CITY COUNCIL AGENDA
SPECIAL MEETING
CITY OF HALF MOON BAY
WEDNESDAY, JUNE 28, 2023
ADCOCK COMMUNITY CENTER
SOUTH DAY ROOM
535 KELLY AVENUE
HALF MOON BAY, CA 94019
Deborah Penrose, Mayor
Joaquin Jimenez, Vice Mayor
Robert Brownstone, Councilmember
Harvey Rarback, Councilmember
Debbie Ruddock, Councilmember
4:30 PM
This agenda contains a brief description of each item to be considered. Those wishing to address the City Council on any matter not listed on the agenda, but within the jurisdiction of the City Council to resolve, may come forward to the podium during the Public Forum portion of the agenda and will have a maximum of three minutes to discuss their item.
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CONVENE SPECIAL MEETING
ROLL CALL
1.A SEWER AUTHORITY MID-COASTSIDE (SAM) FISCAL YEAR 2023-24 OPERATIONS AND
MAINTENANCE (GENERAL) BUDGET
Staff Recommendation: Adopt a resolution:
1) Approving the Sewer Authority Mid-Coastside Revised General (Operations and Maintenance) Budget for FY 2023-24 (included as Exhibit A to the resolution), without waiving its prior protest votes related to IPS projects; and 2) Rescinding Resolution C-2023-39.
(STAFF REPORT AND RESOLUTION ATTACHED)
ADJOURNMENT
BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: June 28, 2023
TO: Honorable Mayor and City Council
VIA: Matthew Chidester, City Manager
FROM: John Doughty, Assistant City Manager
Maz Bozorginia, Public Works Director/City Engineer
TITLE: SEWER AUTHORITY MID-COASTSIDE REVISED FISCAL YEAR 2023-24
OPERATIONS AND MAINTENANCE (GENERAL) BUDGET
______________________________________________________________________________ RECOMMENDATION:
Adopt a resolution:
1) Approving the Sewer Authority Mid-Coastside Revised General (Operations and Maintenance) Budget for FY 2023-24 (included as Exhibit A to the resolution), without waiving its prior protest votes related to IPS projects; and 2) Rescinding Resolution C-2023-39.
FISCAL IMPACT:
SAM’s proposed (revised) Operations and Maintenance (O&M or General) Budget for Fiscal Year 2023-24 totals $7,425,027, of which $1,720,000 is for Capital. The City’s purported share of the General Budget is $4,507,759 (61.5% of total). SAM costs will be paid from City sewer revenues (sewer user fees—Sewer Fund 05) and transfers of funds from the Sewer Capital Fund (Sewer Fund 06) as adopted by City Council per the 2020 Rate Study. While there are sufficient funds at present, staff will assess potential funding actions in the coming fiscal year.
BACKGROUND:
The Sewer Authority Mid-Coastside (SAM), a Joint Powers Authority (JPA), is made up of three member-agencies: City of Half Moon Bay (City), Granada Community Services District (Granada), and the Montara Water and Sanitary District (Montara). Each year, the three member-agencies must adopt the SAM General Budget, which includes General Operation and Maintenance and Infrastructure (capital repair and construction) Projects, what typically is included in a separate Capital Budget. The JPA provides that O&M costs are funded by the three agencies based on their respective flows into the SAM Treatment Plant. The City’s flows are calculated at 61.5% of total up from 59.4% in the current fiscal year budget.
On June 20, 2023, the City Council adopted a resolution which conditionally approved SAM’s FY 2023-24 General Budget, with two options for our representatives to SAM to support adoption
of the SAM General Budget. One option was to approve the entire budget, including funding for the Montara Force Main replacement project, as long as all three agencies sign a compromise stipulation prepared by SAM’s General Counsel. The stipulation would allow all three agencies to retain their positions in their ongoing litigation relative to funding the Intertie Pipeline System (IPS), of which the Montara Force Main is a part. The other option was to approve the budget, minus the City’s proposed share of the Montara Force Main replacement project.
The SAM Board met on June 26, 2023, and after much deliberation, did not agree to either of the City’s proposed options. Instead, the Board referred a revised budget to the respective agencies for consideration. The revised budget includes funding for two Treatment Plant specific capital projects as well as the carryover of funding previously approved by the SAM Board (with City approving under protest) for an assessment by a consultant team of design and related permit requirements for the replacement of the Montara Force Main. The revised budget does not include the engineered design and construction of the Montara Force Main, instead directing the General Manager to return to the Board with a budget amendment as part of mid-year budget or following the Appellate Court ruling, whichever occurs earlier. The current proposal is similar to the City’s second option adopted on June 20, with a few nuanced differences. All of the agencies are asked to consider the revised budget, which is included as Exhibit A to the resolution in hopes of returning to the SAM Board meeting of July 10, 2023.
DISCUSSION:
The revised budget includes $5,705,027 for General Operations and Maintenance, and $1,720,000 for Capital Projects, including $220,000 for the concept-level design and planning of the Montara Force Main replacement project, which was approved in FY 2022-23 and is carrying over to the new fiscal year. The revised budget does not include any funding for the engineered design and construction of the Montara Force Main Replacement Project, which the City does not believe it is required to help fund and is the subject of pending litigation.
Approval of this budget will ensure that SAM receives its ongoing funding contributions from the member agencies, which it depends on to operate the treatment plant. The City will continue to work with the other agencies on the distribution of costs for capital projects, pending resolution of the existing lawsuit between the parties, which is currently pending in the court of appeals. Staff expects to return to council with updates on this process during the upcoming fiscal year.
ATTACHMENT:
Resolution: 1) Approving the Sewer Authority Mid-Coastside Revised General (Operations and Maintenance) Budget for FY 2023-24 (included as Exhibit A to the resolution), without waiving its prior protest votes related to IPS projects; and 2) Rescinding Resolution C-2023-39.
Resolution No. C-2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HALF MOON BAY: 1) APPROVING THE
REVISED SEWER AUTHORITY MID-COASTSIDE GENERAL (OPERATIONS AND MAINTENANCE) BUDGET FOR FY 2023-24 (INCLUDED AS EXHIBIT A TO THE RESOLUTION), WITHOUT WAIVING ITS PRIOR PROTEST VOTES RELATED TO IPS PROJECTS; AND 2) RESCINDING RESOLUTION C2023-39 WHEREAS, City of Half Moon Bay representatives have reviewed and provided input on the proposed Revised General Budget of the Sewer Authority Mid-Coast (SAM) Budget for Fiscal Year (FY) 2023-24; and
WHEREAS, the proposed Revised SAM General (Operations and Maintenance) Budget for FY 2023-24 totals $7,425,027, of which the City’s purported share is $4,507,759 (61.5% of total); and
WHEREAS, the total proposed revised Capital/Infrastructure Budget for SAM is $1,720,000, which includes plant repairs and carry over design funding but does not include funding for the final design and construction of the Montara Force Main Project; and WHEREAS, optimally, SAM would prepare a separate Capital/Infrastructure Budget for all capital projects; and
WHEREAS, the September 13, 2017, Stipulation and Order regarding Expenses and Assessments for the Sewer Authority Mid-Coastside in the matter of City of Half Moon Bay v.
Granada Community Services District et al. (“declaratory relief action”) Santa Clara Superior Court Case No. 17CV316927 provides that the City shall be deemed to approve under protest that part of SAM’s 2017-18 General Budget characterized as the “Infrastructure Division”, which includes the IPS and Portola Pump Station; and
WHEREAS, the SAM FY 2018-19, FY 2019-20, FY 2020-21, FY 2021-22, and FY 2022-23 budgets included Infrastructure Division items that are at issue in the pending appeal of the declaratory relief action, and which the City seeks to pay under protest based on the same terms set forth in the September 13, 2017, Stipulation and Order; and WHEREAS, the City of Half Moon Bay continues to advocate for more accurate and predictable methodology, whether flow or non-flow-based, for assessing SAM operations costs to make long term rate structuring and budgeting easier for all agencies; and WHEREAS, the City of Half Moon Bay continues to advocate, regardless of litigation, for a separate Capital/Infrastructure Budget consistent with the JPA, member agency budgeting methodology, and government accounting standards; and
WHEREAS, the City of Half Moon Bay continues to advocate for a non-flow-based allocation methodology (such as ownership-based) for assessing SAM related capital costs in line consistent with the JPA and capital depreciation; and
WHEREAS, the City of Half Moon Bay continues to advocate for long-term facility planning for the SAM Treatment Plant in light of known (and greater anticipated) risks of flooding as well as to address aging systems and structures; and
WHEREAS, the City of Half Moon Bay continues to advocate for evaluation of financing options for the capital improvement program rather than the present pay-as-you-go funding; and
WHEREAS, the costs of SAM operations for FY 2023-24 will be funded from City Sewer Enterprise Funds including a one-time transfer of funds from the Sewer Capital Fund (Fund 06).
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Half Moon Bay:
1) Approves the Revised General (O&M) Budget of SAM for FY 2023-24 (included as Exhibit A to this resolution), without waiving its prior protest votes related to IPS projects; and 2) Rescinds Resolution No. C. 2023-39.
***************************************************************** I, the undersigned, hereby certify that the foregoing Resolution (2023- ) was duly passed and adopted on the 28th day of June 2023 by the City Council of Half Moon Bay by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
ATTEST: APPROVED:
___________________________ ______________________________ Jessica Blair, City Clerk Deborah Penrose, Mayor
General Budget
Fiscal Year 2023/24
OPERATIONS BUDGET
EXECUTIVE SUMMARY
The Joint Exercise of Powers Agreement (Agreement) that created SAM and governs its day-to-day operations specifies that “The total expenses of operation and maintenance shall be shared in a manner based on flows into the single consolidated plant. The General Budget is divided into Administrative Services, Treatment, Environmental Compliance, and Infrastructure.
The General Budget includes obligations for wages and benefits defined in employment and bargaining contracts, increases in retirement contributions, and other non-discretionary expenses.
JPA Income & Expenses – General Budget
Operating Income
Assessments - City of Half Moon Bay 4,507,759
Assessments - Granada Community Services District 1,396,305 Assessments - Montara Water & Sanitary District
Interest Income
1,425,623
50,000
NDWSCP Fees 45,340
Total Operating Income $ 7,425,027
Operating Expenses
Wages 1,724,516
Benefits 793,941
Legal Services 356,666
Engineering Services 128,750
Professional & Technical Services 740,714
Professional Memberships 57,421
Insurance Premiums 112,053
Miscellaneous Expenses 92,354
Utilities 707,831
Travel & Training 16,397
Equipment Rental/Lease 7,281
Building & Maintenance Services 187,890
Chemicals 412,114
Permits & Licenses 51,777
Supplies 67,220
Equipment 17,583
Infrastructure Projects 1,720,000
Claims & Penalties
Repairs & Maintenance
80,340
150,179
Total Expenses $ 7,425,027
Total Operating Expenses (less Infrastructure) $ 5,705,027 Contribution to Reserve Funds
(Revenues less Expenses)
$ 0
The overall decrease from the adopted budget for Fiscal Year 2022/23 to the proposed budget for Fiscal Year 2023/24 is $905,599 (11%).
Of the total Proposed General Budget, $2.52 million (34%) is for wages and benefits. The cost of infrastructure improvements is $1.72 million (23%). Legal, Engineering and Professional Services is $1.28 million (17%) and accounts for a significant percentage of the budget due to SAM’s dependency on contractors and consultants for technical and specialized services. Other expenses (including Utilities, Insurance, Equipment Rental, Maintenance Services, Chemicals, Permits, Supplies, Equipment, and Claims) is $1.9 million (26%) of the budget. *All Other Expenses include: Utilities, Insurance, Equipment Rental, Maintenance Services, Chemicals, Permits, Supplies, Equipment, and Claims.
Wages and
Benefits
$2,518,456
34%
Legal and Professional
Services
$1,283,551
17%
Infrastructure
$1,720,000
23%
All Other
Expenses*
$1,903,019
26%
Expenses by Category
Total $7.4 million
Division Budgets by Fiscal Year
FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Adopted
FY 2023/24
Proposed
$
Change
%
Change
Administration $1,720,904 $1,465,910 $1,339,194 $1,582,520 $243,326 18% Treatment $3,714,449 $3,662,645 $3,732,405 $3,885,110 $152,705 4% Environmental
Compliance $271,905 $308,206 $249,630 $237,396 $(12,234) (5)% Total Operating
Budget $5,707,258 $5,436,761 $5,321,229 $5,705,026 $383,797 7% Infrastructure $149,562 $1,412,419 $3,009,397 $1,720,000
$(1,289,397) (43)%
Total General
Budget $5,856,820 $6,849,180 $8,330,626 $7,425,026 $(905,599) (11)% The Administrative Services division increased $243,326 (18%). The net increase is a result from COLA increase of 3% and related merit increase. The Authority also approved a long term agreement with General Counsel which established a three year not to exceed amount.
The Treatment division increased $152,705 (4%), which is due to the COLA increase of 3% and an increase in engineering services and chemicals. Other costs have decreased over the prior year.
The Environmental Compliance division budget decreased $12,234 (5%) primarily due to projected decrease in the use of various supplies.
The Infrastructure division decreased $1,289,397 to address the projects in the approved FY2023- 2024 Capital Improvement Plan.
BUDGET ALLOCATION AND ASSESSMENTS
The Joint Exercise of Powers Agreement (JEPA) stipulates that the total expenses of operation and maintenance of all of the components of the Present Project (intertie pipeline and attendant pump facilities, ocean outfall, treatment plant) shall be shared in a manner based on flows.
Flow Results for Budget Allocations*
HMB GCSD MWSD
FY 2023/24 61.5% 19.05% 19.45% (Based on Calendar Year 2022) FY 2022/23 59.4% 19.90% 20.70% (Based on Calendar Year 2021) Variance 2.10% -0.85% -1.25%
* The member agency assessments are allocated based on flow percentages from the previous calendar year. This allocation varies each year.
Total Assessments for Each Member Agency*
FY 2020/21
Actual
FY 2021/22
Adopted
FY 2022/23
Adopted
FY 2023/24
Proposed
$
Change
%
Change
Half Moon
Bay $4,133,125 $4,241,911 $4,871,480 $4,507,759 $(363,721) (7)% Granada CSD $1,589,305 $1,489,027 $1,630,110 $1,396,305 $(233,805) (14)% Montara WSD $1,584,637 $1,532,608 $1,694,036 $1,425,623 $ (268,413) (16)% Total $7,307,067 $7,263,546 $8,195,626 $7,329,687 $(865,939) (11)% * The assessments to the Member Agencies are rounded to nearest dollar.
HMB
$4,507,759
62%
GCSD
$1,396,305
19%
MWSD
$1,425,623
19%
Assessments for FY 2023-24
Based on Calendar Year 2022 Flow
Assessments History by Agency (in 1,000’s)
$859 $848 $1,324 $1,324 $1,529 $1,585 $1,535 $1,694 $1,425 $1,135 $1,165
$1,527 $1,543 $1,753 $1,589 $1,489 $1,630 $1,396 $1,980 $2,104 $3,461 $3,552
$4,132 $4,133 $4,242
$4,871
$4,508
$-
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 FY20-21 FY21-22 FY22-23 FY23-24
MWSD GCSD HMB
OVERALL OPERATIONS BUDGET SUMMARY
(Includes: Administrative Services, Treatment, Environmental Compliance, and Infrastructure) Key Changes
Personnel costs: net increase due COLA and merit increases Legal Services:
$ 228,404
$ 181,666
Professional services: Increase due to estimates based on Year-to-Date Actuals $ (76,353) Claims/Penalties
Utilities:
Equipment Rental:
$ 65,340
$ 44,017
$ (90,820)
Chemicals: Based on Year-to-Date Actuals $ 125,066
Supplies: $ (61,461)
All other operating expenses: net increase due to CPI and adjustments to other operating expenses $ (32,061) TOTAL GENERAL OPERATING EXPENDITURES BUDGET INCREASE $ 383,798 Infrastructure: net decrease result of CIP (includes engineering costs, reclassified) $ (1,289,397) TOTAL GENERAL OPERATING EXPENDITURES BUDGET INCREASE $ (905,599) Key Changes
Assessments reflect decreased funding for infrastructure projects, maintenance, staff $(865,939) TOTAL GENERAL OPERATING REVENUE BUDGET INCREASE $(865,939)
FINANCIAL DETAILS
The following is a list of key budget lines for FY2022/23 and 2023/24 budgets with brief explanations of the changes from year to year. This is a “budget to budget” comparison and does not necessarily represent current expenditures. Underlined items indicate a budget change in excess of $10,000 year to year.
Budget Line # FY 2022/23 FY 2023/24
1. Wages $1,537,386 $1,724,516
Increase as results of COLA increase and staffing
changes.
2. Premium Pay $113,626 $98,182
Overtime paid for staff to perform tasks outside of
normal work times.
3. Health Benefits $265,562 $289,472
The cost of medical, dental, and vision benefits
provided to employees based on the MOU and
Unrepresented Employees.
4. Retirement Contributions $253,580 $282,760
SAM pays the employer contribution to CalPERS for
retirement benefits in compliance with PEPRA.
5. Retiree Medical/OPEB $33,389 $33,057
Includes contributions to a Health Retirement Account
for future retirees as well as current retiree medical
premiums.
6. Misc. Benefits $86,509 $90,470
Includes Medicare, long-term and short-term disability, workers compensation, and matching funds to a 457
plan.
7. Personnel Subtotal
Subtotal of all wage and benefit costs.
$2,290,052 $2,518,456
8. Legal Services $175,000 $356,666
Includes general counsel and employment
legal fees
9. Engineering Services
Increased to provide design and project
$128,750 $128,750
management related to treatment division.
Budget Line # FY 2022/23 FY 2023/24
10. Professional Services $817,067 $740,714
Includes ongoing services that are specialized and
need to be performed by consultants rather than staff.
11. Professional Memberships $54,752 $47,421
Includes memberships in professional organizations for
SAM and employees that keeps them current in
industry practices and improves how SAM serves the
community.
12. Insurance Premiums $127,386 $112,053
Property, liability, and pollution premiums based on
utilization rates.
13. Misc. Expenses $68,457 $95,354
Includes incidental expenses (uniforms laundry
services, radio and alarm systems, offsite storage,
postage, claims, copier, phone system support, etc.)
not reflected in other categories.
14. Utilities $663,814 $707,831
Electricity, water, telephone, solid waste, etc.
15. Travel & Training $41,382 $16,397
Training and travel related costs for attendance at
industry conferences and seminars, and other related
events to allow staff to keep current on technical skills and industry best practices.
16. Equipment Rental/Lease $98,101 $7,281
Short-term rental or lease of equipment (generators,
storage tanks, etc.).
17. Building & Maintenance Services $205,971 $187,890
Includes janitorial, landscaping, and other regular
building maintenance services.
18. Chemicals
Includes chemicals used in the treatment of wastewater
$287,048 $412,114
to meet regulatory standards.
Budget Line # FY 2022/23 FY 2023/24
19. Permits & Licenses
Annual costs for permits with local, regional and state agencies.
$45,372 $51,777
20. Supplies
Office, computer, breakroom, and safety supplies.
$128,681 $67,220
21. Equipment Purchase
Purchase of equipment use at SAM facilities not
included in infrastructure projects.
$24,216 $17,583
22. Infrastructure Projects
Includes costs of projects included in 5-Year CIP.
Includes engineering costs associated. Includes
costs associated with projects that exceed $50,000
each.
$3,009,397 $1,72,000
23. Claims/Penalties
Reflects claims expenses not covered by insurance.
$15,000 $80,340
24. Repairs & Maintenance
Maintenance for plant equipment
$150,179 $150,179
25. Non-Personnel Subtotal
Subtotal of all costs not associated with wages and
benefits.
$6,040,574 $5,705,027
26. Total
Total of all costs (sum of Personnel and Non-Personnel
subtotals).
$8,330,626 $7,425,027
ADMINISTRATIVE SERVICES
By Category
FY 2021/22
ACTUAL
FY 2022/2023
ADOPTED
FY 2022/23
PROJECTED
FY 2023/24
PROPOSED
EXPENDITURES
Personnel
1 Wages 543,861 515,459 568,265 587,126 71,667 14%
2 Premium Pay 2,816 4,290 3,500 5,815 1,525 36%
3 Health Benefits 61,713 58,408 60,977 62,307 3,899 7%
4 Retirement Cont. 10,209 49,483 49,679 60,158 10,675 22% 5 Retiree Med/OPEB 38,374 16,348 17,067 16,728 380 2%
6 Misc. Benefits 21,935 20,705 25,576 18,642 (2,062) (10%) 7 Subtotal 678,909 664,693 725,064 750,777 86,084 13%
Non-Personnel
8 Legal Services 241,931 175,000 124,955 356,666 181,666 104% 9 Engineering Services - - - - - 0%
10 Professional Services 226,656 200,411 169,935 192,280 (8,131) (4%) 11 Prof. Memberships 38,950 39,509 41,757 43,009 3,500 9% 12 Insurance Premiums 125,690 127,386 108,789 112,053 (15,334) (12%) 13 Misc. Expenses 34,263 32,163 56,181 40,933 8,770 27% 14 Utilities 37,379 36,569 37,499 38,624 2,055 6%
15 Travel & Training 3,622 8,892 3,099 3,191 (5,701) (64%) 16 Equipment Rental 6,599 6,426 7,069 7,281 855 13%
17 Bldg & Maint Services 39,844 22,561 28,264 29,112 6,551 29% 18 Chemicals - - - - - 0%
19 Permits & Licenses - - - - - 0%
20 Supplies 8,340 10,583 8,342 8,593 (1,990) (19%)
21 Equipment - - - - - 0%
22 Infrastructure - - - - - 0%
23 Claims/Penalties 23,729 15,000 - - (15,000) (100%)
24 Repairs & Maintenance - - -
25 Subtotal 787,001 674,502 585,891 831,743 157,241 23% 26 TOTAL 1,465,910 1,339,194 1,310,955 1,582,520 243,326 18%
CHANGE FROM
FY 2022/23 ADOPTED
ADMINISTRATIVE SERVICES
By Category
Assessments reflect net increase in budget for wages, benefits, and other expenses $ 213,326 TOTAL ADMINISTRATION REVENUE BUDGET INCREASE $ 213,326
Key Changes
Personnel costs: net increase due COLA and merit increases. Amount also includes Board stipend and Holiday pay which had been omitted in previous years. $ 86,084 Legal Services $ 181,666
Insurance Premiums: Decreased based on year-to-date actuals $ (15,334) Claims/Penalties $ (15,000)
All other operating expenses: net increase due to CPI and adjustments to other operating expenses $ 5,909 TOTAL ADMINISTRATION EXPENDITURES BUDGET INCREASE $ 243,326 Key Changes
FY 2020/21
ACTUAL
FY 2022/2023
ADOPTED
FY 2022/23
PROJECTED
FY 2023/24
PROPOSED
REVENUE
By Type:
27 JPA Assessments 1,259,899 1,319,194 1,319,194 1,532,520 213,326 16% 28 Contract Services - - - - - 0%
29 NDWSCP Fees - - - - - 0%
30 Misc. Fees - - - - - 0%
31 Interest Earnings 13,701 20,000 50,965 50,000 30,000 150% 32 Misc. Revenue - - - - - 0%
33 From/(To) Reserves - - - - - 0%
- -
34 TOTAL 1,273,600 1,339,194 1,370,159 1,582,520 243,326 18% By Agency:
34 Half Moon Bay 735,781 784,129 755,361 942,500 158,371 20% 35 Granada CSD 258,279 262,388 290,458 291,945 29,557 11% 36 Montara WSD 265,839 272,677 289,605 298,075 25,398 9% 37 TOTAL 1,259,899 1,319,194 1,335,424 1,532,520 213,326 16%
CHANGE FROM
FY 2022/23 ADOPTED
TREATMENT
By Category
Key Changes
Personnel: net increase due to COLA and merit increases $ 140,987 Professional Services: $ (68,222)
Utilities: $ 41,962
Equipment Rental
Chemicals
Claims/Penalties
$ (91,675)
$ 126,288
$ 80,340
Increase services, supplies, chemicals, etc. by 3% CPI $ (76,973) TOTAL TREATMENT EXPENDITURES BUDGET INCREASE $ 152,706
FY 2021/22
ACTUAL
FY 2022/2023
ADOPTED
FY 2022/23
PROJECTED
FY 2023/24
PROPOSED
EXPENDITURES
Personnel
1 Wages 862,052 983,383 873,788 1,098,699 115,316 12%
2 Premium Pay 122,060 107,492 93,636 90,446 (17,046) (16%) 3 Health Benefits 169,897 201,593 206,836 221,245 19,653 10% 4 Retirement Cont. 289,780 191,792 190,159 209,980 18,187 9% 5 Retiree Med/OPEB (21,420) 16,459 14,695 15,743 (716) (4%) 6 Misc. Benefits 64,658 63,744 60,749 69,336 5,593 9%
7 Subtotal 1,487,028 1,564,462 1,439,863 1,705,449 140,987 9% Non-Personnel
8 Legal Services - - - - -
9 Engineering Services 178,966 128,750 125,000 128,750 - 0% 10 Professional Services 741,528 466,656 463,131 398,434 (68,222) (15%) 11 Prof. Memberships 11,587 15,243 13,992 14,412 (831) (5%) 12 Insurance Premiums - - - - -
13 Misc. Expenses 79,314 36,294 49,923 51,421 15,127 42% 14 Utilities 538,233 627,245 649,715 669,206 41,962 7%
15 Travel & Training 26,214 32,303 12,631 13,010 (19,293) (60%) 16 Equipment Rental 81,789 91,675 - - (91,675) (100%)
17 Bldg & Maint Services 114,335 183,410 58,374 158,778 (24,631) (13%) 18 Chemicals 285,382 282,740 397,114 409,027 126,288 45% 19 Permits & Licenses 45,462 45,372 49,314 51,777 6,406 14% 20 Supplies 56,439 93,366 43,674 44,984 (48,382) (52%)
21 Equipment 16,368 14,710 9,071 9,343 (5,368) (36%)
22 Infrastructure - - - - -
23 Claims/Penalties - - 78,000 80,340 80,340
24 Repairs & Maintenance 150,179 86,050 150,179 (0) (0%) 25 Subtotal 2,175,617 2,167,942 2,035,988 2,179,661 11,719 1% 26 TOTAL 3,662,645 3,732,405 3,475,851 3,885,111 152,706 4%
CHANGE FROM
FY 2022/23 ADOPTED
TREATMENT
By Category
Assessments reflect net increased funding for wages, benefits, and other expenses $ 222,366 TOTAL TREATMENT REVENUE BUDGET INCREASE $ 222,366
Key Changes
FY 2021/22
ACTUAL
FY 2022/2023
ADOPTED
FY 2022/23
PROJECTED
FY 2023/24
PROPOSED
REVENUE
By Type:
27 JPA Assessments 3,342,060 3,617,405 3,617,405 3,839,771 222,366 6% 28 Contract Services - - - - - 0%
29 NDWSCP Fees 37,288 115,000 45,340 45,340 (69,660) (61%) 30 Misc. Fees - - - - - 0%
31 Interest Earnings - - - - - 0%
32 Misc. Revenue - - - - - 0%
33 From/(To) Reserves - - - - - 0%
34 TOTAL 3,379,348 3,732,405 3,662,745 3,885,111 152,706 4% By Agency:
34 Half Moon Bay 1,951,763 2,150,185 2,161,703 2,361,459 211,274 10% 35 Granada CSD 685,122 719,502 831,237 731,476 11,975 2% 36 Montara WSD 705,175 747,718 828,795 746,835 (882) (0%) 37 TOTAL 3,342,060 3,617,405 3,821,735 3,839,771 222,366 6%
CHANGE FROM
FY 2022/23 ADOPTED
ENVIRONMENTAL COMPLIANCE
By Category
Key Changes
Professional services: increase based on year-to-date actual $ (11,089) Net increase in wages, utilities, services, and supplies $ (1,153) TOTAL ENVIRONMENTAL COMPLIANCE EXPENDITURES BUDGET $ (12,234) FY 2021/22
ACTUAL
FY 2022/2023
ADOPTED
FY 2022/23
PROJECTED
FY 2023/24
PROPOSED
EXPENDITURES
Personnel
1 Wages 36,709 38,543 36,268 38,690 147 0%
2 Premium Pay 1,746 1,844 1,830 1,922 78 4%
3 Health Benefits 5,357 5,561 5,098 5,919 358 6%
4 Retirement Cont. 18,800 12,305 12,198 12,622 317 3%
5 Retiree Med/OPEB (875) 582 575 586 4 1%
6 Misc. Benefits 2,252 2,061 2,011 2,491 430 21%
7 Subtotal 63,988 60,897 57,979 62,230 1,333 2%
Non-Personnel
8 Legal Services - - - - - -
9 Engineering Services - - - - - -
10 Professional Services 207,073 150,000 79,251 150,000 - 0% 11 Prof. Memberships - - - - - 0%
12 Insurance Premiums - - - - - 0%
13 Misc. Expenses 7,100 - - - - 0%
14 Utilities - - - - - 0%
15 Travel & Training 182 187 190 196 8 4%
16 Equipment Rental - - - - - 0%
17 Bldg & Maint Services - - - - - 0%
18 Chemicals 4,825 4,308 2,997 3,087 (1,221) (28%)
19 Permits & Licenses - - - - - 0%
20 Supplies 20,424 24,732 13,246 13,643 (11,089) (45%)
21 Equipment 4,614 9,505 8,000 8,240 (1,265) (13%)
22 Infrastructure - - - - - 0%
23 Claims/Penalties - - - - - 0%
24 Repairs & Maintenance - - - -
25 Subtotal 244,218 188,733 103,684 175,166 (13,567) (7%) 26 TOTAL 308,206 249,630 161,663 237,396 (12,234) (5%)
CHANGE FROM
FY 2022/23 ADOPTED
ENVIRONMENTAL COMPLIANCE
By Category
Assessments reflect net decreased funding for wages, benefits, and other expenses $ (12,234) TOTAL ENVIRONMENT COMPLIANCE REVENUE BUDGET DECREASE $ (12,234) Key Changes
FY 2020/21
ACTUAL
FY 2022/2023
ADOPTED
FY 2022/23
PROJECTED
FY 2023/24
PROPOSED
REVENUE
By Type:
27 JPA Assessments 183,267 249,630 249,630 237,396 (12,234) (5%) 28 Contract Services - - - - - 0%
29 NDWSCP Fees - - - - - 0%
30 Misc. Fees - - - - - 0%
31 Interest Earnings - - - - - 0%
32 Misc. Revenue - - - - - 0%
33 From/(To) Reserves - - - - - 0%
34 TOTAL 183,267 249,630 249,630 237,396 (12,234) (5%)
By Agency:
34 Half Moon Bay 107,028 148,380 153,522 145,998 (2,381) (2%) 35 Granada CSD 37,570 49,651 47,555 45,224 (4,427) (9%) 36 Montara WSD 38,669 51,598 48,553 46,173 (5,425) (11%) 37 TOTAL 183,267 249,630 249,630 237,396 (12,234) (5%)
CHANGE FROM
FY 2022/23 ADOPTED
INFRASTRUCTURE
By Category
Key Changes
Decreased to only address the projects identified in the approved FY2023-24 capital improvement plan budget, including engineering costs TOTAL INFRASTRUCTURE REVENUE BUDGET DECREASE $ (1,289,397)
INFRASTRUCTURE
By
Category
Key Changes
Decreased to only address the projects identified in the approved FY2023-24 capital improvement plan budget, including engineering costs TOTAL INFRASTRUCTURE REVENUE BUDGET DECREASE $ (1,289,397)
HIGHLIGHTS
• Infrastructure Projects in progress in FY 2021/22:
Montara PS - Replace Pump 1
Montara PS - Install Grit Removal
Rehabilitate/Replace Vehicle Fleet
Portola PS - Replace Pump 1 with Grinder Pump
Replace Bar Screen Drives and Screens
Replace Influent Pump and Motors 1 – 5
Electrical Improvements for Influent Pumps 1 – 8
Install Shade Canopy at Chemical Feed Pumps
Replace Effluent Pumps 1 and 2
Replace Sludge Mixing Pumps 1 and 2 with Chopper Pumps • Infrastructure Projects in progress in FY 2022/23:
Princeton PS - Replace w/Package PS and Rehabilitate Bypass System Replace Effluent Pumps 1, 2 & 3
Plant and Cyber Security Measures Implementation
Replace Chain & Flights, Collectors Gear Reducer, and Weirs in Primary Clarifier Replace Primary Scum Pump and Motor
Replace Grit Pumps 1 & 2 and Appurtenances
Replace Primary Sludge Pumps and Motors 1, 2 & 3
Secondary Treatment - Replace/Rehabilitate Secondary Clarifier Drive Mechanism
Water Supply and Piping - Replace No. 3 Water Pumps
• These projects are in various stages- order placed, awaiting deliveries, or awaiting order placement. There has been a delay in deliveries and cost increases too due to the pandemic situation.
SEWER AUTHORITY MID-COASTSIDE
CAPITAL IMPROVEMENT PROGRAM
Project 1: Montara Force Main Rehabilitation
Priority: Rehabilitation/Replacement/Safety
The Montara Force Main Rehabilitation (MFM) Project addresses aging, at-risk pipeline within the Intertie Pipeline System. The MFM conveys wastewater from the Montara and Moss Beach communities to SAM’s Wastewater Treatment Plant in Half Moon Bay. The MFM is approximately 16,750 feet in length, ranging from 12 to 14-inches in diameter and was constructed of ductile iron pipe (DIP) in the early 1980s.
A 2017 project replaced the first 2,500 feet of MFM from Montara Pump Station to the end of Vallemar Street with high-density polyethylene (HDPE) pipe and replaced the associated air/vacuum relief valves. A 12-inch-diameter DIP portion of the MFM experienced failure during the atmospheric river storm that started on December 31, 2022, which was declared as a disaster at both the State and Federal levels. SAM’s emergency response included replacement of an 850-ft portion of the impacted force main with HDPE. It is proposed to replace the remaining 13,400 feet of the MFM project over four years starting from July 2023 to June 2027. The proposed $0.22M for the fiscal year 23-24 entails PreDesign costs and Biological Survey.
CIP Total Cost: $10,686,000
Project Funding: This project will be funded by SAM’s Infrastructure Program.
Basis of Priority: This priority project continues the best practice of rehabilitating aging force main to mitigate sanitary sewer overflows, human health risks, environmental damages, and other regulatory violations.
Annual Cost Distribution and Schedule
CIP Total FY2023 FY2024 FY2025 FY2026 FY2027
$10.686M $0.22M $4.78M $3.0M $2.686 $0
SEWER AUTHORITY MID-COASTSIDE
CAPITAL IMPROVEMENT PROGRAM
Project 2: Replacement/Rehabilitation of Boilers at the Treatment Plant Priority: Rehabilitation/Replacement/Safety
SAM has two (2) Dual Gas Hot Water Boilers. They provide heat to keep the Digester Sludge at a constant temperature between 95.0 to 96.0 degrees Fahrenheit. This allows the microbes that break down the fecal matter to function properly. If we do not supply the boilers with either Digester Gas or Natural Gas we will not be in compliance with our NPDES permit, which will lead to violations and penalties.
Boiler # 1 is out of compliance and Boiler #2 is barely below the acceptable limit.
The proposed $0.5M is to replace one of the boilers and refurbish the other.
CIP Total Cost: $500,000
Project Funding: This project will be funded by SAM’s Infrastructure Program.
Basis of Priority: This priority project continues the best practice of rehabilitating aging equipment to mitigate regulatory violations.
Annual Cost Distribution and Schedule
CIP Total FY2023 FY2024 FY2025 FY2026 FY2027
$0.5M $0.5M $0 $0 $0 $0
SEWER AUTHORITY MID-COASTSIDE
CAPITAL IMPROVEMENT PROGRAM
Project 3: WWTP – Replace Emergency Generator
Priority: Replacement and Rehabilitation
This project focuses on replacing the emergency generator at the WWTP. The existing generator is old, has exceeded its useful life, and replacement parts are becoming difficult to obtain. The backup power generator is an essential asset that must be reliable. In the event of a power loss to the WWTP, the generator provides temporary power so that operation of the WWTP may continue. Frequent repairs are being done to make it functional. Therefore, it is more economical to procure a new generator.
CIP Total Cost: $1,500,000
Project Funding: This project will be funded by SAM’s Infrastructure Program.
Basis of Priority: This generator needs to be maintained in peak stand-by condition in the event of a power failure at the WWTP. A prolonged power outage, without a reliable and sufficient back-up power supply, will result in significant disruption to the plants, clarification, biological treatment, and disinfection processes that may result in a violation of SAM’s NPDES permit requirements.
Annual Cost Distribution and Schedule
CIP Total FY2023 FY2024 FY2025 FY2026 FY2027
$1.5M $1M $0.5M $0 $0 $0
Position Control List
Classifications Authorized
Positions
Administrative Services:
General Manager 1.0
Finance Officer
Accounting Technician
1.0 1.0
Administrative Assistant 1.0
4.0 Operations & Maintenance:
Engineering & Construction Contracts Manager (Defunded) Supervisor of Treatment / Field Operations
0.0 0.75
Maintenance Mechanic I/II/III 2.0
Operator I/II/III 2.0
Lead Operator 4.0
Utility Worker (Defunded) 0.0
8.75 Environmental Compliance:
Supervisor of Treatment / Field Operations .25
Total Authorized – General Budget 13.0
Collection Services:
Collection Maintenance Worker I/II/III 3.0
Maintenance Mechanic I/II/III 1.0
Total Authorized – Collections Services 4.0
Grand Total Authorized Authority 17.0