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wENTRAL SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 94553-4392
REGULAR EETI G OF THE BOARD OFDIRECTORS.,
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CENTRALCONRATCOSTA pre.vident
SANITARY DISTRICT DAVID R. iFILL]A MS
FINANCE C Pres d-eya Pro Tom
MIUMEL R.ASC GILL
IN U TEC rAD J_PILECKI
PHONE: (925)228-9. 00
Tuesday, August 21, 2018www.ce tralsa t.oig
::00 p. .
Executive Conference Room
5019 Imhoff Place
Martinez, I if rn is
Committee.-
Chair Jim Nejedly
Member Tad Pilli
Invited Guests:
Andrew Brown, Director— H i hm rk Capital Management (left after Iters 5.c.)
i k We iga nd, Client S e ari ces C o o rd n ato r— PARS P u.bl ic Agency Retirement Servi ces)
(left after Iters . .
Staff;
Katie Young, Secretary of the District
Ann Sasaki, Deputy my General Manager
Phil Leber, Director of Finance and Administration
Jean-Marc Petit, Director of Engineering and Technical Services (left after Item 5.c.)
Stephanie King, Purchasing and Materials lana r
Chris Thomas, Financial Administrator
Shari Deutsch, I i l Management mini tr t r (left after [tern .a.
Donna Anderson, Assistant to the Secretary of the District
1. Call Meeting to Order
Chair Nejedly called the mee Ping to order a t :00 p.m.
. Public Comments
None.
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Finance Committee Minutes
August 21, 2018
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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
maten'al, and to 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 gear 2 017-18 Pre- ud it Year-End F i n a n ci a I Statement
Summary Report and variance alternatives
Mr. L ted.khat the Fiscal Year 2017-18 revenues exceeded
expectations and expenses were less thananticipated, leaving a total net
/p
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 fun-ds, 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
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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
maten'al.
COMMITTEE ACTION: Reviewed the report.
b. Review June 2018 Procurement Card Statements
This item was taken o u t o f o rde r, im me die tely fallowing Item 4.a a fte r
which the Committee reverted back to Item 4A
COMMITTEE ACTION: Reviewed the statements.
C. Review and provide input on Highmark Capital Management
Government Accounting Standards Board (GASB 45) Other Post-
Employment Benefits (OPE E Sub-trust Quarterly Report (Second Quarter
2018)
This item was taken out of o rde r, im me dia tely a fte r Item 3.a
Mr. Brown reviewed the presentation included with the agenda maten'al,
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 oft e 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 interra final stocks in favor of mostly small- and mid-cap
investments to reduce volatility.
COMMITTEE ACTION: Received the report.
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Finance Committee Minutes
August 21, 2018
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Upon conclusion of this discussion, Messrs. Brown and Weigand/eft the
meeting and the Committee retuned to item 4.a. on the agenda.
d Receive list of future agenda items
COMMITTEE ACTION: Received the fist.
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.
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