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: