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Home My WebLink AboutBUDGET AND FINANCE ACTION SUMMARY 06-03-13Central Contra Costa Sanitary District (th and the environment • Imhoff , .. SPECIAL MEETING OF THE CENTRAL CONTRA COSTA B04RDOFDIRECTORS: JAA -IESA. NEJEDLP SANITARY DISTRICT Pivszdent BUDGET AND FINANCE COMMITTEE DAb7DR ntPro nm President Pro Tem P.-1 UL H. CA i SEF ACTION SUMMARY 1IICHDELR.- 1fCGILL TAD J. PILECKI Member Nejedly PHONE: (925) 228 -9500 y E4-I: (925) 676 -7211 Member Pilecki (Alternate) tiwwvxentralsan.org Monday, June 3, 2013 3:00 p.m. PRESENT: Acting Chair Jim Nejedly, Member Tad Pilecki (Alternate), Provisional General Manager Curt Swanson, Environmental Services Division Manager Danea Gemmell, Finance Manager Thea Vassallo HighMark Capital Management Investment Manager Andrew Brown, Highmark Capital Management Senior Vice President Kevin Rogers, Public Agency Retirement Services (PARS) Executive Vice President Mitch Barker (for Item 3.) Engineering Assistant III Earlene Millier, Senior Engineer Thomas Brightbill, Senior Engineer Tom Godsey, Development Services Supervisor Kim Stahl (for Items 6. through 8.) 1. Call Meeting to Order Acting Chair Nejedly called the meeting to order at 3:00 p.m. 2. Public Comments None. 3. Discuss with Andrew Brown of HighMark Capital Management and Mitch Barker of Public Agency Retirement Services (PARS) the report from Schultz Collins Lawson and Chambers Investment Counsel regarding the District's Governmental Accounting Standards Board (GASB) 45 Other Post - Employment Benefits (OPEB) PARS Trust Mr. Brown, Mr. Barker, and Mr. Rogers discussed the report with the Committee, focusing on the following items: Budget and Finance Committee June 3, 2013 Page 2 1.) Strategic direction of Highmark Capital Management 2.) Investment guidelines 3.) Investment related issues raised by the consultant 4.) Fees and expenses incurred by the Plan 5.) Document related matters COMMITTEE ACTION: Discussed the report and requested Investment Manager Andrew Brown to provide additional information on the benefits of remaining with the Moderate HighMark Plus Plan (Current /Actively Managed) versus an alternative Moderate Index Plus Plan (Passive). 4. Old Business a. Review staff's response to the Committee's request for information regarding the following expenditures at a previous meeting: Check Date Amount Vendor #194930 4125113 $4,351.32 Thermo Environmental Inst COMMITTEE ACTION: Reviewed staff's response. 5. Risk Management a. Review Loss Control Report and discuss outstanding claims COMMITTEE ACTION: Reviewed the report and discussed outstanding claims. 6. Review Position Paper authorizing the General Manager to execute an agreement for installment payment of capacity fees for Oyama Sushi (restaurant) located at 1519 N. Main Street in Walnut Creek for a period not to exceed two years (Item 8.a. in Board Binder) COMMITTEE ACTION: Reviewed and recommended Board authorization. 7. Review Position Paper conducting a hearing to consider an appeal by Mr. Richard Price of the staff decision to assess a capacity fee and related fees and charges for his property located at 4221 Blackhawk Meadow Court in Danville (APN 220 - 230 -021) (Item 8.b. in Board Binder) COMMITTEE ACTION: Reviewed Position Paper and recommended that the Board deny the appeal. Budget and Finance Committee June 3, 2013 Page 3 8. Update on Installment Payment of Capacity Fees COMMITTEE ACTION: Received the update. 9. Discuss presentation ideas for the June 20, 2013 public hearings to consider 1) adopting FY 2013 -14 Operations and Maintenance (O &M), Debt Service Fund and Self- Insurance Fund Budgets; 2) establishing FY 2013 -14 (and FY 2014 -15) Sewer Service Charge (SSC) rates; and 3) adopting FY 2013 -14 Capital Improvement Budget (CIB) and 2013 Ten -Year Capital Improvement Plan (CIP) Finance Manager Thea Vassallo asked for suggestions on items of importance that the Committee would like to see included in the Public Hearing presentation being held on June 20, 2013. She noted the lack of correlation between the Consumer Price Index (CPI) categories and the expenditures incurred to run the District. Member Pilecki recommended that the presentation include future plans to control costs and keep rates at a reasonable rate. Acting Chair Nejedly stated his opinion that if the Board had not approved certain capital projects such as the improvements to the Collection System Operations (CSO) Facility and Headquarters Office Building (HOB)retrofit projects, part of the proposed increases would have been eliminated. COMMITTEE ACTION: Provided input to staff. 10. Review April 2013 Financial Statements and Investment Reports (Item 4.c. in Board Binder) Ms. Vassallo noted that the Sewer Construction revenue variances have been eliminated this month, mainly due to two large payments by housing developments in Lafayette. She also stated that it appears that Plant Operations Department (POD) may come in significantly under budget by year end ($19.9M spent through April versus $29.3M projected at year end). Member Pilecki commented that it appears that capital projects may be more than $3M under spent as originally projected in February 2013. COMMITTEE ACTION: Reviewed and recommended Board approval. 11. Expenditures a. Review Expenditures (Item 4.b. in Board Binder) Budget and Finance Committee June 3, 2013 Page 4 COMMITTEE ACTION: Reviewed and recommended Board approval. Staff was asked to provide additional information on the following: Check Date Amount Vendor #195164 5116113 287.30 Labella, Melody #195165 5116113 399.03 Labella, Melody Why did the system produce two checks instead of one? #195179 5116113 51,953.67 PG &E Service 3126 — 4124 Explanation on the increase for the period billed? b. Review Legal Expenditure Summary COMMITTEE ACTION: Reviewed Legal Expenditure Summary. 12. Announcements None. 13. Suggestions for future agenda items None. 14. Adjournment — at 5:30 p.m.