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Home My WebLink About16.c. Minutes-Finance Committee 01-23-18 Page 1 of 4 Item 16.c. I Central Contra Costa Sanitary District February 1, 2018 TO: HONORABLE BOARD OF DIRECTORS FROM: DONNA M.ANDERSON, PROVISIONAL SECRETARYOF THE DISTRICT SUBJECT: JANUARY23, 2018 - FINANCE COMMITTEE - PRESIDENT NEJEDLYAND MEMBER PI LECKI 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. Finance Committee Minutes 01-23-18 February 1, 2018 Regular Board Meeting Agenda Packet- Page 145 of 148 Page 2 of 4 I CENTRAL SAN CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 9AS53-A392 REGULAR MEETING OF THE BOARD OF DIRECTORS: CENTRAL CONTRA COSTA JAMES A.NEJEDLY SANITARY DISTRICT President FINANCE COMMITTEE DAvrDR, WILLIAMSProTem Tem President Pro PAUL H CAUSEY MINUTES MICHAEL R.MCGILL TAD J PILECKI Tuesday, Januar 23, 2018 PHONE: (925)228-9500 y FAX.- (925)372-0192 2:00 p.m. www.centralsan.org Executive Conference Room 5019 Imhoff Place Martinez, California Committee: Chair Jim Nejedly Member Tad Pilecki Staff.- Donna Anderson, Provisional Secretary of the District (left after Item 3.a.) Ann Sasaki, Deputy General Manager Phil Leiber, Director of Finance and Administration Danea Gemmell, Planning and Development Services Division Manager Stephanie King, Purchasing and Materials Manager Thea Vassallo, Finance Manager Thomas Brightbill, Senior Engineer Chris Thomas, Finance Administrator Shari Deutsch, Risk Management Administrator (left after Item 4.b.) Cindy Granzella, Senior Administrative Technician 1. Call Meeting to Order Chair Nejedly called the meeting to order at 2:00 p.m. 2. Public Comments None. 3. Future Scheduled Meetings a. Confirm remaining 2018 Finance Committee meeting dates COMMITTEE ACTION: Confirmed the meeting dates. February 1, 2018 Regular Board Meeting Agenda Packet- Page 146 of 148 Page 3 of 4 Finance Committee Minutes January 23, 2018 Page 2 4. Old Business a. Information requested on Kiewit Future Farm Proposal b. Ms. Vassallo explained that there was a question from the December 2017 Committee meeting about an insurance settlement stemming from a residential sewer overflow. Ms. Deutsch explained the procedure for reporting settlements to the Board, and when to seek Board approval. Chair Nejedly requested that the Finance Committee review the Loss Control Reports in the future, instead of the Administration Committee since it reviews the costs. COMMITTEE ACTION: Received the information. 5. Items for Committee Recommendation to the Board a. Review December 2017 Financial Statements and Investment Reports Ms. Vassallo stated that Operations and Maintenance (O&M) revenues were within I% of the year-to-date budget, and the expenses were within 6%. The sewer construction variance for revenue was approximately $1 million favorable. The Capital program spent $19.2 million, or 41% of the budget, year to date. She explained that the graph on page 21 shows that projected and actual Capital spending is almost equal. COMMITTEE ACTION: Reviewed and recommended Board receipt. b. Review draft Position Paper to approve updated administrative overhead percentage of 219% for Fiscal Year 2018-19 Ms. Vassallo stated that the overhead percentage is 6% lower than last year due to three main factors: decrease in cost of retirement benefits, increase in salaries, and three-year smoothing. Mr. Leiber stated that there will likely be one additional purpose for this rate, and that is the upcoming proposal to adopt the Uniform Public Construction Cost Accounting Act (UPCCAA). COMMITTEE ACTION: Reviewed and recommended Board approval. C. Review Expenditures dated February 1 , 2018 The Committee reviewed the expenditures included in the agenda materials, and staff responded to questions. February 1, 2018 Regular Board Meeting Agenda Packet- Page 147 of 148 Page 4 of 4 Finance Committee Minutes January 23, 2018 Page 3 Chair Nejedly requested additional information on check #103387, dated 12/15/17 to Erik Nelson. He asked if the damage was due to a flood, and Member Pilecki asked if a contractor would be held financially responsible. When looking at check#217572 for Bulldog Gas & Power, Chair Nejedly requested information on the last two years of landfill gas purchases. Member Pilecki requested additional information on check #217925, dated 1/4/18 to Paula Jeanne Turnham. He asked that more information be provided on the description used. COMMITTEE ACTION: Reviewed and recommended Board approval. 6. Other Items a. Receive list of Scheduled/Parking Lot items COMMITTEE ACTION: Received the information. b. Proposed changes to the Capacity Use Charge Program Ms. Gemmell explained that staff is working to simplify the current program. In order to simplify, staff will need to make changes to the District Code and, before working on the proposed changes, staff was seeking direction from the Committee. She reviewed the presentation included in the agenda materials. Ms. Gemmell explained that the proposed change would be available to non-residential users that owe greater than 1.0 RUE (residential unit equivalent), and would be an annual payment at a fixed rate of 6% for 10 years. Special studies will remain available to those customers who do not fit into standard categories. Member Pilecki recommended a 15-year payment term, and Ms. Gemmell agreed that such an option can be offered. COMMITTEE ACTION: Received the information and provided input to staff. 7. Announcements None. 8. Suggestions for Future Agenda Items None. 9. Adjournment— at 2:49 p.m. February 1, 2018 Regular Board Meeting Agenda Packet- Page 148 of 148