BOARD MEETING MINUTES

REGULAR MEETING
SATURDAY, MAY 19, 2012

A.    CALL TO ORDER/ROLL CALL

President Elizabeth Sapanai called the Regular meeting of the Board of Directors of the Stinson Beach County Water District to order on Saturday, May 19, 2012, at 9:30 a.m., at the Stinson Beach County Water District office, located at 3785 Shoreline Highway, Stinson Beach, CA 94970.

Directors present:
Elizabeth Sapanai, President
Jim Zell, Vice President
Lawrence Baskin, Director
Barbara Boucke, Director

Directors absent:
Scott Tye, Director

Treasurer present:
Judy Stemen

General Manager present:
Ed Schmidt

Staff present:
Helma Schwendig - Administrative Assistant

B.    PUBLIC EXPRESSION

None.

C.    SETTING OF AGENDA

The agenda was unanimously adopted as set.

D.    PUBLIC HEARING

1. Discussion and possible direction to staff re: SBCWD Operations and Maintenance Budget for Fiscal Year 2012-2013, (continued from the Saturday, April 21, 2012, Board Meeting.)
   Director Baskin stated that the District's Draft Proposed Operating Budget for fiscal year 2012- 2013 had previously been heard and recommended for approval at several Finance Committee meetings, as well as being discussed at last month's Board meeting.
   
   President Sapanai expressed her concern about the adequacy of the District's reserve funds. She stated that if the State of California were to reduce the District's property tax apportionment revenue, its operating reserves would be sufficient to cover less than two months of operating expenses. Director Baskin responded that if the District did not have enough funds for its operations, it could transfer funds from its Capital Improvement reserves. President Sapanai noted the District would have the option of borrowing funds to cover the shortfall.
   
   Director Boucke reminded the Board that there will be an additional increase of $2,700 to the CalPERS retirement fund rate. Taking that into account, Director Baskin moved to approve the resolution adopting the Annual Operating Budget. Director Boucke seconded the motion. The resolution and its attached calculation schedules were approved unanimously.
2. Discussion and possible direction to staff re: SBCWD Capital Improvement Budget through Fiscal Year 2016/17, (continued from the Saturday, April 21, 2012, Board Meeting.)
   Director Boucke stated that both the Water Operations Committee and the Finance Committee have reviewed and revised the Capital Improvement Projects Budget numerous times during the year. The District has tentatively budgeted $512,500 for all Capital Projects for the fiscal year 2012-2013.
   
   The Water Operations Committee has looked at the cost of replacing the aging and leaking Ranch Tank in 2013-2014. Vice President Zell noted that there are a number of issues regarding the expense of repair versus the expense of replacing the Ranch Tank. Allan Richards of Stetson Engineers will be drawing up the specifications for its replacement. President Sapanai suggested researching the availability of obtaining a low interest loan in case the District should experience a future low cash flow. The District does not qualify for grants.
   
   Ms. Sapanai noted that the recent high volume of real property sales, higher sales prices and their attendant increase in real estate taxes will generate additional tax revenue. However, the District has no control of the amount of property tax revenue it receives.
   
   Director Baskin moved to approve the Capital Improvement Budget. Director Boucke seconded the motion. The CIP Budget was approved unanimously.

E.    GENERAL BUSINESS

1. Discussion and possible direction to staff re: approving a Resolution Establishing an Employee Benefit Program for the Fiscal Year 2012-2013.
   The recommended changes from last year's program had been previously discussed at Personnel and Finance Committee meetings and consisted of the following:
   
   (1) The District will reimburse each employee up to a total of $250 per fiscal year for prescription corrective eyewear, co-pay benefits and/or chiropractic care; (2) For Retirement Benefits, the employee contribution will be 8% of gross salary; (3) Employees may not accumulate more than 350 hours of sick leave; (4) Employees choosing to further their education shall be reimbursed up to $750 per fiscal year. Director Baskin motioned to approve the resolution and Director Zell seconded the motion. The resolution was approved unanimously.

F.    APPROVAL OF MINUTES

Director Boucke moved to approve the Minutes of April 21, 2012. Director Baskin seconded the motion. The minutes were approved unanimously.

G.    APPROVAL OF DISBURSEMENTS

Director Baskin moved to approve the disbursements of April 18 and April 26, 2012. Director Boucke seconded the motion. The disbursements were approved unanimously.

H.    FINANCIAL STATEMENTS

The Board reviewed the Operating Report, Investment Report and Cash Flow Report for March 2012. Director Boucke noted that the reconciliation of bank statements and payroll should also be reviewed by someone other than the District's bookkeeper. President Sapanai requested that the matter be discussed at the District's next Finance Committee meeting.

Director Baskin is hopeful that the District's ongoing legal expenses will soon be reduced. He noted that the few remaining properties that are suitable for development will give rise to more complicated septic issues.

I.    MANAGER'S REPORT

The Board reviewed the General Manager's monthly report. At a future Board Meeting, perhaps in July or August, Verizon will present a proposal to work with the District in getting a 5 year use permit from the Park Service, to install a microwave and telecommunication antennas at the District's Highlands Tanks site.

Director Baskin recommended sending an e-mail to Mr. Peter Sandmann, acknowledging receipt of Mr. Richard Volk's signed Agreement for the Seadrift Water Main Line Relocation and $10,000 deposit, but that the District is still awaiting receipt of his Monitoring Well Easement Agreement.

President Sapanai requested that the septic system at 15 Calle del Mar [Hasler property which was described in the May 14 Wastewater Monitoring Program Report by Chris Kelley] be placed as an agenda item for further discussion at the next Wastewater Committee meeting on May 29.

J.    COMMITTEE REPORTS

None.

K.    CORRESPONDENCE

The Board reviewed the correspondence.

L.    ADJOURNMENT

The motion to adjourn the meeting was approved by unanimous vote. The meeting was adjourned at 10:17 a.m.