HomeMy WebLinkAbout12.d. Minutes-Finance Committee 08-21-18 Page 1 of 5
Item 12.d.
CENTRALSAN
CENTRAL CONTRA COSTA SANITARY DISTRICT
September 6, 2018
TO: HONORABLE BOARD OF DIRECTORS
FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT
SUBJECT: AUGUST 21, 2018 - FINANCE COMMITTEE - PRESIDENT NEJEDLYAND
MEMBER PILECKI
Attached are minutes of the above Committee meeting.
Strategic Plan re-In
GOAL ONE: Provide Exceptional Customer Service
Strategy 1 - Build external customer relationships and awareness
ATTACHMENTS:
1. Finance Committee Minutes 08-21-18
September 6, 2018 Regular Board Meeting Agenda Packet- Page 131 of 135
Page 2 of 5
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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
25)
Tuesday, August 21, 2018 FAx entra72-°192
www.centralsan.org
2:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
Committee:
Chair Jim Nejedly
Member Tad Pilecki
Invited Guests:
Andrew Brown, Director— Highmark Capital Management (left after Item 5.c.)
Nik Weigand, Client Services Coordinator— PARS (Public Agency Retirement Services)
(left after Item 5.c.)
Staff.
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 (left after Item 5.c.)
Stephanie King, Purchasing and Materials Manager
Chris Thomas, Financial Administrator
Shari Deutsch, Risk Management Administrator (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.
September 6, 2018 Regular Board Meeting Agenda Packet- Page 132 of 135
Page 3 of 5
Finance Committee Minutes
August 21, 2018
Page 2
3. Old Business
a. Follow-up to questions asked at the July 24, 2018 meeting regarding
check expenditures
COMMITTEE ACTION: Received the information.
At this point, Item 5.c. was taken out of order to accommodate the invited
guests.
4. Items for Committee Recommendation to the Board
a. Review and recommend approval of expenditures dated September 6,
2018
This item was heard after Item 5.c.
The Committee reviewed the expenditures included with the agenda
material, and staff responded to questions from Committee Members.
It was suggested by the Committee that more information be included in
the description column of future expenditures listings.
COMMITTEE ACTION: Recommended Board approval, and
suggested that more descriptive information be included in future
expenditure listings.
Upon conclusion of this item, the Committee heard Item 5.b.
b. Receive Fiscal Year 2017-18 Pre-Audit Year-End Financial Statement
Summary Report and variance alternatives
Mr. Leiber stated that the Fiscal Year 2017-18 revenues exceeded
expectations and expenses were less than anticipated, leaving a total net
variance of about $11.9 million. The Board will need to direct staff as to
what to do with the surplus funds and staff intends to make
recommendations in the coming months. He mentioned that some of the
options include directing all extra funds to the capital program, using a
portion to reduce unfunded liabilities, or a combination thereof.
In evaluating the best use of the surplus funds, Member Pilecki said he
would be interested in seeing a scenario in which anticipated borrowing
was reduced.
Mr. Leiber said the favorable pricing for the recent 2009 bond refinancing
may have a positive carryover effect on future borrowing. Funding via a
September 6, 2018 Regular Board Meeting Agenda Packet- Page 133 of 135
Page 4 of 5
Finance Committee Minutes
August 21, 2018
Page 3
State Revolving Fund (SRF) loan may also be available. If so, it will
reduce the amount of a second bond offering.
COMMITTEE ACTION: Recommended Board receipt.
C. Review June 2018 Financial Statements and Investment Reports
COMMITTEE ACTION: Recommended Board receipt.
d. Review July 2018 Financial Statements and Investment Reports
COMMITTEE ACTION: Recommended Board receipt.
5. Other Items
a. Review Risk Management Loss Control Report as of August 7, 2018
Ms. Deutsch reviewed the Loss Control Report included with the agenda
material.
COMMITTEE ACTION: Reviewed the report.
b. Review June 2018 Procurement Card Statements
This item was taken out of order, immediately following Item 4.a., after
which the Committee reverted back to Item 4.b.
COMMITTEE ACTION: Reviewed the statements.
C. Review and provide input on Highmark Capital Management
Government Accounting Standards Board (GASB 45) Other Post-
Employment Benefits (OPEB) Sub-trust Quarterly Report (Second Quarter
2018)
This item was taken out of order, immediately after Item 3.a.
Mr. Brown reviewed the presentation included with the agenda material,
noting there has been little change since the last quarterly report.
Corporate earnings continue to be strong and interest rates are expected
to rise due to the strength of the economy. From an asset allocation
standpoint and in anticipation of higher interest rates, which can make
fixed income investments more attractive, he said Highmark has reduced
positions in international stocks in favor of mostly small- and mid-cap
investments to reduce volatility.
COMMITTEE ACTION: Received the report.
September 6, 2018 Regular Board Meeting Agenda Packet- Page 134 of 135
Page 5 of 5
Finance Committee Minutes
August 21, 2018
Page 4
Upon conclusion of this discussion, Messrs. Brown and Weigand left the
meeting and the Committee returned to item 4.a. on the agenda.
d. Receive list of future agenda items
COMMITTEE ACTION: Received the list.
6. Announcements
None.
7. Future Scheduled Meetings
a. Tuesday, September 25, 2018 at 2:00 p.m.
Tuesday, October 23, 2018 at 2:00 p.m.
Tuesday, November 20, 2018 at 2:00 p.m.
8. Suggestions for Future Agenda Items
None.
9. Adjournment— at 2:45 p.m.
September 6, 2018 Regular Board Meeting Agenda Packet- Page 135 of 135