« back to Public Meetings

Bayshore Sanitary District

Minutes

Regular Meeting of July 23, 2009 (see the Agenda)

Opening of Meeting:

The meeting was called to order by President Gallagher at 7:06 P.M.

Roll Call:

Present: Gallagher, Quinteros, Rizzi, Swanbeck, Tonna
Absent: none
Staff: Clerk Landi, Engineer Yeager, Jen Faught for Counsel Bakker

Oral and Written Communications:

  1. Communications from members of the public
    None
  2. Communications from members of the District Board and Staff
    None
  3. Acknowledgment of recent correspondence to the District
    Copies of correspondence were provided in meeting packets.

Public Hearing:

The Hearing opened at 7:07 P.M.

  1. Approval of Sewer Service Charge Report for FY 2009-2010; Resolution No. 09-02
    The final report was distributed by the Engineer. It will be submitted electronically to the County. It was pointed out that since the budget workshop June 25th, there has been a slight increase in the amount of sewer service charges. The total sewer service charge to be placed on the tax rolls is $944,374.00; direct billed is $62,221.40. A motion was made by Director Swanbeck to approve Resolution No. 09-02. The motion was seconded by Director Quinteros and unanimously passed by voice vote.
  2. Approval of Collection of Delinquent Accounts on County Property Tax Roll
    There are only four delinquencies and they are all in the Saddleback condominium development. The Clerk will check with the Saddleback Site Manager to determine if he can provide any assistance relative to collection of these overdue charges.
    A motion was made by Director Swanbeck authorizing the collection of delinquent accounts on the tax rolls. The motion was seconded by Director Quinteros and passed unanimously by voice vote.
  3. Adoption of FY 2009-2010 Annual Budget; Resolution No. 09-03
    A motion was made by Director Quinteros to approve Resolution No. 09-03, a Resolution Adopting the Fiscal Year 2009-2010 Annual Budget. The motion was seconded by Director Swanbeck and passed unanimously by voice vote.

The Public Hearing was closed at 7:24. No one from the public was present and no objections were received.

Consent Items:

(Any member of the Board or the public can request that an item be removed from the consent agenda. If there are no objections all items are voted upon by one motion.)

  1. Minutes of the Regular Meeting of June 25, 2009
  2. Payment authorization for bills and compensation
  3. Accept 6/30/09 monthly report on District’s current financial status
  4. Accept June, 2009 checking account statement reconciliation

    A motion was made by Director Quinteros, seconded by Director Swanbeck and unanimously passed by voice vote to approve the Consent items which include payment by check numbers 4813-4831.

Board Reports – consideration of matters relating to:

  1. Director Gallagher
    1. LAFCO: The President reported that at the July 15th meeting the municipal service review for East Palo Alto was continued; the review for the City of Menlo Park was approved and their current sphere of influence is unchanged.
    2. CSDA: The next meeting is August 4th in San Carlos at the SamTrans building.
  2. City of Daly City:
    1. Director Rizzi mentioned that the City will be impacted by the State’s borrowing of redevelopment funds.
  3. City of Brisbane:
    1. Universal Paragon Corporation (UPC) is getting ready for the EIR which is due out in October. President Gallagher attended the CAG meeting where UPC discussed the leachate program. Brisbane residents are upset that the leachate discharge is being done via the District. However, the Engineer pointed out that there was never any other proposal. He added that UPC obtained the necessary permits from the SFPUC and the District.

Staff Reports:

  1. Maintenance Director – consideration of matters relating to:
    1. Monthly report on District operations and maintenance: The monthly report is self explanatory. It was reported that the Martin Street line which runs through the back of lots on Alexis Circle was cleaned; however, the crew was unable to gain access to check one manhole. The Board was advised that in FY 08-09 there were no mainline overflows.
  2. District Engineer – consideration of matters relating to:
    1. Annual Sewer Service Charge Report: The report was distributed and includes all customers. It is electronically sent to San Mateo County by EDS and then a printout is provided by the County to be proofed for errors.
    2. 2665 Geneva Avenue: As instructed at the June meeting, the Engineer sent a letter to Fergus O’Sullivan explaining the situation in regard to sewer service charges. He has responded and provided a copy of the certificate of occupancy issued by Daly City on July 14, 2009. Mr. O’Sullivan expects that the units will begin to be rented in the later part of the year and he anticipates that it will take 12 months to reach full occupancy. There was general consensus that since these units will be rented, not owner occupied, and could be occupied at any time, waiving the sewer service charge may not be appropriate.

      No decision will be made until O’Sullivan attends the August meeting. However, it needs to be made clear that the charge being levied on the tax rolls is for this fiscal year; not the prior year. In response to a question, the Engineer said there is one water meter for the commercial units and one for the residential units.

      Mr. Yeager explained how the billing is handled for single family dwellings vs. this unique situation. Director Swanbeck suggested we work with Daly City to track water usage. Staff will discuss further to devise a method of handling this unique situation relative to the water usage component of the annual sewer service charge. The Clerk mentioned that we could obtain meter readings from the Daly City Water Department and issue a bi-monthly sewer service charge billing.

      The Engineer will communicate with Mr. O’Sullivan and advise him that no charges were placed on the tax rolls for FY 08-09; there will be a charge for FY 09-10. He will be invited to the August meeting to explain the occupancy plan.
    3. Extra Capacity Entitlement Charges: There are three commercial properties that have exceeded their allowable discharge: Geneva Coin Laundromat, Saver Thrift/Palace Pharmacy and Alpine Motel. Invoices will be issued by the Engineer.
    4. Connection Fee/Capacity Entitlement Fee: The connection fee is based on the following calculation: the June 30th value of the District’s assets + cash by the number of equivalent dwelling units. That is the value of each dwelling unit which is the connection fee. The calculation is also used to compute the capacity entitlement fee. This years’ calculation indicates that the current connection fee should be increased to $3,766.00. However, that cannot be done without passage of an Ordinance. It was pointed out that for the last 3 fiscal years, the calculation justified increasing the fee; however, we are restricted by the current Ordinance. The Engineer suggested that we discuss increasing the connection/entitlement fee and the sewer service charges after receipt of the annual treatment billing from the SFPUC. There was brief discussion of the Prop 218 requirements regarding notification for connection fee and sewer service charge increases.

      President Gallagher said that we need to look at how we calculate the value of District assets.
    5. SFPUC Rebate Calculations: The Engineer reported that on July 7th staff and the President met with 3 representatives from the SFPUC and their legal counsel. SFPUC General Manager Ed Harrington agrees with the President that we don’t want to go through litigation to resolve this matter—it should be resolved amicably and quickly. At the meeting there was also discussion of the current agreement and the fact that it is coming up for renewal. The SFPUC staff requested further analysis of the calculations that we have done. They also asked to see the impact of commercial users to determine if that caused the spike in flow and also the inflow/infiltration. In addition, they also requested a comparison of metered water usage vs. metered sewage discharge. The Engineer sent a memo to the SFPUC outlining how he wanted to approach this process.

      The Engineer and Board reviewed the content of the report prepared for the SFPUC including the various tables. The table relative to commercial discharges shows that the numbers have been reasonably consistent during the study period and do not account for the wide swings in flow. Table 5 which looks at water usage vs. pump station discharge again indicates that once the meter was replaced in 2006, the gallons per day per dropped and has been consistent ever since. A review of the pump running hours and the discharge again provides evidence that once the meter was replaced the rates returned to the pre-failure rates between July, 2003 and February, 2007. Table 8 confirms that the approach used to calculate the requested rebate was conservative. All of the various calculations and analysis show that the flow spiked in 1996-97 and remained high until the meter was replaced in 2006. Mr. Yeager would like to submit this report to the SFPUC next week so that they are able to respond to the Board by the August 27th meeting.
  3. District Counsel – consideration of matters relating to:
    1. Saddleback sewer service charges: Counsel has researched the record to find how it was decided that the District would direct bill some users. It appears that it was decided sometime in 1988 that the District would generate manual billings for the sewer service charges. The statute authorizing collection of sewer service charges on the San Mateo County tax rolls does not apply to properties outside the District. However, it appears that delinquencies were collected on the San Francisco tax roll. Section 6520.10 of the Health & Safety Code allows the District to certify to the Board of Supervisors any delinquencies that remain after 60 days. Section 6520.12 of the Health & Safety Code states that you can certify the amount of delinquency to any county and that becomes a lien against any property to which the owner has title. That is considered a judgment lien which would have to be paid if you sold, refinanced, etc. Another option to solve the collection problem is to have San Francisco do the billing.

      It was the consensus of the Board to pursue the option provided in Code Section 6520.10.

      During the discussion, the Clerk reported that there is $1,720.00 outstanding for four properties that have not paid their FY 08-09 sewer service charge.
  4. District Clerk – consideration of matters relating to:
    No report.

Old Business:

  1. Review/accept contract staff compensation increase(s)
    There will be no staff compensation increases.

New Business:

  1. Resolution #09-04 allocating funds to District reserve, contingency and cash flow accounts for FY 2009-10
    A motion was made by Director Tonna, seconded by Director Swanbeck and unanimously passed by voice vote to Adopt Resolution No. 09-04.
  2. September 21-24 CSDA Conference in Indian Wells
    Director Tonna is interested in attending the CSDA Conference. No other Director will attend. The President suggested that the Board authorize attendance by the Maintenance Director. A motion was made by Director Swanbeck approving Director Tonna and the Maintenance Director’s attendance to the conference. The motion was seconded by Director Quinteros and passed by voice vote.
  3. August 12-15 CASA Conference in San Diego
    No Director will attend.
  4. Reports on other matters: no action will be taken
    The President reported that the meeting with the SFPUC went very well and they are amenable to resolve the matter and have indicated they should have a reply or proposed resolution for the District’s August meeting.

    Director Swanbeck reported that the SFPUC is thinking of pumping water into underground aquifers throughout San Mateo County and then tap into those aquifers to pump water to the Hetch Hetchy customers during periods of drought.

Adjournment:

A motion was made, seconded and passed to adjourn the meeting at 9:23 P.M. The next meeting is August 27, 2009.

« back to Public Meetings