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Home My WebLink AboutFINANCE ACTION SUMMARY 03-23-15REGULAR MEETING OF THE BOARD OF DIRECTORS MCGILMICHAEL R. MCGILL CENTRAL CONTRA COSTA President SANITARY DISTRICT zAD' PI President Pro ro Tem Tem FINANCE COMMITTEE PAUL HCAUSCY JAMES A. NEIEDI.Y DAVID R. WILLIAMS ACTION SUMMARY PHONE: (925) 228 -9500 FAX.- (925) 372 -0192 Chair Nejedly www.centralsan.org Member Pilecki Monday, March 23, 2015 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California PRESENT: Chair Jim Nejedly, Member Tad Pilecki, General Manager Roger Bailey, Director of Administration David Heath, Finance Manager Thea Vassallo, Deputy General Manager Ann Sasaki, Purchasing and Materials Services Manager Stephanie King, Finance Administrator Todd Smithey, Senior Administrative Technician Cindy Granzella 1. Call Meeting to Order Chair Nejedly called the meeting to order at 3:00 p.m. 2. Public Comments None. 3. Old Business a. Receive information regarding the following questions regarding expenditures at the previous meeting: #203822 $2,396.68 Aggreko Inc. Chair Nejedly requested a copy of the bill for the 2/19/15 rental generator and questioned why a more local vendor was not chosen to provide the service. Finance Committee Action Summary March 23, 2015 Page 2 Check l Information Requested Date Amount vendor (Responses are included in the Agenda Packet as Attachment 3. a) #203826 $2,500.00 Antioch The Committee requested more information on the 2/19/15 Chamber of charge for the sponsorship of the EC2 Summit. Commerce COMMITTEE ACTION: Received the information. 4. Expenditures a. Review Expenditures COMMITTEE ACTION: Reviewed and recommended Board approval. 5. Receive summary and discuss results of Governmental Accounting Standards Board (GASB) 45 actuarial report Finance Manager Thea Vassallo stated that John Bartell of Bartell Associates, LLC prepared the GASB 45 Actuarial Valuation, which is required every two years. The summary was included in the Agenda Packet as Attachment 5. The July 1, 2014 valuation included the new required contributions (ARC) for Fiscal Years 2015 -16 and 2016 -17, which represents a level of funding that adheres to a 30 -year amortization. The ARC has decreased from $8.103 million in the July 1, 2012 report to $7.866 million as of July 1, 2014. Since the July 1, 2010 valuation, the unfunded actuarial accrued liability (UAAL) for Other Post - Employment Benefits (OPEB) has decreased from 78% to 59% as of July 1, 2014 as a result of earnings and regular contributions to the Public Agency Retirement Services (PARS) Trust. Chair Nejedly asked if staff has to use the same vendor, or if another has been considered. Finance Administrator Todd Smithey explained that John Bartell is a leader in the field, and is comfortable remaining with the firm. Member Pilecki stated that it is common practice to switch Actuarial Services, and even auditors, every five years. Mr. Smithey explained that it could be possible to change principals, yet remain with the same firm. COMMITTEE ACTION: Received summary. 6. Review February 2015 Financial Statements and Investment Reports Ms. Vassallo reported that the revenue variance has decreased and that the Operations and Maintenance (O &M) expenses are running at a favorable variance of $3.7 million, but early projections during the budget process are Finance Committee Action Summary March 23, 2015 Page 3 anticipating a much smaller variance in the upcoming months due to higher spending. Member Pilecki asked if the capital program expenses were still on target, stating that only $14.6 million of the budgeted $25.5 million had been spent in the first eight months. Ms. Vassallo confirmed that she had inquired recently with the Engineering Department and the amount is projected to be within $1 million of target. COMMITTEE ACTION: Reviewed and recommended Board approval. 7. Announcements a. Future scheduled meetings: Monday, April 6, 2015 at 3:00 p.m. Monday, April 27, 2015 at 3:00 p.m. Monday, May 11, 2015 at 3:00 p.m. COMMITTEE ACTION: Received the announcements. 8. Suggestions for future agenda items Member Pilecki requested a review of blanket O &M contracts, specifically the yearly renewals, and whether or not staff would be looking to go out for requests for proposal (RFP), and possibly look for local vendors. 9. Adjournment — at 3:16 p.m.