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Home My WebLink About12.d.1)b) Minutes-Finance Committee 4-22-16 1) L) 2. J. Central Contra Costa Sanitary District Protecting p . the environmentImhoff SPECIAL MEETING OF THE BOARD OF TAD PI ECK TAD J.P/LECKI CENTRAL CONTRA COSTA President SANITARY DISTRICT PAUL H.CAUSEY President Pro Tent FINANCE COMMITTEE MICHAEL R.MCGILL JAMES A.NEJEDLY DAVID R.WILLIAMS MINUTES PHONE: (925)228-9500 FAX: (925)372-0192 Friday, April 22, 2016 www.centralsan.org 9:00 a.m. Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair Tad Pilecki Member Paul Causey Staff. • General Manager Roger Bailey Deputy General Manager Ann Sasaki Director of Administration David Heath Finance Manager Thea Vassallo Planning and Development Services Division Manager Danea Gemmell Capital Projects Division Manager Edgar Lopez (arrived during Item 5.) Finance Administrator Todd Smithey Senior Administrative Technician Cindy Granzella 1. Call Meeting to Order Chair Pilecki called the meeting to order at 9:00 a.m. 2. Public Comments None. 3. Old Business a. Review staff's response to questions regarding expenditures at the previous meeting: Finance Committee Minutes April 22, 2016 Page 2 Check/ Date Amount Vendor Information Requested #208712 $8,975.18 Wave Chair Pilecki requested more information on 2/11/16 the cost of this service, and how it compares with that of the previous vendor. #208716 $3,471.39 AAA Business Member Causey asked if staff orders office 2/18/16 Solutions supplies in bulk, and how frequently supplies are ordered. Mr. Bailey said staff would report back on the supplies ordering process. #208865 $4,102.38 Hertz Member Causey requested more information, 3/03/16 Equipment and asked if the Plant Operations Division Rental Co. POD has a loader. COMMITTEE ACTION: Reviewed staff's responses. 4. Review draft Position Paper for June 2, 2016 public hearing to consider adopting proposed uncodified ordinance to amend the Schedule of Capacity Fees, effective July 1, 2016 COMMITTEE ACTION: Reviewed and recommended Board approval. 5. Review draft Position Paper for June 2, 2016 public hearing to consider adopting proposed uncodified ordinance to amend the Schedule of Environmental and Development-Related Fees and Charges, effective July 1, 2016 Member Causey requested that the public hearing items related to fees be consolidated into one public hearing notice. COMMITTEE ACTION: Reviewed and recommended Board approval. 6. Expenditures a. Review Expenditures b. Review P-Card Statements COMMITTEE ACTION: Reviewed and recommended Board approval. Requested additional information on the following: Check/ Date Amount Vendor Information Requested #209108 $18,573.17 Air Systems Chair Pilecki asked if the valve leaks were due 3/24/16 Inc. to an operational defect. Mr. Lopez said he would look into the life expectancy of the valves. Finance Committee Minutes April 22, 2016 Page 3 Check/ Date Amount Vendor Information Requested #209159 $1,743.37 Utility Cost Member Causey requested more information. 3/24/16 Management #209471 $1,958.40 Teamtalk Chair Pilecki requested more information. 4/7/16 1 1 Network 7. Review March 2016 Financial Statements and Investment Reports Ms. Vassallo stated that the variances are running about the same as last month. Member Causey asked for a description of"intangible assets." COMMITTEE ACTION: Reviewed and recommended Board approval. 8.* Overview of Fiscal Year 2016-17 District Budget Mr. Bailey stated that the information presented indicates the budget figures associated with each department; however, they are not yet in the new combined final budget format. Mr. Heath explained that the actual draft budget, which will be provided to the Board in May, will contain much more detail. Mr. Heath said this overview used the Cost of Service Study as a reference point. He distributed a handout showing reserve balance projections through June 30, 2017. He also distributed a handout showing a comparison of budgeted versus actual expenses by department as of June 30, 2015, which indicated an approximately$4 million positive variance. COMMITTEE ACTION: Reviewed and provided input to staff. 9. Announcements a. Future scheduled meetings: Monday, May 23, 2016 at 3:00 p.m. Monday, June 27, 2016 at 3:00 p.m. Monday, July 25, 2016 at 3:00 p.m. Member Causey reminded the Committee that he will not be available for the June 27 meeting and an alternate will be needed. Finance Committee Minutes April 22, 2016 Page 4 b. Receive list of Scheduled/Parking Lot items Member Causey stated that two additional items should be listed in the parking lot: (1) a discussion on a sewer service charge audit, and(2) a review of how connection fees are calculated and how the process works. COMMITTEE ACTION: Received the announcements. 10. Suggestions for future agenda items a. Member Causey requested a discussion regarding a two-year budget, as opposed to a one-year budget. b. Member Causey requested a discussion of a replacement fund for capital, explaining the difference between capital acquisition and capital replacement. He was surprised to hear how few miles of pipe have been replaced over the last several years. He voiced concern over the challenge ahead to replace so many miles of pipe. Chair Pilecki also suggested having the Engineering& Operations Committee discuss how many miles of pipe have been improved, and brought up to standard. He believes that it would be important to understand the full issue. 11. Adjournment— at 10:42 a.m. * Attachment (Hur�oCaU,i CCCSD Cost of Service Study Summary Reserve Balance Projections O&M Capital Insurance Fund Fund Fund Total Balance 6-30-15 36,519,705 17,669,034 6,500,000 60,688,739 FY2015-16 Projection 3,149,152 (2,022,500) - 1,126,652 Est Balance 6-30-16 39,668,857 15,646,534 6,500,000 61,815,391 Transfer to Capital Fund (2,300,000) 2,300,000 - - Adjusted Balance 6-30-16 37,368,857 17,946,534 6,500,000 61,815,391 Target 7-1-16 37,368,457 18,404,378 6,527,846 62,300,681 FY 2016-17 Budget Projection 32,903 (1,803,356) - (1,770,453) Projected Balance 6-30-17 37,401,760 16,143,178 6,500,000 60,044,938 Projected Balance 6-30-17 Per CSS 36,308,699 10,869,552 7,323,131 54,501,382 Variance 1,093,061 5,273,626 (823,131) 5,543,556 4/22/20168:19 AM S". CENTRAL CONTRA COSTA SANITARY DISTRICT Schedule of Running Expenses ' Comparison of Budget and Actual Expenses by Department June 30,2015 Sewage Variance Sewage Treatment Pumping Favorable Administration Engineering Collection Plant Station Total Budget (Unfavorable) Salaries and Wages $5,102,955 $6,297,739 $5,579,510 $9,664,530 $1,000,360 $27,645,094 $28,618,169 $973,075 Employee Benefits 14,401,040 7,321,071 6,793,803 11,500,843 1,121,003 41,137,760 41,833,388 695,628 Less Capitalized Overhead and Benefits (14,802) (2,506,166) (38,429) (117,410) (1,417) (2,678,224) (3,806,958) (1,128,734) Total Salaries and Benefits 19,489,193 11,112,644 12,334,884 21,047,963 2,119,946 66,104,630 66,644,599 539,969 Directors'Fees and Expense 148,449 - - - - 148,449 199,800 51,351 Chemicals - - - 1,066,497 434,704 1,501,201 1,605,000 103,799 Utilities 73,114 181,086 140,127 3,126,373 510,336 4,031,036 4,861,350 830,314 Repairs and Maintenance 503,221 177,385 1,171,342 1,764,762 256,847 3,873,557 4,911,762 1,038,205 Hauling and Disposal - 409,489 121,421 344,967 8,826 884,703 1,040,200 155,497 Professional and Legal Services 311,348 109,298 5,765 9,233 - 435,644 539,400 103,756 Outside Services 1,446,640 826,917 44,388 508,815 60,477 2,887,237 3,303,021 415,784 Self Insurance 650,000 - - - - 650,000 650,000 - Materials and Supplies 118,096 195,221 786,832 807,153 26,951 1,934,253 2,024,315 90,062 Other 476,961 188,928 143,073 831,957 34,595 1,675,514 2,419,448 743,934 $232217,022 $13,200,968 $14,747,832 $29,507,720 $3,452,682 $84,126,224 $88,198,895 $4,072,671