HomeMy WebLinkAboutBUDGET & FINANCE AGENDA 08-30-10;r
Central Contra
Sanitary District
REGULAR MEETING OF THE
CENTRAL CONTRA COSTA
SANITARY DISTRICT
BUDGET AND FINANCE COMMITTEE
Chair Nejedly
Member Hockett
Monday, August 30, 2010
3:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
INFORMATION FOR THE PUBLIC
ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA
BO, I RD OF DIRECTORS
.1 H('HAEL R. Aft 610,
rre,;dmn
BARHAka D. 110('A7SI7'
Precidmi Pro Im,
GL'RALD R. LIXEY
MAW AL HLASINI
,/4h1ESA. NI:H.DLY
PHONE: (925) 218 -9500
FAX: (925) 676-7211
www. centralsan. o g
Anyone wishing to address the Committee on an item listed on the agenda will be heard when the
Committee Chair calls for comments from the audience. The Chair may specify the number of minutes
each person will be permitted to speak based on the number of persons wishing to speak and the time
available. After the public has commented, the item is closed to further public comment and brought to the
Committee for discussion. There is no further comment permitted from the audience unless invited by the
Committee.
ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA
In accordance with state law, the Committee is prohibited from discussing items not calendared on the
agenda. You may address the Committee on any items not listed on the agenda, and which are within their
jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on.the agenda may be
referred to staff for action or calendared on a future agenda.
AGENDA REPORTS
Supporting materials on Committee agenda items are available for public review at the Reception, 5019
Imhoff Place, Martinez. Reports or information relating to agenda items distributed within 72 hours of the
meeting to a majority of the Committee are also available for public inspection at the Reception. During
the meeting, information and supporting materials are available in the Conference Room.
AMERICANS WITH DISABILITIES ACT
In accordance with the Americans With Disabilities Act and California Law, it is the policy of the Central
Contra Costa Sanitary District to offer its public meetings in a manner that is readily accessible to
everyone, including those with disabilities. If you are disabled and require special accommodations to
participate, please contact the Secretary of the District at least 48 hours in advance of the meeting at (925)
229 -7303.
® Recycled Pape
1
i
Budget and Finance Committee
August 30, 2010
Page 2
Call Meeting to Order
2. Public Comments
3. Old Business
4. Claims Management
*a. Review new and outstanding claims
5. Reports and Announcements
a. Review Position Paper regarding adopting a resolution establishing the
Fiscal Year 2010 -2011 Appropriations Limit (Item 4.c. in Board binder)
b. Review Position Paper regarding approval of investment policy for District
assets and Investment Guidelines for GASB 45 Trust (Item 4.d. in Board
binder)
C. Review Position Paper regarding public hearing to receive comments on
an uncodified ordinance to establish reimbursement fees for the properties
which could directly or indirectly connect to District Project 5919,
Alhambra Valley Trunk Sewer Alhambra Valley Assessment District
(AVAD) 2007 -1; and directly connect to Job 6412, Monteira AVAD 2007 -4;
Job 6439, Reliez Valley AVAD 2007 -3; Job 6441, Quail AVAD 2007 -6; Job
6442, Gordon /Millthwait AVAD 2007 -2; and Job 6450, Via Vaqueros
AVAD 2008 -7, in Alhambra Valley (Item 5.a. in Board binder)
d. Review Position Paper regarding public hearing to consider an ordinance
amending Chapter 6.12 of the District Code to provide an option for
installment payment of capacity fees when a property owner connects an
existing home to the District's public sewer system and concurrently
abandons the septic tank system serving the property (Item 5.b. in Board
binder)
*e. Discuss obtaining a financial consultant to review the GASB 45 Trust
investments
*f. Early Retiree Reinsurance Program
g. Contra Costa County Employees' Retirement Association (CCCERA)
Update (Item 7.a.2) in Board binder)
�1
Budget and Finance Committee
August 30, 2010
Page 3
6. Review Expenditures (Item 3.a. in Board binder)
*a. Review Procurement Card Expenditures
7. Review Adjusted Operations and Maintenance (O &M) June 2010 Year -End
Financial Statements and Investment Reports (Item 9.a. in Board binder)
8. Review Fiscal Year 2009 -2010 savings
9. Adjournment
* Attachment
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5.e.
Central Contra Costa Sanitary District
August 30, 2010
TO: BUDGET AND FINANCE COMMITTEE
VIA: JAMES M. KELLY, GENERAL MANAGER J 1
FROM: RANDALL MUSGRAVES, DIRECTOR OF ADMINISTRATION R MM
SUBJECT: GASB 45 INVESTMENT CONSULTANT
Staff has been evaluating the benefits of obtaining the services of an investment consultant to
ensure that the GASB 45 Trust Fund is invested appropriately. Currently, the fund is invested as
a Moderate Portfolio, through the Public Agency Retirement Services (PARS), with the option to
change to Moderately Aggressive when the market stabilizes.
The consultant would review the above strategy in light of the investment market to determine if
this is an appropriate strategy. The consultant would also look at the actual investment choices
to determine that the portfolio's assets are indeed moderate and investments are not placed to
increase income to the fund managers.
The consultant would review the investment choices from a perspective of fees. The various
investment choices can be both internally managed by HighMark Capital or managed by an
outside Mutual Fund Manager. The consultant would also address if the asset allocations are
appropriate to maximize return while minimizing fees.
The Contra Costa County Employees' Retirement Association (CCCERA) uses the firm of
Milliman as their investment consultant. Staff contacted Milliman to confirm that they work with
smaller agencies like the District. They do have smaller clients and can provide consulting
services as a one -time project or on an on -going review basis, similar to the service they
provide for CCCERA.
In addition, staff received a presentation by the Graystone Consulting Group regarding the
District's two deferred compensation programs. They reviewed the investment options and
groupings, and concluded that a savings in fees could likely be achieved.
Staff is recommending preparing a request for proposal or response from several consultant
groups for the GASB 45 Trust account. A review of the District's deferred compensation
accounts should likely be done following this task, depending upon the results achieved. An
evaluation would then be made of the proposals or responses with a review of the process, and
recommendation from staff provided to the Budget and Finance Committee and then to the
Board, as appropriate.
5.S�-
Central Contra Costa Sanitary District
August 30, 2010
TO: BUDGET AND FINANCE COMMITTEE
VIA: JAMES M. KELLY, GENERAL MANAGER'
RANDY MUSGRAVES, DIRECTOR OF A INI TRATION R/NM
FROM: DEBBIE RATCLIFF, CONTROLLER
SUBJECT: EARLY RETIREE REINSURANCE PROGRAM
The Patient and Affordability Care Act provides $5 billion in financial assistance to
employers, state, and local governments, to help them maintain healthcare coverage for
early retirees and their spouses age 55 and older who are not yet eligible for Medicare.
The amount of the reimbursement to the employer is up to 80% of medical claims costs
for claims between $15,000 and $90,000 for expenses incurred after June 1, 2010.
Reimbursements for these significant claims can only be used by the District to offset
future increases in healthcare insurance premiums. This program ends on January 1,
2014, at which time early retirees will be able to choose additional coverage options
available through the health insurance exchanges.
Accounting and Human Resources, as well as the District's healthcare providers,
worked together to determine the potential savings the District might receive from the
Federal reimbursement program. If the District assumed a 10% per year increase in
healthcare premiums, based on the current number of early retirees and depending on
the number of claims between $15,000 and $90,000, reimbursements totaling $300,000
could be received over the next two fiscal years. Staff believes that the potential savings
is significant. The applications have been prepared and are ready to be submitted. The
effort took minimal staff time. Staff is unclear as to the actual results that will be
realized since this is a new federal program.
H:Wdministrative Director's Directory\Committees \B &F\2010 \Early Retiree Reinsurance Program Memo 8 26 2010.doc
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