BOARD MEETING MINUTES
REGULAR MEETING
Saturday, July 21, 2018
A. CALL TO ORDER/ROLL CALL
Vice President Boucke called the Regular meeting of the Board of Directors of the Stinson
Beach County Water District to order on Saturday, July 21, 2018, at 9:30 a.m., at the Stinson
Beach County Water District office, located at 3785 Shoreline Highway, Stinson Beach, CA
94970.
Directors present:
Barbara Boucke, Vice President
Lawrence Baskin, Director
Sandra Cross, Director
Morey Nelsen, Director
Directors absent:
Jim Zell, President
Treasurer present:
Judy Stemen
General Manager present:
Ed Schmidt
Staff present:
Helma Schwendig - Office Supervisor
B. PUBLIC EXPRESSION
The General Manager distributed a flyer addressed to West Marin
Residents and Guests as requested by The Gym, located at 3605 Shoreline Highway, Stinson
Beach, which features a large creekside patio and inside cardio room for various types of
workouts and elliptical trainers.
C. SETTING OF AGENDA
The agenda was unanimously adopted as set.
D. GENERAL BUSINESS
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A discussion and possible direction to staff on the adequacy of existing water rates.
At the Saturday, June 16, 2018, Board meeting, the Board requested the Finance Committee to review the financial reports and prepare a comparative rate study of other districts and also calculate the result in increased revenue if water rates were increased by 1%, 5%, etc.
The General Manager discussed his report, which he had presented to the Finance Committee on the adequacy of existing water rates, based on the following three outcomes:
A. How much revenue would be raised by raising the District's Water Rates by 1%, 5%, 10%?
If both the service charge and the water usage charge were raised 1%, revenue would increase by $6,400 per year. A 5% increase would be an additional $32,000, and a 10% increase would be $64,000 in additional revenue.
If the monthly wastewater monitoring charge were raised by 1%, $3,320 would be raised. If it were increased by 5%, $16,600 would be raised. If increased 10%, $33,200 would be raised per year.
If the monthly water service charge, the water usage charge, and the wastewater charge were all increased by 1%, then an additional $9,720 would be generated per year. If they all were raised 5%, then $48,600 would be raised. If raised 10%, an increase of $97,200 would be generated per year.
B. Does the District need to raise rates?
A number of circumstances need to be evaluated when a rate increase is considered. A partial list includes: Does the District have sufficient revenue to meet the needs of next year's budget? (Yes). Are there any economic changes that result in people purchasing less water, any environmental factors that might impact water sales in the short term? (No). Is there sufficient cash flow on hand to pay for Capital Infrastructure Projects, are there sufficient financial reserves? (Yes). Are there any large businesses or companies that might move out of the District's service area, or any new laws or regulations that might result in lowered revenue? (No).
C. How do the District's rates compare to other water districts inside and outside of this area?
Two charts show various urban water agencies as well as California Water Coast Springs, Bolinas CPUD, Inverness PUD, Stinson Beach CWD, Muir Beach CS, and Bodega Bay PUD. These charts reflect that smaller local agencies receive most of their water revenue from the monthly service charge. The larger agencies receive most of their income from the water usage charge. The large agency usage is based on a consumption of 86,600 gallons per year by the average residential household. The local water usage chart is based on 50,000 gallons of usage per year.
In conclusion, no increase in rates is anticipated in the next 12 months, as there is sufficient cash flow projected during this time period. Additional review will be provided in the future.
The General Manager had invited John Gilbert, owner of the Parkside Restaurant, to attend today's Board meeting to address Mr. Gilbert's concern about the District's Tier 7 Water Use Rate. Mr. Gilbert's restaurant is consistently one of the highest water users, averaging about 50,000 gallons per month. However, Mr. Gilbert was not present at the Board meeting.
E. FINANCIAL REPORTS
The financials as of June 30, 2018 need a few revisions and will be
discussed next month.
F. APPROVAL OF MINUTES
Director Nelsen made a motion to approve the minutes of June 16, 2018 and the Special
Meeting of June 21, 2018. Director Cross seconded the motion. The motion was passed
unanimously by Vice President Boucke and Directors Baskin, Cross, and Nelsen.
G. APPROVAL OF DISBURSEMENTS
Director Baskin moved to approve the disbursements of June 12 and June 26, 2018. Director
Cross seconded the motion. The motion was passed unanimously by Vice President Boucke
and Directors Baskin, Cross, and Nelsen.
H. MANAGER'S REPORT
The General Manager discussed his monthly report. The District has received a letter from
Janice Thomas of the State Water Resources Control Board, Division of Drinking Water, stating
that the District's application for a water supply permit amendment to add the District's new well
is complete. The District may use the well before receipt of the permit amendment. However,
a well capacity draw down test needs to be performed.
The General Manager has collected information on the District's existing insurance coverage
with JPIA, which consists of General Liability, Auto Liability, Public Officials Liability, Property,
Crime, and Workers' Compensation. He is contacting Marsh & McLennan for their coverage
and rates.
He has researched a possible line of credit from Westamerica Bank. Right now, the interest
rate for a loan of $200,000 for a one year period would be 7.75%. The District's accounts
receivable (water revenue) would be used as collateral.
Director Nelsen will meet with Allan Richards of Stetson Engineers regarding the stability of the
slope above the Laurel Water Tank. Mr. Richards has estimated that 6 temporary polyethylene
storage tanks, each having a capacity of 4,600 gallons, and costing $50,000 will be placed in
the parking lot and on the hillside as part of the Laurel Water Tank Coating and Repair Project.
Director Nelsen stated that the engineering report prepared some years earlier for the
Treatment Plant contained a reference to "undocumented fill" and that he is concerned about a
landslide in the event of extreme weather conditions.
Director Cross noted that the public is very appreciative of the General Manager's monthly
newsletters.
I. COMMITTEE REPORTS
None.
J. CORRESPONDENCE
None.
K. CLOSED DOOR SESSION
The meeting was adjourned to Closed Door Session at 10:22 a.m. At 11:07 a.m. the Board
returned to Open Session. Nathan Metcalf participated by telephone. The Board conferred with
legal counsel in a Closed Door Session. No action was taken.
L. ADJOURNMENT
The meeting was adjourned. The next regular meeting will be on
Saturday, August 18, 2018, at 9:30 a.m.