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Memo October 15, 2010 <br /> • <br /> To: Nelson Fialho, City Manager, City of Pleasanton <br /> Bert L, Michalczyk, General Manager,DSRSD <br /> Emily Wagner, Fiscal Officer, City of Pleasanton <br /> Lori Rose, Financial Services Manager, DSRSD <br /> From: Daniel Smith, Director of Operations Services, City of Pleasanton <br /> David A. Requa,District Engineer, DSRSD <br /> • <br /> Subject: Clean Water Revival Income/Expenditure Audit <br /> Staff from Pleasanton and the District, assisted by The Covello Group, have completed the <br /> Income/Expenditure Audit for the Clean Water Revival project in accordance with the agreed <br /> upon procedure included as Attachment 1 which was approved by the City Manager and General <br /> Manager on October 14, 2009. This audit' is being submitted for your review and acceptance for <br /> use in ongoing discussions regarding the Regional Agreement. <br /> INCOME PORTION OF AUDIT <br /> The "Agreement for Wastewater Disposal Services" ("Regional Agreement") between the City <br /> and District is dated November 3, 1992. Staff was only able to determine connection fee receipts <br /> by entity from FYE 1983 to the present as presented in Table 1. However, in accordance with <br /> the Regional Agreement, the starting date for auditing income is January 21, 1997. Therefore, <br /> there is adequate connection fee history for the Income portion of the Audit. <br /> While the beginning date for auditing income is designated in the Regional Agreement, no <br /> ending date is defined. There are a number of possibilities for an ending date but staff <br /> recommends the date expenditures for the project were suspended by the District and final <br /> payments were made to close out the project — February 20, 1999. For simplicity, the <br /> recommended time period is FYE 1996 to FYE 1999. In this time period, sixty three and 6/10 <br /> percent (63.6%) of the connection fee revenue was derived from the District service area and <br /> thirty six and 4/10 percent (36.4%) of the connection fee revenue was derived from the <br /> Pleasanton service area. <br /> • <br /> Allocation Period <br /> The key aspect of the income audit is identifying time periods that may to be used for calculating <br /> the amount of fees attributable to each service area. <br /> This product is not a"financial" audit but a review of the time and amount of connection fees received from the <br /> best available records of the City and District. <br /> Page I of 5 <br /> H9ENGDEPM.pt ItmsENGMGWPIasanton\CWR AudliPinal CWR Eapendiluro.lncome Audit McntuAcc <br />