HomeMy WebLinkAboutBUDGET & FINANCE ACTION SUMMARY 03-17-09~l Central Contra Costa Sanifary District
BUDGET AND FINANCE COMMITTEE
ACTION SUMMARY
Chair Lucey
Member Nejedly
Tuesday, March 17, 2009
3:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
PRESENT: Jerry Lucey, Jim Nejedly, Randy Musgraves, Debbie Ratcliff
1. CALL MEETING TO ORDER
Chair Lucey called the meeting to order at 3 p.m.
2. PUBLIC COMMENTS
None.
3. OLD BUSINESS
None.
4. CLAIMS MANAGEMENT
a. Review Outstanding Claims
There was one new overflow at 79 Spring Road in Orinda, where two rooms in a
house were damaged due to roof blockage.
COMMITTTEE ACTION: Received the report.
(925) 228-9500
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5. REPORTS/ANNOUNCEMENTS
a. GASB 45 Trust Investment
COMMITTTEE ACTION: The Committee directed staff to begin
investing over 20 months as approved by the Board at the November
6, 2008 Board meeting.
*b. Review of CCCERA Smoothing and UAAL Layering Methodology
COMMITTTEE ACTION: The Committee concurred with the staff
recommendation not to extend the smoothing period for gains/
losses or the amortization period for the unfunded liability. The
CCCERA Board is meeting on March 25, 2009 to continue its review
of changing the current methodologies. The Committee
recommends the attached letter be sent to CCCERA by Friday, March
20, 2009 so that the CCCERA Board and staff have received it prior to
their next meeting.
c. Annual Deferred Compensation Report
COMMITTTEE ACTION: Recommended Board acceptance of
Deferred Compensation Report.
6. REVIEW EXPENDITURES
There were three outstanding questions regarding expenditures that will be
brought back to the next Committee meeting. Also, staff was asked to research
what the District spends annually on office supplies and how much of that is
spent at Office Depot.
COMMITTTEE ACTION: Recommended Board approval of Expenditures.
7. ADJOURNMENT - at 3:30 p.m.
*Attachment
~l Central Contra Costa San
March 19, 2009
Ms. Marilyn Leedom
Chief Executive Officer
Contra Costa County Employees' Retirement Association
1355 Willow Way, Suite 221
Concord, CA 94520
Dear Ms. Leedom:
5.b.
r District
FAX: (925) 228-4624
JAMES M. KELLY
General Manager
KENTON L. ALM
Counsel for the District
(510) 808-2000
ELAINE R. BOEHME
Secretary of the District
The Central Contra Costa Sanitary District (CCCSD) Board of Directors received an
informational memo from staff summarizing the Segal presentation given to Contra Costa
County Employees' Retirement Association's (CCCERA) Board on February 11, 2009. Both
the issue of extending the smoothing period of gains and losses, and a layered approach for
the amortization of the Unfunded Actuarial Accrued Liability (UAAL), were discussed.
The District Board is sensitive to the current economic climate and how market losses in asset
value and subsequent necessity to raise employer rates affects the County and other public
entities including CCCSD. However, by extending the smoothing period and layering the
UAAL, the deferral of losses significantly increases the UAAL and the employer's cost in the
long term. This is clearly demonstrated by the Segal exhibits.
It is the opinion of CCCSD's Board of Directors that the smoothing period should remain at five
years in an effort to control long term employer costs. As to the layered amortization
approach, we would recommend looking at other options that do not increase the UAAL by
$1.5 billion by 2021. Exhibit 4 estimates $310 million in 2021 using the current methodology,
compared to $1.8 billion in 2021 using the twelve-year smoothing period and layering the
UAAL, Exhibit 8.
We greatly appreciated the information provided and look forward to more data and
information as your Board continues to evaluate the current issues facing the retirement
system.
Sincerely,
James M. Kelly
General Manager
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