SALIDA SANITARY DISTRICT

AGENDA

FEBRUARY 11, 2021

Salida Sanitary District Administration Building

6200 Pirrone Road

Salida, CA 95368

6:00 P.M.

* Social distancing and face coverings are required for in person attendance at this meeting *

 

1.      Call to Order

 

2.      Other Matters of Interest to the Public

 

3.      Approval of Minutes of Previous Meeting

 

4.      Approval and Payment of Bills

 

5.      Correspondence

 

6.      Staff Reports

A.      District Manager-Engineer

B.      President’s Report on J.P.A. Meeting

C.      Attorney

 

7.      Other Items of Business

 

A.      Approve a Purchase Order to Xylem Water Solutions USA, Inc. for Aeration Diffusers for ICEAS #4 in the Amount of $74,145.40 Plus Tax

 

B.      Approve and Authorize Execution of a Professional Services Agreement with Black and Veatch to Prepare a Pre-Design Report for the Digester in the Amount of $42,063.00

 

C.      Authorize Payment in the Amount of $5,627.35 to the Valley Water Collaborative, in Order to Maintain Compliance with the State’s Nitrate Control Program

 

D.     Adopt a Resolution Approving a Reserve Policy

 

8.      Adjournment

 

MEMBERS OF THE PUBLIC MAY BE HEARD ON ANY ITEM OF INTEREST TO THE PUBLIC.  A PERSON ADDRESSING THE BOARD WILL BE LIMITED TO 2 MINUTES UNLESS A LONGER PERIOD OF TIME IS GRANTED BY THE CHAIRPERSON OF THE BOARD.  COMMENTS BY MEMBERS OF THE PUBLIC ON ANY ITEM ON THE AGENDA WILL ONLY BE ALLOWED DURING CONSIDERATION OF THAT ITEM BY THE BOARD.  MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE SALIDA SANITARY DISTRICT AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE SECRETARY’S OFFICE IN THE SALIDA SANITARY DISTRICT ADMINISTRATION BUILDING AT 6200 PIRRONE ROAD SALIDA, CALIFORNIA DURING NORMAL BUSINESS HOURS.

 

In compliance with the Americans With Disabilities Act, if you need special assistance to participate in this meeting, please contact the Operations Manager of the District at (209) 545-4987.  Notification 72 hours prior to the meeting will enable the District to make reasonable arrangements to ensure accessibility to the meeting.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                                                                                                SALIDA SANITARY DISTRICT

 

RESERVE POLICY (DRAFT)

       

February 2021

       

 

GENERAL POLICY

 

The Salida Sanitary District (SSD) Board of Directors realizes the importance of reserves in sustaining the long term financial viability of the SSD.  In order to meet the long term needs of the SSD, the Board of Directors is establishing a Reserve Policy to maintain existing public assets, respond to unplanned events and emergencies, and ensure financial viability should there be an unexpected fluctuation in revenues or expenditures.

 

CATEGORIES

 

SSD shall accumulate, maintain and segregate its reserve funds into the following categories:

 

1.   General Fund Reserve

a.    Economic and Unplanned Contingencies

b.    Capital and Maintenance Reserve

c.    Contractually Restricted

2.   Construction Fund Reserve

 

SCOPE

 

This policy will assist the Board of Directors in establishing:

1.   Target levels for reserve funds

2.   Requirements for the use of reserve funds

3.   Periodic review requirements for each reserve

 

PERIODIC REVIEW

 

The SSD Manager and the SSD Board shall review the reserve balances and targets annually as a part of the annual budget process. The SSD Manager will continue to review all reserve balances on a monthly basis, with a yearly report going to the full Board to receive and file.

 

RESERVES

 

1.   General Fund Reserve

a.    The SSD will maintain a minimum internally restricted reserve of 8% of operating revenues with the goal of gradually increasing the reserve to 15% of operating revenues by January 2026.  The reserve will be used for the following circumstances:

                                                 i.    Economic and Unplanned Contingencies.

                                                ii.    Temporary cash flow deficiencies that occur as a result of timing differences between the receipt of revenues and expenditures.

                                               iii.    Protection recovery to the SSD and its customers for losses arising from an unplanned event or circumstance.

b.    Capital and Maintenance Reserve

                                                 i.    Internally restricted reserve for replacement of deteriorating infrastructure and funding for non-scheduled repair or replacement of assets.

                                                ii.    Target Funding Levels

1.   The SSD intends a minimum funding target of $500,000 by January 2026.

c.    Contractually Restricted Reserve

                                                 i.    Funds held to satisfy limitations set by external requirements established by creditors, grant agencies or law. Examples include bond covenants and reserves held with a fiscal agent.

 

2.   Construction Fund Reserve

a.    Externally restricted only for system capacity expansion/enhancement projects, which ensure the property owner’s proportional share of capacity in the system is associated with the specific capital cost.

b.    Target Funding Levels:

                                                 i.    The target balance shall be set as a function of any Board approved capacity enhancement plan.  In the absence of any such approved plans, no specific target shall be set, but the funds shall accrue as available.

                                                ii.    All interest earned in this fund will be retained in it.

 

 

 

 

 

 

 

 

 

APPROVED: