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HomeMy WebLinkAbout06.d.1)e) Action Summary-Finance Committee October 6, 20144.de /) e) 1 Central Contra Costa Sanitary District REGULAR MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FINANCE COMMITTEE ACTION SUMMARY Member Pilecki (Alternate) Member Nejedly Monday, October 6, 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 Tent PAUL H CAUSEY JAMES A. NEJEDLY TAD J PILECKI PHONE: (925) 228 -9500 FAX.- (925) 372 -0192 www.centralsan.org PRESENT: Member Jim Nejedly, Member Pilecki (Alternate), Director of Administration David Heath, Finance Administrator Todd Smithey, Andrew Brown of HighMark Capital Management (for Item 3.), Ryan Fox of HighMark Capital Management (for Item 3.), Vikki Rodriguez of Maze & Associates (for Item 5.), Senior Administrative Technician Christina Gee 1. Call Meeting to Order Acting Chair Nejedly called the meeting to order at 3:00 p.m. 2. Public Comments None. 3. Receive presentation from Andrew Brown of HighMark Capital Management on performance review through August for the Governmental Accounting Standards Board (GASB) 45 Trust Andrew Brown, Vice President of HighMark Capital Management, discussed the performance review report which was included in the agenda packet. His associate, Ryan Fox, Vice President and Portfolio Manager at HighMark Capital Management, was also present. Finance Committee Action Summary October 6, 2014 Page 2 Member Pilecki inquired about the allocation into international equities, given the volatile state of international markets and the increasing strength of the U.S. dollar. Mr. Brown replied that investment in the international market is a calculated risk, but they are aware of the situation. He also noted that he was monitoring a few funds, including the T. Rowe Price Equity Income Fund, PIMCO Total Return Fund Institutional Class, and Loomis Sayles Value Fund. COMMITTEE ACTION: Received the presentation. 4. Expenditures a. Review Expenditures Member Pilecki requested that the front page of the expenditures be dated November 6, 2014, instead of October 16, 2014, since the Board meeting scheduled for that day was cancelled. Member Pilecki inquired about a US Bank procurement card charge (Check #201825 dated 9118114, totaling $1,525.00). Finance Administrator Todd Smithey recalled that he had raised the same question with Human Resources Analyst Judy Rivers, who confirmed to him that the District pays to participate in job fairs. COMMITTEE ACTION: Reviewed and recommended Board approval with date revision. 5. Receive and accept Audited Financial Statements for Fiscal Year (FY) 2013 -14 Vikki Rodriguez of Maze & Associates reported that the audit was completed. She congratulated the District on receiving an unmodified opinion, which is the cleanest outcome one can receive. She noted that it was a comparative report which impacted the statements, notes, and Management's Discussion. Bond issuance was expensed, and future debt will also be expensed. She also reported that Governmental Accounting Standards Board (GASB) 68, regarding pensions, cannot be implemented early because Contra Costa County Employees' Retirement Association (CCCERA) needs to implement GASB 67. Member Pilecki inquired about what appeared to be a $2 million discrepancy between the pre- audited "Period 13" versus the current figures in the Operations & Maintenance (O &M) revenue. He also suggested that the pension disclosure include the fact that this year, the District, in a move indicating fiscal prudence, Finance Committee Action Summary October 6, 2014 Page 3 contributed an additional $5 million to CCCERA to pay down the District's unfunded liabilities. COMMITTEE ACTION: Reviewed and recommended Board acceptance with suggested addition to the disclosure. Requested information on the apparent $2 million discrepancy. 6. Announcements a. Future scheduled meetings: Monday, October 27, 2014 at 3:00 p.m. Wednesday, November 12, 2014 at 3:00 p.m. (Special) Monday, November 24, 2014 at 3:00 p.m. COMMITTEE ACTION: Received the announcements. 7. Suggestions for future agenda items None. 8. Adjournment — at 3:50 p.m.