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HomeMy WebLinkAboutBUDGET AND FINANCE ACTION SUMMARY 08-12-13Central Contra Costa Sanitary District (th and the environment • Imhoff , .. SPECIAL MEETING OF THE CENTRAL CONTRA COSTA B04RDOFDIRECTORS: JAA -IESA. NEJEDLP SANITARY DISTRICT President BUDGET AND FINANCE COMMITTEE DAT7DR. uILLL4 -US President Pro Tem P.-1 UL H. CA i SEF ACTION SUMMARY 1IICHDELR.- 1fCGILL TAD J. PILECKI Chair McGill PHONE: (925) 228 -9500 F4-I: (925) 676 -7211 Member Nejedly ivivi v.xenrtnlsan.org Monday, August 12, 2013 3:00 p.m. Middle Conference Room 1470 Executive Drive, Second Floor Concord, California PRESENT: Chair Mike McGill, Member Jim Nejedly, Provisional General Manager Curt Swanson, Finance Manager Thea Vassallo, Finance Administrator Todd Smithey (Items 8. and 11. ), and Shari Deutsch (item 6.) 1. Call Meeting to Order Chair McGill called the meeting to order at 3 p.m. 2. Public Comments 1►❑101 3. Review Second Quarter 2013 Public Agency Retirement Services (PARS) Governmental Accounting Standards Board (GASB) 45 Statement Finance Manager Thea Vassallo stated that the fund was rebalanced, and peer ranking information on the fund performance was added to the June 2013 quarterly report. COMMITTEE ACTION: Reviewed the report. 4. Review HighMark Capital Management GASB 45 Investment Guideline Document suggested changes and further review plan fees charged by Public Agency Retirement Services (PARS) and HighMark Capital Management Budget and Finance Committee August 12, 2013 Page 2 The Committee reviewed and discussed the revised Investment Guideline Document prepared by High Mark Capital Management. The revision will be included in the annual Investment Guidelines Position Paper. The Committee also reviewed and discussed the 10% fee reduction summary approved by US Bank, High Mark Capital Management, and Public Agency Retirement Services (PARS). The 10% discount is on all tiered fund levels. COMMITTEE ACTION: Approved revision and recommended approval by the Board. 5. Old Business a. Review staff's responses to the Committee's request for information regarding the following expenditures at previous meetings: Check # Date Amount Vendor Information Requested 195897 6/27/13 $2,400.00 RotoMetals, Inc. Why there was no tax charged 195923 7/3/13 $140,000.00 Blue Sky A report, to Environmental include a copy of the contract and invoice 195942 7/3/13 $10,394.33 Fieldman, More Rolapp & information on Associates Fieldman, Rolapp's next steps 195982 7/11/13 $2,290.00 AMACS Are the two 195998 7/11/13 $7,321.74 ChemStation of expenditures Northern CA related and more information on each charge 196054 7/11/13 $88,777.09 SunGard Public More Sector, Inc. information COMMITTEE ACTION: Reviewed staff's responses. 6. Risk Management a. Review Loss Control Report and discuss outstanding claims Safety and Risk Management Administrator Shari Deutsch announced that the District has received reimbursement of $968,301.12 for the PG&E expenses related to the cogen incident in March of 2012. Ms. Vassallo stated that the remaining PG&E expenses related to the incident were Budget and Finance Committee August 12, 2013 Page 3 transferred to the Self - Insurance Fund in Fiscal Year (FY) 2012 -13 financials in Period 13. COMMITTEE ACTION: Reviewed the report. 7. Review June 2013 (P12) Financial Statements and Investment Reports (Item 4.c. in Board Binder) Referred to Budget and Finance Committee by the Board at the August 1, 2013 meeting. COMMITTEE ACTION: Reviewed and recommended Board approval. *8. Review preliminary (P13) Adjusted Operations and Maintenance (O &M) Year - End Financial Summary and Projected Cash Reserves Staff distributed a Summary of Financials — June 2013 (P13) and Cash Flow estimated projection through the end of November 2013 (attached). The Cash Reserve Balance prior to the District's first sewer service charge (SSC) installment in December 2013 is projected to be very low. The Committee has been continuously monitoring the Cash Reserves since the April 11, 2013 Board Workshop, where the Board indicated they wished to start an accelerated pay -down of the District's unfunded retirement liabilities in FY 2013 -14 if possible, instead of the planned starting period of FY 2015 -16. On April 16, 2013 the Committee reviewed the Ten -Year Plan Rate Setting Scenarios, classification of Capital Improvement Budget expenditures, and the timing of funding the UAAL (agenda item 6.). The Committee reviewed financial information and discussed possibly funding an additional $5 million of the UAAL for FY 2013 -14 at the end of December 2013 and was reflected in the Committee minutes. The May 16, 2013 O &M budget was revised to include an additional $5 million pay -down which was not originally included in the January 24, 2013 10 -Year Plan. On June 20, 2013, the Board approved and adopted the O &M budget. COMMITTEE ACTION: Recommended Board receipt of the P13 year -end financials and investment reports at the September 5, 2013 Board meeting. 9. Review Position Paper approving a supplemental authorization of $241,000 from the Sewer Construction Fund to the Fiscal Year 2013 -14 Equipment Budget to complete the purchase of a new Sewer Rodding Truck ordered in April 2012; and approve travel outside of the United States (Canada) for District employees to inspect the truck prior to final release (Item 9.a. in Board Binder) 1i Budget and Finance Committee August 12, 2013 Page 4 COMMITTEE ACTION: Reviewed and recommended Board approval. The Committee discussed and recommended that, for future orders of these types of vehicles, the seller bear the cost of travel for inspection. Expenditures a. Review Expenditures dated August 1, 2013 (Item 4.b. in Board Binder) Referred to Budget and Finance Committee by the Board at the August 1, 2013 meeting. b. Review Expenditures dated August 15, 2013 (Item 4.b. in Board Binder) COMMITTEE ACTION: Reviewed and recommended Board approval. Staff was asked to provide additional information on the following: Check Date Amount Vendor 196146 7125113 $19,943.79 Dresser -Rand Co 196147 7125113 16,804.28 E &M Electric & Machiner 196160 7125113 38,300.00 JT Thorpe & Son, Inc. 196270 8101113 5,571.48 Pan - Pacific Supply Co. 196182 7125113 $ 4,384.35 Russo Auto Body V #200 196278 8101113 4,203.00 Russo Auto Body V #201 196278 8101113 783.49 Russo Auto Body V #223 Why does the District use this vendor? Why so many repairs on District vehicles? C. Review Legal Expenditure Summary COMMITTEE ACTION: Reviewed Legal Expenditure Summary. *11. Receive update on Fieldman, Rolapp & Associates consulting contract, status of the $5 million additional payment toward Unfunded Actuarial Accrued Liability (UAAL), and Contra Costa County Employees' Retirement Association (CCCERA) December 31, 2012 Actuarial Valuation (Item 6.a.3) in Board Binder) Fieldman, Rolapp & Associates consulting contract Staff reported that the issuance of POBs was analyzed for approximately a one - year period (April 2012 — March 2013) by the last two General Managers, staff, and the Budget and Finance Committee. It was determined that issuance of POBs was not in the best interest of the District due to various uncontrollable factors. Fieldman, Rolapp & Associates presented a final summary of its findings at the March 7, 2013 Board meeting. No further action was taken by the Board due to the risk factors associated with POBs, the additional SSC rate increase required to cover the additional debt, and the need to reserve the District's bonding capacity for funding of capital projects. The District received the final Budget and Finance Committee August 12, 2013 Page 5 report, "Update to Memorandum on Management of Pension Liabilities and Impact on District Cash Balances and Financing Capacity," which included corrections to its November 5, 2012 memorandum and the analysis model on June 10, 2013. The contract has been completed and has subsequently been closed. Status of the $5 million additional payment toward Unfunded Actuarial Accrued Liability (UAAL) The Committee discussed the estimated Cash Reserves projected at November 2013 (see Attachment to Item 8.) and possibly making the $5 million additional payment toward the UAAL in December 2013 after the first installment of SSC is received from the County. The Committee will continue to monitor the District's ability to make the $5 million pay -down between now and the end of December. The December 2013 additional $5 million pay -down was previously discussed at the April 16, 2013 Committee meeting and summarized in the minutes. CCCERA - December 31, 2012 Actuarial Valuation See Exhibit 1 (attached). The summary shows the District's current UAAL for calendar year 2012 versus 2011. The pay -down of the UAAL since 2007 is $4.7M. The District's contribution rates for the three tiers and general 2012 plan and member data as a total plan are also shown. COMMITTEE ACTION: Received the update. 12. Announcements 1► reyn 13. Suggestions for future agenda items Member McGill requested staff give an update on the GASB 45 OPEB Unfunded Liability (UAAL). 14. Adjournment — at 4:15 p.m. * Attachment Central Contra Costa Sanitary District Summary of Financials - June 2013 (P13) Revenues Actual Budget Fav /(Unfav) O &M 70,848 70,236 612 F S/C 22,282 21,787 495 F Total 93,130 92,023 1,107 F Expenses - By Dept Admin 20,921 21,124 Eng 8,681 8,187 CSO 11,278 10,905 POD 23,036 25,273 PS Total S/C Revenue Expenditures Cash Flow (estimated) 3,049 2,817 203 F Benefits -485, O/S 259k, Mat & Supplies 89k, Other 313k (494) U Sal & Wages -192k, Cap O/H -235k (373) U Sal & Wages -341 k, Benefits -49k, Rep & Maint 91 k 2,237 F Sal & Wages 109k, Benefits 559k, Rep & Maint 464k, O/S 875k, (Cogen 968k moved P13), Other 119k (232) U Sal & Wages -43k, Benefits -43k, Rep & Maint -155k 66,965 68,306 1,341 F Actual Budget 22,282 21,787 26,759 32,343 thru P13 annual 495 F 5,584 F Capital deferred /delayed unspent 2,965 R/E cash 691 S/C cash 49,700 S/C invstmts 53,356 P13 cash 13,800 Concord 10.5M + 2.5M, HHW .8M (Billings in process) (16,200) CCCERA prefund Paid P1 (22,021) Jul -Nov Payroll /benefits $69M Total Sal &Ben - 16.2M CCCERA Prefund /12 *5 (7,700) Other O &M/12 *5 $77.8M - 59.3M Sal & Ben /12 *5 (10,000) CIP Primary 10M (prior wet weather ?) and /or unspent 12/13 $5.6M 8,500 Other CIP 20/12 *5 $30M- 10M/12 *5 64,421 2,735 Estimated Cash Bal @ 11/30 3 weeks remaining til receive SSC installment #1 (4,800) Debt payment due end of August (Info updated after 8/12/13 B &F meeting) 2,065 * Estimated Cash Bal revised @ 11/30 * Conservative Approach - dependent on actual POD and Capital spending :E x W J a -L 4a 4- V 1L L � C C O m V m L Ln M U m E c O t/1 U Q m � L W 4-1u U V En ai 4a m W C O 7 c O u L O a W 1L C O m E 3 N W u V V L �'• t to Ln 10\1 100,01 m N ri O u G1 30 m m N o 0 0 O �, m m 1.11 o m m 3 N ui I� m n Lr rmI' Q 1�0� m 0 a Oo o00 O O + m ul m Ln Ln v Ln v I 1 m ui kD N Ol O Z U cI N O1 ri r'1 Ln I� m ri " r� a a C O_ v w E a O "- v m � O_ ri ao 1 cu r-I 02S � � 1 ri r -I r -I L ri ri ai C > L C L O O N O L N O) a N C O a O ICT u1 m m LD LD I- 00 00 00 7 } c r-I r-I r-I r-I e-1 -1 c1 r-I • C O "o t of a) N m Ln V) C u N w Ln -�* N N m M N n1 r-1 N n1 w C r-1 m LD I� r-I r-I r-i LD Ln p * 4 10 00 d m O o0 [t Ln M M N O r-1 v N M Lr Ln ro O O rr1 00 O 111 n 00 0 [t Ln 1 M lD m i1 r-I 01 N Ol I- Q1 O1 N O lr LD Ln C N m J O LD of of I- o -4 Ln r- Ln � ui Ln m a\ N M O1 ri or 00 ri o 0 N N m N a M r-I r-I r-I r-I r1 N qf + rNi C C O o0 O1 01 Ln Ln Ln O1 O o m � o a ° ofl o"'o 1r-1 0 N W Ln L.0 M -1 ri LD to u >. 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