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Bayshore Sanitary District

Minutes

Regular Meeting of December 16, 2010, 3:30 P.M. (see the Agenda)

Opening of Meeting:

The meeting was called to order by President Gallagher at 3:36 P.M.

Roll Call:

Present: Gallagher, Quinteros, Rizzi, Swanbeck, Tonna
Absent: None
Staff: Clerk Landi, District Counsel Bakker
Also: Gina Sheridan

SB 1234 Ethics Training:

Counsel Bakker explained that per SB 1234, Ethics Training is mandatory once every two years. He and his associate Jen Faught conducted the training which covered the following topics:

The training session concluded at 5:36 P.M.

Recessed for meal break

The meeting was reconvened at 7:11 P.M.

Present: Gallagher, Quinteros, Rizzi, Swanbeck, Tonna
Absent: None
Staff: Clerk Landi, District Counsel Bakker. District Engineer Yeager, and Maintenance Director Landi

 

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

    Recent correspondence was included in Agenda meeting packets.

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 November 18, 2010
  2. Payment authorization for bills and compensation
  3. Accept 11/30/10 monthly report on District’s current financial status
  4. Accept November, 2010 checking account statement reconciliation

    A motion was made by Director Swanbeck, seconded by Director Quinteros and unanimously passed by voice vote to approve the Consent Items which include payment by check numbers 5121-5137.

Board Reports – consideration of matters relating to:

  1. President Gallagher
    1. LAFCO: There has been no meeting since her last report in November.
    2. CSDA - Local Chapter: Noting to report.
  2. City of Daly City: There is no official update but it was noted that the El Rancho property is currently undergoing some interior modifications by Landmark Company.
  3. City of Brisbane: A meeting was held recently with a presentation and discussion of the plans for the Baylands property.

Staff Reports:

  1. Maintenance Director – consideration of matters relating to: monthly report on District operations and maintenance. The monthly report is self explanatory.
    1. The station and system are functioning well.
  2. District Engineer – consideration of matters relating to:
    1. November meter reading data: Again, everything is running fine and the calculations are consistent.
    2. Billing questions: There are 2 customers who had significant charges this year. They are the Bayshore Boulevard Associates/USPS Center ($29,000) and Abbey Rentals ($3,182.) Both of these accounts were surcharged due to the fact that San Francisco did not report all the meter readings for some prior years. The owners were not given advance warning about the surcharge to correct the prior billing errors; this will be done as a courtesy in the future. Bayshore Boulevard Associates will be billing the U.S. Postal Service. The error was discovered this year when San Francisco reported readings for 4 meters when only 1 meter reading had been reported in prior years.
    3. PG&E billing: They were sent an invoice for their temporary discharge permit for the cable replacement project. The permit was issued for 3 months last fall.
    4. Daly City: Patrick Sweetland requested a copy of the District's contract with the SFPUC. He was interested in the stated discharge volume and a service map.
    5. Annual Sewer Service Charge – potential increase: This was placed on the calendar last summer so that we could talk about sewer service charge (SSC) and capacity entitlement increases. The Engineer reviewed the memo submitted in his monthly report.

      In April, 2005, Ordinance #93 was adopted which increased the annual SSC. There had not been a significant increase for a number of years prior to that. The intent five years ago was to increase the rate sufficient so that it would not have to be increased for a 5 year period. This is also when Prop 218 was being implemented. The increase took effect in fiscal year 2005-06. The end of the 5 year cycle is fiscal year 2010-11. Five years ago we were unaware that we had a flow meter problem. Tables 1 and 2 of the report look at what the anticipated revenue and expenses vs. the actual. The Board took a conservative estimate relative to revenue. There hasn't been much change in the SSC revenue over the 5 years. The most significant different is in property taxes. There, too, we took a conservative approach and the revenue has been higher than anticipated. Expenses have been fairly steady over the 5 years. However, the SFPUC rates have not risen as was projected over the same 5 year period. We set the SSC rates high enough so that the District would break even at the end of the 5 year period. What has actually happened, since the Board was conservative re revenue and expenses, we've generated close to one million dollars more than anticipated. Table 3 is based on the resolution passed each July designating funding of the various contingency and reserve accounts. The sum total of those accounts has been increasing since fiscal year 2007-08 and after accounting for the recent payment to the SFPUC, the funds value is approximately three million dollars. This means that it is not necessary to increase the SSC rate at this time.

      The Engineer suggested that we may want to amend Resolution #2010-04 which established the funding levels for the contingency and reserve accounts. However, since we have not yet received our annual SSC billing from the SFPUC, he suggested we continue this item pending receipt of the billing.
    6. Capacity Entitlement Fee – potential increase: No report.
    7. Resolution 2010-04: Discussed under (3).
  3. District Counsel – consideration of matters relating to:
    1. Counsel Bakker distributed a memo on regarding Prop 26. This proposition deals with fees and taxes and defines what constitutes a tax. It should not have an impact on the District since our fees are subject to Prop 218.
  4. District Clerk – consideration of matters relating to:
    1. The Clerk reported that we have received notice from the State Controller indicating that our claim filed for mandated costs for fiscal year 2002-03 will result in 0 reimbursement.

Old Business:

None

New Business:

  1. 2011 Meeting Schedule: The following scheduled was set: January 27, February 24, March 24, April 28, May 26, June 23, July 28, August 25, September 22, October 27, November 17, December 15
  2. Election of Officers for 2011: A motion was made by Director Swanbeck, seconded by Director Rizzi and passed by voice vote to retain the same officers for 2011.
  3. Notice of intent to restate the CSRMA Joint Exercise of Powers Agreement and Bylaws – Revised: Counsel reviewed the changes and did not find them to be significant. No action is required.
  4. Reports on other matters: no action will be taken

Adjournment:

A motion was made by Director Quinteros, seconded by Director Swanbeck and passed to adjourn the meeting at 8:08 P.M. The next meeting is January 27, 2011 at 7:00 P.M.

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