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Home My WebLink AboutFINANCE MINUTES 08-29-17Il Central Contra Posta Sanitary District REGULAR MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FINANCE COMMITTEE MINUTES Tuesday, August 29, 2017 1:00 P.M. Executive Conference Room 5019 Imhoff Place Martinez, California C:nmmittpp- 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. BOARD OF DIRECTORS: PAUL H. CA USEY President JAMES A. NEJEDLY President Pro Tern MICHAEL R. MCGILL TAD J. PILECKI DA VID R. WILLIAMS PHONE: (925) 228-9500 FAX.- (925) 372-0192 www.centralsan.org 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 X2.1 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. 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. 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.