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Home My WebLink About07.d.1)b) Minutes - Finance Committee 8-23-16Central Contra Costa Sanitary Distri 1 'II' 1.. 11' I 4- YEARS tr rOtectino- public health and the enwronment 5019 Imhof Place Mattinez cA 4553-4392 . SPECIAL MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FINANCE COMMITTEE MINUTES Tuesday, August 23, 2016 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair Tad Pilecki Member Paul Causey 7.d.1)b) BOARD OF DIRECTORS: TAD J. PILECKI President PAUL H. CAUSEY President Pro Tem illICHAEL R. MCGILL JAMES A. NEJEDLY DAVID R. WILLIAMS PHONE: (925) 228-9500 FAX: (925) 372-0192 www.centralsan.org Invited Guest: Michele Martin, Managing Vice President, Western Region of ICMA-RC (left after item 3.) Staff: Deputy General Manager Ann Sasaki Finance Manager Thea Vassallo Capital Projects Division Manager Edgar Lopez Purchasing & Materials Manager Stephanie King Finance Administrator Todd Smithey Senior Administrative Technician Cindy Granzella 1 Call Meeting to Order Chair Pilecki called the meeting to order at 3:00 p.m. 2. Public Comments None. 3. Receive information on proprietary ICMA-RC fund restructuring of its Vantagepoint Funds to collective investment trust (CIT) only structure, change becomes effective in October 2016 — Invited guest: Michele Martin, ICMA-RC Managing Vice President, Western Region Finance Committee Minutes August 23, 2016 Page 2 Ms. Martin explained that this restructuring only affects the Vantagepoint Funds. Once restructured, the investments will be in a CIT rather than in registered mutual funds. She stated that any monies currently invested in Vantagepoint funds will automatically roll over in October, and the transition should be seamless. COMMITTEE ACTION: Received the information. 4. Old Business a. Review staff's response to questions regarding expenditures at the July meeting: Check / Date Amount Vendor Information Requested #210396 $8,750.00 GHF - Member Causey requested more information 6/30/16 Education on "SC Lab," which Ms. Vassallo explained was the Sewer Science Lab program with several high schools. Chair Pilecki asked for more clarification of the charges; if they were for supplies or teachers. COMMITTEE ACTION: Reviewed staff's responses. b. Receive explanation of intangible assets Mr. Smithey explained that intangible assets at the District are comprised of easements acquired by the Capital Projects Division when working on District Projects. However, once a capital project is closed, the easement is re -classed on the balance sheet because it is not a depreciable asset. COMMITTEE ACTION: Received the explanation. 5. Expenditures a. Review Expenditures With regard to the payment to Contra Costa County Employees' Retirement Association (CCCERA) on page 7 of the expenditures, Chair Pilecki requested that the amount of the pre -funding be announced at an upcoming Board meeting, as well as the savings to the District, and a breakdown of the portion that goes toward paying down the District's unfunded actuarial accrued liability (UAAL). Finance Committee Minutes August 23, 2016 Page 3 Member Causey questioned the payment to the Employment Development Department on page 35. Ms. Vassallo and Mr. Smithey explained that the District reimburses the State of California for unemployment claims, usually made by summer students and District temporary employees upon leaving the District. Member Causey said this is a policy issue that should be addressed by the Administration Committee and the full Board. COMMITTEE ACTION: Reviewed and recommended Board approval. Requested additional information on the following: I Check/ I Date Amount #210942 $75,839.11 7/28/16 #211099 $20,450.00 8/11/16 Vendor KIS Computer Center Richard Tiras Information Requested Chair Pilecki requested more information on the type of equipment that was purchased. Chair Pilecki requested more information on the reimbursement. b. Review P -card statement Ms. Vassallo reviewed the P -card statement and responded to questions. COMMITTEE ACTION: Reviewed the statements. 6. Financial Statements a. Review June 2016 Financial Statements and Investment Reports, including all year-end adjustments Ms. Vassallo explained that staff is transitioning to a new capital budget reporting system, and the June Sewer Construction capital report may seem confusing because the report includes capital information for both Fiscal Years 2015-16 and 2016-17. The Committee agreed that the most accurate report should be included in the Board packet with a footnote explaining the transition in changing the capital reporting method. b. Review Fiscal Year 2015-16 Pre -Audit Year -End Financial Statement Summary Report Ms. Vassallo reviewed the information included in the agenda materials, and stated that the summary report shows the variances for all four funds. Member Causey stated that the Committee should make a recommendation to the full Board on what to do with the excess funds. He requested that staff Finance Committee Minutes August 23, 2016 Page 4 present options at an upcoming Committee meeting, so that the discussion with the full Board can begin soon. COMMITTEE ACTION: Reviewed and recommended Board receipt. 7 Review and discuss HighMark Capital Management Governmental Accounting Standards Board (GASB) 45 Trust Second Quarter Report dated July 27, 2016 Member Causey expressed concern about the recent low rates of return indicated in the recent quarterly report. He inquired about the fee percentage received by HighMark, and asked if an expert could review the District's investments in the GASB 45 Trust. COMMITTEE ACTION: Discussed and provided input to staff. 8. Announcements a. Future scheduled meetings: Thursday, September 22, 2016 at 3:00 p.m. Monday, October 24, 2016 at 3:00 p.m. Monday, November 28, 2016 at 3:00 p.m. b. Receive list of Scheduled/Parking Lot items c. Ms. Sasaki announced that the District recently responded to a Public Records Act request from Robert Feliner, Research Director of Transparent California, seeking employee compensation data for 2015. Subsequently, Mr. Feliner contacted Daniel Borenstein of the Bay Area News Group to discuss the District's decision to separate the reporting of total pension costs (unfunded liabilities) from individual employees' current year total compensation. Mr. Borenstein contacted the District for information regarding this decision. Ms. Sasaki said the District will respond and share the information with the Board once complete. COMMITTEE ACTION: Received the announcements. 9. Suggestions for future agenda items None. 10. Adjournment — at 4:55 p.m.