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HomeMy WebLinkAboutFinance MINUTES 11-20-18 Page 2 of 5 ENTRAL SAN —9_a 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 President SANITARY DISTRICT DAVIDR, WILLIAMS FINANCE COMMITTEE President Pro Tem PAUL H.CA USEY MICHAEL R.MCGILL M I N U T E S TAD J PILECKI PHONE: (925)228-9500 Tuesday, November 20, 2018 FAX.- (925)372-0192 y 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 (left after Item 5.a.) Stephanie King, Purchasing and Material Services Division Manager Shari Deutsch, Risk Management Administrator (arrived for Item 5.b.) Heather Ramamurthy (arrived during Item 3. and left after Item 5.a.) Laci Kolc, Risk Management Specialist Russ Leavitt, Engineering Assistant III (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. December 6, 2018 Regular Board Meeting Agenda Packet- Page 192 of 202 Page 3of5 Finance Committee Minutes November 20, 2018 Page 2 3. Old Business a. Follow-up to questions asked at the October 23, 2018 meeting regarding check and procurement card expenditures Chair Nejedly thanked staff for the explanatory memo. With regard to Amazon purchases on P-cards, Member Pilecki said he was not particularly concerned about inappropriate items being charged to P- cards, but was concerned that some employees may be spending time shopping for personal items on Amazon while also purchasing items for the District. Chair Nejedly said staff is aware of the Committee's concerns and trusts that supervisors and managers will provide appropriate oversight. COMMITTEE ACTION: Received the information. 4. Items for Committee Recommendation to the Board a. Review and recommend approval of expenditures dated December 6, 2018 The Committee reviewed the expenditures included with the agenda material, and staff responded to questions from both Committee Members. In response to an inquiry from Member Pilecki regarding membership in Isle, Inc. (Check No. 221481, $10,000, p. 7), Mr. Leiber said Isle, Inc. is a technology assessment group that tests emerging technologies for member utilities. This is a new membership for Central San. Member Pilecki said he would like to know at some point in the future if anything comes of this membership. Member Pilecki also commented on the number of transactions for food purchases in the past month totaling approximately$3,300. He noted that it is nearly$40,000 on an annual basis. He cautioned staff to pay careful attention to such purchases. Mr. Leiber noted that food purchases are only permitted for a limited number of situations. COMMITTEE ACTION: Reviewed and recommended Board approval. b. Review October 2018 Financial Statements and Investment Reports Mr. Leiber referred to the explanatory memo that was included with the agenda material. There were no questions from the Committee. COMMITTEE ACTION: Reviewed and recommended Board receipt. December 6, 2018 Regular Board Meeting Agenda Packet- Page 193 of 202 Page 4 of 5 Finance Committee Minutes November 20, 2018 Page 3 C. Review draft Position Paper to consider adopting Resolution Nos. 2018- to 2018- regarding funding eligibility from the California State Water Resources Control Board (SWRCB) Clean Water State Revolving Fund (SRF) for the Solids Handling Facility Improvements Project, District Project 7348 Ms. Gemmell introduced the item, noting that staff is putting together an application for a loan from the California State Water Resources Control Board (SWRCB) Clean Water State Revolving Fund (SRF) related to the Solids Handling Facility Improvements Project, District Project 7348. Staff is working toward submitting an application for an SRF loan on the Project before year end. She reviewed the presentation included with the agenda material, pointing out that due to the low interest rate, a $77 million SRF loan could yield a $20 million savings for the duration of the loan over other types of borrowing. Member Pilecki suggested that Ms. Gemmell highlight that fact on the presentation to the Board. Member Pilecki asked why the $50 million of pumping station projects was not included in the SRF loan model. Ms. Gemmell said projects related to aging infrastructure do not garner enough points in the application process to qualify for SRF loans. Member Pilecki also asked if SRF loans are subordinate to bonds. Mr. Leiber said no; they are on parity with existing obligations, and this arrangement has been reviewed by District Counsel and Bond Counsel. In conclusion, Ms. Gemmell said staff is looking for the Board to adopt the following three resolutions on December 6, 2018 regarding SRF funding eligibility: 1) for California Environmental Quality Act (CEQA) exemption and authorization to submit the SRF application, 2) to pledge revenues and funds, and 3) for reimbursement of expenditures. Member Pilecki said he was comfortable recommending Board approval. Chair Nejedly said he was not in support of the item. COMMITTEE ACTION: The Committee was split on this matter, with Member Pilecki in support, and Chair Nejedly opposed, so it will be presented to the full Board for consideration with no Committee recommendation. December 6, 2018 Regular Board Meeting Agenda Packet- Page 194 of 202 Page 5of5 Finance Committee Minutes November 20, 2018 Page 4 5. Other Items a. Review and provide input on Highmark Capital Management Government Accounting Standards Board (GASB 45) Other Post- Employment Benefits (OPEB) Sub-Trust and Pension Sub-Trust Quarterly Reports (Third Quarter 2018) Mr. Leiber briefly reviewed the report, noting that through the third quarter a number of factors affected the results, such as strong corporate earnings being offset by factors such as international trade concerns and increasing interest rates. The Fourth Quarter Report will be potentially more challenging given the downturn in the markets thus far in October and November. COMMITTEE ACTION: Received the report. Ms. Gemmell, Ms. Ramamurthy and Mr. Leavitt left the meeting. b. Review Risk Management Loss Control Report as of November 13, 2018 Ms. Deutsch reviewed the Loss Control Report with the Committee. COMMITTEE ACTION: Received the report. C. Receive list of future agenda items COMMITTEE ACTION: Received the list. 6. Announcements None. 7. Future Scheduled Meetings a. Tuesday, December 18, 2018 at 2:00 p.m. 8. Suggestions for Future Agenda Items None. 9. Adjournment— at 2:39 p.m. December 6, 2018 Regular Board Meeting Agenda Packet- Page 195 of 202