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I CENTRAL SAN
CENTRAL • ■ • COSTA . IMHOFF PLACE, MARTINEZ, CA 9AS53-A37
REGULAR MEETING OF THE BOARD OF DIRECTORS:
CENTRAL CONTRA COSTA JAMES A.NEJLDLY
President
SANITARY DISTRICT DAVID R, WILLIAMS
FINANCE COMMITTEE President Pro Tem
PAUL H CAUSEY
MICHAEL R.MCGILL
M I N U T E S TAD J PHECKI
PHONE: (925)228-9500
Tuesday, April 24, 2018 FAX.- (925)372-0192
www.centralsan.org
2:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
Committee:
Chair Jim Nejedly
Member Tad Pilecki
Staff.
Roger S. Bailey, General Manager
Katie Young, Secretary of the District
Ann Sasaki, Deputy General Manager
Phil Leiber, Director of Finance and Administration
Jean-Marc Petit, Director of Engineering and Technical Services
Danea Gemmell, Planning and Development Services Division Manager
Stephanie King, Purchasing and Materials Manager
Thea Vassallo, Finance Manager
Thomas Brightbill, Senior Engineer (left after Item 4.c.)
Shari Deutsch, Risk Management Administrator
Irina Kadantseva, Management Analyst (left after Item 4.c.)
Theresa Nidetz, Temporary Internal Auditor (left after Item 5.a.)
Donna Anderson, Assistant to the Secretary of the District
1. Call Meeting to Order
Chair Nejedly called the meeting to order at 2:00 p.m.
2. Public Comments
None.
May 3, 2018 Regular Board Meeting Agenda Packet- Page 266 of 275
Page 3 of 6
Finance Committee Minutes
April 24, 2018
Page 2
3. Old Business
a. Receive additional information requested by Committee at March 20, 2018
meeting regarding Patio Dining Capacity Fees
Ms. Gemmell explained the additional information included with the
agenda material that had been requested by the Committee at the last
meeting. She said staff was seeking the Committee's input with regard to
criteria to consider in assessing patio dining capacity fees, noting that
three options were presented in the agenda material.
Given that the potential problem of unpaid Capacity Fees from patio dining
has turned out to be less than originally envisioned, Ms. Gemmell stated
that Option 3 would be the easiest for the Permit Counter to administer.
Member Pilecki said he was comfortable with Option 3 as a justified
approach for charging nothing or next to nothing for patio dining. Chair
Nejedly concurred.
COMMITTEE ACTION: Recommended Board approval of Option 3,
which revises the definition to assess patio dining as described in
Option 2 (which would assess patio dining capacity fees only to
Seated Restaurants (RS) and Bars (RN)), and provides for a 360-
square-foot patio dining area allowance.
4. Items for Committee Recommendation to the Board
a. Review draft Position Paper to receive the draft Wastewater Capacity Fee
Review Study by Black and Veatch
Ms. Gemmell stated that Black and Veatch competed its review of the
District's capacity fee methodology and concluded that the current
methodology is appropriate, save for a couple of small calculation errors,
which have since been corrected and addressed by staff.
Member Pilecki said he was pleased with the report. He also inquired as
to the dollar value of the calculation errors, to which Mr. Brightbill
responded that it was small; less than $10 per Residential Unit Equivalent.
Chair Nejedly asked what it cost to have Black and Veatch conduct the
study. Ms. Gemmell said approximately $30,000.
COMMITTEE ACTION: Reviewed and recommended Board
acceptance of the results of the Black and Veatch Wastewater
Capacity Fee Review Study.
May 3, 2018 Regular Board Meeting Agenda Packet- Page 267 of 275
Page 4 of 6
Finance Committee Minutes
April 24, 2018
Page 3
b. Review draft Position Paper to establish June 7, 2018 at 1:30 p.m. as the
date and time for a public hearing regarding a proposed ordinance to
amend the Schedule of Capacity Fees
Mr. Brightbill reviewed the proposed capacity fee increases for the coming
fiscal year. Ms. Gemmell noted that staff will conduct outreach with the
building industry prior to the June 7, 2018 public hearing.
COMMITTEE ACTION: Recommended Board approval of the
proposed Schedule of Capacity Fees.
C. Review draft Position Paper to establish June 7, 2018 at 1:30 p.m. as the
date and time for a public hearing regarding a proposed ordinance to
amend the Schedule of Environmental and Development-Related Fees
and Charges
Mr. Brightbill reviewed the proposed changes to the fees charged at the
permit counter and by source control for the coming fiscal year.
COMMITTEE ACTION: Recommended Board approval of the
proposed Schedule of Environmental and Development-Related Fees
and Charges.
d. Review draft Position Paper authorizing the execution of new adoption
agreements for the 457 and 401(a) Deferred Compensation Plans
restating existing provisions and incorporating updates, including updates
to eligibility
Ms. Vassallo first reviewed the proposed changes to the 457 Deferred
Compensation Plan, which, as explained in the draft Position Paper, would
include moving the Board Members from the current 457 PTS Plan
(covering part-time, temporary, and seasonal employees) to the regular
457 plan to allow Board Members a broader range of investment options
for their contributions.
Ms. Vassallo responded to several question from Member Pilecki, after
which the Committee recommended Board approval of the proposed
changes to the 457 Plan.
Ms. Vassallo then reviewed the proposed changes to the 401(a) Money
Purchase Plan, the most significant of which is to provide an opportunity
for employee groups to take full advantage of the deferral limit (currently
$55,000) on an annual basis. Contributions to 401(a) plans are not
electable by individual employees; they are specified by group. As such,
the District can comply with these IRS regulations by amending the 401(a)
plan to require mandatory contributions by bargaining group, or subgroup.
May 3, 2018 Regular Board Meeting Agenda Packet- Page 268 of 275
Page 5 of 6
Finance Committee Minutes
April 24, 2018
Page 4
Member Pilecki asked if the decision for a bargaining group to participate
in the mandatory contributions must be unanimous. Ms. Vasallo said that
was her understanding, but that she would look into it further.
Mr. Leiber said staff could also look into the criteria for what defines a
group.
COMMITTEE ACTION: With respect to the proposed changes to the
457 Deferred Compensation Plan, the Committee recommended
Board approval. With respect to the proposed changes to the 401(a)
Money Purchase Plan, the Committee requested that additional
information to address their questions be included in the Position
Paper that is presented to the full Board.
e. Approve expenditures dated May 3, 2018
The Committee reviewed the expenditures included in the agenda
materials, and staff responded to questions.
Member Pilecki requested additional information on check #38306 to the
Town of Danville and check #38333 to the City of Pleasant Hill for
manhole modifications.
COMMITTEE ACTION: Recommended Board approval.
f. Review March 2018 Financial Statements and Investment Reports
Ms. Vassallo reported a year-to-date favorable variance of$4 million for
Operations and Maintenance (O&M) expenses. She reported that the
Sewer Construction revenues are showing a positive variance of
$1.2 million owing to a large capacity fee received in August 2017. A little
more than half of the sewer construction expenses have been spent
($25.6 million) year to date and it is expected that another$6 million will
be spent by year end.
In response to a question from Member Pilecki, Ms. Vassallo confirmed
that the capital budget is estimated to be underspent by approximately
$5 million this fiscal year.
COMMITTEE ACTION: Recommended Board receipt.
5. Other Items
a. Presentation of Internal Audit Report on Petty Cash Transactions July 1 ,
2016 through October 31 , 2017
May 3, 2018 Regular Board Meeting Agenda Packet- Page 269 of 275
Page 6 of 6
Finance Committee Minutes
April 24, 2018
Page 5
Mr. Leiber stated that this was the first of three audits being presented to
the Committee and Board this fiscal year.
Ms. Nidetz reviewed the findings set forth in the audit report for petty cash
controls and Ms. Vassallo reviewed the steps staff has taken and is taking
to address those findings.
COMMITTEE ACTION: Recommended Board receipt of the Internal
Audit Report on Petty Cash Transactions (July 1, 2016 through
October 31, 2017).
b. Review Risk Management Loss Control Report as of April 10, 2018
Ms. Deutsch reviewed the Loss Control Report included with the agenda
material and responded to questions from the Committee Members.
COMMITTEE ACTION: Discussed and provided input to staff.
C. Receive list of Scheduled/Parking Lot items
Member Pilecki suggested that several of the proposed items for the
May 21, 2018 meeting be postponed in order to allow sufficient time for
review of the draft O&M Budget.
COMMITTEE ACTION: Received and provided input to staff.
6. Announcements
None.
7. Future Scheduled Meetings
b. Monday, May 21, 2018 at 2:00 p.m.
Tuesday, June 26, 2018 at 2:00 p.m.
Tuesday, July 24, 2018 at 2:00 p.m.
8. Suggestions for Future Agenda Items
None.
9. Adjournment— at 3:10 p.m.
May 3, 2018 Regular Board Meeting Agenda Packet- Page 270 of 275