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Home My WebLink AboutFINANCE MINUTES 01-18-17 6. D. 1 )c) Central Contra Costa Sanitary District SPECBOARD OF DIRECTORS: IAL TINGOF THE PAUL H.CAUSEY CENTRAL CONTRA COSTA President SANITARY DISTRICT JAMES A.NEJEDLY President Pro Tent FINANCE COMMITTEE MICHAEL R.MCGILL TAD J.PILECKI DAVID R. WILLIAMS MINUTES PHONE: (925)228-9500 FAX: (925)372-0192 Wednesday, January 18, 2017 wvvw.(-etitralsaii.org 1:00 P.M. 2nd Floor Conference Room 5019 Imhoff Place Martinez, California Committee: Chair Jim Nejedly Member Tad Pilecki Staff: Ann Sasaki, Deputy General Manager Phil Leiber, Director of Finance and Administration Stephanie King, Purchasing and Materials Manager Thea Vassallo, Finance Manager Chris Thomas, Finance Administrator Cindy Granzella, Senior Administrative Technician 1. Call Meeting to Order Chair Nejedly called the meeting to order at 1:00 p.m. 2. Public Comments None. 3. Confirm 2017 Committee dates COMMITTEE ACTION: Confirmed meeting dates. 4. Old Business a. Review staff's response to questions regarding expenditures at the December 2016 meeting: Finance Committee Minutes January 18, 2017 Page 2 Check/ Date Amount Vendor Information Re nested #212675 $15,782.93 John D. Committee requested confirmation that 12/8/16 Curtis these reimbursement fees were ultimately charged against the sewer construction fund. COMMITTEE ACTION: Reviewed staff's responses. 5. Expenditures a. Review Expenditures COMMITTEE ACTION: Reviewed and recommended Board approval. Requested additional information on the following: Check! Date Amount 'Vendor Information Requested #212892 $3,250.00 Aqua- Chair Nejedly requested a brief report on 12/29/16 Science why this study could not have been handled in-house. 6. Review following of December 2016 Financial Statements and Investment Reports: a. Current format Ms. Vassallo explained that operation and maintenance (O&M) revenues are currently running at a $684,307 negative variance because the first installment of sewer service charges was less than anticipated. O&M expenses are running at a $3.2 million favorable variance, mainly due to labor charges, repairs and maintenance, and outside services. She stated that sewer construction revenues are at a $1.6 million negative variance due to the first installment of sewer service charge and property taxes being less than anticipated. Sewer construction expenses (capital expenditures), are $15.7 million to date, or about 42.7% of the annual estimate. Ms. Vassallo noted that Recycled Water data on page 8 has been adjusted to reflect current numbers, as well as the contingency line on page 17. COMMITTEE ACTION: Recommended Board approval. b. Proposed new format Finance Committee Minutes January 18, 2017 Page 3 Ms. Vassallo explained that this is the new format proposed by staff for future monthly financial statements and investment reports. Chair Nejedly requested a larger font size, especially on pages with more information, for easier readability. Member Pilecki also requested certain minor changes including reporting headings, pagination, and use of color coding. COMMITTEE ACTION: Reviewed and provided input to staff. 7. Review draft Position Paper to approve the updated administrative overhead percentage for Fiscal Year 2017-18 Ms. Vassallo reviewed the draft Position Paper included in the agenda materials and responded to questions. She stated that the overhead percentage has increased from last year by 9%, and the main drivers for the increase are the filling of vacant positions and the effects of three-year smoothing, offset by a decrease in employee benefits as a result of lower retirement contributions. Member Pilecki asked for certain refinements to the Position Paper to more clearly explain the drivers. COMMITTEE ACTION: Reviewed, requested revised explanation be added to the Position Paper, and recommended Board approval. 8. Review draft Position Paper to authorize the allocation of $2.5 million budgeted for unfunded actuarial accrued liabilities (UAAL) in the current fiscal year to Central San's existing Other Post-Employment Benefits PARS (OPEB) Trust Ms. Vassallo explained that the $2.5 million allocation was consistent with the direction from the Board at the November 10, 2016 workshop. Member Pilecki asked if the intention was to make a lump sum payment of$2.5 million, or to spread the payments over several months given the possibility of investing at the peak of the market. Ms. Vassallo responded that the December date was originally created for rate relief in the next fiscal year for Contra Costa County Employees'Retirement Association (CCCERA). Member Pilecki stated that he felt strongly about not transferring all of the monies at one time. Chair Nejedly questioned the need for a staged approach given the size of the deposit. Chair Nejedly said he will raise the question with the rest of the Board when it considers the item. COMMITTEE ACTION: Reviewed and recommended Board approval, subject to a discussion by the full Board as to timing of the allocation. Finance Committee Minutes January 18, 2017 Page 4 9. Announcements a. Future scheduled meetings: Tuesday, February 21, 2017 at 1:00 p.m. Tuesday, March 28, 2017 at 1:00 p.m. Tuesday, April 25, 2017 at 1:00 p.m. b. Receive list of Scheduled/Parking Lot items 1) Member Pilecki suggested having the parking lot item on temporary staff members be reviewed by the Administration Committee, instead of the Finance Committee. Chair Nejedly concurred. 2) Mr. Leiber stated that the item for the capital replacement fund will be discussed at the upcoming workshop. 10. Suggestions for future agenda items Member Pilecki requested to review a list of current blanket contracts. 11. Adjournment — at 1:30 p.m.