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HomeMy WebLinkAboutBUDGET AND FINANCE AGENDA 04-30-12 SPECIAL MEETING OF THE BOARD OF DIRECTORS: CENTRAL CONTRA COSTA JAMES A. NEJEDLY SANITARY DISTRICT President BUDGET AND FINANCE COMMITTEE DAVID R. WILLIAMS President Pro Tem BARBARA D. HOCKETT Chair McGill MICHAEL R. MCGILL MARIO M. MENESINI Member Nejedly PHONE: (925) 228-9500 FAX: (925) 676-7211 Monday, April 30, 2012 www.centralsan.org 2:30 p.m. Board Room 5019 Imhoff Place Martinez, California INFORMATION FOR THE PUBLIC ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA 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 PUBLIC COMMENTS jurisdiction, under . 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 Desk, 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 Desk. 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 state 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. Budget and Finance Committee April 30, 2012 Page 2 1. Call Meeting to Order 2. Closed Session a. Conference with Legal Counsel – anticipated litigation - significant (rescheduled from the exposure to litigation (Section 54956.9(b)) April 16, 2012 meeting) ● One potential case. 3. Report out of Closed Session 4. Public Comments 5. Interview financial advisors to assist with analyzing options for paying down a portion of the Unfunded Actuarial Accrued Liability (UAAL) and negotiating a favorable agreement with Contra Costa County Employees’ Retirement Association (CCCERA) for prepayment of the UAAL Staff Recommendation: Interview the candidates and provide direction to staff. 6. Review March 2012 Financial Statements and Investment Reports (Item 4.b. in Board Binder) Staff Recommendation: Review and recommend Board approval. 7. Reports and Announcements 8. Suggestions for future agenda items 9. Adjournment * Attachment CCCSD FINANCIAL ADVISOR QUESTIONS April 20, 2012 1) Briefly describe your experience with municipal finance and different types of bond sales. 2) We are considering selling bonds and using the proceeds to pay down a portion of our estimated $120 million in Unfunded Actuarial Accrued Liability (UAAL) in the County retirement program (CCCERA). a. Do you have experience doing this with another client? b. Which type of vehicle have you used? Pension obligation bonds? Revenue bonds? Other? c. What are the advantages and disadvantages of the different types of bonds. 3) One concept we are exploring is the use of revenue bonds, due to their lower interest rate. Our idea is to use the revenue bonds to fund our capital construction program and use the revenue stream for our capital program as well as some of the capital program reserves to fund the UAAL. a. Have you seen this done with another client or jurisdiction? b. What are the potential difficulties with such an approach? 4) We have a concern about the ability to sequester our funds in the CCCERA retirement program such that they are not commingled with others. A letter from CCCERA on this matter is attached. Our concerns include making sure our payments are sequestered to ensure that they are dedicated to our retirees, and having a mechanism for refunding our payments should market conditions or benefits change in the future. We have also been advised by CCCERA that it would be wise to dollar cost average our money into CCCERA to avoid taking an unexpected loss should we make a large payment at one point in time. Do you have any thoughts about the protections we need to build into our plan in order to protect our funds and mitigate against market losses should we choose to pay down our UAAL? 5) How would you structure the team to accomplish our objective? For example, our understanding is that our financial advisor should be independent and not participate in the bond sale. What role would your firm be interested in playing? 6) Do you have any general suggestions for enhancing the financial management of our assets and liabilities?