HomeMy WebLinkAboutBUDGET AND FINANCE ACTION SUMMARY 08-12-13Central Contra Costa Sanitary District
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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
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