HomeMy WebLinkAbout25.c. Committee Minutes-Finance 11-20-18 Page 1 of 5
Item 25.c.
CENTRALSAN
CENTRAL CONTRA COSTA SANITARY DISTRICT
December 6, 2018
TO: HONORABLE BOARD OF DIRECTORS
FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT
SUBJECT: NOVEMBER 20, 2018 - FINANCE COMMITTEE - PRESIDENT NEJEDLYAND
MEMBER PILECKI
Attached are minutes of the above Committee meeting.
Strategic Plan re-In
GOAL ONE: Provide Exceptional Customer Service
Strategy 1 - Build external customer relationships and awareness
ATTACHMENTS:
1. Finance Committee Minutes 11-20-18
December 6, 2018 Regular Board Meeting Agenda Packet- Page 191 of 202
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
92
Tuesday, November 20, 2018 FAX cent alsan. rg
www.centralsan.org
2:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
Committee:
Chair Jim Nejedly
Member Tad Pilecki
Staff.
Roger S. Bailey, General Manager
Katie Young, Secretary of the District
Ann Sasaki, Deputy General Manager
Phil Leiber, Director of Finance and Administration
Jean-Marc Petit, Director of Engineering and Technical Services
Danea Gemmell, Planning and Development Services Division Manager (left after
Item 5.a.)
Stephanie King, Purchasing and Material Services Division Manager
Shari Deutsch, Risk Management Administrator (arrived for Item 5.b.)
Heather Ramamurthy (arrived during Item 3. and left after Item 5.a.)
Laci Kolc, Risk Management Specialist
Russ Leavitt, Engineering Assistant III (left after Item 5.a.)
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.
December 6, 2018 Regular Board Meeting Agenda Packet- Page 192 of 202
Page 3 of 5
Finance Committee Minutes
November 20, 2018
Page 2
3. Old Business
a. Follow-up to questions asked at the October 23, 2018 meeting regarding
check and procurement card expenditures
Chair Nejedly thanked staff for the explanatory memo.
With regard to Amazon purchases on P-cards, Member Pilecki said he was
not particularly concerned about inappropriate items being charged to P-
cards, but was concerned that some employees may be spending time
shopping for personal items on Amazon while also purchasing items for the
District.
Chair Nejedly said staff is aware of the Committee's concerns and trusts that
supervisors and managers will provide appropriate oversight.
COMMITTEE ACTION: Received the information.
4. Items for Committee Recommendation to the Board
a. Review and recommend approval of expenditures dated December 6, 2018
The Committee reviewed the expenditures included with the agenda
material, and staff responded to questions from both Committee Members.
In response to an inquiry from Member Pilecki regarding membership in Isle,
Inc. (Check No. 221481, $10,000, p. 7), Mr. Leiber said Isle, Inc. is a
technology assessment group that tests emerging technologies for member
utilities. This is a new membership for Central San. Member Pilecki said he
would like to know at some point in the future if anything comes of this
membership.
Member Pilecki also commented on the number of transactions for food
purchases in the past month totaling approximately$3,300. He noted that it
is nearly $40,000 on an annual basis. He cautioned staff to pay careful
attention to such purchases. Mr. Leiber noted that food purchases are only
permitted for a limited number of situations.
COMMITTEE ACTION: Reviewed and recommended Board approval.
b. Review October 2018 Financial Statements and Investment Reports
Mr. Leiber referred to the explanatory memo that was included with the
agenda material. There were no questions from the Committee.
COMMITTEE ACTION: Reviewed and recommended Board receipt.
December 6, 2018 Regular Board Meeting Agenda Packet- Page 193 of 202
Page 4 of 5
Finance Committee Minutes
November 20, 2018
Page 3
C. Review draft Position Paper to consider adopting Resolution Nos. 2018- to
2018- regarding funding eligibility from the California State Water
Resources Control Board (SWRCB) Clean Water State Revolving Fund
(SRF) for the Solids Handling Facility Improvements Project, District Project
7348
Ms. Gemmell introduced the item, noting that staff is putting together an
application for a loan from the California State Water Resources Control
Board (SWRCB) Clean Water State Revolving Fund (SRF) related to the
Solids Handling Facility Improvements Project, District Project 7348. Staff is
working toward submitting an application for an SRF loan on the Project
before year end. She reviewed the presentation included with the agenda
material, pointing out that due to the low interest rate, a $77 million SRF loan
could yield a $20 million savings for the duration of the loan over other types
of borrowing. Member Pilecki suggested that Ms. Gemmell highlight that fact
on the presentation to the Board.
Member Pilecki asked why the $50 million of pumping station projects was
not included in the SRF loan model. Ms. Gemmell said projects related to
aging infrastructure do not garner enough points in the application process to
qualify for SRF loans.
Member Pilecki also asked if SRF loans are subordinate to bonds. Mr. Leiber
said no; they are on parity with existing obligations, and this arrangement
has been reviewed by District Counsel and Bond Counsel.
In conclusion, Ms. Gemmell said staff is looking for the Board to adopt the
following three resolutions on December 6, 2018 regarding SRF funding
eligibility: 1) for California Environmental Quality Act (CEQA) exemption and
authorization to submit the SRF application, 2) to pledge revenues and
funds, and 3) for reimbursement of expenditures.
Member Pilecki said he was comfortable recommending Board approval.
Chair Nejedly said he was not in support of the item.
COMMITTEE ACTION: The Committee was split on this matter, with
Member Pilecki in support, and Chair Nejedly opposed, so it will be
presented to the full Board for consideration with no Committee
recommendation.
December 6, 2018 Regular Board Meeting Agenda Packet- Page 194 of 202
Page 5 of 5
Finance Committee Minutes
November 20, 2018
Page 4
5. Other Items
a. Review and provide input on Highmark Capital Management
Government Accounting Standards Board (GASB 45) Other Post-
Employment Benefits (OPEB) Sub-Trust and Pension Sub-Trust Quarterly
Reports (Third Quarter 2018)
Mr. Leiber briefly reviewed the report, noting that through the third quarter a
number of factors affected the results, such as strong corporate earnings
being offset by factors such as international trade concerns and increasing
interest rates.
The Fourth Quarter Report will be potentially more challenging given the
downturn in the markets thus far in October and November.
COMMITTEE ACTION: Received the report.
Ms. Gemmell, Ms. Ramamurthy and Mr. Leavitt left the meeting.
b. Review Risk Management Loss Control Report as of November 13, 2018
Ms. Deutsch reviewed the Loss Control Report with the Committee.
COMMITTEE ACTION: Received the report.
C. Receive list of future agenda items
COMMITTEE ACTION: Received the list.
6. Announcements
None.
7. Future Scheduled Meetings
a. Tuesday, December 18, 2018 at 2:00 p.m.
8. Suggestions for Future Agenda Items
None.
9. Adjournment— at 2:39 p.m.
December 6, 2018 Regular Board Meeting Agenda Packet- Page 195 of 202