BOARD MEETING MINUTES
REGULAR MEETING
WEDNESDAY, JUNE 6, 2007
A. CALL TO ORDER/ROLL CALL
Director Sapanai called a meeting of the Board of Directors of the Stinson Beach County Water District to order
on Wednesday, June 6, 2007 at 5:00p.m., at the District Office located at 3785 Shoreline Highway in Stinson
Beach, California.
Directors present:
Elizabeth Sapanai, President
Jim Zell, Vice President
Lawrence Baskin, Director
Barbara Boucke, Director
Scott Tye, Director
General Manager present:
Ed Schmidt
Staff present:
Toby Bisson
Christine Casper
B. PUBLIC EXPRESSION
Director Zell thanked the District for its prompt attention to his concern regarding errant alarms.
Director Boucke inquired about the status of the contract to lease cell tower space, and asked if it had gone to the
Legal Committee yet. Director Sapanai stated that a proposed draft contract is currently being reviewed by legal
counsel. Director Baskin stated that the proposed contracted lease rate of $2,500 per month has been identified
as the maximum rate that the cellular company can spend for the tower. Ed Schmidt stated that at his last place
of employment with the Half Moon Bay Water District, they had just leased two tower spaces, one for $1,500 per
month and the other for $2,500 per month. Toby Bisson added that there is a second carrier that is also in need
of some ground space, which will generate even more revenue. Director Sapanai relayed that the leases just
need to be negotiated at this point, and even if they are negotiated successfully, there still needs to be a public
hearing to approve the contracts (there continues to be significant opposition in the town with regards to housing
a cell tower in Stinson Beach).
Ed Schmidt related to the Board the employees' appreciation for the raises that they were granted for fiscal year
2007-2008.
C. SETTING OF AGENDA
Motion to adopt the agenda as presented made by Director Baskin, seconded by Director Zell and approved by
unanimous vote.
D. GENERAL BUSINESS
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Discussion and Possible Direction to Staff to Adopt Draft Operations and Maintenance Budget/Capital
Improvement Projects List: Ed Schmidt presented the changes made to the previous draft of the Budget Detail
Report; two important columns were added to the far right hand side to indicate this year's (fiscal year 2006-2007)
projected annual budget and this year's budget "year to date." The purpose of the addition of these two columns
is to compare the projected budget for next year (fiscal year 2007-2008) with the projected budget and actuals for
the current year.
Mr. Schmidt pointed out some line items on the budget: One of the significant changes from last year to this year is in water usage charge revenues (account # 4110); year to date (July 2006-April 2007) water usage is already three thousand dollars over the projected budget $289,503 for the year. Therefore, the annual budget for 2007- 2008 has been raised to $325,000.
Director Sapanai asked where on the budget the leak revenue is accounted for; Director Boucke responded that it is accounted for under "Water Usage."
Director Baskin directed the Board's attention to the budget excess on page three of the Budget Detail Report, and asked if our revenues are overstated. Director Boucke replied that the revenues are projected as accurately as possible; the only revenue source she would be willing to revise is the ERAF tax revenue (account #4812), as the ERAF tax revenue fluctuates greatly from year to year. Director Baskin stated that the Board should consider reducing the budgeted ERAF revenue for 2007-2008 from $70,000 to $30,000.
Director Boucke suggested changing "Total Expenses" to "Total Operating Expenses" and added that depreciation should be accounted for on page 3 of the Budget Detail Report (approximately $150,000).
Director Sapanai asked why the 2006-2007 year-to-date Pumper Permit Fees (account #4385) are at $0.00. Christine responded that Jackie sent out the letters to the pumpers in May. Director Sapanai asked when those fees are due; Christine responded that the pumper fees are due annually, and added that Jackie may have sent the letters out late this year, as Raven asked her to send them in March.
Director Baskin stated that, given the planned construction of a new water treatment plant, a category should be added to the budget called "Capital Improvement Reserve". Director Baskin added that most budgets account for three types of reserves: emergency reserve, operating reserve and a capital reserve. The Board decided to set up all three reserves on the Budget Detail Report, with the excess after annual depreciation to be divided equally among three reserves.
Board discussed funding grant writing for Allan Richards of Stetson Engineering. Director Sapanai stated that the Board should weigh the amount of money the District has spent on grant writing against the amount of money the District has been awarded in grant money historically. Ed Schmidt reported that Allan Richards of Stetson Engineering, Inc. had suggested to him setting up a reserve for grant writing in the event that something comes up that the Board wants him to pursue. The Board discussed the necessity of raising funds to cover the planned water treatment plant replacement project. The subject of grant funding was ultimately referred to the Water Operations Committee; the Water Operations Committee shall advise the Finance Committee of its determinations.
Changes to the Budget Detail Report were summarized as follows:
- Add a line to subtract annual depreciation from the budget excess
- Amount left over after depreciation is subtracted will be divided equally between the three reserves: Operational Reserve, Construction Reserve, and Emergency Reserve.
- Grant funding will be left out
- ERAF revenues will be decreased from $70,000 to $35,000
The Board reviewed the Capital Improvement Projects spreadsheet prepared by staff. Director Boucke asked if it would be possible to have a corresponding chart or column that tracks the funding available/needed on the chart. The Board asked staff to add a column for the 2006-2007 projects that were completed (and to eliminate the column for 2011-2012). The Board decided that a vote was not necessary to approve the project list.
D. CLOSED SESSION/RETURN TO OPEN SESSION
- Review of CalPERS Cost Estimates. The Board met in closed session pursuant to Government Code section 54957 to assess enhanced retirement programs forwarded by CalPERS.
E. COMMITTEE REPORTS
None.
F. ADJOURNMENT
Motion to adjourn the meeting made by Director Tye, seconded by Director Baskin and approved by unanimous
vote.