HomeMy WebLinkAbout20.b. Committee Minutes-Finance 05-21-18 Page 1 of 5
Item 20.b.
1
Central Contra Costa Sanitary District
June 7, 2018
TO: HONORABLE BOARD OF DIRECTORS
FROM: KATIE YOUNG, SECRETARY OF THE DISTRICT
SUBJECT: MAY 21, 2018 - FINANCE COMMITTEE - PRESIDENT NEJEDLYAND
MEMBER PILECKI
Attached are minutes of the above Committee meeting.
Strategic Plan Tie-In
GOAL ONE:Provide Exceptional Customer Service
Strategy 1 - Foster Customer Engagement and Awareness
ATTACHMENTS:
1. Finance Committee Minutes 05-21-18
June 7, 2018 Regular Board Meeting Agenda Packet- Page 437 of 446
Page 2 of 5
I CENTRAL SAN
CONTRACENTRAL •STA SANITARY DISTRICT 5019 IMHOFF
REGULAR MEETING OF THE BOARD OF DIRECTORS:
CENTRAL CONTRA COSTA JAMESNEJEDLY
President
SANITARY DISTRICT DAVID R, WILLIAMS
FINANCE COMMITTEE President Pro Tem
PAUL H CA USEY
MICHAEL R.MCGILL
M I N U T E S TAD'PHECKI
PHONE: (925)228-9500
Monday, May 21, 2018 FAX.- (925)372-0192
www.centralsan.org
2:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
Committee:
Chair Jim Nejedly
Member Tad Pilecki
Guests:
Tim Cue, Maze & Associates (left after Item 5.b.)
Sarah Hollenbeck, PFM Financial Advisors LLC
Staff.-
Katie Young, Secretary of the District (arrived during Item 5.c.)
Ann Sasaki, Deputy General Manager
Phil Leiber, Director of Finance and Administration (arrived during Item 5.b.)
Danea Gemmell, Planning and Development Services Division Manager
Stephanie King, Purchasing and Materials Manager
Edgar Lopez, Capital Projects Division Manager (arrived during Item 4.b.)
Thea Vassallo, Finance Manager
Todd Smithey, Financial Administrator
Chris Thomas, Financial Administrator
Shari Deutsch, Risk Management Administrator (present for Item 5.a. only)
Theresa Nidetz, Temporary Internal Auditor
Donna Anderson, Assistant to the Secretary of the District
1. Call Meeting to Order
Chair Nejedly called the meeting to order at 2:00 p.m.
2. Public Comments
None.
June 7, 2018 Regular Board Meeting Agenda Packet- Page 438 of 446
Page 3 of 5
Finance Committee Minutes
May 21, 2018
Page 2
3. Old Business
a. Follow-up to questions asked at the April 24, 2018 Finance Committee
regarding check expenditures
COMMITTEE ACTION: Received the information.
4. Items for Committee Recommendation to the Board
a. Review and approve expenditures dated June 7, 2018
The Committee reviewed the expenditures included with the agenda
material, and staff responded to two questions that had been provided in
advance of the meeting by Member Pilecki.
COMMITTEE ACTION: Reviewed and recommended Board approval.
b. Review April 2018 Financial Statements and Investment Reports
Ms. Vassallo reported that year-to-date Operations and Maintenance
(O&M) revenues are within I% of budget. Overall, O&M is running a
favorable variance of$3.9 million through April. Sewer construction
revenues are showing a positive variance of$2.8 million. Roughly $28.6
million has been spent on the capital program through April, and program
expenditures are currently projected to come in at 90% of budget by year
end. That projection was echoed by Mr. Lopez.
COMMITTEE ACTION: Reviewed and recommended Board receipt.
C. Review draft Position Paper to conduct a Public Hearing on June 7, 2018
to receive public comment and consider adopting the Fiscal Year 2018-19
Budget for the following funds: Operations and Maintenance, Capital
Improvement, Self-Insurance, and Debt Service
This item was heard toward the end of the meeting, after Item 5.e.
Member Pilecki relayed his comments and questions on the Fiscal Year
2018-19 O&M Budget and staff responded. In several areas, staff will
modify the draft Budget to incorporate his suggested changes.
Both Chair Nejedly and Member Pilecki complimented staff on the budget
document.
COMMITTEE ACTION: Reviewed and recommended Board approval,
with several clarifications requested by Member Pilecki.
June 7, 2018 Regular Board Meeting Agenda Packet- Page 439 of 446
Page 4 of 5
Finance Committee Minutes
May 21, 2018
Page 3
5. Other Items
a. Review Risk Management Loss Control Report as of May 17, 2018
This item was taken out of order and heard immediately after Item 5.c.
Ms. Deutsch reviewed the Loss Control Report included with the agenda
material and responded to questions from the Committee Members.
COMMITTEE ACTION: Reviewed and provided input to staff.
b. Presentation of Internal Audit Report on Purchasing Card Transactions
from January 1, 2017 through December 31, 2017 (Invited Guest: Tim
Cue of Maze &Associates)
This item was taken out of order and heard immediately after Item 4.b.
Mr. Cue reported that other than the two minor issues revealed by the
audit, both of which were noted in the audit report and which staff has
addressed, it was an overall clean audit.
Member Pilecki clarified that the purpose of the audit was to review
adherence to current procedures, not whether the procedures themselves
are adequate. Mr. Cue said that was correct.
Mr. Leiber stated that a review of best practices and how Central San's
purchasing card procedures compare with others in the industry could be
considered for the future.
Mr. Cue left the meeting.
COMMITTEE ACTION: Reviewed and provided input to staff.
C. Receive Plan to Refinance Existing 2009 Bonds
Mr. Leiber summarized the material included in the agenda packet, noting
that there really is no downside to the proposal to refinance the existing
bonds. The advantage to doing so sooner rather than later is the ability to
lock in savings in interest costs, net of any issuance costs. The alternative is
to wait until next fall when new-money bonds are planned for issuance, but
rising interest rates could eliminate the possibility of savings by that time.
Member Pilecki asked how the savings would be affected if short-term
interest rates increase prior to executing the refinancing.
June 7, 2018 Regular Board Meeting Agenda Packet- Page 440 of 446
Page 5 of 5
Finance Committee Minutes
May 21, 2018
Page 4
Mr. Leiber said short-term rate increases do not necessarily have a direct
correlation with longer-term rates. However, it is reasonable to assume
that between now and next fall rates will continue their upward pattern, so
moving on this sooner rather than later appears prudent.
Ms. Hollenbeck added that issuance costs are not typically incurred until
the refinancing is closed. If there ultimately ends up being no closing, the
advisors will not be expecting payment.
Mr. Leiber said that staff will be monitoring interest rates throughout the
process.
COMMITTEE ACTION: Reviewed and provided input to staff.
d. Review March 2018 Procurement Card Statements
Member Pilecki had provided staff with several questions in advance of
the meeting, two of which referred to items purchased at local sporting
goods stores. While staff confirmed that the articles purchased were
reasonable expenses for District business, Member Pilecki expressed
concern that the fact that they were purchased at sporting goods stores
could pose a perception issue.
COMMITTEE ACTION: Reviewed and provided input to staff.
e. Receive list of Scheduled/Parking Lot items
COMMITTEE ACTION: Received the list.
6. Announcements
None.
7. Future Scheduled Meetings
a. Tuesday, June 26, 2018 at 2:00 p.m.
Tuesday, July 24, 2018 at 2:00 p.m.
Tuesday, August 21, 2018 at 2:00 p.m.
8. Suggestions for Future Agenda Items
None.
9. Adjournment— at 2:50 p.m.
June 7, 2018 Regular Board Meeting Agenda Packet- Page 441 of 446