I won’t be able to be at the Workshop on Tuesday. Here are some of my questions. I hope I get answers.
Questions for CCSD Board Regarding Budget and Rates
Thank you for the opportunity to ask the following questions. I will be looking for the answers on your FQAs.
Charlotte Darehshori
1. Lobbyists: Did you cancel the contract with the lobbyist, D. B. Neish? If so when? You said at an earlier board meeting that you would continue using lobbyist. Are any fees for lobbyist included in the current proposed budget?
2. Build out Reduction. RBF Consulting’s Study for Part III, was estimated at $106,420. What did parts I and II cost and how much of Part III’s $106,420 has been funded. Is any of the $106,410 included in the proposed budget?
3. The proposed budget shows $48,000 for BRP for FY 2008/2009. So is the land conservancy still purchasing lots for the build out reduction whose final cost is proposed to be $39,000,000? As this is the mitigation for the desal and the tests are budgeted on the CIP, aren’t you going forward with a water source which Mr. Sanders calls the 800 pound gorilla?
4. The 2007/2008 Project Priority List for State Revolving Fund Loan Program shows Project Number 4744-110 for Cambria Community Service District Project Description Biosolids & Nitrate Removal Project of estimated funding of $1,256,000 for 2009. Is this in addition to the amount shown on the WW capital improvement program and proposed note?
5. Proposed Note for Water and WW Do you have a commitment letter for the proposed note? What are the terms of the note? Did you pay any funds to any person or parties to obtain this loan? Why did you choose to go with a note rather than a bond? What is the payback period? The Capital Improvement Program states, “Prior year expenditures, $3,200,000.00. Isn’t it misleading to include project description of CIP projects which for the most part have already been completed? The Financing plan does not clearly set forth what reserves are required, nor what fees are to be paid out of the proceeds. Or is the note for more and you are netting out the gross proceeds.
6. Capital Expenditures Geotech Investigation for the Desal Have you updated the costs associated with the Desal project? In reviewing the Conditions of Approval, Phase I, Phase II, Phase III, covering the installation of the wells, geophysical exploration, temporary equipment access, ramps, Costs of the environmental monitor, Permitting, Signage, Cable laying Divers, Support Vessels, Survey vessels, marine mammal monitor and marine wildlife, a meter archaeological control unit and archaeological excavations and qualified archaeologist etc. etc. What is the age of the bids given of $720,000 and $600,000, and does it cover all the items as set forth on the document of Approval?
7. Chevron Settlement for Water Contamination: Isn’t it inappropriate to transfer funds from the enterprise funds to the governmental funds? The Chevron settlement was negotiated as follows: $1,520,710.00 for note charged to Water for SR4 well construction. Reimburse Water Dept for direct expense related to contamination 1,231,319.00. Weren’t all the funds put in the General Fund and when the note was paid back it was paid by the water fund and that is why there are no enterprise reserves?
8. Projects: SCADA – The budget calls for further expenditures of $253,000 for water and $168,000 for WW. Described as Repair and Rehab. As of your 2-27-08 Agenda, V.A.1, ““All of the SCADA equipment is now at CyberNet. CyberNet has completed all the installation and testing. We have not received shipment of our equipment and will be picking it up ourselves to save on shipping and made sure it arrives not damaged like so much of the sensitive equipment we receive these days.” How much money has been spent on this project? What was the original bid? Why is there a need for rehab and repair when it is supposedly still at CyberNet? Will it too, be antiquated by the time it is up and running?
9. The new Board agenda program. What was the cost? Is it up and running? If not when will it be operational?
10. Proposed funds for financial software? Are there any funds proposed to get the districts financial reporting needs under control and up and running? When will you be able to issue current financial statements (not budgets) but real and current statements which most entities can issue and do issue monthly?
11. Personnel Costs. Union Contract upcoming as of 6-30-08? Will this contract be pegged to the service union’s contract? What will be the budget impact? Will it have the 4% COLA, +longevity and +merit increases as the service contract? Will it continue to pay benefits into retirement for medical, dental, life for retired employees and families? What are the current costs for retired employees’ medical and retirement benefits?
12. New Reporting Requirement. What will be the budget impact of the new regulation requiring the setting forth of the liability for non-retirement related benefits, such as medical benefits? Isn’t this a new unfunded liability added to the district’s balance sheet, along with compensated balances and retirement?
13. New Interest Income: On the Water Fund YE/09 proposed and YE09/10 you show interest income on note of $79,500 and $91,500, respectively. Please describe the note and its terms and for what purpose did we make a loan and to whom?
14. Allocated Costs: Shouldn’t the governmental funds be charged a portion of the storage tanks since the larger tanks, as well as large capacity fire pumps are for firefighting? Why should water and WW be charged the full costs of these safety expenditures?