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HomeMy WebLinkAboutBUDGET & FINANCE ACTION SUMMARY 10-13-08 7. d)2) 0) Central Contra Costa Sanitary District 5019 Imhoff Place, Martinez, CA 94553-4392 (925) 228-9500 . wW\iVcentlalsan org BUDGET AND FINANCE COMMITTEE ACTION SUMMARY Chair McGill Member Nejedly Monday, October 13, 2008 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California 1. CALL MEETING TO ORDER Chair McGill called the meeting to order at 3 p.m. 2. PUBLIC COMMENTS None. 3. OLD BUSINESS a. GASB 45 Trust- Discuss any outstanding issues prior to Position Paper establishing a trust scheduled for November 6th Board meeting COMMITTEE ACTION: The Committee recommended that the Position Paper to establish a GASB 45 Trust be brought back to the full Board at the November 6th meeting. The Committee also recommended a dollar cost averaging approach over a twenty (20) month period with the flexibility to cease monthly deposits should the economic conditions change. Any pause in the investment schedule would be reported to the full Board at the next regularly scheduled Board meeting. Also, the Committee recommends adding a standing item on the Board Agenda to discuss any action taken on the trust. The Committee recommends keeping the GASB 45 funds in LAIF at this time until the investment market becomes less volatile and would then warrant investing the trust funds. ft "., Recycled Paper Budget and Finance Committee October 13, 2008 Page 2 b. Proposed Investment Guidelines for the Committee as recommended by Trucker*Huss COMMITTEE ACTION: The Committee asked that the proposed Investment Guidelines written by staff be changed to reflect the twenty-month investment timeline with the ability of the Committee to pause the monthly investments based on unfavorable economic conditions with reporting to the full Board. 4. CLAIMS MANAGEMENT a. Review Outstanding Claims There were no new outstanding claims. Staff discussed the claim with State Farm regarding 79 Loma Vista. State Farm has indicated a willingness to pay the homeowner $13,240. Staff recommended that an agreement with the homeowner be pursued for payment/reimbursement of the $13,240. The clean up at the home cost the District $22,000. While staff believes the overflow is the responsibility of the homeowner, it is likely to cost more than the difference to recover additional funds. COMMITTEE ACTION: The Committee concurred with staff to seek reimbursement of $13,240 from the homeowner only. 5. REPORTS/ANNOUNCEMENTS a. Receive Internal Audit Report (Erik Stone and Beth Cortese from Protivity will attend meeting) COMMITTEE ACTION: The Committee received the Internal Audit Report on the Sewer Service Charge system. The report will be presented to the full Board at the November 6th Board meeting. b. Update on AIG Articles regarding AIG were provided as well as an analysis of the cost of changing insurance carriers. The result of the analysis showed that it was either cost effective to continue coverage with AIG or that the coverage provided by AIG could not be matched. COMMITTEE ACTION: The Committee concurred with staff to remain with AIG and continue to monitor the situation. Staff will also bring a broader review of the District's financial risk to the Committee at the next meeting. Budget and Finance Committee October 13, 2008 Page 3 c. Arbitrage Rebate Calculation The Arbitrage Rebate Report calculated that no rebate is required on the 1998 Revenue Bonds. This calculation will be performed again in 2013. COMMITTEE ACTION: The Committee accepted the report. d. LAIF Update The safety of the District's investments in LAIF was discussed. The LAIF portfolio has $7 billion in Yankee Banks which will decline to $ 2 billion as the short term investments mature. The monies will be reinvested in U. S. Treasuries. COMMITTEE ACTION: None. 6. REVIEW EXPENDITURES The Committee asked that a report be brought back which includes two years of payments to Bull Dog Gas and Power. COMMITTEE ACTION: Recommended Board approval of expenditures. 7. ADJOURNMENT - at 4:00 p.m.