HomeMy WebLinkAbout18.c. Minutes-Finance Committee Meeting 08-29-17 Page 1 of 5
Item 18.c.
I
Central Contra Costa Sanitary District
September 7, 2017
TO: HONORABLE BOARD OF DIRECTORS
FROM: ELAINE BOEHME, SECRETARY OF THE DISTRICT
SUBJECT: AUGUST 29, 2017 - FINANCE COMMITTEE - MEMBER NEJEDLYAND
MEMBER PILECKI
Attached are minutes of the above Committee meeting.
Strategic Plan Tie-In
GOAL ONE:Provide Exceptional Customer Service
Strategy 1 - Foster Customer Engagement and Awareness
ATTACHMENTS:
1, Minutes of 8-29-17 Finance Committee Meeting
September 7, 2017 Regular Board Meeting Agenda Packet- Page 290 of 294
Page 2 of 5
Am'�k
Central Contra Costa Sanitary District
Protecting public health and the environment OF 5019 Imhoff Place,Martinez, CA 94553-4392
REGULAR MEETING OF THE BOARD of PAAULULDIRCK CAUSEAUSE
Y
CENTRAL CONTRA COSTA President
SANITARY DISTRICT JAMES A.NProTem
President Pro Tem
FINANCE COMMITTEE MICHAEL R.MCGILL
TAD J PILECKI
DAVID R. WILLIAMS
MINUTES
PHONE: (925)228-9500
FAX: (925)372-0192
Tuesday, August 29, 2017 www.centralsan.org
1:00 P.M.
Executive Conference Room
5019 Imhoff Place
Martinez, California
Committee:
Chair Jim Nejedly
Member Tad Pilecki
Staff.
Roger S. Bailey, General Manager
Ann Sasaki, Deputy General Manager
Jean-Marc Petit, Director of Engineering and Technical Services
Phil Leiber, Director of Finance and Administration
Stephanie King, Purchasing and Materials Manager
Thea Vassallo, Finance Manager
Todd Smithey, Finance Administrator (arrived during Item 3.b.)
Lupe Saldana, Administrative Services Supervisor
Anika Doria, Administrative Assistant Temp
1. Call Meeting to Order
Chair Nejedly called the meeting to order at 1:00 p.m.
2. Public Comments
None.
September 7, 2017 Regular Board Meeting Agenda Packet- Page 291 of 294
Page 3 of 5
Finance Committee Minutes
August 29, 2017
Page 2
3. Items for Committee Recommendation to Board
a. Receive Fiscal Year 2016-17 Pre-Audit Year End Financial Statement
Summary Report and Recommended Variance Alternatives
Mr. Leiber stated that Fiscal Year(FY) 2016-17 revenues exceeded
expectations. Referring to Attachment 3 of the agenda packet materials for
this item, he described the three proposed uses of Operations and
Maintenance (O&M) FY 2016-17 favorable budget variances and
described the advantages of each proposed use.
Member Pilecki, referring to page 3 of 6 of the agenda packet materials for
this item, asked why the Sewer Construction FY 2016-17 Expenses
amount does not match the amount on the Sewer Construction monthly
financial materials presented in Item 3.b. of this agenda. He asked that
staff respond at the next Committee meeting.
Member Pilecki expressed that he opposes adding surplus funds to the
O&M reserves because there should be no assumption that the funds can
be spent.
Chair Nejedly commented that all the information provided is useful but
the full Board will decide how to use the surplus.
COMMITTEE ACTION: Requested information on Sewer
Construction expenses for FY 2016-17 and recommended that the
full Board determine how best to utilize any surplus funds from
FY 2016-17.
b. Review June and July 2017 Financial Statements and Investment Reports
Ms. Vassallo reported Sewer Construction revenues for June 2017 had a
favorable variance of$2.1 million and that expenditures were 89.1% of the
adjusted Capital Improvement Budget (CIB) for the year ending
June 30, 2017. She reported that for the month of July there were no
significant variances for O&M and Sewer Construction, and that 2.2% of
the CIB was spent.
COMMITTEE ACTION: Reviewed and recommended Board receipt.
September 7, 2017 Regular Board Meeting Agenda Packet- Page 292 of 294
Page 4 of 5
Finance Committee Minutes
August 29, 2017
Page 3
C. Review Expenditures dated September 7, 2017
The Committee reviewed the expenditures included in the agenda
materials, and staff responded to questions.
COMMITTEE ACTION: Reviewed and recommended Board approval.
4. Other Items
a. Review and provide input on Highmark Capital Management GASB 45
Other Post-Employment Benefits (OPEB) Sub-trust Quarterly Report
(Second Quarter 2017)
Ms. Vassallo referred to page 128 of 158 of the agenda packet materials
for this item and stated that there was $52.2 million in the OPEB trust, the
one year return was 10.64% and inception-to-date return was 9.88%.
Chair Nejedly and Member Pilecki expressed how pleased they were with
the growth of the assets since inception of the OPEB Trust eight years
ago, and noted this quarter experienced the highest rate of return since
inception.
COMMITTEE ACTION: Discussed and provided input to staff.
b. Receive information on blanket purchase orders
Ms. King explained that this item is in response to a question asked at the
prior Finance Committee meeting regarding blanket purchase orders
issued to vendors that are not located within the District's service area.
She stated that the District has not tracked that information but it can be
tracked if desired. Ms. King, referring to the materials provided in the
agenda packet, explained that the Board had addressed this issue two
years ago, and at that time the Board decided not to implement a formal
policy of giving preference to local vendors for various reasons.
After discussing this issue with the Committee, Mr. Bailey said he will work
with staff to bring back an informal local vendor preference policy
recommendation to the Administration Committee.
COMMITTEE ACTION: Received the information and requested staff
develop a draft local vendor preference policy for Administration
Committee review.
September 7, 2017 Regular Board Meeting Agenda Packet- Page 293 of 294
Page 5 of 5
Finance Committee Minutes
August 29, 2017
Page 4
C. Review June 2017 Procurement Card Statement
COMMITTEE ACTION: Reviewed the information.
d. Receive list of Scheduled/Parking Lot items
COMMITTEE ACTION: Received the list and provided input to staff.
5. Announcements
None.
6. Future Scheduled Meetings
a. Tuesday, September 26, 2017 at 1:00 p.m.
Tuesday, October 24, 2017 at 1:00 p.m.
Tuesday, November 21, 2017 at 1:00 p.m.
7. Suggestions for future agenda items
None.
8. Adjournment— at 1:36 p.m.
September 7, 2017 Regular Board Meeting Agenda Packet- Page 294 of 294