Loading...
HomeMy WebLinkAboutFINANCE ACTION SUMMARY 04-21-1411 Central Contra Costa Sanitary District A A ACTION SUMMARY Chair Causey Member Nejedly Monday, April 21, 2014 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California BOARD OF DIRECTORS: DAVID R. WILLIAMS President MICHAEL R. MCGILL President Pro Tem PAUL H. CAUSEY JAUESA. NEJEDLY 7AD J. PILECKI PHONE: (925) 228 -9500 FAX: (925) 372 -0192 www. centralsan. org PRESENT: Chair Paul Causey, Member Jim Nejedly, Finance Manager Thea Vassallo, General Manager Roger Bailey, Director of Administration David Heath, Safety and Risk Management Administrator Shari Deutsch, Senior Engineer Craig Mizutani (left after Item 6.), Plant Maintenance Division Manager Neil Meyer (left after Item 6.), Senior Administrative Technician Christina Gee 1. Call Meeting to Order Chair Causey called the meeting to order at 3:02 p.m. 2. Public Comments None. 3. Old Business a. Review staff's response to questions regarding an expenditure at the previous meeting: Check l Information Requested Date Amount Vendor (Responses were included in the Agenda' Packet as Attachment 3. a) 199326 $1,178.31 Komatsu Chair Causey requested why there was a Forklift of No. need for this expenditure, and if Plant CA Operations Department retains forklifts on site. Finance Committee Action Summary April 21, 2014 Page 2 199350 $12,365.74 Seepex, Inc. Chair Causey noted that the cost for miscellaneous supplies was high for the month. Finance Manager Thea Vassallo noted that $8,500 was attributed to stators; however, Purchasing and Materials Services Manager Stephanie King will provide additional information. Member Nejedly suggested that staff look into the possibility of renting equipment from Cresco Equipment Rentals and compare the costs to those charged by Komatsu. COMMITTEE ACTION: Reviewed staff's response, provided input, and directed that no additional information was required on the Seepex, Inc. expenditure. 4. Expenditures a. Review Expenditures Chair Causey requested the following information: Check 1 Date Amount Vendor Information Requested 199823 $4,750.00 VPI Strategies Chair Causey requested the full expected cost 4/10/14 of the customer service survey Regarding the $5, 000.00 cost for Federal Advocates, Inc., Chair Causey requested that that somewhere down the line, it be discussed if the vendor is going forward correctly and what benefits it has provided the District. It was noted that the Board voted to extend the contract on January 23, 2014, to provide lobbyist efforts for the Refinery Recycled Water Project. COMMITTEE ACTION: Reviewed and recommended Board approval. 5. Review March 2014 Financial Statements and Investment Reports Finance Manager Thea Vassallo reported that revenues were running about $6.3 million favorable as of March 2014. The variance represents $3 million on the Operations and Maintenance (O &M) side and $3.3 million for Sewer Construction. Staff is projecting $2 million favorable variance in O &M by year end. Sewer Service Charge revenue is projected to be $3.5 million favorable by Finance Committee Action Summary April 21, 2014 Page 3 year end due to three one -time Facility Capacity Fees paid during the FY that represent $2.5 million of the variance and the remaining is for additional property tax of $1.0 million. riiii • t -. . . 11111 LQ I L r- �.. . . . 6. Receive history of the District's landfill gas contract COMMITTEE ACTION: Received the information. 7. General discussion and report out by staff on how major events (such as earthquake and calamity) will be covered with the current $4 million Self - Insurance Fund and if there is an evaluation process to estimate or determine the potential loss of assets in such an event Safety and Risk Management Administrator Shari Deutsch discussed the District's Self - Insurance Fund and program structure, noting that although each sub -fund is meant to fund certain expenses, after a disaster, the District could draw from all three funds if necessary to facilitate emergency response and repairs. Diverted reserves would have to be returned as soon as possible to continue funding self - insured losses but there is no policy against the temporary reallocation of reserves within the Self - Insurance Fund. Other options to finance post- disaster response and repairs include the reallocation of funds from the capital program, state and federal disaster relief grants, and debt financing. Ms. Deutsch also noted that the District maintains informal target reserves for the three self - insurance sub - funds, but there is no formal reserve policy. Sub -fund C is used to pay for self - insured property losses but only has a current reserve of $1.2 million. She stated that, in her opinion, this was not sufficient to address the potential costs of repairs and recovery after a disaster. General Manager Roger Bailey commented that the cost -of- service study, to be conducted early next fiscal year, will look at the idea of a formal reserve policy and how much money should be involved. At this time, reserves and the mechanism to fund loss of assets will be discussed from a policy standpoint. Chair Causey noted that the District should not depend on state or federal disaster recovery funds. He suggested that staff consult with other water and /or wastewater agencies to identify additional disaster response needs and recovery funding options. COMMITTEE ACTION: Received report and provided input to staff, with the understanding that consideration of a formal reserve policy will be brought to the Board early next fiscal year as part of the cost -of- service study. Finance Committee Action Summary April 21, 2014 Page 4 8. Announcements a. Next meeting scheduled for Monday, May 5, 2014 at 3:00 p.m. b. General Manager Roger Bailey introduced the newly -hired Director of Administration, David Heath. C. Ms. Vassallo announced that the deferred compensation consolidation has been completed as of the end of March. COMMITTEE ACTION: Received the announcements. 9. Suggestions for future agenda items None. 10. Adjournment — at 3:53 p.m.