City Council Special Meeting

MINUTES

CITY OF HALF MOON BAY CITY COUNCIL

WEDNESDAY, JUNE 28, 2023

ADCOCK COMMUNITY/SENIOR CENTER, 535 KELLY AVENUE

CALL TO ORDER / ROLL CALL

Councilmember Rarback called the special meeting to order at 4:35 p.m.

ROLL CALL

PRESENT: Councilmembers Brownstone, Rarback, and Ruddock

ABSENT: Mayor Penrose and Vice Mayor Jimenez

1.A SEWER AUTHORITY MID-COASTSIDE (SAM) FISCAL YEAR 2023-24 OPERATIONS AND

MAINTENANCE (GENERAL) BUDGET

Assistant City Manager Doughty and City Manager Chidester presented the staff report.

The Council asked questions of staff and discussed the item.

MOTION

Councilmember Brownstone moved and Councilmember Ruddock seconded a motion to

adopt a resolution: 1) Approving the Sewer Authority Mid-Coastside Revised General

(Operations and Maintenance) Budget for FY2023-24 (included as Exhibit A to the

resolution), without waiving its prior protest votes related to IPS projects, and 2) Rescinding

Resolution C-2023-39. The question was called and the motion carried 3-02 Mayor Penrose

and Vice Mayor Jimenez absent.

ADJOURNMENT

Councilmember Rarback adjourned the meeting at 4:45 p.m.

Respectfully Submitted: Approved:

Jessica Blair, City Clerk Harvey Rarback, CouncilmemberDocusign Envelope ID: 123CEF3C-620E-4F61-B1BF-67E1938447B0

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. Comments on Consent Calendar items should be made during the Public Forum section of the agenda. Those wishing to speak on a Business or Public Hearing matter will be called forward at the appropriate time during that item’s consideration. Please Note: Anyone wishing to present materials to the City Council, please submit seven copies to the City Clerk. Copies of written documentation relating to each item of business on the agenda are on file in the Office of the City Clerk at City Hall where they are available for public inspection. If requested, the agenda shall be available in appropriate alternative formats to persons with a disability, as required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132.) Information may be obtained by calling 650-726-8271. In compliance with the Americans with Disabilities Act, special assistance for participation in this meeting can be obtained by contacting the City Clerk’s Office at 650-726-8271. A 48-hour notification will enable the City to make reasonable accommodations to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II). http://hmbcity.com/ Wi-Fi: HMB Public Password: Recreation1

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

Page 1 of 2 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

Page 2 of 2 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 C- 2023-39 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 28 th 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