Salary)
Vacancy Factors:
- 3% for Salaries
- 4% for Benefits
N:WDMINSUP~ADMINIRATCLIFF\Budget Overheads 2010-2011.doc
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OPERATING AND MAINTENANCE
2009-2010 BUDGET COMPARED TO 2010-2011 BUDGET
(000 Omitted)
2009-2010 2010-2011
Budget Budget Increase
(Decrease)
Revenues $61,668 $_62,326 1.1%
Expenses 59,746 62,966 5.4%
Revenues Over Expenses 1 2 S64
Fund Balance 06/30/10 $5,523.
Sewer Service Charge Rate
(O&M Portion Only) $292 $300
Total Sewer Service Charge $321' $311-$327
"Budgeted a $10 SSC increase, however the Board chose to hold the
SSC at $31 1.
N: W DMINSUPW DMIN\RATCIIFF\Budgel Overheads 2010-2011.doc
KEY LABOR COSTS - 08M
(000 Omitted)
Salaries ~ Wages
Salary Vacancy Factor
Retirement
Medical Insurance
Dental Insurance
Workers' Compensation
Benefit Vacancy Factor
Capitalized Adm.
Overhead
All Other
Total Labor Costs
2009-2010 2010-2011 Increase
Budget Budget (Decrease)
$24,557 $25,543 $986
(682) (705) (23)
8,148 8, 754 606
6,188 7,042 854
716 855 139
628 560 (68)
(830) (965) (135)
(3,460) (3,654) (194)
5.062 6.896 1,836
S40.327 S44.326 S3.999
N:WDMINSUPWDMINV2ATClIFFlBudget Overheads 2010-2011.doc
KEY INCREASES 2009-2010 BUDGET
TO 2010-2011 BUDGET
(000 Omitted)
Dollar Increase
(Decrease) % Increase
2009-2010 Budget $59,746
Salaries (Includes 3% vacancy
963
4.0%
factor)
Benefits (Includes 4% vacancy 3
036 18
5
factor) , .
Chemicals 162 10.1
Utilities (665) (12.6)
Repairs & Maintenance 163 4.9
Hauling 8~ Disposal 3 .3
Professional 8. Legal (191) (27.6)
Outside Services ~ (139) (6.1)
Self Insurance (533) (38.5)
Materials 8 Supplies 52 2.8
All Other 369 19.3
2010-2011 Budget $62,966 5.4%
N:WDMINSUFMDMINV2ATCLIFF\Budget Overheads 2070-2011.doc
DEBT SERVICE FUND
2010-2011 BUDGET
(000 OmitFed)
Revenue
Debt Service
$5,674
Interest Expense 2,062
Principal Payments 3,612
TOTAL $5,674
N:IADMINSUFWDMIN\RATCLIFF\BUdget Overheads 2010-2011.doc
See June 3, 2010 Board
Agenda Backup -Item 4.a.
(Attachment 2) for responses
to Proposition 218 notices
that were mailed to property
owners.
4.b. Public Hearings
Continued from June 3, 2010
CENTRAL CONTRA COSTA SANITARY DISTRICT
PUBLIC HEARING
TO RECEIVE COMMENTS ON PLACING DELINQUENT CHARGES
ON THE CONTRA COSTA COUNTY PROPERTY TAX ROLL
SUGGESTED AGENDA
JUNE 17, 2010 -
1. Request staff report.
2. Public hearing on Placing Delinquent Charges on the Contra Costa County Tax
Roll:
A. Open public hearing
B. Receive public comment
C. Close public hearing
3. Consider adoption of resolution directing that Delinquent Charges be collected on
the Contra Costa County tax roll. A resolution of the Board of Directors passed
by four affirmative votes is needed to place charges on the Contra Costa County
tax roll.
N:\SSC\Capacity Use\Ordinances\2010 Cap Use-CAD-AVAD-Delinquent Charge Ordinance\DelinquencieslAgenda Public Hearing
2010-11 Delinquent Chges Draft 6-03-10.doc