Committee Members: R. Halket G. Vonheeder-Leopold D. Scannell (alt.)

A G E N D A

DUBLIN SAN RAMON SERVICES DISTRICT FINANCE COMMITTEE MEETING

DSRSD Board Conference Room 7051 Dublin Boulevard

Dublin, CA 94568

Monday, December 12, 2011 5:30 p.m.

Public Comment: At the start of the meeting, audience members are encouraged to address the Committee on any item of interest that is within the subject matter jurisdiction of the Committee and not already included on the agenda. Comments should not exceed five minutes. All speakers shall introduce him/herself, and then proceed with his/her comment.

ITEM ATT. REFERENCE ACTION ANTICIPATED

TIME ** Public Comment *

Discussion Items D-1 Agenda Management*

(consider order of items)

D-2 Cogeneration Electrical Improvements and Service Relocation (CIP 22CI276): Potential to Exceed Change Order Contingency

Steve Delight Discussion 10 min

D-3 Proposed Proposition 218 Policy for Submission and Tabulation of Written Protests

District Secretary

Discussion 10 min

D-4 Accept Financial Statements for June 30, 2011 with Independent Auditors' Report

Financial Services Manager

Discussion/ Refer to Board

20 min

D-5 Committee/Staff Comments Committee/ Staff

Informational/Discussion

5 min

D-6

Meeting Schedule: January 9 – 5:30 p.m.

Committee Discussion 5 min

Informational Items – (No Discussion Unless Requested by Committee) I-1 Water Conservation (Permanent

Reduction) – Valley Christian Urinal Replacement (CIP 09-6102)

Sue Stephenson Informational

I-2 Review of Board Expenses General Manager

Informational

* Standing Items ** Relative time anticipated by Staff for discussion of item; guideline only. All materials made available or distributed in open session at Board or Board Committee meetings are public information and are available for inspection at the front desk of the District Office at 7051 Dublin Blvd., Dublin, during business hours, or by calling the District Secretary at (925) 828-0515. A fee may be charged for copies. District facilities and meetings comply with the Americans with Disabilities Act. I f special accommodations are needed, please contact the District Secretary as soon as possible, but at least two days prior to the meeting.

Approval/Date

ITEM D-3

H:\Committee\Finance\12-12-11\STAGING FOLDER\D3-1 Proposition 218 - policy for submission and tabulation memo.docx

MEMORANDUM

DATE: December 8, 2011 TO: Finance Committee FROM: Nancy Gamble Hatfield, District Secretary SUBJECT: Proposed Proposition 218 Policy for Submission and Tabulation of Written

Protests Attached is a draft policy regarding the Submission and Tabulation of Written Protests. In response to Proposition 218 that sets forth certain procedural requirements prior to adjusting utility charges, staff developed some preliminary concepts that could better guide the protest process in the future. Ideas from other agencies’ guidelines and policies were gathered and are the basis for the proposed policy. District General Counsel has also briefly reviewed the materials and is familiar with similar policies from other agencies. The objective of the discussion is to determine if a protest policy is appropriate and to seek further input from the Finance Committee on this topic.

H:\Committee\Finance\12-12-11\STAGING FOLDER\D3-2 Proposition 218 RESOLUTION - Draft_Legal RVV_11-17-11_rvv.docx DRAFT

RESOLUTION NO. _____ RESOLUTION OF THE BOARD OF DIRECTORS OF DUBLIN SAN RAMON SERVICES DISTRICT ADOPTING POLICY FOR THE SUBMISSION AND TABULATION OF WRITTEN PROTESTS IN CONNECTION WITH RATE HEARINGS CONDUCTED PURSUANT TO ARTICLE XIII D OF THE CALIFORNIA CONSTITUTION WHEREAS, Proposition 218 (Section 6 of Article XIII D of the California Constitution)

requires the District to comply with certain substantive and procedural requirements prior to

imposing or increasing utility charges, which include the consideration of written protests to such

increases; and

WHEREAS, this policy has been drafted to implement the requirements Section 6 of

Article XIII D of the California Constitution and Government Code sections 53750 et seq.; and

WHEREAS, the Board of Directors finds that an owner or tenant-customer of a parcel

receiving a property-related service may, after receiving notice of a proposed increase in a fee or

charge, submit a written protest to the proposed increased fee or charge; and

WHEREAS, Proposition 218 requires that all written protests be considered and at a

public hearing for which a minimum notice of 45-days has been provided; and

WHEREAS, Article XIII D of the California Constitution and Government Code sections

53750 et seq. do not provide appropriately documented methods for sending notices, counting

written protests, and other related processes, and this creates ambiguity for District staff,

customers, and the general public, concerning these issues; and

WHEREAS, it is a best practice to set forth guidelines for the submission and tabulation

of written protests for proposed changes to utility charges consistent with Article XIII D of the

California Constitution and Government Code sections 53750 et seq.; and

WHEREAS, requiring that a written protest be signed by the owner or tenant-customer

would allow validation in the event of a challenge or suspected irregularity.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF

DUBLIN SAN RAMON SERVICES DISTRICT, a public agency in the counties of Alameda

and Contra Costa, California that the attached policy for the “Submission and Tabulation of

Written Protests,” attached as Exhibit “A” is hereby adopted.

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Res. No. ______

ADOPTED by the Board of Directors of Dublin San Ramon Services District, a public

agency in the State of California, counties of Alameda and Contra Costa, at its regular meeting

held on the _____ day of ______________20( ), and passed by the following vote:

AYES:

NOES:

ABSENT: ____________________________________ Richard M. Halket, President

ATTEST: ______________________________ Nancy G. Hatfield, District Secretary

H:\Committee\Finance\12-12-11\STAGING FOLDER\D3-2 Proposition 218 RESOLUTION - Draft_Legal RVV_11-17-11_rvv.docx DRAFT 3

EXHIBIT A

POLICY SUBMISSION AND TABULATION OF WRITTEN PROTESTS

It is the policy of the Board of Directors of Dublin San Ramon Services District: Submission of Written Protests • Any record property owner and or tenant-customer of a parcel receiving a property-related service

may submit a written protest to the Secretary of the District at 7051 Dublin Boulevard, Dublin, CA

94568, either by delivery to the District Secretary’s Office or by submitting the written protest at the

public hearing. Written protests must be received prior to the close of the public hearing.

• The Board welcomes input from the community at any time, including during the public hearing on

the proposed charges, but only written protests will be counted as formal protests.

• A valid written protest must identify the affected property by assessor’s parcel number or by street

address, including the original signature of the record property owner or tenant-customer, and may

not be altered by anyone other than the signatory. Mailed written protests should note on the

envelope: “Sewer Service or Water Charge Protest” so as to help ensure proper handling when

received by the District.

• Written protests may be submitted by personal delivery or U.S. mail. Postmarks will not be

accepted as evidence of timely delivery. Email and facsimile protests will not be accepted. Any

written protest not actually received by the close of the public hearing, whether or not mailed prior

to the hearing, shall not be counted.

• Only one written protest will be counted per parcel. If signed written protests are received from

both the property owner and tenant-customer, only one written protest will be counted. If a parcel

served by the District is owned by more than a single record owner, each individual owner may

submit a written protest, but only one written protest will be counted per parcel and any one

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written protest submitted in accordance with these rules will be sufficient to count as a protest for

that parcel.

• Any person who submits a written protest may withdraw it by submitting to the Secretary of the

District a written request that the protest be withdrawn but this withdrawal must be done before

close of the public hearing. The withdrawal of a written protest shall contain sufficient information

to identify the affected parcel and the name of the record owner or tenant-customer who submitted

both the written protest and the request that it be withdrawn.

• To ensure transparency and accountability in the protest process, written protests shall be

maintained in confidence from their receipt until disclosure of the number of protests at the public

hearing, at which time they shall become disclosable public records.

Tabulation of Written Protests

• The Secretary of the District shall determine the validity of all written protests. The Secretary shall

not accept as valid any written protest if the Secretary determines that any of the following

conditions exist:

o The protest does not properly identify by assessor’s parcel number or by street address a

property served by the District.

o The protest does not bear the original signature of the record owner or tenant-customer of

the parcel identified on the protest.

o The protest does not clearly state its intent to be a protest to the proposed charges or does

not apply to a specific charge.

o The protest was not received before the close of the public hearing on the proposed

charges.

o A request to withdraw the protest is received prior to the close of the public hearing on the

proposed charges.

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o The protest was altered by someone other than the record owner or tenant-customer

whose signature appears on it.

• At the conclusion of the public hearing, the Secretary shall complete the tabulation of all written

protests received and shall report the results of the tabulation to the Board of Directors upon

completion.

• If tabulation of the written protests received demonstrates that the number received is less than

one-half of the parcels served by the District with respect to the charge which is the subject of the

protest, then the Secretary shall advise the Board that there is an absence of a majority protest and

therefore there is no need to determine the validity of each individual written protest. For the

purposes of this provision, all written protests will be considered validly submitted.

• If tabulation of the written protests received demonstrates that the number received is greater than

one-half of the parcels served by the District with respect to the charge which is the subject of the

protest, then the Secretary shall advise that a validation of the written protests is required and

when that validation will be completed.

• The Secretary of the District’s determination that a written protest is not valid (or does not apply to

a specific charge) shall constitute a final action of the District and shall be appealable only to the

Board of Directors.

• A majority protest exists if valid written protests are timely submitted and not withdrawn by the

record owners or tenant-customers of a majority of the parcels subject to the proposed charge, a

majority being equal to fifty (50) percent plus one (1).

H:\Committee\Finance\12-12-11\STAGING FOLDER\D4-1 Audit S&R.docx

Recommendation: The Treasurer recommends that the Board accept, by Motion, the Financial Statements for June 30, 2011 with Independent Auditors’ Report. Summary: Maze and Associates has audited the financial statements of Dublin San Ramon Services District. Their audit report of the District’s Basic Financial Statements for the Year Ended June 30, 2011 is attached. The financial statements show the water and sewer enterprises as a whole with supplementary statements showing each of the District’s funds individually. These individual fund statements give a better picture of how each of the District’s enterprise (or operations) funds did over the last year. Their performance is summarized below:

The Memorandum on Internal Control is also attached which contains no current year findings.

Operating Fund Performance for Fiscal Year Ending June 30, 2011

Sewer Sewer Collection Treatment Water

Operating Revenues 1,907,330 15,398,133 18,624,500 Non-Operating Revenues 3,886 29,758 39,918

Revenues 1,911,216 15,427,891 18,664,418

Operating Expenses 2,395,646 16,697,954 18,618,858 Less Depreciation (1,075,374) (3,731,346) (3,540,981) Plus Replacement Transfer 601,796 1,948,000 2,306,000

Expenses 1,922,068 14,914,608 17,383,877

Increase (Decrease) in Reserves (10,852) 513,283 1,280,541

Agenda Item D-4 Dublin San Ramon Services District

Summary & Recommendation

Reference Treasurer

Type of Action Accept Financial Statements

Board Meeting of December 20, 2011

Subject Accept Financial Statements for June 30, 2011 with Independent Auditors' Report

Motion Minute Order Resolution Ordinance Informational Other REPORT: Verbal Presentation Staff L. Rose Board Member

Committee Review Legal Review Staff Review COMMITTEE

Finance DATE

12/12/2011

RECOMMENDATION Approve Not Required

ORIGINATOR L. Rose

DEPARTMENT Fin Serv

REVIEWED BY

ATTACHMENTS None Resolution Minute Order Task Order Staff Report Ordinance Cost

$0.00 Funding Source

A. B.

Attachments to S&R 1. Financial Statements for June 30, 2011 with Independent Auditor's Report 2. Memorandum on Internal Control and Required Communications 3.

ATTACHMENT 1 TO S&R

ATTACHMENT 2 TO S&R

Memo November 29, 2011

H:\Committee\Finance\12-12-11\STAGING FOLDER\I-1 09-6102 FIN Memo for GM Approved Budget increase.doc

To: Finance Committee

Meeting Date: December 12, 2011 From: Sue Stephenson Subject: Water Conservation (Permanent Reduction) – Valley Christian Urinal

Replacement (CIP 09-6102) Budget Accountability policy P400-11-2 allows budget adjustment of CIP projects to be approved by the General Manager up to a cumulative maximum of $100,000. The Water Conservation (Permanent Reduction) – Valley Christian Urinal Replacement project (CIP 09-6102) required an increase of $4,561 to its budget which qualified within this policy. The policy requires that a CIP budget adjustment approved by the GM be reported to the Finance Committee at the next regularly scheduled meeting. Therefore, this memo is being submitted to inform the Finance Committee of the recently approved CIP budget increase for the project. The project was a joint effort with Zone 7. Zone 7 paid for the materials and the District paid for labor. Staff time expenses were a little more than anticipated which resulted in $4561 over budget. The project was completed in July 2011 and the budget adjustment will erase the negative balance so that it can be closed in the District’s accounting system. This small increase will not affect the Water Expansion fund limit. For further details, please see the attached GM Approval Form for CIP Budget Increase Request. Attachments: 1) GM Approval Form for CIP Budget Increase Request 2) Revised Budget Sheet

Tolerance Level: 3.00%Accounting Period: 5

Categories are flagged if Actual Expense % > Target Expense %

November Budget Variance Report

(Target Expense % = (Period/12)*100 + Tolerance %)Accounting Year: 44.67%Target Expense: 2012

Expected Expense: 41.67%

10. LegislativeDivision:

2012

Adjusted Budget

YTD

Expenditure

MTD

Expenditure

% of YTD to

Budget

Flag

0.00Employee Memberships & Certifications 0.00 0.00 0.00%

34,589.70Medical 2,760.00 13,800.00 39.90%

9,767.75Other Benefits 796.99 3,972.29 40.67%

4,126.92Retirement 276.86 1,332.58 32.29%

56,160.00Salaries 3,504.00 17,742.00 31.59%

0.00Salary / Benefit Credit 0.00 0.00 0.00%

7,500.00Training Costs 635.00 3,115.83 41.54%

1. Personnel 112,144.37 7,972.85 39,962.70 35.64%

3,800.00Office Supplies 0.00 160.33 4.22%

2. Materials and Supplies 3,800.00 0.00 160.33 4.22%

0.00Advertising 0.00 0.00 0.00%

20,457.00Other Services 115.00 1,955.00 9.56%

31,000.00Professional Services 3,595.00 24,156.25 77.92% FLAG

0.00Telephone Service 0.00 11.82 0.00% FLAG

3. Contract Services 51,457.00 3,710.00 26,123.07 50.77% FLAG

700.00Meetings 0.00 124.00 17.71%

0.00Permits, Licenses & District Mbrshps 0.00 0.00 0.00%

0.00Subscriptions & Publications 0.00 0.00 0.00%

4. Other 700.00 0.00 124.00 17.71%

10. Legislative Total 168,101.37 66,370.10 11,682.85 39.48%