11 - SLAP Funding Costa Mesa Sanitary District …an Independent Special District Protecting our community’s health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Memorandum To: Board of Directors Via : Scott Carroll, General Manager From: Wendy Davis, Interim Finance Manager Date: April 24 , 2014 Subject: Sewer Lateral Assistance Program (SLAP) Budget Adjustment Summary The Board of Directors implemented the Sewer Lateral Assistance Program (SLAP) on July 15, 2007. The P rogram serves as a financial incentive to encourage property owners to properly maintain their sewer lateral line s, which will aid in the prevent ion of private Sanitary Sewer Overflows (SSOs). Th e Fiscal Year’s (FY) 2013 -14 SLAP budget of $200,000 was entirely expended by March 31, 2014 . In response, Staff has stopped accepting new applications. An additional appropriation of $75,000 is being requested to reimburse the 44 applications Staff ha d already accepted, reviewed and approved , but have yet to be requested for reimbursement. Staff Recommendation That the Board of Directors considers the following: 1. A pprove a budget transfer of $75 ,000 to the P rogram from the Annual Sewer Maintenance account in order to provide adequate funding for the 44 applications already in process ; 2. R evising the SLAP parameters effective beginning July 1, 2014 in order to serve more residents . 3. Give staff direction to continue accepting SLAP applications through June 30, 2014 and appropriate $35,000 from retain earnings. Analysis Since the beginning of the SLAP, the District has received over 1,175 applications , processed payment s for over 950 applications at a total cost of approximately $1,250,00 0 . ITEM NO. 11
Board of Directors April 2 4 , 2014 Page 2 of 3 The FY 2013 -14 budget of $200,000 has been fully expended as of March 31, 2014 and Staff has stopped accepting new applications. Of the $200,000 budget , approximately $55,000 was used to reimburs e applications accepted and approved in the FY 2012 -13 but submitted for reimbursement during the FY 2013 -14 . Staff has accepted and approved an additional 44 applications prior to determining that there were insufficient funds available. Therefore, Staff i s requesting the Board approve a transfer of $75,000 to fund the previously approved applications , rather than holding the m for payment until the new fiscal year. Final CDs and receipts submitted for reimbursement have not been received f rom all 44 applicants. Additionally, the reimbursement for some applicants may be less than the maximum reimbursement amount of $1,600. There is a possibility that some of these applicants may not request reimbu rsement by the end of the fiscal year, so a ny unexpended funds would be carried forward to the new fiscal year to cover reimbursement requests as they are submitted. Due to the popularity of this P rogram, Staff is requesting the Board of Director’s consid er revising the program parameters effective July 1, 2014 to allow for adequate funding should more residents elect to participate. Some possible changes are listed below : • Keep the program the same, reimburse up to $1,600, do not waive permit fees of $240 min im um . • Reimburse up to $1,500 , waive permit fees. • Reimburse up to $1,250, waive permit fees. • Reimburse up to $1,000, waive permit fees. Strategic Plan Element & Goal This item complies with Strategic Plan Element 1 .0, S ewer Infrastructure and Strat egic Goal No. 1 .9 , Sewer Lateral Assistance Program . Legal Review Not applicable at this time. Environmental Review The reimbursement to residents for sewer lateral repairs is not a disturbance of the environment similar to a new project that includes grading or construction and is not a project under CEQA or the District’s CEQA Guidelines. Financial Review T he approved SLAP budget for FY2013 -14 ha s been fully expended as of March 31, 2014. Additional funds are needed to reimburse the applicants previously approved by Staff . The Maintenance Supervisor has determined there are sufficient funds a vailable in the Annual Sewer Maintenance for this transfer of $75,000.
Board of Directors March 27 , 201 4 Page 3 of 3 In accordance with Section 4.03.010(h) of the District’s Operations Code, the General Manager has the authority to transfer up to $50,000 from account to account. Transfers over $50,000 must be approved by the Board. Account Account Number Increase Decrease Swr Maint - SLAP 20 -200001 -4386 $75,000 Swr Maint – Annual Sewer Maintenance 20 -200001 -4364 $75,000 Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the April 2 4 , 2014 Board of Directors regular meeting at District Headquarters and on District website. Alternative Actions Do not approve the transfer and refer the matter back to staff . Attachment A: Sewer Maintenance Assistance Program Summary
ApplicationsApplicationsTotal Fiscal Year Received Paid Paid Budget F/S Paid Variance F/S Paid 2007 ‐08121103128,274 $ 150,000 $ 113,106 $ 36,894 $ 97 2008 ‐09162131168,101 186,894 154,689 32,205 124 2009 ‐10154126172,060 182,205 168,738 13,467 131 2010 ‐11156126169,959 250,000 195,840 54,160 146 2011 ‐12199140170,645 200,000 199,452 548 142 2012 ‐13226160204,462 225,000 223,523 1,477 165 2013 ‐14 159 115 145,926 200,000 198,531 1,469 158 1,177 9011,159,427 $ 1,394,099 $ 1,253,878 $ 140,221 $ 963 Per Financial System Per Tracking Spreadsheet COSTA MESA SANITARY DISTRICT Sewer Maintenance Assistance Program Summary As of 3/31/2014