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I CENTRAL SAN
CENTRAL • ■ • COSTAi. . IMHOFF PLACE, MARTINEZ, CA 9AS53-A37
REGULAR MEETING OF THE BOARD OF DIRECTORS:
CENTRAL CONTRA COSTA DAVID R, WILLIAMS
President
SANITARY DISTRICT MICHAEL R.MCCILL
FINANCE COMMITTEE Presiden t Pro Tem
PAUL H CAUSEY
JAMES A.NEJEDLY
M I N U T E S TAD J PHECKI
PHONE: (925)228-9500
Tuesday, November 26, 2019 FAX 3�2-0192
www.cententralsan.org
2:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
Committee:
Member Jim Nejedly
Member Tad Pilecki, alternate for Chair Causey
Staff.-
Roger S. Bailey, General Manager
Ann Sasaki, Deputy General Manager
Phil Leiber, Director of Finance and Administration
Stephanie King, Purchasing and Materials Manager
Kevin Mizuno, Finance Manager
Tej O'Malley, Human Resources Manager
Todd Smithey, Finance Administrator
Shari Deutsch, Risk Management Administrator
Donna Anderson, Assistant to the Secretary of the District
1. Call Meeting to Order
Acting Chair Nejedly called the meeting to order at 2:00 p.m.
2. Public Comments
None.
3. Items for Committee Recommendation to the Board
a. Review and recommend approval of expenditures incurred October 11, 2019
through November 14, 2019
Staff addressed several questions posed in advance of the meeting by
Member Pilecki and at the meeting by Acting Chair Nejedly.
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Acting Chair Nejedly asked for additional information at the next meeting for
the expenditure of$11,800 to Softchoice Corporation (Check No. 226295)
for one-year support renewal.
COMMITTEE ACTION: Recommended Board approval and follow-up
information on the Softchoice Corporation expenditure.
b. Review October 2019 Financial Statements and Investment Reports
COMMITTEE ACTION: Recommended Board receipt.
C. Review draft Position Paper to adopt Resolution Nos. 2019-
through Resolution Nos. 2019- , pursuant to District Code Section
2.28.010, establishing three new funds: Rate Stabilization Fund, Pension
Prefunding Trust Fund, and the Other Post-Employment Benefits (OPEB)
Trust Fund
Mr. Leiber explained that the two new funds for the Pension and OPEB trusts
will make Central San's financial reporting clearer.
COMMITTEE ACTION: Recommended Board approval.
4. Other Items
a. Review Risk Management Loss Control Report as of November 8, 2019
Ms. Deutsch reviewed the Loss Control Report with the Committee.
COMMITTEE ACTION: Received the report.
b. Receive information on Contra Costa County Employees' Retirement
Association's (CCCERA) valuation as of December 31, 2018 and 2019
GASB 68 Financial Valuation Highlights
Mr. Mizuno summarized the information contained in the memo included with
the agenda material.
Member Pilecki suggested that staff augment the memo to include
discussion of the funded ratios including the Pension Prefunding Trust. He
also sought clarification of the following terms: funding valuation basis,
financial reporting valuation, valuation value basis, and market value basis.
He asked that staff clarify the use of the terms in the two contexts covered by
the memo.
Mr. Smithey explained there are two types of valuations for assets:
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Finance Committee Minutes
November 26, 2019
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1) Market value - basically a snapshot in time, which encompasses the
first two terms above; and
2) Valuation value - an actuarially determined value that is smoothed
over time, which encompasses the last two terms.
Member Pilecki asked which value should be used from a Board planning
perspective.
Mr. Smithey said both valuations are necessary for financial planning
purposes. If there is a large unrecognized gain or loss, one must consider
the market value because it is helpful when deciding, for example, on making
large investments. On the other hand, the valuation value helps with rate
setting and mitigates volatility because it is smoothed. As an accountant, he
said the Net Pension Liability (NPL) calculated under GASB 68 is an
appropriate value when comparing the funded status of differing pension
systems; however, the public has historically looked at the valuation value.
Mr. Mizuno further explained that the valuation value basis (smoothed) is
useful for budgetary planning in establishing pension contribution
requirements for the coming year, much like an adjustable mortgage
payment is determined. On the other hand, the market value basis
(snapshot) is what an organization would owe if it were to go out of business
at that valuation date.
COMMITTEE ACTION: Received the information and provided input
to staff.
C. Receive information on identity theft benefit for District employees
Ms. O'Malley briefly recapped the information contained in the agenda
material.
Ms. Deutsch added that the Identity Fraud Expense Reimbursement
Coverage covers both employees and their spouses.
COMMITTEE ACTION: Received the information.
5. Announcements — None.
6. Suggestions for Future Agenda Items
a. Receive list of upcoming agenda items and provide suggestions for any
other future agenda items
COMMITTEE ACTION: Received the list.
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7. Future Scheduled Meetings
Wednesday, December 18, 2019 at 2:00 p.m.
8. Adjournment— at 2:39 p.m.
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