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Home My WebLink About11.b. Minutes Finance Committee 09-26-17Page 1 of 5 Item 11.b. Central Contra Costa Sanitary District October 5, 2017 TO: HONORABLE BOARD OF DIRECTORS FROM: ELAINE BOEHME, SECRETARY OF THE DISTRICT SUBJECT: SEPTEMBER 26, 2017 - FINANCE COMMITTEE - MEMBER NEJEDLYAND MEMBER PI LECKI Attached are minutes of the above Committee meeting. Strategic Plan re -In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Foster Customer Engagement and Awareness ATTACHMENTS: 1. Finance Committee Minutes 9-26-17 October 5, 2017 Regular Board Meeting Agenda Packet - Page 170 of 196 Page 2 of 5 Il Central Contra Costa Sanitary District REGULAR MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FINANCE COMMITTEE MINUTES Tuesday, September 26, 2017 1:00 P.M. Executive Conference Room 5019 Imhoff Place Martinez, California (7nmmiffAA Chair Jim Nejedly Member Tad Pilecki Staff. - Roger S. Bailey, General Manager Kent Alm, District Counsel Ann Sasaki, Deputy General Manager Phil Leiber, Director of Finance and Administration Stephanie King, Purchasing and Materials Manager Thea vassallo, Finance Manager Donna Anderson, Assistant to the Secretary of the District 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. 3. Old Business 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) 676-7211 www.centralsan.org a. Finance Committee request for additional information on Sewer Construction Expenses for Fiscal Year 2016-17 COMMITTEE ACTION: Received the information. October 5, 2017 Regular Board Meeting Agenda Packet - Page 171 of 196 Page 3of5 Finance Committee Minutes September 26, 2017 Page 2 4. Items for Committee Recommendation to Board a. Review August 2017 Financial Statements and Investment Reports Ms. Vassallo reported that Operations and Maintenance (O&M) revenues are on target, and expenses are currently running a favorable variance of $1.2 million through August 2017. Sewer Construction revenues for the same period had a favorable variance of $1.9 million, primarily due to a capacity fees payment for a development in San Ramon. She said 6.1 of the Capital Improvement Budget has been spent through August. COMMITTEE ACTION: Reviewed and recommended Board receipt. b. Review Expenditures dated October 5, 2017 The Committee reviewed the expenditures included in the agenda materials, and staff responded to questions. COMMITTEE ACTION: Reviewed and recommended Board approval. 5. Other Items a. Follow-up discussion to August 29, 2017 meeting on development of a local vendor preference program Mr. Leiber reviewed the material included with the agenda packet, noting that the alternatives for a more formalized local vendor preference program were presented at the request of the Committee and that staff was prepared to respond to questions. Chair Nejedly said that it is important to support local vendors, who in turn support Central San. He expressed a preference for spending time trying to patronize local businesses and believes there may be times when staff should have the discretion not to go with the lowest bid. Mr. Alm said that although local vendor preference is a simple concept, it can be very complicated from a legal perspective. Cities are in a better position to justify local vendor preference policies because, unlike special districts, they receive sales tax revenues. He said if the Board were to desire a local vendor preference policy, the approaches outlined in the agenda materials are probably the safest in terms of potential legal challenge. As a general rule, he said that routinely calling on specific local vendors is not an acceptable government agency practice. October 5, 2017 Regular Board Meeting Agenda Packet - Page 172 of 196 Page 4 of 5 Finance Committee Minutes September 26, 2017 Page 3 Chair Nejedly, expressing disappointment that there seem to be so many obstacles to utilizing local vendors, said he was unwilling to pursue the matter any further. Ms. King noted that current staff practice has been to utilize local vendors when appropriate. Member Pilecki proposed that staff develop a less restrictive local vendor preference Board policy for purchases below $5, DDD where only a single quote would be required. He also said the definition of "local vendor" should be clearly stated in the policy. Ms. King noted that competitive quotations/bids are required for purchases greater than $3,500 based on current purchasing policies and procedures. Ms. King said that each division is delegated purchasing authority to select the vendors for low dollar purchases below the threshold of $3,500. Member Pilecki proposed increasing the limit when competitive quotations/bids are required from $3,500 to $5, 000 and considering a policy to award purchases under this new threshold to local vendors whenever possible. Chair Nejedly said he was unwilling to support a local vendor preference proposal on the belief that ultimately nothing will change. In response to a question from Mr. Alm, Member Pilecki said there was no need to bring a draft policy back the Committee for further discussion; instead, he preferred that the item be brought to the full Board for consideration. COMMITTEE ACTION: Member Pilecki recommended that staff develop a simplified draft Board policy on local vendor preference that (1) applies to purchases that only require one quote (currently purchases below $3,500), (2) considers increasing this limit from $3,500 to $5,000, and (3) defines "local vendor." Member Nejedly declined to support the recommendation. b. Receive list of Scheduled/Parking Lot items. Member Pilecki reiterated a previous request for information on contracts and blanket purchase orders (BPOs) older than five years with an annual spend greater than $25, 000. COMMITTEE ACTION: Received the list and provided input to staff. October 5, 2017 Regular Board Meeting Agenda Packet - Page 173 of 196 Page 5of5 Finance Committee Minutes September 26, 2017 Page 4 6. Announcements None. 7. Future Scheduled Meetings a. Tuesday, October 24, 2017 at 1:00 p.m. Tuesday, November 21, 2017 at 1:00 p.m. Tuesday, December 19, 2017 at 1:00 p.m. Chair Nejedly asked if Member Pilecki and staff would consider shifting the start time for the above meetings to 2:00 p.m. All parties were agreeable to this request. COMMITTEE ACTION: The start time for the scheduled meetings for the remainder of the year was changed from 1:00 p.m. to 2:00 p.m. 8. Suggestions for Future Agenda Items None. 9. Adjournment — at 1:45 p.m. October 5, 2017 Regular Board Meeting Agenda Packet - Page 174 of 196